Economy & Market

In the world of luxury hotels, few hotels have come close to the Fountainbleau South Beach’s $1 billion dollar renovation (yes, that is  a “b”, not an “m”).  Yes, this complete update and renovation took approximately 2 years, and in the end, there were two $1 million dollar chandeliers dangling in the lobby.  (that time they were “m’s”).  Let’s analyze further.

As long as there are realtors, there will be persuasion to invest in properties.  From primary to vacation properties, the pressure remains on to invest now, with constant chatter of the “market on the upswing”, and prices “at an all-time low, about to go up”.  When it comes to vacation property rentals, let us explain why renting is better than owning.

Luxury car mogul BMW has gone in a decidedly expressive direction with their latest rebranding strategy, targeting the emotion of joy.  Dubbed and “Joy is BMW” and “Uniquely BMW”, the new campaign is drastically different than its predecessors.  Let’s analyze it.

Far from the engine revving masculine dignity we are accustomed to, BMW has produced a Ralph Lauren-esque video featuring happy people of all ages driving their BMW’s in the sunshine, hair blowing in the breeze.  It is obvious their target market is expanding.

In local shocking news, a fire that broke out at Palm Springs Exotic Car Auctions has been ruled by fire investigators to be arson.  But who would want to destroy an exotic car?  That is still under investigation.

March of 2009 was a special month for Ferrari, as it marked the 1,000th Prancing Horse logo to call China home.  Yes, the 1,000th Ferrari was delivered to China in March, in prestigious style.  Enzo Ferrari said it best,
“There will always be people crazy enough to buy a Ferrari.” 

Is a fuel-efficient gas-electric hybrid luxury car a figment of fantasy, or is this automotive oxymoron potentially an upcoming player in the world of exotic cars? 

Of course the market is the central decision maker on the matter, and it stands to reason that a luxury hybrid could prove quite valuable and perhaps even common in the future, as greener standards are adopted across the board in the automotive industry.

Alfa Romeo’s parent company, Fiat, is rumored to be halting investments in the exotic Italian car company, as they scrutinize the future of the brand and their interests.

The mind-boggling auto industry has kept us all guessing as of late, and now GM has just confirmed that Koenigsegg has backed out of talks to purchase Saab.  Of course, at this fork in the road GM is no stranger to deal falling through, and if you require proof just seek out a Saturn dealer.

GM and Koenigsegg have been in talks for quite some time, carefully pouring over the implications of what is to become of Saab.  In the end, the restructuring of Saab simply proved too costly for a boutique carmaker.  Koenigsegg most likely had difficulty acquiring sufficient funds to persuade the government of Sweden that it could succeed in sustaining Saab for more than a few years.

If you are an avid BMW fan, we urge you to get up from your computer, and head to the nearest BMW dealer to check out the 135i.  I can imagine myself maneuvering my sparkling new BMW 135i out of the dealership and thinking to myself, “I. am. Awesome.”  It is that moving.

It seems that increasing concerns centering on fuel economy are less likely to impact buying decisions in the realm of exotic cars. 

In the world of concept cars, some are difficult to overlook-and some just plain stick out.  Not only is the a mouthful, it provides an eyeful of interesting. This is a functional and flexible, compact and cool concept car.  The doors open outward, allowing easy access to the space inside.

As the world begins to bud green sprouts from many an industry, none have taken more heat than the automotive companies to reduce their carbon footprint.  The main way to reduce the negative impact of autos is to develop new and environmentally sound methods of both building and operating them.  Enter Fisker Automotive.

Recently launched at the Organization of African Unity, the Saroukh el-Jamahiriya, or Libyan Rocket, was designed by Colonel Muammar Gaddafi.  This car is rumored to potentially be the safest car in the world.

From Sarah Palin to the California politicians who are under the magnifying glass for their luxurious tastes, these days it seems everyone is interested in high-profile spending habits, especially if these habits are billed to the people.

Campaign donations cushion California politics and it seems that Alaska has been funding the travel for Sarah Palin’s three daughters, Bristol, Willow and Piper to the tune of $21,012.  Democratic former governor of Alaska Tony Knowles never charged the state for the commercial flights of his three children, mentioning,
“There was no valid reason for the children to be along on state business, I cannot recall any instance during my eight years as governor where it would have been appropriate to claim they performed state business.”

Similarly, many of California’s lawmakers have not let the severe financial woes of the state hinder their expensive lifestyles-including some of the following expense report shockers:

•    First-class travel abroad
•    Luxury spas & salons
•    Stays at the Fairmont Hotel on Maui, just after an emergency budget session
•    Tours of the Taj Mahal
•    Stays at Four Seasons
•    Memberships to exclusive social clubs
•    Pricey swimwear
•    Swanky dinners
•    Gym memberships
•    Sporting event tickets and packages

These are just a few examples of the luxury splurges that have caused public outrage in these trying financial times.  Sarah Palin was the center of attention for her attention to detail, leaving many to joke that following a $150,000 shopping spree, Palin had an image problem. 

In these difficult times, it would seem that Michelle Obama won the hearts of many when she donned a $148 Donna Rico dress on “The View”, explaining, “You put a little pin on it and you’ve got something going on”.  It would appear that Michelle has it going on!  I think what America is saying is that if you are going to live the life of a millionare, do it on your own dime.
 

South Beach real estate sales are up for June. The Miami Herald has reported that for the last nine months overall sales were up. Buyers are collecting luxury properties at substandard rates. New lending programs are making purchases somewhat easier. Plus, new buyers can get tax credits and all Miami property owners can take advantage of caps on property taxes. As the dollar is still comparatively weak, an influx of international buyers have swept Miami properties. Be on the lookout for forclosures and short sales, buy it up Miami Beach!