Barbados Property News

Contents
· Doors of Opportunity for Everyone (April/May 2008) *NEW*
· Time for change? (Feb/Mar 2008)
· There's Always a Time to Complain (Feb/Mar 2007)
· Time to fill the Property Vacuum (Dec 2006/Jan 2007)
· Mortgage Broker Clarence Hiles laments another year of limited innovation, progress and product, in the mortgage industry (Oct/Nov 2006)
· Watch your credit rating or it may come back to haunt you (Aug/Sept 2006)
· Cay…man, that's the way to go! (May/June 2006)
· Great Opportunity for Smaller Developers if they are Prepared (Feb/Mar 2006)
· Getting Finance in the Caribbean (Dec 2005/Jan 2006)
· Interest rates will hurt home owners... (Dec 2005/Jan 2006)
· Time to be positive, not negative!
· Mortgage Indemnity Insurance - Who's Kidding Who?
· More Gold than Silver
· THE ULTIMATE MORTGAGE GUIDE
· Weak Dollar spurs Barbados Property Market
· Plenty of Room for Optimism in the Property Market
· Great Expectations
· The Lifestyle Culture
· Re-locating to Barbados made painless

Doors of Opportunity for Everyone
(April/May 2008)

Despite the euphoria of a new year, and a new government things have been pretty quiet in the world of property and property finance in recent times. It shouldn't be so given the doors of opportunity that lie open to developers, realtors, lenders and government, but hasn't it has all come too easy for everyone in this business to prosper in recent times? The property boom in Barbados has been on the back of a weak US dollar. The strong investment from the UK and Europe has also been strengthened by a decline in the Spanish and Portuguese markets, and in more recent times the downturn in the previously booming Buy-to-Let UK property market and a credit squeeze.

In the early days Barbados developers moved quicker than our Caribbean neighbours to capture the lion's share of overseas investment and a culture of beachfront condos almost absorbed our island as supply struggled to meet an insatiable demand. Everybody has prospered in this property boom, from artisans to developers, from realtors to lenders, from suppliers to owners. Overall it has been a good time for Barbados business but everything moves in cycles and there is plenty of evidence in recent times to suggest that things are changing and cracks are starting to appear.

The US and the UK property markets are in turmoil, credit squeezes will eventually filter through to the Caribbean market and lower the number of people looking to purchase here. Also other islands are coming on stream with more property options, and many people in the business feel we have now reached saturation point in the condo development explosion? Despite plenty of optimism of a bumper winter season, most local realtors have confirmed lower than expected sales and some concern down the line if demand starts to decline. Of course, this may be just a temporary blip and optimists will be quick to highlight the small size of Barbados in the bigger picture and the fact that there will always be enough demand to sustain our market in the economies of scale. However, only time will confirm if this is really true.

Despite all these potential negatives there's no need for doom and gloom if all the major players in the business roll up their sleeves and embrace alternative markets and business opportunities.

Why don't more developers look more towards the local market and start building properties in the price range of BDS$400-600,000?
Why don't builders bring their construction prices down and stop expecting local buyers to pay the same high costs as overseas buyers?
Why doesn't Central Bank drop interest rates and make it a lot easier for local people to buy a property?
Why don't lenders not come up with products that actually stimulate the mortgage market? Let's start with a product for first-time buyers that has no set-up costs and actually helps young people get on the property ladder.
Why doesn't government not offer tax incentives for local people buying or building a new home?
Why does government not sell off land at reduced prices to help local people build?
Why doesn't the Planning Office not offer a better service?
Why don't the regulatory bodies not review the current practices within the property business and attack the huge costs that abound throughout the business? Let's start with those punitive mortgage indemnity insurance costs, high legal charges, duplicated legal work, and sales commission.

The cost to buy and sell property in Barbados is excessive and the time it takes to conduct a transfer of ownership is ridiculously long and tedious. Most professionals in the business recognize the need for change but few have either the motivation or the willingness to get involved. The whole industry needs visionaries to look outside the box and take a lead to restructure and improve efficiencies in every part of the process. Everyone wins if cost cuts and quicker turnaround times bring more new buyers into the market place.

We have enjoyed good times aplenty in the last decade but this could all change quite dramatically if the new challenges on the horizon are not embraced. Now is the time for the key players in the business to positively step forward and bring about a new era of prosperity. To do nothing will inevitably have a major negative impact across the whole spectrum of the property business. That shouldn't be allowed to happen. There are doors of opportunity out there for everyone.