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Waterfront? How About Just Water?

The Housing Scene by by Lew Sichelman
by Lew Sichelman
The Housing Scene | February 26th, 2021

Looking for waterfront property but finding it way out of your league? Consider a houseboat.

Floating homes were popular back in the 1960s, but then floated away, so to speak. They’re back now, though -- bigger and better than ever.

If you live in one full time as your principal residence, it qualifies as real estate for federal tax purposes. And there may not be any property taxes, depending on where the vessel is moored.

According to the folks at YachtWorld.com, interest in houseboats -- especially high-end ones -- is gaining traction wherever there’s water.

According to statistics provided by Boats Group -- the Miami-based parent company of YachtWorld, BoatTrader.com and boats.com, which together have over 200,000 listings -- the number of people open to the live-aboard lifestyle is on the rise. The group reports a 40% increase in inquiries about houseboats in 2020.

The number of boat builders introducing more spacious, innovative designs has also grown. Boats Group’s Ryan McVinney says that houseboats are “more houselike and luxurious than ever before.”

Views of houseboat listings are “up dramatically,” McVinney reports. In fact, across some of the top boating states in the country, houseboat views were up more than 170% in the final quarter of 2020, suggesting strong, sustained demand will continue long into 2021.

There are numerous reasons for the resurgence: Nostalgia is one. People familiar with yesteryear’s models have fond memories of their experiences and want to recapture those moments with their own families. Folks also like the mobile lifestyle, and the fact that the latest models can accommodate the work-from-home movement.

There’s certainly a lot to look at. Consider, if you will, the Arkup 75 “house yacht,” a 75-foot floating villa. It has 2,700 square feet of indoor space and 4,350 square feet overall, including two decks and five terraces. The Arkup literally plants itself almost anywhere close to a marina or beach, lifting itself above the waterline on 40-foot steel hydraulic spuds. Once lifted, the vessel is completely stable in up to 25 feet of water and is able to withstand most storm surges.

It also features floor-to-ceiling high-impact windows, which offer protection against hurricane-force winds, plus panoramic views. A 2,400-square-foot array of rooftop solar panels generates enough power for all onboard electrical systems and propels the boat at a consistent 2 knots -- as long as the sun is shining. The vessel has four bedroom suites, a laundry room and a system that harvests and purifies rainwater, then stores it in a 4,000-gallon tank.

The vessel was most recently listed on YachtWorld at $5.5 million, fully furnished and decorated, but you can customize your own model starting at about half that.

Looking for something a little less expensive? How about a 2008 Harbor Home 58 Upper Deck, listed at $209,000? Moored at Maryland’s Kent Island, this 58-footer features two bedrooms, a Jack-and-Jill bathroom -- oops, I mean “head” -- and a large living area. The kitchen features custom cabinets, granite counters and full-sized appliances. There’s also a four-season sunroom, a rooftop deck and a new HVAC system.

Need something in between those options? There’s a 2017 Sumerset 70 currently tied up near Chestertown, Maryland, listed at $699,000. It has four staterooms, three heads, a lounge and a formal dining area. But my favorite is the futuristic Bravada V-Series, selling for $799,000. Floating now on Lake Mead, Nevada, this fully customizable vessel features 9-foot ceilings, a waterslide, a hot tub, a theater room and Jet Ski ramps.

But that’s enough free advertising. The question is, how do you know if boat life is for you?

Living on the water can be a little more complicated than living beside it. Says McVinney: “Living on a boat is a specific type of lifestyle.”

There’s a pretty good overview here: boattrader.com/resources/houseboats-guide-to-float-houses. But here are a few pointers:

-- After you’ve explored the houseboat market, rent one to see if you like it. “Spend some time onboard,” McVinney advises. “Often sellers will lease their houseboats for a month at a time.”

-- You need not be an expert navigator. But if you plan to leave port, do yourself and your family a favor and take a Coast Guard course on boating and boat safety.

-- If you do intend to motor off somewhere, make sure you know your vessel’s draft, beam (width) and height in case you have to go under bridges. If your trip involves large bodies of water, make sure the vessel is seaworthy.

-- Onboard living means close quarters in all but the fanciest models. Be sure there’s enough space for everyone.

-- If you intend to tie up at a marina, you’ll have shore power and water. But if you have to anchor somewhere, your houseboat needs to be self-sustainable and able to hold wastewater and trash.

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Inland Surfing: The Latest Amenity

The Housing Scene by by Lew Sichelman
by Lew Sichelman
The Housing Scene | February 19th, 2021

First came Crystal Lagoons -- human-created bodies of water that can transform landlocked real estate into waterfront housing developments. Now comes Wavegarden: a water park that turns inland properties into surfing destinations. No sharks or other dangerous denizens of the deep; just hang 10.

Using artificial wave technology, the giant surfing pools are said to be world-class and commercially viable. Waves of practically any size can be created to accommodate anyone from beginning surfers to seasoned veterans. The noise-free machinery can generate from 300 to 1,000 waves per hour, and can run nonstop or produce sets of waves in almost any desired quantity.

To keep the water clear and hygienic, Wavegarden’s state-of-the-art system uses a series of sustainable treatments, including fine filtration, ozone and UV disinfection and low-chemical chlorination.

Based in northern Spain, the company opened its first commercial water park in Wales in 2015, and another in Austin, Texas, in 2016. Then in 2019, the first Wavegarden Cove -- featuring the company’s latest technology and a smaller footprint -- opened in Bristol, England. The second quickly followed in Melbourne, Australia.

Now, with projects in development on five continents, Wavegarden has signed on to build a surfing facility at Willow Lakes, a new 200-acre community of 800 homes, plus retail and office space, in Fort Pierce, Florida.

As part of the project’s initial phase, Surfworks Resorts will be large enough to hold about 100 surfers at a time. Although the property is several miles from the Atlantic, it is being designed as a “whole new coastal community,” land planner Geoff Fitzgerald told the local Treasure Coast News. “It’s planned around a Wavegarden.”

Another wave pool is planned as part of a surf resort in Palm Desert, California -- far inland from the Pacific. At DSRT SURF, oceanlike waves of clean, crystal-clear water will produce consistent rights and lefts, barrels, walls and turn sections for experienced surfers. Gentler inside sections will be suitable for cruising or for learning.

Besides the 5.5-acre pool, the project will feature an upscale hotel, 62 villas for sale and a broad offering of resort amenities.

Meanwhile, after inking deals with several housing developers throughout the country, Crystal Lagoons has gone public -- but it isn’t selling stock. Rather, the Miami-based outfit has turned its attention to building its new Public Access Lagoons wherever there is vacant land -- including public parks, shopping malls, golf courses, racetracks and just about anywhere else.

These PALs can be built to almost any size -- up to 14 acres, so far -- and transform any location into an entertainment hub that generates revenue from entrance and membership fees, water sports, cabana rentals, restaurants, special events and even naming rights.

To date, Crystal Lagoons have been the province of housing developers. The company’s 7.5-acre pool at the Epperson community in Wesley Chapel, Florida, was its first to open in the United States. The lagoons were initially intended as a private amenity, but demand has been so great that the outfit is converting to the PAL business model.

Now the company has signed its first PAL deal to develop an 11-acre pool, up to 10 feet deep, on government land in Glendale, Arizona. Branded as Crystal Lagoons Island Resort, the pool will be part of the Westgate Sports and Entertainment District and will include retail spaces, theaters, restaurants, amusement rides, office space and a 600-room hotel.

At 12 acres, its largest lagoon to date is at Lago Mar in Texas City, Texas, and is part of a 2,000-acre, 4,400-home property. The pool opened last summer during the pandemic. Tickets usually sell out a week in advance, even though occupancy is limited to 1,500 people -- just 30% of capacity.

Epperson and Lago Mar each generate tens of thousands of dollars in revenue from ticket sales, sponsorships, food and beverage sales and boat and equipment rentals, according to a company spokesman.

Crystal Lagoons is under contract or in negotiations to build pools in Texas, Florida, Arizona, Alabama, California, North Carolina, Pennsylvania and Tennessee. In Texas, 70 projects are either signed or in negotiation; in Florida, the number jumps to 100.

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Odd Lots: Details, Bids, Mobile, Tall

The Housing Scene by by Lew Sichelman
by Lew Sichelman
The Housing Scene | February 12th, 2021

Chris Ann Cleland is a self-described “stickler for details.” That’s why the associate broker for Long & Foster Real Estate in Gainesville, Virginia, almost blew a gasket the other day when she toured a house for sale.

The place was “staged beautifully” with artwork and furniture, Cleland posted recently on the ActiveRain real estate site. But lightbulbs were missing from the bathroom fixture over the vanity. The foyer chandelier contained bulbs of different sizes and shapes. There was “absolutely zero lighting” in the secondary bedrooms, and the master bathroom’s shower had rust stains.

Small stuff to some, perhaps.

“To me, this stuff is unacceptable,” Cleland says. “Those items are way more important than the furnishings.”

Cleland and some of her colleagues say details like cleaning, caulking and making repairs are important because they make your home show better -- and that can put money in your pocket.

If left undone, items like these “signal a lack of maintenance,” says Sharon Tara, a home stager in Portsmouth, New Hampshire, adding that these details “reduce perceived value.”

Not all agents have seen the light, or the lightbulb. Tara says that more than once, agents have questioned her for pointing out such issues. “I actually had an agent tell me that he hired me for guidance on paint colors and furniture placement, not petty little details. All because I pointed out the fingerprints on the light switches and suggested they be cleaned.”

But Erik Hiss of Keller Williams Capital Partners Realty in Worthington, Ohio, is another agent who is annoyed by the things described here. “Sure, you can do the entire staging and make it look like a model (home),” he says. “But if you are missing lightbulbs, missing caulk on trim or the toilet seat is up, you’re missing the boat.”

Lynn Friedman of Atlanta Homes ODAT Realty is glad to know she’s not the Lone Ranger on this topic. In a house she previewed recently that was supposedly ready to list, she found that the dining room light didn’t work at all, and a bathroom that had been repainted still had switch plates in the old color. Not only that, but the bathroom fan covers looked like they had never been cleaned.

There’s probably a good reason sellers miss these items: They live with them all day, every day, so they just ignore them. Hey, if a bulb isn’t burned out, why change it? But these things stand out, warns sales coach Grant Schneider in Armonk, New York.

“It is like a beautiful shirt with a spot on it,” says Schneider.

So before you spend the money on a professional stager, who will prepare your house to appeal to the widest audience possible, tour your place with a buyer’s eye and make the necessary corrections.

“The first step in getting ready is on the seller,” advises Dorie Dillard of Coldwell Banker Realty in Austin, Texas. “The icing on the cake is the stager.”

RENTERS ARE BIDDING, TOO

Buyers aren’t the only ones competing with one another for prized houses. So are renters -- especially those who really, really want to get away from it all.

Blackstone International Realty recently rented a townhouse on South Beach for $36,000 a month -- more than $1,000 above the asking price -- after taking multiple offers for the property. The four-story, four-bedroom residence features, among other amenities, views of the Atlantic Ocean from the rooftop hot tub.

MOBILE HOME FINANCING

Financing for those looking to purchase manufactured houses will be a tad easier this year, as the major providers of mortgage money are going to bump up their activity in that sector.

At the direction of their federal regulator, Fannie Mae and Freddie Mac will purchase more loans made on factory-built houses, often referred to as mobile homes. Operating in the secondary mortgage market, the two government-sponsored enterprises buy loans from primary lenders and package them into securities for sale to investors.

Fannie will buy 12,650 to 13,150 such mortgages in 2021, a roughly 15% increase over its 2020 volume, while Freddie will boost its target from 4,000 loans in 2020 to as many as 4,700 in 2021. Loans that are stamped with the GSEs’ imprint are generally an eighth- to a quarter-percent less expensive than those not sold to them.

TALL, JUST NOT AS TALL

The tallest building completed last year, anywhere in the world, was Central Park Tower, a 179-unit condo in midtown Manhattan. It came in at 1,549 feet.

It’s the first time in five years that the tallest completed building was not in China, and the first time since 2014 -- when One World Trade Center was finished -- that the year’s tallest completed building was in the United States. It’s also the first time since 2014 that there hasn’t been a building finished that topped 1,640 feet.

To count as a tall structure, a building must be at least 656 feet high, according to the Council on Tall Buildings and Urban Habitat. Only 120 structures met that requirement last year, and 56 of them were in China. Dubai was the most prolific city, with 12.

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