Caribbean Living Lifestyle Blog - Caribbean Real Estate

How to Fix Up Commercial Properties

nospam@example.com (Terri Henry - Contributor) — Wed, 09 Jun 2010 09:10:00 -0500

Are commercial fixer-uppers worth the time, expense and effort? My answer to that would be that the right fixer-upper with numbers that make sense can be the right strategy to use. In fact, these types of properties can be an easy way to see an instant value increase in the property but like with any deal, only if the costs to rehab the property make sense.

Commercial fixer-uppers employ one of my favorite value plays called "repositioning". That means that either the tenant base changes, the appearance of the property changes or that both of these options are exercised on the properties.

In residential real estate investments, the idea of investing in a fixer-upper is to acquire the property at a significant discount due its condition. In commercial property, the same still holds true but in commercial properties can account for greater cash-on-cash returns. Perhaps you've found a property that needs some cosmetic care. Maybe the exterior needs to be updated with a new look. You'll be amazed at how a small investment can net a high return in value.

Apartment buildings can be a great opportunity for repositioning. In strategies like these, the first thing I usually change is the exterior paying special attention to the parking lot, roofing and sidings. I do other simple things like updating the landscaping and putting new signage on the property which are quick ways to give a new appearance to an older building.

I might also consider repositioning the tenant base with this same apartment building. I'll replace tenants who don't pay or don't fit the target tenant profile with ones that do. This may take months to accomplish, but the increase in value can put the worth of the property through the roof.

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Introduction to Commercial Property

nospam@example.com (Joanne Daubney - Contributor) — Mon, 15 Mar 2010 00:00:00 -0500

We are all familiar with the concept of residential property investment, however, commercial property investment is something that most of us do not have much knowledge on. There are number of advantages to this form of investment, and it is performing a lot better than the stock market currently. Don't be put off by the relatively high cost of commercial property as it is possible for syndicates to buy them now.

Commercial real estate investment has a number of advantages, so here's an introduction to this topic so that you can keep this in mind when considering your next investment. Let's start at the beginning...

What are commercial properties?
The following property types are defined as commercial property:

Office spaces

shopping malls and retail units

restaurants

warehouses

factories

any building that is used for commercial purposes including service stations, bakeries, breweries or gyms.

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Costa Rica Properties

nospam@example.com (Joanne Daubney - Contributor) — Mon, 04 Jan 2010 14:02:09 -0600

Costa Rica properties are getting a lot of interest from potential buyers. Costa Rica is the flavour of the month with Google's search results for 'costa rica real estate' with up to 90,500 searches for this term per month.

According to Costa Rican newspapers and realtors, there is 'guarded optimism' that the valley of the economic crisis is on it's way behind and out of view for real estate affairs.

A program named Happy Planet Index, which was introduced by the New Economics Foundation - measures 'happiness' in terms of human well-being and satisfaction and the environmental impact caused by the country. Costa Rica was No 1 of 143 countries measured in 2009. That isn't an easy success I'm sure. The country is planning and working it's way to becoming the first country to be 'carbon neutral'. This is planned for 2021.

A 1987 Nobel Peace Prize is held by the president of Costa Rica, Oscar Arias, for his work towards bringing peace to Latin America when it was going through a period of turmoil. He has also changed the economic focus of the country onto a more modern agricultural focus (flowers and exotic fruits) and tourism as opposed to coffee and bananas. However, production of gourmet coffee beans is bringing an income for the country.

That isn't all for Costa Rica to bring to the party though.... in terms of tourism, Costa Rica is known for it's great surfing opportunities and it's ecotourism. It rates 2nd in the Caribbean, just behind Barbados and 1st out of the Latin American countries on the scale of attractiveness for developing a travel and tourism business (Travel & Tourism Competitive Report – 2009).

With all of these factors combined, does this mean that Costa Rica is one of the first to emerge from the world's downturn with it's real estate focus...? We will have to wait and see, but it seems that Costa Rica properties are under the spotlight for investors right now.

If you would like to know more about Costa Rica properties, please visit our page on Costa Rica Properties or contact our sales agents.

French West Indies is in Europe

nospam@example.com (Joanne Daubney - Contributor) — Sun, 13 Sep 2009 17:35:15 -0500

Martinique, Guadeloupe and half of the island of St Martin are all classified as overseas départements of France, and hence part of Europe. This is good news for holders of European passports, as these islands are simply an extension of mainland France from an immigration point of view.

Martinique has an official language of French, uses the Euro as currency, and the local population are full citizens of France with full legal and political rights including holding a French passport. This is also the same for the local populations in both Guadeloupe and St Martin.

St Maarten/St Martin is an island that is half Dutch and half French, hence the two names. The French part is a part of Europe, whereas the Dutch part, Sint Maarten, is a part of the Netherlands Kingdom, but not classified as a part of Europe; this is the same for the other parts of the Netherlands Antilles, including Curacao, Aruba, Saba and Bonaire.

EU citizens can live and work in the 3 islands belonging to the French West Indies, as if they were in any part of Europe. Taxes will need to be paid and contributions towards social care.

Exchanging Large Sums of Currency

nospam@example.com (Joanne Daubney - Contributor) — Fri, 04 Sep 2009 11:25:30 -0500

When you purchase a home abroad, it's sometimes necessary to exchange a large amount of money to another currency. What do you need to keep in mind?

When exchanging large sums of money, it would be cheaper to approach a broker for this instead of going to a bank. The rates you will receive with a broker will be better.

The broker will need to know your identity and he will need to confirm it. This is due to anti-money laundering laws. Documentation will need to be provided as evidence of identity, and proof of your address.

The broker will then start working for you to find a good exchange rate to buy your currency. When he contacts you with an exchange rate, you will need to instruct him to buy the currency on your behalf.

Once the purchase has been made, you will receive a contract note confirming how much you bought and the exchange rate. This contract note will inform you of where to send payment for the currency that has been purchased. It is also possible to transfer funds to the broker before the purchase is made, so that it is on hand for when the exchange rate is favourable.

Once the funds have been cleared, the broker will transfer the currency to the destination that you have stipulated. A payment confirmation will most likely be supplied by any principal banks that have been involved in the transfer.

Caribbean House Styles

nospam@example.com (Joanne Daubney - Contributor) — Tue, 11 Aug 2009 11:24:33 -0500

Architectural house design on the 7000 islands that make up the West Indies has developed over centuries of time with influences from Europe, Africa and the United States. There are stories behind every feature of these interesting unique homes and how they have developed over time.

During the 1600's the original settlers in the Caribbean created wattle and daub houses, using braided twigs and royal palm tree branches to create dwellings that would provide shelter from the rain and sun. Various freely available materials have been used throughout the Caribbean, including in Barbados bricks made from coral, which offers very good insulation from the hot sun.

The Spanish had a great early presence in the islands and with them they brought flat plaster walls with wrought-iron detailing and ceramic tiled floors and walls. High beamed ceilings were installed to encourage hot air to travel upwards and away from the living area. Arches were also introduced giving a touch of style. Another Spanish feature was the balcony that overlooks the street, French balconies also faced the street with the more reserved English balconies being hidden and turning away from the public eye.

The word veranda is “borrowed” from the Indian language. It means an open roofed porch or gallery. Even though used extensively in Spanish and Portuguese architecture, it seems that the French introduced this to the Caribbean and used it widely on their houses to give them a more welcoming feel and also to allow fresh air to circulate and cool the residences. Often these French residencies did not have hallways so the veranda was used to navigate from one room to the next, with the resident passing through the veranda to get to the bedrooms.

During the 18th century many French settlers arrived and built modest residences. However, the English were more interested in elegance and comfort and would build 'great houses'* which had very large rooms with verandahs. The British introduced a more solid architectural style, in particular on Barbados, with French and Spanish properties often being constructed of wood. These great houses would be sited to take advantage of the trade winds, which would cool the residents and blow away mosquitoes. Kitchens would often be built separate from the main house and downwind to carry away the scent of cooking.
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Caribbean Homes and Houses

nospam@example.com (Joanne Daubney - Contributor) — Mon, 06 Jul 2009 13:24:36 -0500

From plantation houses from the 1600’s to modern condominiums in beach communities to luxury villas on breezy hilltops, the Caribbean offers much in terms of house styles. Many of these homes are beautiful and enchanting with both a tropical and European influence and are created to suit the climate with ceiling fans and shutters to keep out the sun.

Construction of modern luxury villas and condominiums is underway on almost every island. In particular on Dominican Republic, there is more development than on any of the other islands, with many new Spanish style villas and condominiums being constructed in gated communities. These developments can have restaurants, bars, spas and sports facilities and private beaches to enjoy. In addition, the development may offer a rental scheme so that your property can earn income from visiting tourists whilst you are not in residence.

Most new builds in the Caribbean are constructed of concrete to provide hurricane and termite protection. Galvanised tin is a popular choice for roofing, as it can be installed easily. Available in a plethora of different colours, they can give a house a unique look and is easy to renew. Throughout the home, and to give a more natural look, hardwood can be used that is safe from wood or carpenter ants and termites, which prefer to munch on old decayed wood, not healthy hardwood.

Older style homes are usually constructed of wood or concrete, but have most often had some type of treatment to preserve any wood used. Some homes are built in the traditional style but with modern methods, such as this charming and romantic house on the quiet and tranquil island of Nevis.

Prices of these homes vary widely and can range from US$10,000 and less for a chattel house to US$100,000 for a condo and up to US$8 million for the most luxurious homes of all. For example, this one bedroom furnished apartment is available in Dominican Republic for US$75,000 and might suit a couple who would like to own a holiday home next to one of the most beautiful beaches in the Dominican Republic.

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Caribbean Property - Bucking the Trend

nospam@example.com (Stewart Andrews - Contributor) — Sat, 04 Apr 2009 23:38:21 -0500

Property in the Caribbean is still looking attractive to buyers and sellers alike even in these financial times. Development land is being purchased for new resorts in particular in Dominican Republic, Barbados prices are continuing to rise and Belize has been identified as the ideal retirement spot.

Dominican Republic
The Dominican Republic is really taking off in tourism and property. The country has been recognized as being the number 1 Caribbean destination for tourists, taking the place of Puerto Rico who held this title for 40 years. A total of 3.4 million tourists visited the nation in 2008 resulting in Minister of Tourism, Felix Jimenez, announcing a plan to invest US$1 billion into tourism infrastructure developments that are to be completed by 2012.

The government has furthered this commitment by giving the go ahead to 16 new condo-hotels and real estate conversion projects which add almost 6000 new rooms to the current stock. There is also the added benefit of no stamp duty, tax on rental income or capital gains tax on property for owners in the Dominican Republic.

Barbados
Even during this economic climate, according to local estate agents, the prices are still appreciating between 10 – 15% per annum on mid-range real estate in Barbados. The price of luxury property is ascending faster and the property market has steady growth.

The lifestyle offered by Barbados, with its many amenities including golf courses, spas and restaurants along with ease of access from the UK has led to much interest from British buyers. One theory is that the Brits have recognized that they could live a more comfortable lifestyle there compared to their home country and are making the most of any redundancy payoffs to escape.

Property in Barbados is still just affordable and prices ranging from US$250,000 to US$40 million.

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Caribbean Real Estate

nospam@example.com (Stewart Andrews - Contributor) — Wed, 17 Oct 2007 13:01:00 -0500

The worlds financial markets have all over recent months seen increasing volatility, due to a serious weakness in the sub prime lending sector. This has happened because financial institutions lent heavily to people with poor credit ratings over recent years, when money was in good supply and interest rates were low. It did not require a crystal ball to see that when interest rates finally rose from their all time lows, that there would be a high level of defaults from borrowers who could not repay their mortgages.

In America, the results of this financial crisis have been building for some time, with many areas of the housing market suffering a decline in real estate values and new house starts falling dramatically.

In the UK, the effects on the housing market have been far milder, partly due to more conservative lending policies and traditionally higher interest rates. In September, UK house prices were still climbing at 8.5% annually, with some areas seeing a significant rise in prices and other areas where prices have fallen slightly.

Several clients have asked me if the financial instability in the worlds mortgage markets will lead to a decline in Caribbean real estate values similar to America ? The simple answer is no, and anyone hoping that they can buy a Caribbean property cheaper next year than they can now, is unfortunately only likely to be deluding themselves.

The Caribbean real estate market is an international market driven for the most part by well healed foreign investors looking for second homes, investment and vacation properties. The number of people choosing to enter the second home market is continuing to grow, and last year more people in the UK chose to relocate abroad and buy a house in the sun, than ever before.

Mortgages have traditionally been difficult for ex patriots to obtain in the Caribbean and therefore Caribbean lending institutions are not exposed to any serious risk. Additionally, since Caribbean real estate prices are continuing to climb, properties repossessed by lenders can usually be sold quickly.

The final factor that helps underpin the continuing growth in the value of Caribbean real estate , is the limited physical land mass of the Caribbean islands. Land in the Caribbean, is very much a finite commodity.

For the above reasons, and unless there is a total meltdown of the worlds financial institutions, it is likely that real estate on the majority of Caribbean islands, will continue to show a year on year rise in property values for the foreseeable future.

Adventures of a Property Advisor in Dominica Part One

nospam@example.com () — Tue, 16 Oct 2007 16:24:00 -0500

Nail varnish, high heels and skirts are out! Bring on a sharp machete, trousers, water bottle, walking boots and sandwiches. You are now set to be an aspiring real estate agent in Dominica!

With adventurism like this, fitness is a pre-requisite; certainly no spare inches on this job, in fact it's a great way to lose weight. A far cry from the situation in many countries where selling and buying real estate is a job requiring one to be well turned out and not having to travel too far from the office. Whilst in Dominica, you dedicate the whole day to show your prospective client various properties.

The island of Dominica is 291 square miles with 365 rivers and much of the countryside is full of forest or banana plantations. Land that comes on the market for sale is often deep in the interior. Cars are not the optimum transport, more often than not one needs to use a four-wheel-drive to get down the rutted, pitted, unpaved, sometimes muddy roads, leading onto the land in question. A jeep is a must otherwise negotiating out of the way places becomes impossible.

My first day taking a client out to look for properties was an adventure in itself. We met up with a broker from another company who is helping me to locate the land that they have for sale to show our clients. First stop was for Paul, the broker, to buy a Vita-malt to drink and some fish to eat. We were shortly to see why he needed this sustenance. Driving about three miles deep into the countryside Paul parked his brand new RUV adjacent to a leafy ravine. We proceeded to walk at least a mile before exploring 10 acres of land for sale. Imagine it is really hot a bit of a breeze blowing, the grass on the land has been allowed to grow chest high and there is a river at the bottom of the hill. How to get to the river, one way only, take that machete and cut the path all the way, on reaching the river the guys stripped off and went for a swim, me being more modest dipped my feet into the clear cool water ready for the climb back to the top of the hill. Note to self don't forget bathing suit on the job!

We visited four more properties with similar locations, lots of walking and hacking with the machete. The views of the ocean and the mountains are stunning many of our properties for sale enjoy this vista. This is one of the unique things Dominica has to offer besides the rivers, spectacular waterfalls, hot sulphur pools and beaches. By the end of my first full day I was ready for what is locally called a sundowner, old fashioned Rum Punch, kick the shoes off lie back and watch the sunset.

The Editor