INVESTING IN PARADISE Tips for Purchasing Property in Barbados

Suzanne Davis CEO / Sales & Rentals Specialist, Luxe

approved agent of the Barbados Estate Agents and Valuers Association. All BEAVA agents co-broke each other’s properties and therefore they can offer you whatever is listed by other BEAVA agents. It is less stressful for you to deal with one agent who you feel comfortable with and trust.

To find the list of approved agents, you can visit: www.beavainc.com.

Know for sure what type of property you need, like and can afford: The location, number of bedrooms and amenities are critical considerations. Also consider whether you might want to purchase a stand-alone villa, a town house or a condominium. Consider the type of neighbourhood that you would like and whether you would like a resort or gated community.

Determine how you intend to use the property: Will it be an investment property, your holiday home or will you be living in it long term? If it is for investment, will you be trying to flip it or will you be using it for short or long-term rentals? Will it remain empty when you are not staying in it?

Find a property that matches your needs and tastes: Then ask your agent about any general concerns regarding the property or neighbourhood, plus any specific covenants, rules and regulations, or requirements for a structural survey. The agent can also advise you about what would constitute a fair price and what initial offer you should make.

The property investment guidelines summarised in this short article have been extracted from my book Investing in Paradise – The Definitive Guide to Investing in Real Estate in Barbados, which I felt compelled to write after working for over 30years in the industry, including two stints as President of BEAVA, the Barbados Estate Agents and Valuers Association.

Before you start the process of property ownership in Barbados, outside of the obvious prerequisite of investment capital, you need to be prepared to embark on an educational, numerical and perhaps even emotional journey. I recommend that you start off by establishing some clarity of intent, including the fundamental purpose of the property, its size, location and type. Do some research, ask lots of questions and work with a recommended, experienced, local property specialist.

Here is a brief list of considerations for your guidance.

Arrange your finances: Make a decision on what you can comfortably afford. If you will require financing, make sure that you consider the fees and interest for a mortgage. If you need a mortgage, visit your bank or financial institution and determine the best price range for your needs and budget. Make sure to be preapproved for the maximum number in this range.

Find a reputable agent: You do not need more than one real estate agent. Your agent should be your partner from the beginning to the end of your real estate journey. In the Barbadian context, the agent that you select should be a recognized,

Hire a Legal Attorney who is a member of the Barbados Bar Association: According to the laws of Barbados, all property transactions must be conducted through the offices of approved Legal Attorneys. Along with the potentially complex nature of such transactions, this makes it imperative that both vendors and purchasers appoint a good legal attorney. Your agent will be able to recommend attorneys who they have previously done business with and can vouch for their reputation and track record for closing sales in a timely manner.

Other tips:

-Don’t decide based on a photo alone, schedule a trip to Barbados and visit the property.

-If you consider building, note that building is not always cheaper than buying or renovating.

-When factoring in costs, consider the services of a good property manager, especially if you do not plan on living in Barbados full time.

-Do not exceed your budget, it’s better to start small and upgrade over time.

Investing in property in Barbados can, and should, be a pleasurable and rewarding experience, especially when you follow all the right steps.

For further information or to obtain a copy of the book Investing in Paradise: Email: suzanne@luxecaribbeanproperties.com Visit: www.luxecaribbeanproperties.com Tel: Luxe Caribbean Properties Inc. 1 (246) 832-4604