Barbados Property News April-May 2023

Editor’s Comments

Welcome to our annual GREEN Edition of Barbados Property News, where we take a look at the environmental challenges we face across the island, and explore how you can build and run your home in a more sustainable way.

Credits

Pamela Hiles, Editor

According to the BBC, its estimated that over 11 billion tonnes of solid waste is collected globally, every year, either in a land fill or thrown into the oceans. This is unacceptable. And we in Barbados are no exception. We have tried in recent years to implement measures to help our communities live in a sustainable way, but many are falling on deaf ears. Our beaches are still strewn with debris, and those blue recycling bins provided by our government often seem to contain everything but garbage. I personally have seen them used as plant pots, dog houses, and even filled with children’s toys. Anything but recyclables. It’s not enough to just talk the talk, we need to walk the walk and educate our communities on how to reduce, reuse and recycle too.

We as a nation need to challenge our way of thinking, and the team at Blue Print are a great example of just that. They’ve shared some insights on how we can build efficiently and cost-effectively, while protecting our planet. Thank you to Blue Print, and our other fantastic contributors including Infra Construction, part of the Jada Group, who are diligently protecting our coastline where possible.

It’s been a great winter season in Barbados – our weather was perfect, tourism was booming. The property market continued to thrive as we stand strong as a top investment destination. Let’s continue this momentum and use the GREEN-spiration in this edition to make Barbados even better.

Remember, Barbados Property News is online and in hard copy across the island. Have a wonderful Spring season!

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The Material and editorial contained in this publication have been deemed accurate at the time of going to print. The views expressed as editorial are those of the Editor unless stated otherwise. No part of this publication may be reproduced without the consent of the permission of Hiltop Publications Ltd.

REDUCED

FOR SALE

Westmoreland Hills 39 - Westmoreland, St. James 4 bed, 4 bath set on ridge with ocean views US $1.75 million

FOR SALE

Claridges Villa 10 - St. Peter 3 bed, 3.5 bath walking distance to beach US $1.395 million

FOR SALE

Cordia Avenue 221 - Sunset Crest, St. James Block of four 1-bedroom apartments US $795,000

FOR SALE

Birdsong - Apes Hill, St. James 4 bed, 4.5 bath set in golf resort with sea views US $4.495 million

FOR SALE

Vuemont Apart. 260 - Vuemont, St. Peter 2 bed, 2 bath with excellent rental potential US $290,000

FOR SALE

Villas on the Beach 302 - St. James 1 bed, 1 bath beachfront apartment US $635,000

FOR SALE

Maxwell Coast Road Development - Christ Church 18 bed, 12 bath 3 properties with beach access US $4 million

FOR SALE

Pavilion Grove 6 - Porters, St. James 4 bed, 4 bath luxury community near beach US $875,000

FOR SALE

Heron Mill Estate Lot 33 - St. Peter 21,151 sq.ft. prime ridge lot with sea views US $147,500

246 432 1159

sales@jalbarbados.com

www.alleynerealestate.com

Building Solutions with Blue Print!

with space control measures. In an instance where a patio door is left open when the Air Conditioning is on, rather than the HVAC system drawing more energy to compensate for the extra heat in the room, the system will automatically shut off until the external issue is

Blue Print Management is an architectural and project management firm here in Barbados, that specializes in problem prevention and organization. We are a team of qualified, passionate professionals who utilize our understanding of the construction industry to foresee possible problems, and prevent them, saving time and money for our clients. When working on projects, we always ensure that we are complying with the Leadership in Energy and Environmental Design (LEED) requirements. LEED is the internationally known rating system for sustainable and environmentally sound buildings, as well as the globally recognised green building rating system.

When designing any building, light is always one of our first considerations. There are numerous studies that highlight the benefits of natural light; therefore, we use the largest windows possible to let in the greatest amount of natural light. While natural light has a cut-off point, artificial light does not, and to prevent a situation where someone accidently leaves a light on overnight, we utilize indoor motion sensor lighting. After 15 minutes of inactivity in a room, these lights automatically shut off to conserve energy.

Determining the optimal location for highly efficient Heating, Ventilation and Air-Conditioning (HVAC) systems is another major consideration in all our projects. It will be an important cost to the project but also to the operation cost of the building/house. We therefore try to select an energy efficient system with sensors. These sensors automatically send shut off signals once a lack of movement in a room is detected over a certain period of time. The HVAC systems are also equipped

One recommendation to our homeowner clients, which falls into the green building category, is solar panels. Solar panels divert direct sunlight from the roof of a building, and this works to reduce the temperature inside a building while converting the sun’s rays into usable energy for the property. Moving on from energy, we also source various environmentally friendly plumbing fixtures to ensure our clients’ satisfaction. A few of these plumbing fixtures are taps, shower heads and toilets that are efficient, but use very little water. As Barbados is a water scarce country, we are very conscious of the types of products we suggest. Moreover, we encourage our clients to use rainwater for irrigation and landscaping.

Another green building practice that we recommend constantly is the use of low Volatile Organic Compounds (VOC). VOCs are chemicals that release harmful gasses that build up in the atmosphere, negatively affect the air quality, and harm people and the environment. As VOCs are usually found in paints, flooring, and furniture, we work with our clients to find suitable, low VOC options to reduce the possibility of them suffering adverse effects, as well as limiting the overall impact on the environment.

Blue Print Management also specializes in property renovations. During these renovations we emphasize waste minimization, recycling and repurposing. For recycling and repurposing, we examine the state and quality of the used construction materials and determine whether they are suitable for repurposing. If these materials meet the required standard, we utilize them in the renovation rather than discard them. Based on years of experience, there will always be materials in a renovation that can be reused, and at times, the most that material will need is a touch up or refresh of its finishes.

Looking to start your own project? Make Blue Print Management your project management firm today!

Solar Watt - a leader in PV solar systems!

Solar Watt Systems Inc. was founded upon decades of experience and state-of-the-art technological expertise, reinforced by a customer-focused philosophy and strong corporate values, Solar Watt Systems is a cutting-edge company that specializes in the installation of photovoltaic systems. It specializes in the installation and supply of PV solar systems equipment and installation. It caters to clients locally and regionally currently. Solar Watts Systems customer base is wide range and includes clients from residential, commercial and utility sectors.

In recent years, Solar Watt has successfully delivered several large-scale commercial projects within both the private and public sectors including fulfilling a major contract to retrofit government offices and buildings with solar, as part of the Barbados Public Sector Smart Energy Program.

Having firmly established itself as a leading installer of Photovoltaic Systems, Solar Watt Systems is fully committed to playing an integral role in the country's green economy push to save energy and reduce toxic emissions. As part of its adopted mission to educate Barbadians about solar energy, particularly young people, the company has conducted programs in private and special needs schools, teaching students about the different components that make up a solar installation and how they work. These pioneer programs have made a positive impact on both pupils and teachers alike, inspiring several schools to launch their

renewable energy projects. Solar Watt has installed solar systems at Samuel Jackman Prescod Institute of Technology, Barbados Community College, and Lockerbie College, School of Special Needs.

Passionate about educating Barbadians at all levels, Solar Watt Systems is also keen to raise customer awareness of the benefits to be gained from the Fair-Trading Commission's decision on Feed-in-Tariffs (FITs) for Renewable Energy (RE) technologies, up to and including 10mW.

Solar Watts played a major role in sealing agreements between the Barbados Light & Power Company Limited and existing photovoltaic customers. This agreement would have included a signed, sealed deal where customers would have been permitted and allowed to maintain their existing arrangements with BL&P for 20 years. This would have proved advantageous to customers as it would have allowed persons and entities the visibility whereby, they would be allowed to see a true projected return on their investment.

Solar Watts Systems embraces the Government’s Green Energy Drive initiative. Its aim is to assisted in the attainment of the set national 2030 attainment green solar energy drive target. It is in full support of this drive where Barbados is being steered towards a projected 100 % renewable energy drive by the year 2030.

6 Ways Harris Paints Is Stepping Up for Sustainability

The harsh reality of climate change is becoming more and more evident, and Harris Paints, the island’s only local paint manufacturer, was an early advocate of new technologies and practices to reduce environmental impacts. This has been a continuing guiding principle at Harris Paints, having recently celebrated its 50th anniversary with a renewed commitment to strong environmental leadership and to contribute to a more sustainable future. Here are six ways Harris is making a difference.

1. Leadership in advanced water-based coatings solutions

Since the 1980s Harris Paints has been a fervent exponent of water-based technologies and were the first regional company to introduce many innovative products to the Caribbean. Many of these were boundary breaking, first-of-a-kind solutions, including acrylic floor paints and varnishes, which provide excellent performance with raw materials that are far gentler on the environment.

2. Gifting $20,000 per year to environmental studies

Harris celebrated 50 years of enriching lives through colour by announcing an annual grant to the University of the West Indies’ Centre for Resource Management and Environmental Studies. The aim of the grant is to support research activities that will serve to make a significant contribution to the sustainable development and protection of the Caribbean region.

3. Offering internationally certified low and zero VOC products

Harmful chemicals in paint are called Volatile Organic Compounds (VOCs) and Harris has worked assiduously to

develop effective formulations, based on leading edge technologies to significantly reduce or eliminate VOCs from select products, making paints kinder to users and to the earth.

4. Using only VOC free colourants

Many companies add VOCs to paint during the tinting process. However, Harris Paints uses only the purest, highquality pigments and colourants that are environmentally friendly with raw materials made from renewable sources. They are zero VOC and APE and Formaldehyde free.

5. Putting environmental policy at the forefront

As a producer of decorative and protective coatings, Harris Paints is challenged to continue to examine its business and find better ‘greener’ solutions. Harris was among the island’s first two recipients of Tier 5 accreditation in the Green Business Barbados program conducted by the Future Centre Trust (2015). Since that time, they have appointed a senior executive to the position of Vice President of Sustainability; undertaken an extensive renewable energy program and intend to have 100% renewably sourced electricity in Barbados by 2030; and as part of their ESG (Environment, Social, Governance) goals, Harris aims to operate its paint production across the region, free from public water by 2025.

6. Supporting communities

Environmental activities are not limited to items like paint and packaging but most importantly, incorporate people. Harris has had a long corporate history of supporting communities in the Caribbean. They have played a prominent part in hurricane relief activities; helped create homes to brighten the lives of under privileged persons and provided paints for murals that uplift and enrich communities. Most recently Harris has supported Hydrate Barbados by providing a bottle refill station at Sheraton Mall, providing free access to water for all while reducing plastic waste and is sponsoring, in association with the Barbados Road Tennis Association, the creation of 50 road tennis courts to bring fun and healthy recreation across Barbados.

Road Works to Coastal Works: Building Barbados’ Infrastructure

boundary wall was eroded by the waves, which were then coming onto the lawn and towards the house. The team worked to put in a temporary revetment until meeting with all the relevant parties to build a more permanent solution.”

“We are also doing similar work along the west coast on various beachfront properties as well as recently completing a large project just north of Folkestone Marine Park where we put in two groynes, four breakwaters and a walkway. We also transferred local sand to various beaches to nourish them. It was collected, cleaned in the quarry and then dispersed. We are extremely careful that the environment and marine life in the areas where we are working have minimal disruption.”

The company also specialises in green scaping around homes, creating water features such as ponds, waterfalls and swimming pools – they will make your creative vision come true.

Dedicated to “Building Barbados’ Infrastructure” the team was more recently contracted by the Ministry of Transport, Works and Water Resources, in partnership with the InterAmerican Development Bank to repave major roadways across the island as part of the Road Rehabilitation and Improving Connectivity of Road Infrastructure Project.

Barbados is famous for its beautiful beaches and it is widely acknowledged that with constant pounding surf causing coastal erosion, keeping them healthy is vital. Infra Construction Inc is well placed to ensure that this process of battling nature continues in a safe and productive way.

While known mainly for public road works across Barbados’ highways and byways, Infra Construction is also focused on sustainable residential infrastructure works and projects.

Speaking exclusively with BPN, General Manager of Infra Construction, Sean Cox shared, “We work closely with local Coastal Engineering firms ensuring coastal properties and beaches get the required protection. We recently had a job on the East Coast where virtually over a few days, the

The beautiful new stretch of highway going south between the Norman Niles Roundabout and the Clyde Walcott Roundabout was recently completed by Infra. They are also working on Crane roundabout to Sam Lord’s Castle Hotel by Wyndham (Belairs), Newton to Six Roads, and along the East Coast from Belleplaine to Barclays Park.

Infra Construction Inc, is part of the Jada Group of companies which includes Infra Equipment Rentals Ltd , Jada Inc –involved with the construction of commercial buildings, villas etc, Cemix – concrete and asphalt production and Millworks – specialising in joinery.

The entire Jada Group is powered by Solar power as is the Cemix plants that produce cement and asphalt.

Sean Cox, General Manager - Infra Construction

The perils of valuing for insurance purposes

Lesley Goodfellow MRICS Registered Valuer, Property Consultancy Services Inc.

A Valuer (Valuation Surveyor or Appraiser) is qualified to provide an opinion of the Market Value of a property i.e. the level at which the Valuer believes the property will transact at, at the valuation date.

Valuers are NOT qualified to provide assessments for building insurance purposes.

In accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation Global Standards ‘An estimated replacement cost figure for assets other than personal property that is provided either within a written report or separately, for the purpose of insurance, is not a ‘written opinion of value’ for the purpose of ‘undertaking valuation services’. Therefore, any indicative replacement cost figure provided will automatically fall outside the scope of valuation services.

A Quantity Surveyor is required to provide such an assessment if it is being relied upon for insurance purposes and it is imperative that the insurance replacement value (IRV) is accurate, otherwise properties are likely to be over or underinsured. This could be disastrous in the event that the property is substantially damaged or destroyed. It could potentially destroy a business and put the property owner in a financial position from which they may not recover.

If there is a loss which results in a full or partial claim; the principle of averaging would apply if the property is deemed to be underinsured. The loss adjuster would assess the value for which the property should have been insured. If the actual insured sum is less than the appropriate replacement value; the claimant would only receive the proportionate amount of the claim based on the percentage of the actual insurable value to the proper replacement value. e.g. if a property is valued at $5M and only insured based on a value of $4M; a claimant would only receive 80% of the full replacement value. The same concept would apply in the event of a partial claim.

Property improvements and inflationary rises in property values will directly impact the appropriate insurable value. Therefore, failure to maintain insurance based on the proper replacement value, could result in insurers only paying a proportion of the damages based on the actual level of coverage.

A property owner is at risk of not being properly insured if they: -

• Don’t update the sums insured

• Assume the resale value of the property is the same as the cost to rebuild it

• Rely on a bank, architect, builder, real estate agent, tax assessor, accountant, valuer or engineer and not a quantity surveyor or an insurance broker, for the insurance valuation

• Deduct land value from financial valuation reports

• Only think about the primary structure, not driveways, retaining walls, pools, landscaping, fencing, foundations, or other inside or outside property elements that need coverage

• Adopt a book value or refer to building guides

• Factor in second-hand rather than new purchase prices

• Ignore the real installation and commissioning costs

Some financial lending institutions in Barbados are requesting that Valuers either provide an insurance replacement assessment or, a depreciated replacement cost assessment as part of their instruction. In the first instance, property valuers are not properly qualified to provide such. The astute Valuer will heavily caveat their report to say that the assessment is indicative only and should not be relied upon. In the second instance relying on the cost approach for insurance assessment would be flawed. There are distinct differences between an Insurance Replacement Valuation (IRV) and a Depreciated Replacement Cost (DRC) assessment. Simply extracting the building cost from a DRC assessment (which has more than likely been devalued to take account of depreciation and obsolescence), does not result in an accurate insurance replacement assessment.

Insurance assessments do not account for depreciation and obsolescence. They also include demolition and site clearance costs, professional fees and contingences; all of which would come into play in the event of a major insurance claim. By simply extrapolating the build costs, or depreciated build costs; the likely consequence is that property owners are underinsuring.

Valuers should have professional indemnity (PI) insurance. A Valuer would not be covered for the provision of services where they are not properly qualified. Providing assessments of value outside their areas of expertise may breach their PI coverage. Prudent Valuers will record the reliance limitations when providing indicative insurance replacement assessments.

How to Sell Your Property in Barbados

by Junior Sparks, Global Estates Agency

Are you looking to sell your property in Barbados? If yes, you will be pleased to know that the Barbados real estate market is quite active at the moment. We're receiving lots of enquiries from both local and foreign buyers. This article serves to assist you through the sale process, from hiring the right real estate agent to closing the deal. Global Estate Agency Inc have been in the real estate brokerage business for over 19 years. Our clientele includes both local and foreign buyers who purchase properties in Barbados. From our modern and userfriendly website to our impressive social media following. We also have international reach via our marketing mediums in Europe, Canada, the USA, and more. I appeared on not one, but two episodes of HGTV's popular top tv show, House Hunters International!

HAVE ALL OF YOUR PROPERTY OWNERSHIP DOCUMENTS

For properties to be sold in Barbados, the title is transferred from the seller to the new owner via a Deed of Conveyance. Without this document, there is no sale. The transfer must be facilitated by two registered Barbados attorneys, one representing the seller and the other representing the buyer.

Other documents to carry out the sale: Updated Land Tax Bill, Plot Plan (If older than 20 years, a new plan must be done by a land surveyor) and Updated Utility Bills.

HIRE THE RIGHT REAL ESTATE AGENT FOR YOUR PROPERTY

Hiring the right listing agent could make the selling process run smoothly for you, closing the deal in no time. If you make the wrong choice with your agent, it may cause a significant delay, where your property stays quiet on the market for too long and becomes ‘stale’. Make adequate research to ensure that the agent has the qualifications and marketing power that you need for your property. Can they help you reach out to your target audience to get the best possible offer?

It is best to consider an agent that has an impressive online presence. Look out for a real estate company with a website, which should be easy to use and up-to-date. An agent with a massive social media following will go a long way in reaching a multitude of potential buyers. Also, your agent can make use of multi-listing websites to generate more traffic to your property listing. If your property has an appeal to the foreign market, choose a real estate company that has international reach. Enquire whether overseas ads are being run by the agent. Make extensive research on your agent or brokerage company before hiring them. Sale signs and banners are just as important as online marketing because not everyone is internet savvy.

Hire an agent who is a member of The Barbados Estate Agents and Valuers Association (BEAVA). BEAVA gives you a marketing edge because your property would be accessible by other real estate agents in the association. With over one hundred and fifteen members, your property would have a high chance of getting sold fast.

Real estate agents' commission fee for selling property in Barbados is

5% plus 17.5% VAT, this fee is subject to VAT if the agent is VAT registered.

WHAT DOES THE LISTING PROCESS IN BARBADOS ENTAIL?

Now that you've hired an agent, you need to book a listing appointment so that the agent could tour the property. This appointment is when you provide your agent with all the property details. You could go over the listing agreement while the agent takes notes, photographs, and videos of the property.

Once you agree with the terms in the listing agreement. It's usually either an exclusive or non-exclusive listing agreement. An exclusive listing agreement is where you would list your property with one agent, and external agents will still have access to the listing, but all showings and negotiations must happen via your agent. The seller agrees to pay a commission to the agent once the property is sold. The non-exclusive listing agreement is where you could list your property with as many agents as you like. The latter option doesn't guarantee that your property would get sold faster. It means more work for you to keep track of all the agents' marketing, making sure that there is no misinformation about the marketing details.

SUBMISSION AND ACCEPTANCE OF OFFER

The dream is to get multiple offers or one solid offer that is very near to the list price. Your agent is in charge of confirming the means of payment. It could be all cash or through a lender, and if it's the latter, the buyer must be pre-qualified with a lender before submitting any offers.

After your agent has confirmed the above, the buyer has to complete a document called an Offer and Acceptance Form. This form entails the buyer's details, offer amount, source of funds, photo ID, etc. When this form is completed by the buyer, your agent will then send you the same copy to complete the seller’s section.

AGENT PREPARES THE ATTORNEYS INSTRUCTIONS

After the Offer and Acceptance Form is executed, your agent goes ahead to prepare and send out the attorneys’ instructions to the attorneys who are representing the buyer and seller. The attorneys’ instructions is a document called a Memorandum of Sale. This document entails the confirmation of the agreed sale price for the property, the address, the buyer's and seller's details with the attorneys' details representing each party. Now, the attorneys embark on the legal process of the transaction. Usually, it takes between three to six months to close a sale transaction, provided that there are no unforeseen complications. Asides from the commission fee, there are additional expenses outside of paying your real estate agent, including stamp duty, transfer tax, land surveyor fee, and attorney’s fee. Each attorney will provide the parties with a quote before embarking on the transaction.