Barbados Property News June-July 2017

EE NE FR NLI O &

Alleyne Real Estate - Page 9

Whitehall - Page 12

Eastern Land Developments - Page 37

Endorsed by the Barbados Estate Agents and Valuers Association Inc.

BARBADOS PROPERTY

NEWS www.barbadospropertynews.com • June - July 2017 • Issue 111

Ashley Furniture Homestore - Page 27 1

Editor’s Comments In this summer edition of Barbados Property News, we are delighted to feature ‘Outdoor Living’ and hope that it will give you some ideas to modernize your patio furniture, add a touch of colour with a lovely outdoor rug or go for that all singing all dancing Barbeque! With Crop Over upon us, the outside entertaining is in full swing and you will get plenty of ideas to impress and beautify your verandah areas.

Congratulations to Dwellings on opening a very impressive store in Trinidad. I know this was being planned for some time so to Pamela Hiles, Editor see it come to fruition is just terrific and BPN is proud to highlight the opening on page 36. Well done Luis and Gael on a magnificent achievement.

The 2017/18 Budget once again has presented it’s challenges for us all. As an island, we are struggling with foreign debt and increasing taxation. Barbados is a beautiful place to live and we must meet these hurdles with optimism.

Enjoy the summer festival and read on – some great property opportunities await you!

Pamela

Publisher – Hiltop Publications Ltd, 11 Cottage Ridge, St George, Barbados, BB19071 Tel (246) 228-9122, Fax (246) 228-0243 Email: sportingb@caribsurf.com www.sportingbarbados.com www.barbadospropertynews.com www.caribbeanpropertymag.com www.caribbeanmortgageservices.com Editor/Advertising – Pamela L Hiles Design and Art Direction – 809 Distribution – Hiltop Publications Ltd, Brian’s Print Brokerage Printing – Coles Printery 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.

On the Cover: Ashley Furniture Homestore

If you would like to advertise in Barbados Property News call Pam at 228-9122 or 232-0692

The balance of lifestyle and investment in a second home

Finance

by Kim Goddard The balance of having a second home, cover its running costs and even make money while enjoying the lifestyle of having a home in the sun is the perfect solution for many clients.

This approach is resonating with today’s real estate purchaser market by helping them justify a purchase decision today.

Here is a look at some of what Barbados has to offer.

Kim Goddard There are two general approaches for meeting the balance of lifestyle and investment. First is a condo-hotel; where the developer will usually limit the amount of time an owner can stay in the residence and rent the balance of time as a hotel. The developer shares the rental revenue earned in a hotel rental pool with the investor. The second approach is when the developer provides unlimited use by the owner and the option of participating in a rental pool or a lease-back of the homes to the developer for a period of time. The proportion of rental revenue shared is decreased by the amount of time and adjusted for the seasonality of the time used by the owner. A lease-back is when a developer sells a property and agrees to take it back to rent for a period of time and cover the operating costs for the owner. The developer either offers a discount upfront or a percentage return on the investment to the owner for the period of the lease-back.

Typically the properties with a rental pool or lease-back offering have hotel services and resort amenities available to allow for increase occupancy, rental rates and most importantly enjoyment of use!

Three condo-hotel developments offering units for sale are Beach View, Ocean 2 Resort and Residences and The Sands.

Other developments are coming on the market, such as Summerland Hotel in Prospects St. James, that is in development and projecting 4-8% returns on investment for 1 bed and studio apartments priced from US$250,000.

Beach View in Payne’s Bay allows owners up to 3 months’ usage of their 2 and 3 bedroom suites and villas. Beach View is a very successful example of a mature and profitable hotel rental pool.

They are generating significant rental income and return on investment for their clients. Beach View is moving from strength to strength -- from the original 36 Beach View units to the 19 new Ylang Yland Villas and Passion Fruit Suites priced from US$575,000.

Ocean 2 Resort and Residences on Dover Beach is another example of a successful condo hotel model. Priced from US$400,000 for 1 and 2 bedroom apartments they have unlimited usage for owners but with a two week restriction on peak dates.

The revenue share of the pool is based on the revenue of the room and not the profit of the room and Ocean Two has consistently high year round occupancies of 75% or higher for their last five 22

years in operation.

One of the newest condo hotel projects is The Sands located in Worthing, with 87 studio, 1, 2 and 3 bed condominiums available.

They offer up to 3 months usage and a share of the rental pool.

Still under construction, this hotel is the only all-inclusive condo hotel in Barbados.

The second approach to balancing investment and lifestyle is available with Crane Resorts and Royal Westmoreland.

The Crane Resort tapped into the “balance of the heart and mind” in making a purchase decision over 15 years ago and has used it as a linchpin in their successful value proposition. They offer 1,2 and 3 bedroom condominiums and villas at The Crane Resort and their second location at Beach Houses, both in St. Philip. With a fractional purchase, Crane Resorts’ rental pool allows clients to use what time they want without restriction and to deposit the time they do not use in the hotel rental pool. The rental pool has been a reliable tool to pay the property expenses in a turbulent market, covering all costs of operation even in the depths of the recent recession.

Also at The Crane, a third approach has evolved over time, which offers the advantages of the condo-hotel model without limiting the time that the owner can spend in residence. Within their new Private Residence community, owners benefit from all the Crane’s amenities and services as per a typical condo-hotel arrangement, but can choose to use as much time as they wish.

With this form of ownership, The Crane simply takes a small rental management fee from earned revenue when the resident does choose to rent their unit. Like Ocean Two, the Crane offers the advantage of having a significant hotel rental track record – with over 15 years of successfully running high occupancies.

Secondly, Royal Westmoreland in St. James successfully launched this winter a lease back opportunity for their 4 bed semidetached villas with private pools and their 3 bed Royal Apartments. Their lease-back opportunities offer the homes furnished, with all expenses paid for 4 years including the sought after full golf Club Membership. The developer has taken anticipated revenue from the rental period up front, off the purchase price and has removed all operational costs of the ownership. The owner can access the villa for 4-6 weeks a year, or more, if they reduce the amount of anticipated revenue taken off the purchase price. Clients have been motivated to make a purchase decision earlier to capture the discount and lower the risk of ongoing running costs. The owners end up with a newly built home that they can continue to rent at the end of the 4 years or keep the home private for their friends and family to enjoy.

These developers have been creative in helping their clients balance the need for their lifestyle benefits and yet lower the financial risk in having a second home. This has allowed many clients to justify a purchase decision today, that they would otherwise have put off. This approach to real estate development helps clients and of course brings significant economic and social benefits to Barbados. These benefits range from much needed updated rental stock, year-round employment, and of course the benefit of increased foreign exchange. Now that’s a win-win for all.

Feature

Archers Hall Above: Hammock Soft Weave HH Navy BDS VAT incl: $663.88 The Soft Weave Hammock features soft, allweather, solution dyed fabric ribbons with a layer of polyester fiberfill batting. The soft, all weather, solution dyed fabric means many seasons of great looking, and great reclining ahead.

Left: Simple Grande Hurricane Lg BDS VAT incl: $731.56 Simple in design, grand in presence! With their patinaed bronze iron bases and wide glass bells.

Their neutral elegance makes laying your home with warmth a breeze.

Designer Decor Left: Fiberglass outdoor umbrella - $945.00 Right: Ebel Geneva Outdoor Sofa - $5,685.00

Dwellings Cabo sectional.

Summer Special - Save $2000!

Was $8999 now $6999

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Marshall Trading - Above: Available from Marshall Trading

Furniture Accesso Outdoor Furniture Outdoor e & Accessories; Acces ccesso ssories; As Individual Individu ual As As You You Are. A Ar re. re As Ar Archer’s cher’s Hall, Hall, Queen’s Queen’s Street, Street, Speightstown, wn n, St. St. Peter.

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Feature

Gajah Left: Savannah woven outdoor set – Enjoy Quality and Sophisticated style with our modular sofa set, perfect for entertaining !

Below: Outdoor Accessory – Mother of Nature Garden Statue $ 1,242.00 Lrg. • $998.00 Md. • $504.00 Sml.

Natz Left: Organic Wooden Candle Holder - $139.50 Above: Cape May Cottage White Shutter Console Table - $2,462.70.

Walkers World Right: Outdoor rugs starting at $ 189.95.

Below: Assorted Citronella Mason Jar Candle $ 24.95

The Pot Warehouse - Above: Available from The Pot Warehouse

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Dwellings Trinidad Celebrates Grand Opening

Feature

Members of the Dwellings local and international team celebrating the launch of their flagship store in Heartland Plaza, Chaguanas.

Dwellings owners Luis Carrillo and Gael Alluard cut the ribbon with Anthony Rahael, Group CEO of Rahael Holdings Limited, officially opening Dwellings Trinidad.

Chef Jason Peru being assisted by Joseph Rahael, during a cooking demonstration

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The Barbados Estate Agents & Valuers Association News

Real Estate News

Introducing the Barbados Valuers Council At the December 9th AGM, the membership voted to create two Councils to separate the governance of Real Estate Agents and Property Managers from Valuers. Out of this constitutional change, the Barbados Valuers Council was created with the following primary objectives: 1. To be recognized by the industry, market and our peers as the governing body for Valuers in Barbados; 2. To expand membership to include all qualified practicing Valuers with the ultimate goal of having a single body of Valuers in Barbados who are appropriately qualified, committed to professional development, and adhere to international standards; 3. To raise the standards of Valuation practice in Barbados through the adoption of International Valuation Standards including both Reporting and Ethical standards; 4. To promote the continued professional development of members practicing Valuation in Barbados by establishing CPD opportunities to promote the further development of the profession; 5. To establish a central database of reliable transaction data to improve the accuracy and consistency in values reported.

Led by Andrew Mallalieu of Terra Caribbean, the Barbados Valuers Council is comprised of eight active Valuers with varying backgrounds who share the ultimate goal of raising the standard for the profession.

The majority of the Council members either hold Professional Designations or are affiliated with the Royal Institute of Chartered

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Surveyors or the Appraisal Institute of Canada.

The new criteria for membership adopted in December provides for four categories of membership which show a clear opportunity for progression of members in the Profession. Professional Valuers hold of Professional Designation from an approved International institution and have no limitation on practice other than those provided for by the Code of Ethics. Residential Valuers are limited in their practice to the valuation of residential land and improved properties with freehold title containing no more than six self-contained family housing units.

Trainee Valuers are working under the supervision of either a Professional or Residential Valuer and are actively pursuing a professional designation, while Student membership is available for persons studying towards qualification, but not yet working in the profession.

The Barbados Valuers Council invites practicing Valuers to apply for membership by contacting admin@beavinc.com or stay tuned for updates on the BEAVA website at www.beavainc.com for further details on membership categories and admissions criteria.

From left to right: Curtis Pounder, Tania Wallace, Alkins Kirton, Andrew Mallalieu, Arthur Ramsay, Lesley Goodfellow, Dexter Mondesir, Terry Hanton.

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