Luxury real estate has always been affordable in remote locations or in foreign countries, but affordable real estate in Palm Beach Florida? The same place that has sold some of the most expensive property in the U.S. is now selling incredibly luxurious property at surprisingly low costs.

So why is luxury property better to invest in than normal property? While it may seem like common sense, actually putting the numbers out there for you may provide an idea of how important this is.

The average property in the U.S. probably goes for around $200,000. If the real estate market you live in has seen a price reduction of 40-percent over the past five years the average home now costs $120,000. That means you saved $80,000 on a property which is amazing. But the average luxury home costs around $500,000 and if that same property has dropped 40-percent over the last five years the average luxury home becomes $300,000 saving the buyer $200,000.
 

Recession or not, sexagenarians and septuagenarians are turning their eyes toward retirement. But retirees have more options than they have in the past and have different interests as well. A trend of retirees staying active would suggest that they'd like to remain close to urban areas and with the economy in its current condition that may not be such a bad idea.

Because of the declining value in 401Ks and economic instability many people are opting to partially retire by continuing to invest and maybe even continuing to work part time. If someone is deciding to partially retire, living in an urban area is a good idea. Living in an urban area like Palm Beach provides a variety of living options; particularly the condo-lifestyle and the home-lifestyle.

Palm Beach homes range from waterfront mansions to intercoastal villas, but usually uphold a high standard of luxury. Palm Beach is a popular place for boating so waterfront property is in high demand and usually comes with a dock or has a marina close by. 

Condo living is a choice if you want to invest in Palm Beach real estate for retirement. This option is growing in popularity as Palm Beach condos are known for having incredible amenities and residential features. They also have condos that are strictly for retirees which gives residents a community of friendly and familiar neighbors.

There's a lot to choose from when deciding on retirement property in Palm Beach, but the areas high reputation for luxury ensures retirees and semi-retirees a high standard of living.

Included is the Sales Data as mentioned in the Palm Beach Real Estate Guide.

The recent news that pretty much trumped all financial news (real estate related or otherwise) was the historic government bailout designed to address the economy, save banks and, among other things, fix the housing market by getting people interested in markets like Palm Beach real estate again.

This bailout has divided many people with some lambasting the decision and others praising it as an unwanted, albeit necessary measure to keep the economy from getting worse.  While the bailout is designed to address multiple components affecting the country, some experts don’t think it will do very much to get people interested in buying Palm Beach condos again.

Current figures show that thirty year mortgage rates remain high and therefore prevent most people from being able to afford the monthly payments and that’s on top of how hard it is to actually get approved for a mortgage in the first place.  In order to get the ball rolling on home buying again, real estate experts believe the government should begin by lowering these rates.

Rates have dropped considerably but they’re still not to the point where people can afford them on top of all the other costs that go into buying a home.  If the government were to assist buyers with a down payment up to a certain point, it would take out one of the major roadblocks and increase the number of people buying Palm Beach homes.

Other suggestions have already been implemented, namely the Hope the Homeowners plan which will allow thousands of homeowners stuck with adjustable rate and subprime mortgages to refinance.

The bailout is still in its early stages and many of these economic and housing solutions haven’t really begun to show their results but as 2008 comes to a close, the effects on whether they’ll sway Americans into buying real estate again will show in the numbers.

Despite the continued housing market hardships, Palm Beach real estate continues to provide unprecedented buying opportunities for intrepid and financially savvy buyers.  As everyone knows sellers are also quite willing to negotiate on price, sometimes resulting in over $45,000 dollars in savings on purchases of Palm Beach homes.

Obviously the continued news of dwindling home prices is not favorable.  But like many real estate experts have predicted, the glut of unsold Palm Beach real estate sitting quietly on the market awaiting buyers is finally beginning to come down for once as the year has progressed leading many to believe that the Palm Beach real estate market and--South Florida real estate market for that matter--are slowly approaching the bottom.  While there is still more than a year’s worth of Palm Beach condos and Palm Beach homes up for sale, the actual number has decreased considerably, brining it closer to two years.

Does this signal an impending real estate market renaissance for Palm Beach?  That’s still too early to say and for the time being there is still twice as many homeowners attempting to sell off their property than there is people wanting to buy them.  However, as was mentioned, the actual number of homes up for sale is considerably less than the figures of early 2008.

Most people will agree that a true market recovery will not be happening anytime soon since the country is still grappling and figuring out how to deal with the fallout of the poor lending practices that lead to the market collapse in the first place.  However, many realtors and followers of the housing market are looking at these recent decreases in inventory with a grain of salt and plenty of cautious optimism.  During a time when the market’s future is still uncertain and could potentially improve or get worse, any positive news is certainly welcome.

Despite the fact that the Real Estate market in most of the country is feeling the pinch, the Island of Palm Beach continues to buck the trend with several high-end property sales this season.

Described as the opposite of a bubble, sources within the industry say that the demand for Palm Beach property is increasing, while availability is decreasing.  And, judging from the amount of record-breaking sales in the last few weeks alone, it looks like it will continue.

Industry experts cite a couple of reasons for the anti-bubble situation in Palm Beach.  First, investors are recognizing the potential value of owning property on the Island, rather than investing their money or playing the stock market.  Also, supply has been reduced by the ever-growing practice of merging two or more properties into one large parcel.

Some of the more notable sales this season include:

Trump Mansion Under Contract for $100 M

A 62,000 square-foot oceanfront mansion owned by Donald Trump has reportedly sold for its full asking price of $100 million to an unnamed foreign buyer.

Trump bought the 6-acre property in 2004 for 41.35 million and spent $25 million renovating it to include nine bedrooms, media room, wine room, art gallery, conservatory, ballroom, two guest houses and a 48-car garage.

Trump predicted he would sell the property at that exact price three years ago, before it ever went on sale.  After toying with the idea of converting the property into a luxury hotel, he dropped his original asking price of $125 million recently, after reportedly turning down offers ranging between $85 and $90 million.

According to reports, the unnamed buyer is contemplating tearing down the current structures and perhaps dividing the land into multiple parcels.

Kimmel Mansion – Speculated Price $75M

Built in 1998 and designed by architect Thierry W. Despont, Sidney Kimmel’s European-style Palm Beach mansion at 1236 S. Ocean Blvd is under contract for a reported $75 million.

According to reports, the buyer, who wishes to remain anonymous, was the second to make an offer on the property, which attracted celebrities, athletes, wealthy patrons from abroad, key figures in business and even a Saudi prince.

Depending on how you view it, the sale price could exceed the Town record set for residential real estate in 2004 – the sale of Casa Apava for $70 million to Dwight Schar, Chairman of NVR Inc.  Schar also purchased two vacant plots across the street from the same person for $22 million, his purchases totaling $92 million.

Palm Beach Homeowners Get Offer They Can’t Refuse

Proving once again that Palm Beach follows its own set of rules, word on the Island is that George and Frayda Lindemann’s oceanfront residence at 60 Blossom Way has been sold for a price rumored to be between $70 and $80 million – and it wasn’t even on the market.

The 27,000 square feet Balinese-style mansion is situated on a 3.7 acre lot and has 320 feet of private beach.  The Lindemanns finished building their home, designed by Peter Marino, in 2000.

Clearly, the offer was too tempting to pass up. However, according to reports, the Lindemanns will stay in Palm Beach, possibly moving farther North and into a smaller, more manageable residence.

Developer Swanson Sells Spec House

Dan Swanson, a developer for Addison Development Co. sold the property at 589 N. County Road in December for an undisclosed amount, although sources place the price between $40 and $47 million.

Bought in 2001 for $11.8 million, Swanson demolished the 1962 Bermuda-style home that was there and replaced it with a 15,700 sq. ft. compound with two guest houses and a seven-car garage.

Reef Sells for $31.85M

In another surprise Palm Beach sale, The Reef was sold to Stephen M. Ross, co-owner of the Miami Dolphins.  The property was not listed for sale, and no real estate brokers participated in the transaction.

Ross is also chairman, CEO and founder of The Related Companies, developer of Time Warner Center and multiple luxury towers in New York City.

Worth Ave. Home Sells All Contents

On the market since fall 2006, the lakefront property at 460 Worth Avenue sold for $19.94 million, plus an additional amount for everything inside.  The Seller, Stephen E. Myers Sr., co-founder and chairman of US Cable Group, bought the property in 1993 for $4 million – a nice profit in any market.

The Buyers, Karlheinz and Marianne Andresen, have another waterfront home in Hamburg, Germany, where Karlheinz Andresen Land Administration Co. is located.

The Worth Avenue home was built in 1991 on the spot where socialite Sue Whitmore lived.  In 1920, however, the site was home to Villa des Cygnes – House of Swans – built for Major Barclay Warburton and designed by Palm Beach fixture Addison Mizner.

Il Lugano Penthouse sells for $12.1M

In what is most likely a record price for a condominium in Palm Beach, the penthouse of the West building of the Il Lugano condominium was bought from Miami Dolphins co-owner Stephen Ross for $12.1 million.

The unit at 300 Seminole Ave has 5,798 square feet, is situated on an entire level of the building and has five terraces that overlook the Intracoastal, Palm Beach and also the Atlantic Ocean.

Renovated in 2000 by developer Richard Schlesinger and his son Adam, what used to be the 66 unit Dorset House was totally restructured into 14 luxury condominium apartments, taking out a level of the building to accommodate larger units with higher ceilings.  The unit also boasts a private cabana, boat dock and 4-car garage.

Former Xerox CEO’s Estate Sells for Over $10M in Manalapan