Bahamas

Buying a home in The Bahamas By Allegra Hamilton

Background and history

A coral archipelago of 700 islands and over 2,000 rocks and cays, the islands of The Bahamas start just 60 miles off the south east coast of Florida and span as far south as Cuba, Haiti and the Dominican Republic. Only 29 of the islands are truly inhabited, with the Bahamian population of 284,000 residing mostly on the major islands: New Providence, Grand Bahama, Eleuthera, Abaco, Exuma, Long Island, Inagua, Cat Island, Bimini and Andros.

Economy & Tourism

One of the most politically stable of the Caribbean nations, it also boasts a comprehensive and modern infrastructure, particularly on the two major islands, New Providence and Grand Bahama. State-of-the- The 330 year-old capital city of New Providence is located on Nassau, a busy little island and home to over half of the total population. The majority of the businesses and banks are located here, and the airport is just 20 minutes from downtown Nassau and Paradise Island.

Under new legislation, it is easy for foreigners to become permanent Bahamian residents and international homeowners may acquire up to five acres of residential property without prior government approval. Foreign homeowners are eligible for a ‘Home Owners Residence Card’, renewable annually for a small fee, which facilitates entry into The Bahamas and entitles the owner, his/her spouse and minor children to enter and remain for the duration of the card. Permanent residence can be applied for but accelerated consideration of applications is given to major international investors and owners of residences valued at $500,000 or more.

Real Estate Options

The proximity of The Bahamas to the US has encouraged the strong growth in developments, particularly luxury resort properties, which have become chic with famous stars such as Sean Connery, who owns a home in Lyford Cay, and sporting legends like Michael Jordan, whose second home is on Paradise Island. The price of real estate in the Bahamas varies considerably and is complimented by an equally diverse range of options for purchase from island to island.

It is important to know the pros and cons involved in any real estate purchase, but particularly in the islands where the dream of a tropical lifestyle can so easily turn out to be a nightmare, so working with a reputable real estate agent, particularly those with international affiliations is a must. A local knowledge is essential to best guide you to the perfect choice, based on your particular needs and requirements. Whether you prefer luxury beachfront mansions, a secret escape on a small island reachable only by boat, or a resort property with a range of activities on site, the islands offer a wide selection of options to fit every budget.

A respectable $850,000 will get you a 3 bed recently built beachfront home in Free Port on Grand Bahama, with prices slightly higher for a similar property on the main island of Nassau. A 2.5 acre property housing a luxury beachfront mansion on Cable Beach on Nassau comes in at around $8.4 million but if you venture on to Eleuthera, beachfront land on can be snapped up for a tad over $1 million for 1.5 acres; your very own private island may cost quite a bit more, but can be a worthwhile investment for the truly wealthy.

If building your own home is your dream, the average construction cost runs at around $200 per sq ft but can be as low as $65-80 for a rustic dwelling or run as high as $400 for a premium luxury home. Building standards are very strict and properties must be hurricane-proof and regularly checked by officials throughout the construction process.

For more information:

www.bahamasguide.com

www.bahamasrealty.com

www.knightfrank.com

turquoise sea and surrounding beaches starting at $375,000, and in Soufriere, a 19,000 sq ft plot of residential land with gorgeous views of a bay and the pitons is available for sale at just US$125,000.

As the island becomes more developed, beachfront real estate is hard to find, although occasionally a house in an exclusive cove will appear on the market. The options are better for water or oceanfront property where a condo at the exclusive Cap Maison Estate can be purchased for $800,000 or for a mere $6.9 million you can live like a celebrity in your very own 4-bedroom luxury villa with guesthouses, waterside gazebo, pool and boathouse directly on Rodney Bay. For more information: www.stlucia.org

www.7thheavenproperties.com www.castlesinparadise.com

True island living is to be found in St Joseph, where the locals go for the summer; many of the homes have been owned by the same families for years and can only be rented by word of mouth when not in use. Rugged and windswept, facing the Atlantic Ocean it’s a haven for the local surfing community, which hosts an annual international meet at the Soupbowl in Bathsheba.

Real Estate Options

Barbados offers a diverse range of property ownership opportunities, for investment purposes or as a second home, with considerable infrastructure in place to support the real estate sector at all levels. There are no restrictions on non-nationals purchasing land or property, but making the dream reality, however, takes some little time and patience, not to mention determination and financial resources, particularly if you are interested in beachfront or luxury villas. Property values have risen steadily and are expected to continue this trend, as more international investment ensures that Barbados will continue to maintain the reputation it has earned as a world-class destination

The internet has made it infinitely easier to get an idea of the type of properties available on the market, and many sites feature virtual tours that can give you 360 degree views of potential purchases.

Several real estate companies produce annual property guides, often creating elegant brochures for premium million dollar listings. As with any real estate purchase, you should outline your requirements, especially financially, and engage the services of an established real estate agency along with a reputable attorney-at-law who can guide you through the process.

New developments

Heron Court

A prime residential development located at Porters, St James, Heron Court consists of twenty-eight elegant townhouses designed by renowned local architect, Ian Morrison. Within close proximity to West Coast beaches, shopping and fine dining, the development comprises approximately 4.7 acres of land with lots starting from $560,000.

Each 3 bedroom, 2 1/2 bathroom townhouse will feature high quality fittings throughout and a variety of finishing options available on approximately 2,000 sq. ft. of living space. Construction on this project has begun, with 11 lots already sold or under offer, and completion is expected mid-2007.

Royal Westmoreland

Now under new ownership, this prestigious luxury residential golf estate has re-emerged with a new phase of development to further enhance the quality and style that Royal Westmoreland has become known for. Set among 500 acres of stunning Barbados scenery and designed around one of the most challenging golf courses in the world, homes at Royal Westmoreland have been in high demand - many snapped up by sport stars and celebrities seeking the exclusivity of a luxury private estate and the ultimate in comfort and relaxation.

In early 2006 the phase 3 of The Plantation Royal Villas came on stream, offering innovative solutions to the discerning investor. Purchasers have the option of choosing from a 3 bedroom detached villa or a custom built property with up to 8 bedrooms – a select number of lots have magnificent fairway or sea views.

The Lakes Village

The first lifestyle resort to be created in the Caribbean, The Lakes Village will be spread over 180 acres in a peaceful setting on Mount Brevitor, St Peter (some two miles inland from Speightstown). Set in beautifully landscaped parkland, bordered by lush gullies and gentle slopes, with magnificent rural and sea views, The Lakes is based on a three-phase plan of development. Construction has begun on all 20 villas and sixteen of the 32 apartments in phase 1, and will be followed with construction of a clubhouse, small wellness centre, swimming pools and tennis courts.

Properties can be purchased as a 99 year leasehold within the village, at prices substantially lower (up to 40%) than the current market value: 2 bedroom apartments start at GBP187,000, and 2 bedroom detached houses from GBP244,000.

Conceptualised as an open-plan ‘organically grown’ village style community for the young at heart, it is designed to offer residents a range of exclusive facilities in a secure setting. The wide variety of properties available have been carefully sited to complement the natural beauty of the environment, blending the best elements of traditional Bajan architecture to create properties and communal buildings with a unique and timeless character. Lion Castle Polo Estate

Lion Castle Polo Estate is a particularly well thought out 64 acre development, set in the rolling hills of St Thomas. Centred around the already complete world-class polo field and spectacular clubhouse, already playing host to international tournaments, it consists of 34 magnificent house lots comprising 13 acres; house lots vary in size from 3/4 to 2 1/2 acres ranging in price from a snip under $400,000 up to $1.4M, all complete with underground utility services. At 1,000 feet above sea level – almost the highest point on the island – Lion Castle Polo Estate commands stunning views of the countryside and coastline beyond. Centrally located, easy access is ensured to the major shopping and business districts of Warrens and the capital of Bridgetown; the gorgeous beaches of the West Coast are only ten minutes away.

Apes Hill Club

A spacious development on 470 acres of some of the most beautiful land in Barbados with paranoramic views of the West and East coasts, Apes Hill Club is a partnership between Sir Charles Williams, the owner of the largest construction company in Barbados, and Landmark Land Company, one of the most prestigious community, golf and resort developers in the world.

When complete, this community will consist of 350 house lots utilizing only 35% of the estate, leaving 65% open space to create a lifestyle community unlike anything seen in the Caribbean so far. Apes Hill Club will include a spectacular 18-hole golf course carefully designed to take full advantage of the expansive environment, central club house with pool, spa, multi-surface tennis centre, nature gardens, a series of exercise trails as well as an impressive polo centre. The polo element, Waterhall Polo Centre, is already in operation (one of the four polo fields now in use on the island) and has it’s own villa development project which sold well, with the first villas now under construction.

Heron Mill Estate

A stunning new residential land development enjoying rich tropical landscapes and peaceful tranquility on a ridge above Mullins Bay in St Peter. Surrounded by sugar cane fields and a luxury estate home situated on the western side, it is a few minutes drive away from Mullins Beach, watersports, fine dining and Suga Suga spa and close to other amenities including golf and polo.

There are 15 lots available ranging in size from 14,500 sq ft – 22,00 sq ft, all with fantastic building potential and complemented by open landscaped areas, a natural watercourse and underground utilities. Construction of the roads and services is well underway and start from $185,000.

Sandy Lane Falls

Located approx. 400 yards from the stunning Sandy Lane Beach on the exclusive West Coast of Barbados, Sandy Lane Falls is the island’s most exciting new development and investment opportunity. A selection of luxury 2 and 3 bedroom villas and townhouses from 1,290 – 1,652 sq ft are being built and will be finished to an extremely high standard - the villas feature private terraces and plunge pools whilst the townhouses will have use of the communal pool; owners will also have use of the Sandy Lane Falls Club House and a golf package will be included. Only 8 townhouses are available as of going to press, ranging from $845,000 – $855,000.

The developer, Peter Harris, a well-respected local businessman, previously built the successful Porters Court villa community in St. James. This development is ideally located close to the most exclusive beach-front restaurants and a wide selection of bars, nightlife, shops and banks can be found in near-by Holetown. Tennis courts at Sugar Hill and world-class golf courses at Sandy Lane and Royal Westmoreland are all within a few minutes drive and the golden sands and calm and crystal clear waters of Sandy Lane Beach are a mere stroll away.

Prices

Barbados has established a well-deserved reputation for a comprehensive selection of real estate opportunities and location choices, from studio apartments to luxury villas and magnificent plantation homes, lifestyle resorts, golfing and polo estates and everything else in between. The popularity of secure or gated communities has driven a sharp growth in these developments; many have different phases planned and include a broad range of community facilities on site.

The price of real estate – land, property or both – varies considerably according to location. Beachfront anywhere on the island is at a premium and prices will reflect this, especially on the West Coast where a luxurious villa directly on the beach could set you back well over $10 million. The high demand for oceanfront views has resulted in a large number of new condominium developments, some of which can be picked up for around just under $1 million. There are more affordable opportunities to invest with studio beachfront condos on the South Coast starting at $175,000; there are also several projects planned to build luxury oceanfront apartments in Christ Church. Some residential developers are offering purchasers all-inclusive packages that include land and house, taking some of the guesswork out of building your own home.

There has recently been a resurgence in the popularity of country estates and plantation homes, as an alternative to beachfront living; an 11-acre luxury 6-bedroom estate in St Lucy recently sold for over $7 million furnished. Traditional Barbadian-style homes in residential areas can start from around $200,000 for a 3 bedroom in St Philip to $650,000 for a 4 bedroom in St George.

In terms of building your own home, be prepared to pay anywhere from $150-300 per sq ft depending on the finishes; don’t expect to be able to start building until at least May 2007, as the current building boom together with the frenzy of projects driven by the impending Cricket World Cup in 2007 have the majority of construction companies fully booked until then.

Whatever your reasons for purchasing, once the sale is complete it is necessary to consider the many options in the market for property services. Most of the main real estate companies have been property managers for over twenty years and have a great deal of experience; the best are recommended by word of mouth and will have a complete package of services, including a rental program and dedicated management staff.Legal and Tax Issues

In Barbados, property passes by conveyance of title, evidenced by the recording of deeds and certified survey plans at the registry of title. A purchaser will require the services of a registered Barbadian attorney to deal due diligence needs, including a search of the register to confirm title to the property prior to the sale. The vendor pays 7.5% property transfer tax and 1% stamp duty, along with any associated legal fees; these can run up to 2% of the purchase price. The purchaser, however, only has legal fees to consider

Real estate can be purchased by an individual, or as is commonly the practice, by creation of a corporate entity or by purchase of an already established company that currently owns the property. Such companies must be registered to do business in Barbados, although they may be incorporated elsewhere. All monies brought into Barbados must be registered at the Central Bank of Barbados; if a property is sold, they will also facilitates repatriation of funds.

Weather

As far as Caribbean islands go, Barbados has an idyllic climate with constant trade winds that keep temperatures during the day between 27-29 Celsius (80-85 degrees Fahrenheit) and just enough rainfall to keep the island lush and green. Currency

Local currency is the Barbadian Dollar, which is tied to the US Dollar at approximately 2:1, although most banks will exchange for slightly less.

How to Get Here

Once the only Caribbean island to have a regular scheduled Concorde flight in season, the airport facilities are currently being upgraded to handle the increased air traffic as the island further develops into a hub for international airlines delivering passengers from around the world, both to stop in Barbados and in transit to other islands. There are daily flights to major cities in the UK, US & Canada via a number of carriers: Virgin Atlantic, American Airlines, British Airways, BWIA, Air Canada and Air Jamaica; and several flights a day to most islands in the Caribbean on regional airlines such as Caribbean Star & Liat.

For the jet set that doesn’t like to travel en masse, private jets are always welcome!

Further Information:

www.bajanservices.com - An exceptional real estate company on the West Coast of Barbados providing unparalleled Real estate sales, property management and villa rentals.