Cuba Real Estate

Tuesday, November 27, 2012

CUBA REAL ESTATE MORE THAN MIAMI?

Havana Cuba Mansion Sold for $1Million USD

Real Estate In Cuba More Expensive than Miami?

Miami residents report that it cost more to buy a good house in Havana Cuba than to buy a house in Miami Florida. After 50 years of pent up demand for Cuban Real estate the market is finally starting to take off with super high prices, lots of buyers and very few sellers.

Miami Cuban Americans report that since late 2011, when General Raul Castro decided to legalize the purchase and sale of houses between residents of Cuba to rich foreigners who have permanent residence status in Cuba, Raul has been opened in a flood of real estate opportunities that would have been unimaginable in the past 50 years under the Cuban revolution of Fidel Castro.

Cuba is now booming in terms of tourism, American, Cuban American and U.S. tourism is growing exponentially, thanks in part to Barack Obama's decision to allow flights to and from Cuba. The boom is also in real estate due to 50 years of pent up demand in real estate.

The resale prices reflect the wide scope of the Cuban real estate for sale such as luxurious colonial-style villas in the most affluent neighborhoods of Havana, the capital, are sold at higher prices than similar properties in Miami, Florida. There is even talk of a million dollars for some mansions in Havana.

The fact is that the true name of the new owner will not be the one who actually pays for the property, but the Cuban resident who gives face to the transaction. A new breed of Cuban real estate brokers, though still illegal in Cuba, are flourishing on the Internet, and are allowed to operate by the Cuban government.

Illegal Cuban estate agents nicknamed "runners" can be found in the Cuban streets near Paseo del Prado of Havana . The Cuban real estate market is exploding here in Havana. The reason the Cuban real estate market is booming is the flood of new money coming from Cuban American families in Miami, New York, Las Vegas, Canada & Europe to Cuba.

The real buyers, in most cases, are Florida Cubans who migrated to Miami in the Fifty years after Fidel Castro revolution and thanks to new laws are buying back into the Cuban real estate market in their island paradise because most Cuban emigrants dream of eventually returning to their country of origin to enjoy their family, country & their roots even if only for a short holiday or a year.

One of the best Internet websites to buy Cuban Real estate is Revolico. Its the best places to hunt for a house in Cuba, provided you have cash, a purchaser or at least a local fictitious permanent residence on the island, are commonly advertised in Revolico real estate pages.

Examples of Cuban real estate for sale in Revelico are listed like this: Large house near Havana with garden, terrace, sea view, living room, four bedrooms and three bathrooms, officially sold for over $500,000 USD a cool half a million dollars. Revolico also offers some luxury residences in the neighborhoods of Miramar, Vedado and Varadero easily exceed one million USD.

Maybe now is the time to Send Money to Cuba to Buy Cuban Real Estate?

Monday, June 11, 2012

CUBA REAL ESTATE 20 NEW GOLF COURSES

Cuba (Photo credit: citronate)

BUY GOLF RESORTS REAL ESTATE ON CUBA BEACHES

Cuba Ministry of Tourism under the leadership of Former Cuban President Fidel Castro have announced plans to build 20 PGA golf courses over the next 10 years till 2025 as the Cuban island plans to offer more Golfing and themed amusement parks in addition to the sun and sand to the three million tourist who visit Havana, Varadero, Cayo Coco, Trinidad and all of Cuba every year stated Tourism Vice Minister Alexis Trujillo .

Cuba plans to build American style Golf resorts and Disney theme parks and add 250,000 All inclusive luxury hotel resorts as it tries to expand Cuban tourism and enhance its image as the Caribbeans leading resort destination said the tourism minister at news conference in Havana Cuba.

Cuban Tourism has become Cuba's main source of foreign currency since the collapse of Russia early in the 1990s which cut economic subsidies and started a long lasting deep depression. While Cuba is famous for the historical charm of Old Havana and its antique American vintage cars dating from the 1950s, most tourists go straight to Varadero beach resorts located north on the Caribbean island best beaches.

Tourism to Cuba rose 9.8% in 2012 after U.S. President Barack Obama lifted the American embargo to Cuba with travel restrictions and allowed Americans on religious and cultural exchanges to visit Cuba. Almost 300,000 Cuban-Americans and 50,000 American born citizens have vacationed to Cuba since 2011.

Canadians on Holiday to Cuba, Havana and Varadero beach are by the far the most popular tourist to the island with more than 1 million Tourist expected in 2012.

Friday, November 4, 2011

CUBA ALLOWS UNRESTRICTED BUYING AND SELLING OF CUBAN REAL ESTATE

CUBA REAL ESTATE FOR SALE

Cuba Beachfront Condos in Varadero & Havana on Sale

HAVANA CUBA. Cuba has opened the doors to allow Property to be bought and sold without any restrictions. The new Cuban real estate laws come in effect Nov 10 and will effect all Cubans and foreign [ernament residents of Havana & Varadero, Cayo Coco, Trinidad, Santa Lucia, Santiago de Cuba and the entire island of Cuba.
The new Cuban real estate laws are a huge breakthrough after 50 years of Fidel CAstro Communist rule and Cuba's socialist housing system
Finally Cuban buyers and sellers will be allowed to negotiate thier own home prices and move when and whereever they want in Cuba.
Any type of real estate transaction is acceptable including sales, trades, gifts to families by Cubans who are leaving Cuba with no government approval.
Cuba's foundation is shifting to capitalism, by allowing the free trade of all Cuban property.
Cuban residents who have been expecting the law for decades agree that Cuba real estate laws are likely to be far-reaching in a country full of 50 years of pent-up demand for freedom of all kinds.
Over one billion dollars of property is excepted to change hands in the first year.
CUBA NEW REAL ESTATE LAWS CONDOS FOR SALE IN CUBA

Cuba Havana Libre Hotel Former Havana Hilton Hotel

Cuba Hotel-Condo for Sale

Cuba hotel-condos for sale

Economists on the island favoring economic liberalization have said the country’s other changes — making room for small businesses, and private agriculture — have been limited by lack of internal demand. Some experts say home sales could free up the capital needed to jumpstart the island’s economy. At the very least, they argue, it will probably lead to a boom in renovation. In Cuban real estate economy the Cuban people now have some wealth and that’s a stake in the economy.

Yet on the other hand, there are also significant social concerns. Mario Coyula, Havana’s director of urbanism and architecture in the 1970s and ’80s, said that wide-scale buying and selling would lead to a “huge rearrangement” in Havana and other cities as the wealthy move to better areas. He and others said it would inevitably exacerbate class conflict.
Legal issues in Cuba law can cause concern which involves foreigners and Cuban American exiles. The new Cuban real estate laws requires permanent residency however anyone can buy a second home in areas of “descanso” or “veraneo” — vacation or summer destinations — leaves open the possibility of looser enforcement in selected places, perhaps coastal areas, Old Havana and the golf communities that are currently under development with foreign investment.

The new law does not broach the subject of property confiscated by the government in the early years of the revolution. Lawyers and experts say these claims, representing tens of billions of dollars, are still a long shot. Property law worldwide generally favors compensation, not the right of return, and Cuba has yet to show serious interest in addressing the issue. Officials have insisted that the United States must first pay restitution for the economic damage caused by the 1962 trade embargo.

Friday, February 4, 2011

CUBA TRAVEL

Cuba Hotel Nacional in Havana

CUBA'S MYSTERY

Cuba, that grand island of mystery, is also a land of timeless beauty, an eco-paradise, the land that time forgot and an other-worldly sort of travel experience as one feels as though they are stuck in a time warp…but certainly a most enchanting one. The largest Caribbean island, Cuba is all you can dream of and a much more. Pulsating with sensual music, endless sandy beaches, captivating culture, old-age architecture, welcoming locals, and delicious food it is the sort of time warp experience you’ll never want to leave. This is the largest of the Caribbean islands, which is about the size of England. It lies to the west of the Greater Antilles group and about a quarter of its terrain is mountainous. Cuba consists of the main island, the Isle of Youth and about 4,195 Cayes, commonly known as Cayos. Cuba is 140 kilometers from the Bahamas and 180 kilometers from Florida. It’ 13,000,000 inhabitants predominantly speak Spanish.

CUBAN LAW AND COMMERCIAL PRACTICE

Havana Grand Theater in Old Havana

CUBA COMMERCIAL LAW INFO

As is the case in many developing states, the commercial legal environment in Cuba is in a formative stage and accordingly, the legal rights of the Company and its subsidiaries may not be enforceable in Cuba to the same extent as they would be in a fully developed industrialized state, parliamentary democracy or market economy. The Company’s Development Agreement with Cuba provides for arbitration of disputes in Cuba and Cuba has, in the past, properly submitted to commercial arbitration and agreed to abide by the results thereof, but there can be no assurance that it will do so in the future.

Also, since Gran Caribe is an agency of the Cuban government, it may make decisions with respect to the development properties which are driven by non-commercial considerations. There can be no assurance, therefore, that actions by Gran Caribe, in respect of the Company’s joint venture, will always be in the best interests or consistent with the interests of the Company.

Financial Risk

Under the Company’s Development Agreement with Cuba, Wilton is responsible for obtaining 50% of the financing of each development project by way of third party debt financing, with the remaining 50% to be contributed equally by way of equity from Gran Caribe and Wilton. If Wilton is unable to obtain such debt financing on reasonable commercial terms, Gran Caribe and Wilton must contribute equally by way of equity, the entire amount required for such development project.

If either Gran Caribe or Wilton fails to contribute its portion of the required equity, the other party may make a loan to the defaulting party or may contribute the amount of the equity required directly to the subsidiary and subsequently dilute the defaulting party’s share in such development project. There is no guarantee or assurance that the Company will be able to arrange third-party debt financing for 50% of the cost of each development project. There is also no guarantee or assurance that the Company will have or be able to raise the amount it will be required to contribute to any given development project in equity.

If Wilton is unable to contribute its equity portion to any given development project, Gran Caribe is entitled under the Development Agreement to dilute Wilton’s interest in such development project. There is also no guarantee or assurance that Gran Caribe will have or be able to contribute its portion of equity required to finance any given development project, in which case Wilton would be required to contribute the entire amount required to finance the development project. There is no assurance that the Company will have or be able to obtain the equity required to any development project on its own.

The Company has made significant progress in arranging prospective sources of financing for its development projects, but definitive terms and conditions, and agreements reflecting these, have not been finalized. There is no assurance that those terms, conditions and agreements acceptable to the Company will be completed on a timely basis.

US LAW RELATING TO CUBA

The various U.S. laws and regulations establishing the embargo have been amended from time to time, including the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996, also known as the Helms-Burton Act (“Helms-Burton Act”), which extended the reach of the U.S. embargo. As a result, the Company is affected by these changing political and legal relationships between the U.S. and Cuba. Although the Company monitors and analyzes the potential impact of any anticipated changes and generally prepares to capitalize on any future opportunities or mitigate any increased risks, there is no assurance that the Company will not be adversely affected by changes in U.S. laws.

The Company is currently prohibited from accessing U.S. capital, debt, customers and suppliers, which limits its ability to mitigate the financial risks described above.
We have made every effort to ensure that the Company’s development projects are located on land which will not be subject to a claim which has been certified by the U.S. Foreign Claims Settlement Commission, the body responsible for dealing with U.S. nationals whose Cuban properties were confiscated by the Cuban government. However, there is no assurance that claims will not come to the attention of the Company or the U.S. government in the future.

The Company and its subsidiaries do not hold assets located in the U.S. The Foreign Extraterritorial Measures Act (Canada) provides that any judgment given under the Helms-Burton Act will not be recognized or enforceable in any manner in Canada. It also allows a Canadian corporation to sue and recover, in Canada, any loss or damage it may have suffered by reason of the enforcement of a Helms-Burton Act judgment abroad.

Summary

So, are you ready to buy some Leisure Canada stock? Are you ready to invest in Cuban real estate development projects?

The Carbonera Club project has been offering Cuban villas for sale yet there is no groundbreaking date for that project that I know of. To be fair, I have not heard of ANY groundbreaking of any new golf, course, marina or resort project in Cuba.

The biggest hotel owner/manager is Sol Melia in Cuba. I don’t think any foreign company comes close to Sol Melia with regards to a foreign business in the tourism industry. The company will be opening yet another Cuban hotel by the end of this year.

Since joint ventures are required for ALL development projects and since qualified large-scale construction contractors in Cuba are selected by the Cuban government, we may not see any ground breaking on any project for not just months but perhaps years.

LEGAL TO CUBA

CUBA REAL ESTATE DEVELOPMENT PROJECTS

Cuba Real Estate Development Projects

Monte Barreto

The Company and its joint venture, Bellavista Resorts SA has registered surface rights and development rights. Complete architectural, engineering and concept design plans have been approved by the Cuban authorities and all three phases of this project will be built concurrently. Specifications and project information have been compiled in order to begin a Request for Proposal process to select a general contractor.

The Company is also studying alternatives to underground parking and is working on detailed design components of the project and establishing a proactive value engineering analysis. Under the development agreement reached with the Cuban government, the Company through its subsidiary Wilton Properties Inc. has to match in costs the value of the land contributed by the Cuban Government of $10,350,000, after which costs on the project will be split 50-50.

Jibacoa

The Company is continuing discussions with the Cuban authorities and officials in charge of tourism and foreign investment regarding the approval of certain feasibility studies submitted to the Cuban government and clarifying the recent announcements from the Cuban government allowing the construction and sale of residential real estate associated with resort and golf projects. The Company is awaiting the formal approval from the Cuban authorities on the preliminary master plan and development program for Jibacoa. The specific joint venture for this property has been created and the Company is renewing its development rights and is proceeding towards the registration of its surface rights in light of the new 99-year residential leases recently announced by the Cuban government.

Cayo Largo

In September 2009, the Company received the authorization from the Cuban Government on the preliminary master plan and renewed development rights and to proceed with the land development process on 260,000 m2 of beachfront property and in December 2009, the Company received site approval. We have commenced program design for an eco-resort of approximately 400 rooms and the Company is currently engaged in economic feasibility studies. The Company is proceeding with the creation of a specific joint venture for this property and the registration of its surface rights.

Risks and Uncertainties

Country Risk

Taken from same Management Discussion paper, “The Company’s financial position and its development projects may be affected by political or economic instability. These risks include exposure to fluctuations in currency exchange rates and high rates of inflation. While the Cuban Government is currently seeking to encourage foreign investment by removing certain restrictions on foreign investments and permitting foreign entities to repatriate profits from Cuba, there can be no assurance that this trend will continue.

Operations may be affected by varying degrees by such factors as government regulations with respect to price controls, income taxes, expropriation of property, environment legislation, land use, water use and land claims of Cuban nationals. The effect of these factors cannot be accurately predicted.

The Company is also dependent on the Cuban economy, which itself is highly dependent on external factors such as commodity pricing of oil and nickel, and the state of the world tourism market.”

My comment - Is Cuba somewhat to blame here? Of course. There have many news story in 2010 about the Cuban government reviewing and/or approving a variety of new Cuban golf course and vacation resorts complemented by Cuban villas and real estate “for sale”, none have broken ground yet. Trying to develop golf resorts in a Communist country with a centrally controlled economy is certainly like pushing a rock up hill. Leisure Canada should know this and not over-hype their development status. They are a publicly traded corporation with a responsibility to their shareholders.

CUBA REAL ESTATE

Real Estate in Cuba

Real Estate in Cuba - Still no “groundbreaking” events
Over promise and under deliver should be the slogan of Leisure Canada.
Perhaps this phrase could serve as a warning to other Cuban real estate developers looking to start projects in a timely manner on Cuban land.

Of course the Cuban government doesn’t do many things quickly and I’m sure this is partially to blame for the extremely long delay regarding Leisure Canada’s development projects in Cuba but when it comes to hyping, perhaps even misrepresenting Leisure Canada’s state of real estate development in Cuba, the company is squarely to blame.

Recent Developments

The recent press release titled Third Quarter Results regarding its real estate development projects states that the architectural, engineering and concept design plans for their hotel development project, in Havana’s Monte Barreto district, have been approved by the Cuban authorities.

However, In April 2007, almost four years ago, the company was granted surface rights to the Havana land with a statement saying this would lead to “groundbreaking of the 238-room Phase One by end of 2007” so this item is not news. The press release also states that the company has not even begun to even solicit proposals from contractors to begin construction. This would appear to be a misrepresentation of the facts.

A positive comment about the Cuban government approving 99 year leases in the press release is a newsworthy event for Leisure Canada yet the stock price barely changed on this major announcement.

The release stated “This paves the way for consumers to acquire leasehold real estate in Cuba under competitive financing conditions similar to other offerings in Mexico and the Caribbean.” I don’t know about other offerings in other countries but we all know Cuba is not like other countries so to compare real estate in Cuba to real estate in Mexico and other Caribbean countries also appears to be hype or at least a misrepresentation of common sense.

Tuesday, November 27, 2012

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