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Altman - Page 15
Vuemont - Inside back Cover
BARBADOS PROPERTY
NEWS www.barbadospropertynews.com • October 2012 - November 2012 • Issue 83
Endorsed by the Barbados Estate Agents and Valuers Association Inc.
The Crane - Page 30
Editor’s Comments A year in Barbados is a mixture of festivals and seasons and with Crop Over gone the festive season now lies on the horizon. Many Barbadians and their friends were here for Crop Over and many more will be here for Christmas. It seems that far away fields are not so green in recent years and the trips home are welcome breaks from the drudgery and stress of everyday life in the bigger countries. It should make us appreciate what we have and what a blessing it is to live on a paradise island. Sure we have our challenges, but we have so many assets they have to be put into perspective when things get on top of us. That’s the same for our real estate. We accept buyers are not as plentiful as they were a few years ago, but there are still people in the market and Barbados Property News has a wealth of property to offer. We also have a website that goes all over the world so whether you are looking for a property to rent or to buy, a property service or property product, we have plenty to offer. Enjoy! . Pamela Hiles - Editor On the cover: Valley View
If you would like to advertise in Barbados Property News call Pam at 228-9122 or 232-0692
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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, 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.
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Barbados’ Iconic Crane Resort Celebrates 125 years
1887: Construction started in Paris on the Eiffel Tower; Britain’s Queen Victoria celebrated her Golden Jubilee; and the 18-room Crane Hotel opened its doors on the Southeast coast of Barbados. 2012: Construction is completed on the Tokyo Skytree tower; Britain’s Queen Elizabeth II celebrates her Diamond Jubilee; and The Crane Residential Resort, now boasting 252 rooms, celebrates 125 years, making it the Caribbean’s oldest continuously operating hotel. With its dramatic clifftop location overlooking spectacularly beautiful Crane Beach, The Crane Residential Resort is one of Barbados’ best loved historic icons. The beach’s legendary powdery pink sand comes from the protective coral reef that protects the small bay. This protection allowed a small commercial port to develop in the 1700s. A crane was built on the cliffs at the north end of the beach to raise and lower the cargo carried by the small sailing ships, giving the district its name. The original port is long gone, but the secluded beach remains, and this beach has always been the key to The Crane’s allure. In the mid 1700s, it was selected as a location for the construction of a discreet bathing place for wealthy ladies, who would otherwise not have been able to freely indulge in sea-bathing. This was a wildly popular activity, in spite of its perceived impropriety, because of a prevailing belief in its health-giving properties. That bathing place was called “The Horse” and the steps cut into the cliff leading down to the water from the old bathing hut are still visible today. But it was not just the sea-bathing that drew Barbados’ wealthy plantation owners and merchants to The Crane. The rugged southeastern coast of the island, with its cool tradewinds had, by then, become a favourite retreat from the tropical heat and mosquitoes of Bridgetown. Before the hotel was opened, the district’s main building was a mansion known as Marine Villa, the architectural style of which suggests that it was built around 1790. Marine Villa still exists in almost its original state and forms the lovingly restored eastern wing of the Historic Hotel. Ownership of Marine Villa changed hands several times, but it was
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not until it was bought in 1886 by Donald Simpson, a local civil engineer, that it became more than a private holiday home. Simpson first conceived of enlarging the house and opening it as a hotel based on the development of the railway in 1881 to Sunbury, St. Philip from Bridgetown. The four coral stone apartments that comprise the southern wing of the hotel (rooms 1, 2, 8 and 9) were the first additions he completed. The Crane had been touted as a favourite hideaway by the famously wealthy long before the 1980s TV show Lifestyles of the Rich and Famous listed Crane Beach among its Top 10 Best Beaches in the World. One of the more infamous early celebrities to stay at The Crane was American cowboy, "Wild Bill" Hickock, who left a gold chain as payment for his room charges after staying at The Crane in the 1890s. Donald Simpson’s descendants still possess Hickock's gold chain to this day. Travel writers have also recommended The Crane for many years. In 1922, the Red Book of the West Indies travel guide stated: "The Crane Hotel occupies about nine acres on top of a high cliff on the southeast of the island and is swept by fresh, invigorating breezes from the Atlantic. From its windows is displayed the beautiful sea, fringing with exquisite colours the white soft sandy beach of the hotel's superb bathing place, that has no superior anywhere in the world.” In 1936, Raymond Savage, the author of Barbados, British West Indies, gave this opinion on The Crane in his Conducted Tour: “The air is incomparable… its beneficial, ozone-laden wind soon produces a feeling of intense exhilaration and peace, even to the most brain-weary or physically ill of mortals… It is, without exception, the most exhilarating bathing I have ever experienced… Yet, above all, it is the restful beauty of The Crane which is its chief asset.” In 1971, the editors of Fielding’s Guide to the Caribbean wrote: “Two-hundred-year-old Crane should be preserved in amber and treasured just as it is: a nostalgic monument to gracious old days. Barbados’ oldest hostelry has welcomed generations of Bajan honeymooners and for a century was THE resort on the island…This rough diamond overlooks one of the world’s most glorious beaches; this is now the place for those who are satisfied with simple pleasures and can do without chrome, and plate glass.”
Since 1988, the current owner of The Crane, Paul Doyle, has heeded this sage advice and has led a careful and loving restoration of many of the original structures that made up Crane Beach Hotel, not just Marine Villa. The Carriage House, once the original stables that housed the property’s horse and buggy, is today a poolside restaurant and bar; Cliff Cot, a beach cottage that stood on the cliff, is now home to an open-air jacuzzi; and The Casino, the original octagonal ballroom, still holds many a lavish affair to this day under the name, The Pavilion. Doyle’s vision went past restoration, to encompass a transformation of the historic landmark into a luxury shared ownership resort, that would offer the best value to be found anywhere in the world. True to that vision, the development that now occupies this tranquil 40-acre space seamlessly blends the old and the new, maintaining the special character that inspired travellers in centuries past, while still enticing their modern counterparts. No detail has been spared as 19th century grandeur and furnishings combine with 21st century luxuries and conveniences. The grand residences, ranging from 800 to 4,000 square feet, benefit from the breathtaking ocean views and incorporate period architectural features, such as thick coral stone walls, timber tray ceilings from 10-18 feet high, and furniture inspired by the Historic Hotel’s mahogany antiques, including the four-poster king-sized beds. New additions include private pools, gardens and roof terraces; open kitchens with granite counters and top-of-the-line appliances; marble bathrooms that boast luxurious whirlpool tubs and spa showers; and central air-conditioning. The Crane now features 5 restaurants, including 2 award-winning fine dining establishments: L’Azure, which serves a delectable fusion of continental and Caribbean cuisine; while at Zen, native Thai and Japanese chefs create rare and exotic delicacies in classical Japanese surroundings. For more casual options, D’Onofrio’s serves up authentic Southern Italian family style fare, The Carriage House Bar & Grill offers a delicious grilled menu in an al fresco setting overlooking the cliff pools, and The Coconut Grove Beach Bar & Grill serves light fast-food options just steps away from the ocean. The Crane’s world-class amenities also include a full-service spa, a piano and cocktail bar, flood-lit tennis courts, a café, a well-stocked convenience store, 2 duty-free shops, a 3,000 square foot state-of-theart fitness centre and multi-purpose conference facilities. In addition, The Crane offers all the luxury services expected from one of the world’s premier resorts. As a further benefit, there is free WiFi across the resort and free calls to international destinations. However, perhaps the most welcomed new convenience for modern guests has been the glassfronted beach elevator, which gives an easier alternative access to Crane Beach than climbing the resort’s 99 steps. It is fair to say, that although The Crane has undergone a significant transformation over the last century, the qualities that attracted visitors then are still the highlights of any stay today. But what truly sets it apart is the attention to making its shared ownership programme the best in the world. With a sales model that offers low, fixed prices for one of the world’s most spacious and luxurious resorts; a no-discount, no-pressure philosophy; and running costs at less than half the industry average, Crane shared owners immediately see the results of the “best value” promise. The Crane is able to accomplish this because of its full vertical integration and the bulk purchase of goods and services. The
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management company bypasses all middlemen and does virtually everything in-house, from landscaping and security, to laundry and appliance repairs. In addition, The Crane drives down the operating costs by the use of standardised appliances, fittings and furnishings. This is combined with an extremely flexible in-house exchange programme (Crane Points), which allows owners to trade what they own for different residence types or different times of year at The Crane. For those who wish to see the world, exchanges are easily facilitated through membership in The Registry Collection®, the world’s most prestigious vacation exchange network, with over 190 of the world’s most luxurious properties. Crane owners may also enjoy peak season vacations in any of 4,500 resorts worldwide through the exchange services provided by RCI® Points, the world’s largest vacation exchange company. Value in the product, pricing and flexibility is combined with a successful rental pool programme. This is demonstrated by the fact that every year, for the past 8 years, every Crane owner has covered all costs and made at least a small profit for every week made available to the Crane’s rental pool. In addition, The Crane aligns its interests fully with rental pool owners by limiting its management fee to 20% of net profit after all expenses. If Crane ever failed to make a net profit, no fee would be charged at all. However, the best demonstration of value for prospective Crane owners is the history of success with resales. Every owner who held their Crane property for 5 – 9 years since The Crane started selling shared ownership in 1996 received, on average, a 7.4% return on their investment. Just as telling is the fact that every year, for the past 6 years, over 50% of their sales have been from their current owners upgrading their investment. This is truly an achievement worth celebrating in the resort’s 125th year. For more information on The Crane’s history, and the opportunities to own a piece of this iconic landmark, take a drive along the southeast coast and stop in to the Property Sales office. Email property@thecrane.com, or visit thecrane.com.
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We Sell Lifestyle Not Quick Bucks! After four years of global recession we have had plenty of time to reflect and accept the reality that things are not going to improve quickly. It doesn’t matter much whether one expert says we are in recession and another says we are out of it or whether a double recession hangs like an ominous threat on the horizon. The bottom line is we have to make the most of it. Real estate in Barbados was no different than many other popular destinations pre-2008 and enjoying the dream of unlimited demand for second home properties fuelled by hundreds of high-income earners from overseas. It was a gravy train where the construction industry roared with rampant development, costs escalated and property prices went through the roof. Selling agents had a field day every day and bidding was keen on virtually all the popular real estate units on the market. Sadly, it all turned sour within the space of 12 months through greed and deception at the highest level, and as buyers disappeared from the market, the reality of a new world hit hard. Construction on domestic property ground to pedestrian pace, material and labour costs dropped and property prices fell. Supply and demand is a well-worn economic cliché but it sums up exactly where a business sits at any point in time. No demand equates to no sales and a business model that is unsustainable. Low demand means belt-tightening and adjustments to try and create a sustainable business model and that’s exactly where the Barbados second home market sits at present. An obvious remedy is to cut selling costs and reduce price. Selling agents pillage their advertising budget in tough times or look for cheaper mediums to market, but at the end of the day you won’t sell if you are not in the right market place. Cheap advertising will not generate sales-you get what you pay for in the marketing industry. As for dropping price, is this going to attract a market
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that is not there? After all, the biggest number of overseas second home buyers were speculators and investors looking for a return on investment (ROI) and all too quick to laud the success of their Buy-to-Let portfolios back home. But wiser counsel prevailed and while local lenders have often been criticized for their prudence, they got it right this time. The backlash has seen many of these portfolios decimated and their owners out of the market. In simple terms, the overseas second homebuyers in this sector have gone. But not all is doom and gloom. The overseas second home market has a steady core of buyers who invest in lifestyle and not quick bucks. Yes, it is nice to have a steady rental income when off island and even better when property prices increase in value. But this is not the real world and what chance has any property investor of securing good rental returns if they want to use the property at the prime rental times? In Barbados and the wider Caribbean region we sell lifestyle. We can offer a relaxed beautiful tropical ambience that is unrivalled anywhere in the world and we don’t need to drop prices or compromise our values to generate a market of speculators and investors. We don’t have to sell citizenships to woo buyers, but we do need to protect and grow our tourism product at the top of the destination ladder. If tourists continue to come to Barbados they will see for themselves what a wonderful place this is to live and from their midst more and more buyers will emerge. Of course, we could reduce legal fees, stamp duties, and various other punitive costs that make buying here tedious and expensive, but that’s a subject for another day! CLARENCE HILES is an independent mortgage broker and an experienced feature writer on a variety of Caribbean business topics. He can be contacted at 230 9215 or by email at clarence@caribbeanmortgages.com
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Stepping into the Mortgage Maze Despite the current property lull sales are slowly starting to increase and although overseas buyers are quietly returning to the second home market, local buyers never left! It is a buyer’s market in Barbados real estate these days and both overseas and local buyers can avail of some excellent deals. They can also avail of good mortgage packages and although the global recession tightened lending requirements, the Caribbean lenders have remained committed to the market. Funding any property purchase is always a challenge and in many cases the applicants need the professional expertise of an experienced mortgage broker. It may seem like an extra fee for the frugal buyer, but when you look at the numbers involved getting the right product could save a buyer thousands of dollars, or worse still, cost them thousands of dollars if they get it wrong. How many borrowers in Barbados are stuck with an expensive mortgage when better offers are available? Stepping into the mortgage maze can be a nightmare for the inexperienced buyer, but it doesn’t need to be as traumatic with the right professionals in your camp. There are two types of buyers and two types of mortgages. The non-resident mortgage is available to overseas buyers and with current rates in the region of 4% it is an attractive option. General details are maximum repayment periods up to 30 years, payments must be in US$ and max. Loan-to-Value (LTV) is 70%. A bank fee of 1% of the loan is normally charged. Local mortgages are available to residents of three years or more. The general conditions are max. repayment period up to 35 years, LTV 95% and interest rates from around 6%. Bank fees vary from zero to 1%. At different times 100% mortgages have been available and the terms vary. A good mortgage broker will have up-to-date information on all the products available for prospective clients. There are many things to consider before selecting a mortgage and it is important that applicants fit all their financial and lifestyle goals within a structure that meets all their objectives. A mortgage loan is likely to be the
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biggest single investment a local buyer will make, but for an overseas buyer it could be an investment or a retirement home. Different people have different circumstances and different objectives and these have to be carefully assessed within an overall financial plan. It is also important that prospective buyers go to the right people to get advice as too many people in related businesses don’t know the facts and can give misleading information. If you are looking at buying property with mortgage finance then get professional advice from the outset and don’t leave it to the last minute to get the funding in place. After all, you don’t go into a shop to buy something without the money to do it. CLARENCE HILES is an independent mortgage broker and an experienced feature writer on a variety of Caribbean business topics. He can be contacted at 230 9215 or by email at clarence@caribbeanmortgages.com
The Barbados Estate Agents and Valuers Association (BEAVA) The Barbados Estate Agents and Valuers Association (BEAVA) originated out of The Barbados Valuers Association which was formed with approximately 10 members in the early 1970's. It expanded in the 1980's to include real estate agents, was renamed BEAVA and was incorporated as a non profit company (BEAVA Inc.) on January 25th, 2006.
To ensure that the public is armed with knowledge before venturing into real estate transactions BEAVA, through its website www.beavainc.com, provides a plethora of information to familiarize persons with the logistics of buying and selling real estate, including the associated fees and steps involved in standard transactions. The Multi-Listing Service which was launched earlier this year, and features a wide range of properties on the island, can now be viewed on the site.
BEAVA is seeking to be the governing body for the real estate industry. Subsequently it aims to ensure that standards are adhered to so that the public is confident about the upright standing of its members which now exceed 150 professionals.
Barbados still remains a sophisticated real estate paradise in demand by many. While investors still seek to take advantage of the prime real estate that these shores have to offer, BEAVA diligently tries to ensure that they are protected through well applied and enforced industry practices and code of ethics.
In an effort to ensure that the integrity of its members and ethical practices are upheld, it seeks to monitor and oversee the industry and provide continuous educational opportunities for them. It seeks to build a good rapport and synergy between affiliated sectors such as legal, banking, government and construction entities so that Barbados’ real estate industry continues to be seen as a trusted beacon in the Caribbean, fostering local and foreign investment alike.
Cherita O’dell (Howard) Public Relations and Marketing Committee BEAVA Inc.
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