The Red Book® 2017 - Grenada

Grenada 2017

Welcome It brings me great pleasure to announce the introduction of the first publication of The Red Book for Grenada. The landscape of the Grenada real estate market is extremely dynamic and we saw the need for a definitive guide to be produced.

This inaugural publication of The Red Book Grenada has been designed to provide readers with a well-informed and accurate overview of the local real estate market.

With The Red Book Barbados now in its tenth year, we are pleased to take this first step toward being a reliable source for everything real estate in Grenada. The information gathered and collated in this publication represents a full team effort. As you flip through these pages, you will find a wide cross-section of residential and commercial property on the market including a selection of luxury property, exclusive developments, vacant land and rentals. The informative pink pages section features articles from our team as well as knowledgeable and experienced professionals in the sector.

With Grenada poised for a great future, it is our hope that by reading this publication you get a glimpse into the opportunities for investment, the direction of the industry, a GPS for navigating your steps and the general idea of the beauty and charm that is Pure Grenada.

The first of its kind in Grenada, we sincerely hope you enjoy our inaugural edition of The Red Book Grenada.

We are dedicated to producing this publication biannually, so look out for our next edition in 2019.

Sincerely,

Leila Maria La Touche, Managing Director

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THE RED BOOK First Edition

Contents Terra Caribbean Property Guide Prime Locations Grenadian Classics Developments Land Is King Land Commercial Land Residential Commercial Sales Commercial Sales Commercial Buildings Commercial Sales Apartment Buildings Commercial Rentals Residential Rentals Residential Rentals Coporate Rentals Residential Rentals Classic Rentals Residential Rentals SGU Rentals PINK PAGES Buying Property in Grenada Location, Location, Information Doing Business in Grenada; New Fiscal Incentives 2017 Ronald Theodore New Opportunities for Business with The Time Share & Vacation Plans Act - Kim George Insurance and its Significance in The World of Real Estate Richard Strachan Financing Your Own Home - Roger Archer

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Do more with Terra Caribbean

Terra Caribbean is not the estate agent for all the developments and properties depicted and in some cases has compiled the information contained in this section, and other sections, from public sources. Consequently, details provided herein may not be accurate or may have changed without notice to Terra Caribbean since, and in some cases, prior to the publication of this book.

None of the details contained herein are to be relied upon as a representation of fact and any intending purchaser or tenant must satisfy himself by enquiry, inspection or otherwise as to the correctness of the details given for each development or property.

Terra Caribbean does not make or give any representation or warranty whatsoever in relation to any development or property shown and in particular does not warrant the correctness, completeness or quality of the information provided.

In no event will Terra Caribbean accept liability for any injury, loss or damage whatsoever, including, without limitation, indirect or consequential loss or damage, arising from the use of or reliance on information provided in this publication. Š 2017 Terra Caribbean.

All rights reserved.

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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Terra Caribbean It is with a great sense of pride that we congratulate our Grenada team for their vision and market leadership with the publication of the inaugural Red Book Grenada.

The Red Book Grenada aims to be your definitive source of accurate and timely information on the Grenada real estate market.

It is perhaps fitting that our sister publication, The Red Book Barbados, is currently celebrating its 10th anniversary, having grown from strength to strength since the first edition in 2008.

The Red Book has its roots in Barbados from some 60 years ago with our founding father Mr. William ‘Bill’ Mallalieu.

An iconic figure in the Caribbean real estate industry, Bill’s philosophy was a simple one - to educate his clients on the market. This philosophy would go on to become the foundation upon which Terra Caribbean has been built.

Terra is a Caribbean born and bred real estate firm. Our ongoing passion for knowledge has led us to develop and build our bespoke technology platform - RED (Real Estate Database) - which today is a market leading platform for real estate market data from across the region. Our teams leverage this platform to provide comprehensive reports and insights to enable better and faster decision-making for our clients. The

But perhaps most importantly, at the heart of Terra Caribbean is our people.

Red Book was created to share this key information on the real estate market with our clients. Our website has also been a game changer with a proprietary vendor dashboard and custom full-screen viewing experience, now more than ever, delivering value online and putting you in the driver’s seat.

BARBADOS

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GRENADA

But perhaps most importantly, at the heart of Terra Caribbean is our people. Nowhere is that more evident that with our team here in Grenada. Founded in 2003 by a celebrated entrepreneur and visionary Dr. Anselm La Touche, the Terra team continues to build on its success. Under the dynamic leadership of Mrs. Maria La Touche and supported by a committed team, Terra has firmly established its reputation as a market leader in Grenada.

Grenada, and indeed the wider Caribbean markets, continues to face headwinds and it seems there are no shortages of global events undermining confidence and creating uncertainty. What is certain, however, is that there are few places in the world with the natural beauty and charm of the Spice Island. Increasingly, property purchasers around the globe are seeking a unique and authentic experience and nowhere is that more available than in Grenada.

We take great pleasure in congratulating our Grenada team on the publication of this first edition. Whatever your property needs may be, having a partner with the knowledge, experience and global reach to help you navigate the market is key. As your partner, our sole objective is to ensure that you feel comfortable and confident to make informed decisions. How can we help?

Andrew Mallalieu CEO, Terra Caribbean Ltd.

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ST. LUCIA

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TRINIDAD

Property Guide The following sections provide information on a comprehensive range of developments and residential properties for sale.

• Westerhall Point • Fort Jeudy • Lance aux Epines • Egmont • True Blue

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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Prime Locations Grenada’s prime, highly sought-after, residential neighborhoods are True Blue, Lance Aux Epines, Egmont, Fort Jeudy and Westerhall Point. These neighborhoods are all peninsulas located along the South-Eastern coast of the island. Each neighborhood is a 10- to 25-minute drive from the capital city of St. George’s, the sub-city of Grand Anse, schools, churches, banks and entertainment. These peninsulas offer various amenities, from captivating sea views to beach and waterfront properties.

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P R I M E L O CAT I O N S

True Blue, St. George True Blue is located at the Southernmost end of the island and is in boundary with the Maurice Bishop International Airport. It is also home to the St. George’s University (SGU) and therefore has developed specifically to cater to the needs of SGU’s thousands of students and faculty. This neighborhood can be categorized as mixed residential and commercial, featuring numerous large apartment buildings, residential homes, restaurants, bars, a marina, hotel, night club, pharmacy and beauty salons.

Demand for both sale and rental property in True Blue is the highest on the island; however, supply is limited - a combination of which makes it one of the most expensive neighborhoods in Grenada and an excellent location to invest.

Rental rates start at approximately US$1,200 per month and upward. Land prices start at approximately US$20 per sq. ft. and residential home prices start at approximately US$800,000. If you are looking to invest in Grenada, True Blue should be at the top of your list.

Lance Aux Epines, St. George Lance Aux Epines, a much larger neighborhood, is the peninsula just North of True Blue. Lance Aux Epines has remained mostly residential because of enforced covenants; however, sections of the neighborhood were zoned commercial by the original developers and have therefore developed as such. Because of this neighborhoods’ proximity to SGU, most properties also cater to the needs of SGU students and faculty members. Within Lance Aux Epines, there are several small and large apartment buildings, three boutique hotels, two marina’s, restaurants, bars, a mini mart, hair salon, playing field and beaches.

Residents of Lance Aux Epines include local as well as non-Grenadian families and young professionals, SGU students and SGU faculty. Demand for property in this neighborhood is considered high because of its location. Rental rates start at approximately US$600 per month and go upward, while land prices start at approximately US$10 per sq. ft. and residential homes can be bought for US$500,000 or more.

Egmont, St. George North of Lance Aux Epines and also along the east coast is the newest of Grenada’s sought-after neighborhoods, Egmont.

Egmont is a quiet, residential neighborhood accessed via a bridge.

It enjoys stunning ocean views and a white sand beach best approached with a 4WD vehicle. Properties within Egmont are mostly stand-alone family homes with 3-4 bedrooms, large outdoor spaces and modern finishes. Some properties also include 1-2 bedroom, self-contained apartments on their ground floors, ideal for rentals. The neighborhood is governed by a covenant and considered to be in the middle- to high-income bracket. It is occupied by local as well as non-Grenadian families who enjoy a quiet lifestyle while living a mere 15-minute drive from the capital city, sub-city and most schools. Le Phare Bleu Marina and Boutique Hotel is located within Egmont. Its restaurants, bar, beach and convenience store are enjoyed by residents and the public alike.

Lot sizes within Egmont are on average 16,000 sq. ft. with prices starting at US$5.50 per sq. ft., and go upward depending on view and water access. House prices start at approximately US$450,000 and rental rates start at approximately US$800 per month. Demand for property in this neighborhood can be considered average as it competes with Fort Jeudy.

Fort Jeudy, St. George Two minutes north of Egmont is Fort Jeudy, one of the oldest neighborhoods along the eastern coast, its age noticeable by the numerous homes developed throughout the neighborhood.

Fort Jeudy is governed by a covenant and a residents’ association, with annual association fees used for the maintenance of roads and curbsides etc. Most properties in Fort Jeudy are 3-4 bedroom stand-alone homes either on the water or enjoying gorgeous ocean views from their hilltop locations. Some properties also feature separate, self-contained apartments similar to those found in Egmont.

The average lot size in Fort Jeudy is approximately half an acre affording each property great privacy and outdoor space perfect for kids. This neighborhood is best suited for families being approximately 15 minutes away from schools, churches and all modern conveniences. It is great for walking dogs and exploring the beaches found within the neighborhood.

Although, there are no commercial establishments within Fort Jeudy, a grocery, pharmacy and gas station are less than a 10 minute drive away. Grenada’s capital city and sub-city of Grand Anse are also approximately 20 minutes away.

Fort Jeudy is considered to be a middle to upper income neighborhood with property prices starting at approximately US$600,000 for houses and approximately US$8 for vacant lots. Rentals rates start at US$800 per month.

Westerhall Point, St. David Westerhall Point, the smallest and most northern of the prime, residential neighborhoods is located along the south-eastern end of St. David. It is Grenada’s only gated neighborhood enjoying a manned gate from approximately 6 p.m. - 6 a.m. This neighborhood is also strictly residential, governed by a covenant and a residents’ association, with annual association fees. It is considered a high-income neighborhood occupied by luxurious waterfront and hillside homes. Properties within this neighborhood typically have 3-5 bedrooms with modern kitchens and large entertainment spaces. Westerhall Point is quiet and well-suited for families, both local and foreign.

Demand for property is high, being the only gated - and by extension the most private - neighborhood. Vacant lots sell for approximately US$10 per sq. ft. and upward, while homes can be purchased for a minimum of approximately US$625,000.

The city of St. George’s and the sub-city of Grand Anse are approximately a 20-minute drive away.

Renee Charles Brokerage Manager

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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P R I M E L O CAT I O N S

LANCE AUX EPINES HOUSE Lance Aux Epines, St. George Extraordinary waterfront great house situated within the prime, tranquil, residential neighbourhood of Lance Aux Epines. It has the amenities expected of modern Caribbean living. This is an exceptional property, one of a kind.

• This unique estate boasts a 7 bedroom / 9 bathroom Colonial

• A large swimming pool and a plunge pool are all situated on just Estate House and 2 small guest houses

• Deep-water dock which can be doubled as a helicopter pad under two acres of completely private tropical gardens subject to additional work

Floor Area: 11,000 sq. ft.

Land Area: 87,120 sq. ft.

Price: US$7,500,000

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P R I M E L O CAT I O N S

CEDAR CLIFF Westerhall Point, St. David Unique beachfront property in a stunning and pristine bay within the high-end residential development of Westerhall Point.

• This home features 3 en-suite bedrooms, drawing / dining room, • •

study area, guests’ bathroom, a superbly equipped fitted SieMatic kitchen and tennis court The property has a beach frontage of 300 feet and benefits from the easterly breeze and enjoys panoramic views of the south-east Atlantic coast of the island There is a large patio and gazebo ideal for entertaining, which also leads onto the lovely swimming pool

Floor Area: 3,500 sq. ft.

Land Area: 87,120 sq. ft.

Price: US$2,750,000

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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P R I M E L O CAT I O N S

VILLA NO. 129 Fort Jeudy, St. George This amazing villa sits on approximately 40,830 sq. ft. of beachfront land and is located in the lovely neighbourhood of Fort Jeudy.

• The main house is split level, with a large open plan living • • •

space featuring high-end furnishings, and 5 bedrooms / 4 bathrooms Below the main house is a spacious, self-contained studio apartment Featured is a small boathouse on the grounds Enjoy tranquillity as you take an enjoyable swim in the swimming pool, which provides a panoramic sea view

Floor Area: 12,720 sq. ft.

Land Area: 40,830 sq. ft.

Price: US$2,600,000

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P R I M E L O CAT I O N S

ORCHARD BAY VILLA Westerhall Point, St. David Located within the exclusive Westerhall Point community, Orchard Bay Villa is set on the waterfront with an acre of tropically landscaped gardens, featuring a wide variety of fruit trees.

• The main house, which was renovated in 2009, features

• The master bedroom is en-suite and features a large Jacuzzi with a 3 bedrooms / 2 bathrooms on the upper level

• The great room is on the lower level and features a fully equipped view of the bay

• •

kitchen, dining room and living room, which all lead out onto the patio and pool deck Great opportunity to own a special property in one of the most sought-after neighbourhoods in Grenada En-suite guest cottage separated from the main house

Floor Area: 6,000 sq. ft.

Land Area: 43,560 sq. ft.

Price: US$2,500,000

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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P R I M E L O CAT I O N S

MODERN ESCAPE Westerhall Point, St. David Architecturally designed and beautifully decorated home nestled in the prestigious residential neighbourhood of Westerhall Point.

• This modern, architecturally designed home features 4 bedrooms / • •

5 bathrooms and a well-equipped kitchen with state of the art appliances Features a formal living and dining areas, powder room, and a den with a private balcony Includes a swimming pool with an outdoor kitchen and bath, spacious patio, en-suite master bedroom with walk-in closet and his & her sinks in the bathrooms

Floor Area: 6,000 sq. ft.

Land Area: 21,781 sq. ft.

Price: US$2,295,000

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P R I M E L O CAT I O N S

NUTMEG BAY VILLA Lance Aux Epines, St. George Uniquely positioned in front of a small beach in Lance Aux Epines lies this extraordinary house that is in close proximity to a beach and has a special old world charm.

• There is an infinity pool that overlooks the sea and a gazebo

• Apart from the air conditioned 5 bedroom / 5 bathroom main for relaxing in the shade

• •

building, there is also a cottage with bedroom, bathroom and living area Each bedroom and living room leads onto the beautiful pool and patio The relaxing sounds of the majestic waves can be heard throughout the house

Floor Area: 5,000 sq. ft.

Land Area: 28,220 sq. ft.

Price: US$1,600,000

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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P R I M E L O CAT I O N S

LOT 41 THE RESIDENCE Westerhall Point, St. David This property is a high-end waterfront residence in the exclusive residential subdivision on the south-east Coast known as Westerhall Point. Simple but elegant Caribbean living.

• The main residence comprises 3 en-suite bedrooms and laundry • A large living/dining room, kitchen, pantry, media room, room on the upper floor

• •

additional bedroom, study and guest bathroom are featured on the lower floor The 1,019 sq. ft. guest house consists of 2 en-suite bedrooms, kitchen, dining room and patio which leads to the pool entertainment area with a gazebo and veranda Favoured spot for visiting yachts where turtles and wildlife come to rest and feed in the sheltered water

Floor Area: 3,138 sq. ft.

Land Area: 16,084 sq. ft.

Price: US$1,295,000

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P R I M E L O CAT I O N S

VILLA ZANZIBAR Fort Jeudy, St. George Beautifully decorated, split-level villa perched on a hilltop in the prime residential neighbourhood of Fort Jeudy, overlooking the Atlantic Ocean.

• On the first floor, you are greeted by a Cathedral entrance hall • • •

which leads to the kitchen, 3 bedrooms / 2 bathrooms, a maid’s flat and utility room Ground floor comprises of 2 tiered entertainment verandas, dining and sitting area, TV room and 2 en-suite bedrooms There is also a bar area that leads onto an infinity edge pool that provides an enamouring and front row seat view of the ocean The master bedroom has a private lounge area, custom built walk-in closet and his-and-hers sinks in the bathroom

Floor Area: 6,000 sq. ft.

Land Area: 19,577 sq. ft.

Price: US$975,000

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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P R I M E L O CAT I O N S

JESTAS Lance Aux Epines, St. George Fantastic home perfectly positioned on a gently sloping waterfront lot of approximately 17,400 sq. ft. within the highly sought after residential neighbourhood of Lance Aux Epines, located on the Southern end of Grenada.

• Jestas is divided into two spacious self-contained units • First floor features 2 en-suite bedrooms on each side of the • The living / dining room and both bedrooms open onto a open plan living / dining room, and a spacious kitchen

•

large covered veranda, overlooking the swimming pool and sheltered bay Ground floor comprises of 2 bedrooms, a shared bathroom, dining room and kitchen

Floor Area: 2,100 sq. ft.

Land Area: 17,400 sq. ft.

Price: US$935,000

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P R I M E L O CAT I O N S

OSPREY COTTAGE Lance Aux Epines, St. George Perfectly positioned on a gently sloping lot of approximately 15,724 sq. ft. sits this exceptionally designed house, located in the residential neighbourhood of Lance Aux Epines.

• 3 bedroom / 3.5 bathroom property featuring an intricate

• Fantastic swimming pool is neatly positioned at the centre interior design

• Main house features 2 en-suite bedrooms, powder room, kitchen of the property

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and a living / dining room that both open onto a spacious shaped veranda The cozy and private en-suite bedroom cottage captures a gorgeous ocean view

Floor Area: 2,388 sq. ft.

Land Area: 15,724 sq. ft.

Price: US$800,000

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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P R I M E L O CAT I O N S

LOVERS LANE Lance Aux Epine, St. George Comfortable 2-storey home tucked away in the safe and beautiful neighbourhood of Lance Aux Epines. Perfect for entertaining family and friends.

• The main floor has a large pool deck with lounge/entertainment • There are 2 well-decorated and designed bedrooms and

area and bar which gives the house an indoor/outdoor living feel

• The master bedroom contains a walk-in closet and a glass shower bathrooms

• Property provides room for further development on the ground enclosure leading directly into the pool

floor (apartment or additional living space)

Floor Area: 3,000 sq. ft.

Land Area: 23,000 sq. ft.

Price: US$650,000

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P R I M E L O CAT I O N S

MAISON DE SOLEIL Westerhall Heights, St. David Beautifully built home perched strategically on a moderately sloping hill in the prime residential area of Westerhall Heights.

• This 3 bedroom / 2.5 bathroom home features an open plan living • •

design, large en-suite master bedroom with walk-in closet, TV room, and spacious kitchen on the first floor First floor also features a lovely Jacuzzi and 2 car garage Ground floor features a cozy 2 bedroom / 1 bathroom apartment

Floor Area: 4,072 sq. ft.

Land Area: 9,644 sq. ft.

Price: US$588,906

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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P R I M E L O CAT I O N S

MARK’S REEF Lance Aux Epines, St. George

• Mark’s Reef was built into a cliff in the sought-after

• Property consists of 2 standalone villas which gives neighbourhood of Lance Aux Epines

• •

the buyer the option to use one as a home and the other as a rental property Overlooking the spot where the Caribbean Sea meets the Atlantic Ocean, this home captures breathtaking sea views The main entrance and air conditioned bedrooms are on the third level with the living room, dining room and kitchen on the second; deck, pool and recreation room are on the ground floor of the main house

Floor Area: 6,000 sq. ft.

Land Area: 17,260 sq. ft.

Price: US$2,500,000

LANCE AUX EPINES NO. 11 Lance Aux Epines, St. George • Architecturally designed beachfront villa located in • Main features of this fantastic property are high

the sought-after neighbourhood of Lance Aux Epines

• •

ceilings, hardwood pool deck with infinity pool, split level with bedrooms on the upper floor and living, dining and entertainment on the lower floor The property fronts onto a beautiful white sandy beach surrounded by coral reefs The sound of the waves can be heard throughout the villa, especially the master suite, giving it a very peaceful charm

Floor Area: 2,830 sq. ft.

Land Area: 7,838 sq. ft.

Price: US$1,200,000

VILLA MARGOT Westerhall Point, St. David

• Comfortable and tastefully furnished waterfront villa • • • •

located in the prime residential neighbourhood of Westerhall Point Features an open plan design with 4 bedrooms / 3.5 bathrooms Solar panels (for electricity) have been retrofitted which improves the cost efficiency as it relates to the use of electricity Enjoys a spacious, modern kitchen, formal & casual dining rooms, master bedroom with walk-in closet, tiled deck with swimming pool, well-manicured grounds and concrete steps leading to the water’s edge Property faces west enjoying a stunning, uninterrupted sea view

Floor Area: 3,100 sq. ft.

Land Area: 34,100 sq. ft.

Price: US$850,000 20

P R I M E L O CAT I O N S

KING PROTEA Fort Jeudy, St. George

• Strategically situated near the end of the Fort Jeudy • Enjoys beautiful lawn space and a swimming pool peninsular is this spacious, waterfront home

• Features 5 bedrooms / 3 bathrooms as well as a cozy where uninterrupted ocean views abound

• The open plan kitchen/dining/living room opens onto self-contained studio apartment

a covered patio which leads onto the lawn and up to the rooftop deck

Floor Area: 5,300 sq. ft.

Land Area: 22,000 sq. ft.

Price: US$600,000

MAR BRAVO Fort Jeudy, St. George

• Amazing home located in one of the best

• This 3 bedroom / 2.5 bathroom, well-designed

neighbourhoods in St. George known as Fort Jeudy

• Features an open plan living with a modern

home overlooks the ever-glistening Atlantic ocean

• The location of the property provides cooling ocean minimalist style including stained concrete floors breezes and a nautical feel

Floor Area: 5,000 sq. ft.

Land Area: 32,000 sq. ft.

Price: US$550,000

MT. CINNAMON HACIENDA 2B Grand Anse, St. George

• Launched in 2008, Mount Cinnamon, a Peter DeSavary • •

conceived and executed boutique beach resort, consists of 21 beautifully appointed, privately owned apartments and villas Overlooks one of the Caribbean’s most famous white sand beaches, Grand Anse Beach The villa has access to an extensive range of managed facilities and services provided by the hotel including the Mount Cinnamon Clubhouse

Floor Area: 1,114 sq. ft.

Price: US$550,000

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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Grenadian Classics

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GRENADIAN CLASSICS

Owning Real Estate as a form of Wealth Creation & Financial Stability As an entrepreneur, there are several business decisions to be made as it relates to the smooth daily operations of your business.

One such decision is the level of further investment for sustained growth. Part of my business model includes owning real estate as a means of benefitting from capital appreciation, particularly in periods where appreciation outpaces what could be earned in interest from fixed deposits and other financial instruments. Due to this approach, there were instances where a cash purchase of vacant land resulted in gains of over 300% on the initial investment in approximately 10 years.

Nonetheless, recently, we have found that for the first time in many years, there has been negative growth and stagnating prices in the market in some locations. What this means is that the market is ripe for similar types of opportunities in these locations. As the cycle continues, values are expected to grow, which will essentially result in significant capital appreciation.

...in the early 1990s this strategy to “bank cash in real estate” paid many dividends over the period.

Purchasing and owning property in various locations on the island has proven to be a successful business strategy over the past 40 years. Commencing in the early 1990s, this strategy to “bank cash in real estate” has paid many dividends. The investment opportunities took various forms, from vacant land (commercial, residential and agricultural) to commercial buildings; in addition, there were some instances where the purchase sites were unseen. The strategy

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holds true up to today as the interest rates on fixed deposits are decreasing. Also, the risks of other financial instruments are continuing to evolve as more and more major financial institutions are facing economic turmoil. All in all, investment in real estate continues to provide a safe and lucrative alternative for medium- to long-term holding periods.

Owning real estate also provides some unplanned benefits in periods of decline in the economy. This was particularly noted in my construction and property development companies. In the construction field, at one time being the largest employer after the Government of Grenada, owning and developing personal real estate projects kept many Grenadians employed during the economic downturn. This approach was not based on a financial benefit but rested on providing a livelihood for a team that contributed to years of success in the good times. This also allowed a core team to be maintained to facilitate a prompt response to the market once the economy began to recover. Furthermore, it provided the benefit of additional income stream once the projects were completed in the real estate development company.

I continue to survey the market and take advantage of opportunities to own and develop real estate for continued stability and financial growth. With the current liquidity and potentially low interest rates in the financial sector, these opportunities are available to a wider cross section of the population, whom I encourage to participate in the enhancement of their future livelihoods by investing in and developing real estate assets.

Dr. Anselm LaTouche Director, Terra Caribbean Grenada

GRENADIAN CLASSICS

TOFT RESIDENCE Clarks Court Bay, Woodlands, St. George This Grand Residence was built in 2009 on approximately 3/4 acres of gently sloping land in the neighbourhood known as Clarks Court Bay. • The property is a duplex comprising of a main house and a 1 bedroom • • •

/ 1 bathroom attached, self-contained apartment on the left side of the structure The main house features 2 storeys; the master suite, powder room, laundry room and open plan living/kitchen and dining room occupy the ground floor The master suite exudes grandeur with a private sitting room, his and hers walk-in closets as well as a Jacuzzi forming part of the en-suite bathroom Four guest bedrooms and a family room occupy the first floor which also enjoys a spacious veranda where one can enjoy cool breezes and a mountain view

Floor Area: 5,000 sq. ft.

Floor Area: 32,672 sq. ft.

Price: US$920,166

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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GRENADIAN CLASSICS

FRANGIPANI VILLA Craigston Estate, Carriacou Tucked into a hillside above Tom’s Bay, Frangipani is located in the prestigious Craigston residential development among tropical flowering plants and fruit trees. This unique 5 bedroom / 4.5 bathroom villa has been elegantly remodelled and comprehensively renovated to provide an elegant and private retreat.

• Villa rental revenue covers management and maintenance costs

• Main villa has 3 air-conditioned bedrooms and 2 bathrooms • Also featured is a spacious open floor plan with elegant living and

which make this stunning villa an excellent investment opportunity

• •

formal dining area, entertainment room and exquisitely appointed gourmet kitchen It also offers a covered porch for casual dining and lounging, plunge pool, sun deck and garage On the lower level there is a self-contained Garden Villa with 2 air-conditioned en-suite bedrooms with an open floor plan including a fully equipped kitchen and casual dining & entertaining area

Floor Area: 4,240 sq. ft Land Area: 18,900 sq. ft Price: US$850,000

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GRENADIAN CLASSICS

ATLANTIC GRANDE Grand Bacolet, St. Andrew Located in the peaceful and calm neighbourhood of Grand Bacolet, St. Andrew sits this delightfully designed home.

• This property is a spacious 4 bedroom / 3.5 bathroom, fully

• Built on 3/4 acre of land with a fantastic view of the Atlantic furnished, modern house

• There is a roof top deck that is capable of hosting parties and Ocean

• Locally manufactured mahogany cupboards and dropped ceiling family functions

• Ground floor has a 1 bedroom / 1 bathroom apartment with with modern lighting

separate laundry facilities; great opportunity for rental income

Floor Area: 6,000 sq. ft Land Area: 32,670 sq. ft.

Price: US$662,520

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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GRENADIAN CLASSICS

SPARROW BEACH HOUSE Craigston Estate, Carriacou Sparrow Beach House is the quintessential perfect beach "hideaway" located just steps from Sparrow Bay Beach, on the beautiful sister isle of Carriacou.

• It has been completely remodelled with beautiful furnishings, • •

coordinating artwork, a gorgeous tropical garden and is located in the Craigston Residential development Features 3 bedrooms / 3 bathrooms The spacious covered patio is perfect for Al Fresco dining and entertaining with a beautiful view of the ocean and direct access to the beach

Floor Area: 2,160 sq. ft.

Floor Area: 12,950 sq. ft.

Price: US$575,000

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GRENADIAN CLASSICS

WELCOME VILLA Woburn, St. George Welcome Villa sits on approximately 11,646 sq. ft. of fenced, beautifully manicured land in the peaceful neighbourhood of Woburn, St. George.

• The property captures a stunning, uninterrupted view of Hog • This 3 bedroom / 2 bathroom house was built in 2007 and

Island, Calivigny Island, Woburn Bay and out to the Caribbean Sea

• The property enjoys multiple patios with a charming gazebo and features an open plan living/kitchen/dining area pool overlooking a fabulous ocean view

Floor Area: 1,500 sq. ft Land Area: 11,646 sq. ft.

Price: US$425,000

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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GRENADIAN CLASSICS

BEIGE RESIDENCE Mt. Moritz, St. George Located in one of the most peaceful and picturesque neighbourhoods on island, Beige Residence is a charming 2-storey house, perfect for a large family.

• 6 bedroom / 4 bathroom home in the lovely neighbourhood • First floor has 3 bedrooms and 2 bathrooms • Ceramic tiles throughout the house, marble counter tops in of Mt Moritz

• Ground floor is unfinished, but can be converted into a charming the kitchen

ground floor apartment

Floor Area: 1,800 sq. ft.

Floor Area: 12,500 sq. ft.

Price: US$331,260

30

GRENADIAN CLASSICS

SAIL FISH Golf Course, St. George

• Attractive 2 storey home with a breathtaking view • • •

of Grand Anse Beach and South Coast, located in the residential area of Golf Course This 4 bedroom / 3 bathroom house boasts an en-suite master bedroom with wet room Features a swimming pool with a large hardwood deck, gazebo, outdoor kitchen with built in BBQ grill, large veranda and fish pond The garden is landscaped with mature fruit trees and an assortment of flowers

Floor Area: 4,000 sq. ft.

Land Area: 32,625 sq. ft.

Price: US$950,000

ECO-FRIENDLY COTTAGE RESORT Mt. Alexander, St. Patrick

• A small nature retreat with strong eco-friendly • • • •

orientation located in the residential area of Mt. Alexander, far north of the island Collection of four buildings set into a tropical hillside At the top of the hillside is the onsite restaurant Surroundings are lush, the sounds of the waves, tree frogs, birds, and breeze serve as background music Each building is supplied with both rain water and water from the main line, as well as solar electricity

Floor Area: 4,104 sq. ft.

Land Area: 25,150 sq. ft.

Price: US$790,000

HILL TOP CHARM HOME Hill Top, Calivigny, St. George

• As the name implies, Hill Top Charm is a charming • • •

house built for comfort and practical living, located in the residential neighbourhood of Calivigny This 4 bedroom / 2.5 bathroom house offers a comfy TV room, spacious kitchen with built-in appliances, formal dining room and en-suite master bedroom There is a beautiful garden with an assortment of fruit trees A cool breeze flows constantly through the house, while its location offers extraordinary views of the sea

Floor Area: 2,800 sq. ft.

Land Area: 24,810 sq. ft.

Price: US$650,000

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

31

GRENADIAN CLASSICS

COCONUT VILLA Mt. Parnassus, St. George

• Very spacious, unfurnished home tucked away in

• Features 2 en-suite bedrooms, a large kitchen and the hills of Mt. Parnassus

• Enjoys an uninterrupted view of the South West dining area

• Comes complete with a large, well-manicured yard coast of Grenada and picturesque sunsets

Floor Area: 3,208 sq. ft.

Land Area: 19,440 sq. ft.

Price: US$625,713

BYAMSHIRE Golf Course, St. George

• Architecturally designed, 3 bedroom / 2.5 bathroom • • •

home set within a mature, tropical garden located in the quiet neighbourhood of Golf Course, St. George Ground floor features an open plan kitchen/dining room, living room, TV den, powder room and an L-Shaped veranda that captures a one-of-a-kind ocean view First floor enjoys a large en-suite master bedroom with lounge, and a walk-in-closet Two guest bedrooms with shared bathroom and an office nook complete the first floor

Floor Area: 3,355 sq. ft.

Land Area: 9,949 sq. ft.

Price: US$552,100

MARINA VIEW Petite Calivigny, St. George

• Charming home situated in the quiet neighbourhood • •

of Petite Calivigny with excellent views of the South East Coast and neighbouring Egmont Development This 3 bedroom / 2 bathroom home is nicely decorated and features an en-suite master bedroom with ample closet space, spacious living, kitchen and dining areas Located walking distance from the well-known Le Phare Bleu Marina

Floor Area: 3,050 sq. ft.

Land Area: 18,741 sq. ft.

Price: US$518,540

32

GRENADIAN CLASSICS

LAGOON RESIDENCE Lagoon Road, St. George

• 2 storey residential home located along the busy • • • •

Lagoon Road, just walking distance from amenities such as restaurants, shops, bars and a supermarket Although designed as a residential home, this property can be used for commercial purposes Enjoys great visibility and is easily accessed by public transportation Ground floor features a kitchen, dining room, living room, 1 bedroom / 1 bathroom and a spacious porch First floor enjoys 2 bedrooms / 1 bathroom, living room and an L-shaped veranda

Floor Area: 1,910 sq. ft.

Land Area: 1,462 sq. ft.

Price: US$239,243

LA SAGESSE HEIGHTS RESIDENCE La Sagesse, St. David

• Fully furnished house located in the calm and

• Features 2 bedrooms / 1.5 bathrooms, living area, peaceful neighbourhood of La Sagesse Heights

•

kitchen/dining area and a veranda overlooking hills, valleys and a distant sea view There is enough space to construct a lower floor

Floor Area: 1,180 sq. ft.

Land Area: 12,347 sq. ft.

Price: US$184,033

WAYSIDE Morne Delice, St. George

• Charming 2 storey home located in the peaceful • The property is completely fenced with both neighbourhood of Morne Delice

• •

pedestrian and vehicular entrance gates First floor is a spacious 2 bedroom / 1 bathroom self-contained unit with living room, dining room, kitchen and patio Ground floor comprises a self-contained 2 bedroom / 1 bathroom apartment as well as an unfinished 1 bedroom /1 bathroom apartment

Floor Area: 2,281 sq. ft.

Land Area: 5,002 sq. ft.

Price: US$134,344

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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Developments

34

EXPERT COLUMN

Grenada Citizenship by Investment Programme The Citizenship by Investment (CBI) Programme is an investment initiative that offers one the opportunity to obtain a new nationality, and ultimately permanent residence, for both their families and themselves.

In exchange, the country granting this opportunity will receive both tangible and intangible contributions for the improvement of their tourism sector, the welfare of society and overall economic development. Grenada, the spice isle of the Caribbean, has definitely begun to see the immense benefits that this programme has to offer.

The Grenada Citizenship by Investment Programme commenced in August 2013, when the Grenadian Parliament passed Act No. 15 of 2013, otherwise known as the “Grenada Citizen by Investment Act, 2013�

(Goverment-of-Grenada, 2016 ). To become a part of such an investment, applicants can either: make a payment into

the National Transformation Fund or towards an approved project in Grenada (real estate).

The commencement of this programme has created a demand for real estate on the island which did not previously exist. It has created opportunities for investors to achieve the necessary sales levels, which is a key element for the success of their development. Many short term and long term benefits of the programme have been noted including the increase in construction of developments on island.

The investment and fees required are as follows:

Government-of-Grenada. (2016, July 13), Citizenship by Investment. Retrieved from CBI Goverment of Grenada: http:// www.cbi.gov.gd/grenada-citizenship 35

DEVELOPMENTS

KIMPTON KAWANA BAY Grand Anse Beach, St. George Kimpton Kawana Bay Grenada Resort will be Grenada’s newest 5-Star hotel, and will be operated by the internationally renowned resort operator, Kimpton Hotels & Restaurants. As one of the world's leading boutique hotel operators known for its top-class and trendy restaurants. Kimpton Hotels & Restaurants form part of the InterContinental Hotels Group.

• Superbly located on Grenada’s world famous Grand Anse Beach, “One • The 146-key resort will comprise 101 luxury studio rooms and 45 suites, of the best beaches that will have you looking no further” - Forbes

• You, your spouse and dependents will be able to obtain Grenadian

as well as 12 additional penthouse residences for sale to private owners

• • •

citizenship under Grenada’s CBI program when you buy a property at Kimpton Kawana Bay Beautifully constructed hotel pool suites and studios overlooking the world famous Grand Anse Beach are available from US$350,000 (plus applicable fees) Additional amenities include an infinity edge pool, chef-driven restaurants, fitness centre, spa and water sport activities Beautifully appointed 1, 2, and 3 bedroom penthouse residences are available from US$770,000 fully furnished, including appliances, cutlery and linens, all in accordance with 5-star Kimpton brand standards

Kimpton Kawana Bay Grenada Resort is scheduled to open in 2019, with a 30-month construction timeline, and is already creating quite a buzz on the international market.

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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DEVELOPMENTS

MOUNT HARTMAN BAY Reef View Drive, Lance Aux Epines, St. George Mount Hartman Bay is a luxury 5 Acre beachfront property located in the highly sought after neighbourhood of Lance Aux Epines.

• Comprises 3 architecturally designed, distinctive structures • The first is called "The Cave House", a group of hillside

• The second is called "The Folly" a quaint 1 bed self-contained accommodations with 7 suites

• • • •

tower surrounded by a 85-foot infinity pool with Jacuzzi and swim up bar The third is an exclusive 4 bedroom beach villa with swimming pool and garden There is also planning permission for an additional 6 bed villa The white sand beach of approximately 450 feet is man-made and leads the way to a wooden, 180-foot dock with a water clearance of at least 20 feet The dock also features a helipad, power & water supply

Land Area: 5 acres Price: US $16,000,000

38

DEVELOPMENTS

GRENADA BOUTIQUE RESORT New Westerhall Point, St. George Tucked away in a quiet residential neighbourhood on the south coast of Grenada, this stunning boutique resort overlooks a beautiful Caribbean cove.

• Eight, 1 and 2 bedroom beachfront villas and two 3 bedroom, two • Set on approximately 1 acre of mature, well maintained, tropical storey villas

•

gardens with access to large communal infinity edge pool, sun terrace, two beaches and water sports Modern inspired design featuring fully equipped kitchens, natural slate flooring, stainless steel appliances and Hansgrohe & Duravit fittings

FEATURED PROPERTIES 2 BEDROOM VILLAS Floor Area: 1,200-1,400 sq. ft.

Price: Prices starting from US$465,000 inclusive of sales taxes and fees 3 BEDROOM VILLAS Floor Area: 2,800 sq. ft.

Price: Please contact for personalized options

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

39

Land Is King Sales of vacant land have historically dominated the real estate industry in Grenada. This is still applicable today and is expected to continue for many years to come. Vacant land continues to provide opportunities for both residential and commercial purposes, as well as providing investment opportunities since land is purchased speculatively with the intention of reselling in the future. In fact, when compared to improved property, land is easier to convert to cash. known for some of the highest per square foot values on the island. Additionally, the sale of residential land has been the highest in volume while the sale of vacant land for commercial development has seen some of the highest values per sq. ft.

600 500 400 300 200

45,000,000

100

40,000,000 0

Land Only

Improved

Land Only

Improved

30,000,000

2016

2015

35,000,000

25,000,000 20,000,000

Property Sales in Grenada

15,000,000

There continues to be a constant demand for vacant land in Grenada with the parish of St. George currently leading the way as it relates to the value and volume of transactions.

Within St. George, areas such as True Blue, Grand Anse Beach, Morne Rouge,PMaurice Bishop Highway and Lance aux Epines have been noted as “hot spots�. Said areas are 50

100

150

200

St. Patricks

10,000,000 5,000,000 0 Carriacou St. Andrew St. David St. George St. John

2015

St. Mark St. Patrick

2016

Value of Transaction by Parish (Land)

All in all, vacant land in Grenada is highly attractive to many persons, both locally and internationally based.

Indeed, the diversity and affordability of our lands juxtaposed with the many financial benefits (such as the use of land as collateral), all combine to make the ownership of vacant land in Grenada an irresistible opportunity.

St. Mark

St. John

St. George 50

100

150

200

50

100

150

200

St. David

St. Andrew

Carriacou 0

2015

2016

Number of Transactions by Parish (Land)

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LAND: COMMERCIAL

St. George’s Newport Lot 8

CARIBBEAN DREAMS DEV.

This 50 acre parcel enjoys extensive water frontage and many other excellent features

Land Area: 50.3 Acres Price: US$7,500,000

THE GLADE

Large lot of land adjacent to The Rex Grenadian Resort which presents a great opportunity for development of a residential/tourism project

Land Area: 8.75 Acres Price: US$6,000,000

SHORE PARADISE

Breathtaking beachfront land along the calming waters of Morne Rouge and features a pristine white sand beach

Land Area: 3.02 Acres Price: US$5,270,760

ST. GEORGE’S NEWPORT 8

Waterfront lot surrounded with commercial office and retail buildings, located in the heart of the city

Land Area: 1.35 Acres Price: US$3,687,494

THE BLUFF

Land provides fantastic and breathtaking views of the ocean and is in close proximity to the airport and well-known restaurants

Land Area: 2 Acres Price: US$2,700,000

TRUE BLUE LOT A

Unique and rare beachfront property in True Blue neighbourhood, 100 feet away from the well-known True Blue Bay Resort & Spa

Land Area: 29,564 sq. ft.

Price: US$1,034,740

TRUE BLUE LOT B

Rare beach front land with a breathtaking, uninterrupted ocean view within the most sought after neighbourhood of True Blue

Land Area: 21,621 sq. ft.

Price: US$756,735

ST. GEORGE’S NEWPORT 3C

Developed area in the capital city with infrastructure already in place for development

Land Area: 7,651.4 sq. ft.

Price: US$718,138

Petite Trou, St. David

Point Salines, St. George Morne Rouge, St. George Melville Street, St. George Point Salines, St. George True Blue, St. George True Blue, St. George

Melville Street, St. George

42

LAND: COMMERCIAL

True Blue Lot A & B

CARENAGE NO 2

Flat land located along the Carenage overlooking St. George’s Harbour

Land Area: 1,107 sq. ft.

Price: US$535,000

WESTERHALL MAIN ROAD

Large parcel of land, with an unfinished concrete structure, ideal for either commercial or residential purposes

Land Area: 1.24 Acres Price: US$364,386

INNER HARBOUR VIEW

Flat, rectangular lot of land located in a mature commercial area, ideal for constructing a commercial building

Land Area: 4,210 sq. ft.

Price: US$309,912

POINT SALINES LOT B

Highly desirable, flat, commercial lot located just off Maurice Bishop Highway in close proximity to the Airport

Land Area: 23,958 sq. ft.

Price: US$308,635

GRAND ANSE LOT 29

Vacant lot ideally located along the very busy Grand Anse main road

Land Area: 10,611 sq. ft.

Price: US$234,333

SCOTT STREET LOT

Vacant lot with excellent visibility of the surrounding area, located within the capital city of St. George’s

Land Area: 5,421 sq. ft.

Price: US$197,534

LA POTERIE LOT 5

Beachfront property perfect for a private development or a boutique hotel

Land Area: 27,700 sq. ft.

Price: US$166,200

LAWYER’S LANE

Convenient lot that overlooks the spectacular view of a volcanic crater and a horseshoe shaped harbor

Land Area: 2,392 sq. ft.

Price: US$105,933

The Carenage, St. George Westerhall, St. George

H.A Blaize Street, St. George’s Point Salines, St. George Grand Anse, St. George

Scott Street, St. George's La Poterie, St. Andrew

Lucas Street, St. George

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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LAND: RESIDENTIAL

La Digue Estate

BACOLET BAY

Large parcel of land with tremendous development potential and offers outstanding panoramic sea views

Land Area: 112 Acres Price: US$18,000,000

ANSE LA ROCHE

This lot of land sits on 2 miles of white sand beach with turquoise waters, excellent for swimming and snorkelling

Land Area: 128 Acres Price: US$15,000,000

WHITE ISLAND

Off the south coast of Carriacou with stunning turquoise water, colourful reefs and safe anchorage for yachts

Land Area: 10 Acres Price: US$3,950,000

BAILLIES BACOLET LAND

Unspoiled beach front land with a gentle slope on the east coast of the island

Land Area: 3.22 Acres Price: US$2,521,872

CHALLENOR ESTATE

Magnificent beach front property, perfect for constructing a holiday home or a Guest House

Land Area: 5.34 Acres Price: US$1,500,000

KARIB BEACH 15

Large ocean front piece of land with a blowhole and wonderful Atlantic Ocean views

Land Area: 1.17 Acres Price: US$969,000

MORNE ROUGE HILLSIDE

Large lot of prime, waterfront property nestled in the hillsides of Morne Rouge overlooking the Morne Rouge Bay

Land Area: 33,000 sq. ft.

Price: US$825,000

MORNE ROUGE VIEW LOT

Beachfront lot for sale facing the serene and calm BBC Beach and is surrounded by guest houses, hotels, beach bars and restaurants

Land Area: 12,000 sq. ft.

Price: US$600,000

Baillies Bacolet, St. David Carriacou Carriacou

Baillies Bacolet, St. David Bogles, Carriacou

New Westerhall Point, St. David Morne Rouge, St. George Morne Rouge, St. George

44

LAND: RESIDENTIAL

Anse La Roche

FORT JEUDY 1

Attractive lot of land in a prime residential neighbourhood, with a beautiful waterfront view

Land Area: 34,896 sq. ft.

Price: US$513,762

THE ESTATE AT BONAIR

Land is very fertile with a variety of fruit trees, a great opportunity to own a magnificent property

Land Area: 34.5 Acres Price: US$370,000

SPRINGS WINDHILL HEIGHTS

Lovely, breezy plot of land, perfect for building a home

Land Area: 1.49 Acres Price: US$238,378

WESTERHALL POINT 1A

Gently sloping lot that offers a spectacular sea view of Westerhall Point Bay

Land Area: 21,200 sq. ft.

Price: US$210,681

MEADOW LANE 1

Irregular shaped, residential lot within Calivigny Gardens that captures a captivating easterly facing ocean view

Land Area: 24,984 sq. ft.

Price: US$183,915

LAE LOT 6

Gently sloping lot of land located in a beautiful, upscale neighbourhood

Land Area: 12,546 sq. ft.

Price: US$161,622

LA DIGUE ESTATE 43

This lot of land is part of a new residential land development with various subdivisions, all having different sizes

Land Area: 1 Acre Price: US$128,264

PETITE CALIVIGNY C1

Ocean view lot in a highly sought-after location due to the trend of development along the south east coast of the island

Land Area: 10,000 sq. ft.

Price: US$73,613

Fort Jeudy, St. George Bonair, St. Mark

Springs, St. George

Westerhall Point, St. David

Calivigny Gardens, St. David Lance Aux Epines, St. George La Digue, St. Andrew

Petite Calivigny, St. George

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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Commercial Sales

47

Commercial Sales Historically, commercial sales have made up a small portion of the market, trending at less than 5%, with many of the commercial buildings currently owner occupied. Furthermore, speculative office space, though increasing, still accounts for a very small portion of the total commercial space.

Sales of commercial property may require an extended marketing period to achieve the desired sale price. However, there are some prime locations in which a significantly shorter marketing period may still provide the desired sale price such as the Grand Anse and True Blue areas. The marketing period and achieved sale prices for commercial property vary widely depending on the location, type, size and price point of the property.

Recently, there has been an observed increase in the demand for commercial property in the Grand Anse area, namely Maurice Bishop Highway, True Blue and Lance aux Epines. This has been primarily driven by the demand for ancillary services from the students of the St. George’s University. In addition, a large percentage of the country’s visitors stay along the ‘hotel belt’ on the Grand Anse Beach and they also utilize the aforementioned services. Moreover, it is a known fact that the above stated areas benefit from the necessary infrastructure along with great visibility. When this is combined with the existing demand for these vicinities, one can easily comprehend why these areas are so highly sought after for commercial use.

48

That being said, there has been a shift noted for some market participants from the capital of St. George’s due to the lack of availability of amenities such as modern facilities, parking and adequate property types. As such, this shift was necessary to meet the existing demands. Nonetheless, the capital is preferred by those businesses that interact heavily with persons using public transportation and those that require close proximity to the hospital, port, cruise terminal, judicial courts or any other institution based in or around the capital.

Aside from Grand Anse and the capital, demand for commercial property in the town of Grenville has also been relatively high. However, unfortunately, there are very few properties available for sale in this area.

As it relates to demand in the other towns such as Gouyave, Sauteurs and Victoria, it is currently low. Hence, this has resulted in the continued development and sale of commercial property in the prime areas while sales and further development in the other areas have remained stagnant.

SALES: COMMERCIAL BUILDING

SPICE BASKET Beaulieu, St. George Architecturally designed, spacious cultural and entertainment village situated at Beaulieu, St. George.

• The neighbourhood of Beaulieu is in close proximity to local • • •

attractions such as the Grand Etang Lake, Rain Forest, Annandale Waterfalls, The National Stadium and the capital city of St. George’s Though the property is mainly used in the entertainment industry, it has great potential for other commercial purposes There is room for expansion to suit the needs of the purchaser Rare opportunity to own this type of development in Grenada

Floor Area: 39,000 sq. ft.

Land Area: 151,337 sq. ft Price On Request

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

49

SALES: COMMERCIAL BUILDING

BAICO BUILDING Young Street, St. George’s Colonial, architecturally designed commercial building located in the heart of St. George's.

• First floor is subdivided into three areas, all with connecting

• Features an internal staircase, access from multiple locations, access if required as a single space

• Location provides for a constant flow of pedestrian and vehicular adequate restroom facilities and conference rooms traffic

Floor Area: 23,005 sq. ft.

Land Area: 12,087 sq. ft.

Price: US$2,632,582

50

SALES: COMMERCIAL BUILDING

HALIFAX BUILDING Halifax Street, St. George’s

• Located in the heart of the capital lies this extremely • All amenities are readily available • This property can be used for various spacious 3-storey office building

•

commercial/retail purposes and can be divided into smaller rental spaces Great investment opportunity located only one minute from the cruise ship terminal

Floor Area: 18,000 sq. ft.

Land Area: 2,372 sq. ft.

Price: US$4,968,898

MITCHELL’S COMMERCIAL BUILDING NO. 1 Melville Street, St. George’s

• 2 storey commercial property in a prime location, • Obliquely opposite the bus terminus where on one of the main arteries of the capital

•

pedestrian traffic averages 10,000 persons per week day Currently houses bars on both floors, a restaurant and a snackette

Floor Area: 2,280 sq. ft.

Land Area: 3,064 sq. ft.

Price: US$736,133

LONGUINA BUILDING Church Street, St. George’s

• 2 storey office building conveniently located in

• Basic amenities are readily available • Banks, supermarkets, law offices, restaurants, local the capital

transportation and the Cruise Ship Terminal are in close proximity

Floor Area: 3,362 sq. ft.

Land Area: 2,612.8 sq. ft.

Price: US$441,680

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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SALES: APARTMENT BUILDING

WHITE HOUSE APARTMENTS Lance Aux Epines, St. George Well maintained 2-storey apartment building with great revenue earning potential, located in the prime neighbourhood of Lance Aux Epines.

• The apartment complex houses 7 apartments: two -1 bedroom / • • • •

1 bathroom, four -2 bedroom/ 1 bathroom and one -3 bedroom / 2 bathroom It offers nicely decorated and spacious apartments with good occupancy rates Features a lovely swimming pool with deck and gazebo, fenced yard, ample parking and a mature garden It is a great investment opportunity designed with the option of the owner being able to live on the premises whilst tenanted Located close to the SGU bus route, beaches, restaurants, banks and shopping areas

Floor Area: 8,906 sq ft.

Land Area: 15,539 sq ft.

Price: US$1,875,000

52

SALES: APARTMENT BUILDING

ISLAND STYLE APARTMENT BUILDING Morne Rouge, St. George

• 3-storey residential/commercial building • Conveniently located a short walk away from the •

•

•

World Famous Grand Anse Beach and from the popular Spiceland Mall First floor comprises two 2 bedroom / 2 bathroom apartments as well as two 1 bedroom / 1 bathroom apartments Second floor comprises two 2 bedroom / 2 bathroom apartments and two 1 bedroom / 1 bathroom apartments Rooftop deck is perfect for entertaining guests

Floor Area: 12,000 sq. ft.

Land Area: 11,563 sq. ft.

Price: US$1,500,000

CHERRY MANOR Lance Aux Epines, St. George

• Consist of three 1 bedroom apartments on the

ground floor and one 3 bedroom / 2 bathroom apartment on the first floor Surrounded by a beautiful tropical garden Amenities include well equipped kitchens, cozy living areas and air-conditioning units included in the bedrooms Conveniently located along the SGU bus route and close to the sub-city of Grand Anse

• •

•

Floor Area: 3,350 sq. ft.

Land Area: 21,780 sq. ft.

Price: US$809,746

GRAND MAL BUILDING 3 Grand Mal, St. George

• Commercial building comprising of 3 floors • •

located on the West Coast of the island on the Grand Mall main road Ground and middle floors are commercial units and the top floor is 2 bedroom / 1 bathroom apartment Stunning sea views of the Western Coast are captured from all floors

Floor Area: 2,341 sq. ft.

Land Area: 1,508 sq. ft.

Price: US$199,720

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

53

Commercial Rentals Commercial rentals have been the sector of the market that has shown the most drastic improvement as the overall economy improved. This improvement can be recognized primarily in the Grand Anse area; however, other commercial centers have also benefited in the form of increased occupancy and developmental levels.

Additionally, there has been new speculative commercial office and retail development in the Grand Anse area within the past 12 to 36 months with some categories being 100% reserved prior to the completion of construction. Additionally, the marketing period for vacant categories has been noted as significantly reduced from 12 to 24 months to only 1 or 2 months in some cases.

The demand for speculative commercial space, both retail and office is currently outpacing the supply. The low number of vacancies noted in the Grand Anse area has been due to

the lack of adequate facilities or configuration of space to match the requirements of potential tenants. Some tenants have had to split their operations due to the existing constraints.

Provided that the economy continues on its current trajectory, the demand for commercial space including office, retail and light industrial/manufacturing will continue to expand exponentially. This growth in demand and lack of supply is expected to spur further development of both owner occupied and speculative office space.

55

C O M M E R C I A L R E N TA L S

NETHERLANDS BUILDING UNITS Grand Anse, St. George Conveniently located within the sub-city of Grand Anse sits these pristine office spaces within the Netherlands Building.

• These units feature a fitted kitchenette, storage and

• Ideal for offices catering to executive clients, financial institutions, conference room

• Ample parking is available at both the front and back of the embassies / consulates building

Floor Area From: 1,326 sq. ft. to 3,087 sq. ft.

Price From: US$3,416 - US$7,159

56

C O M M E R C I A L R E N TA L S

NIS - SHOP 10 GROUND FLOOR Melville Street, St. George’s Brand new, well-appointed ground floor commercial space located along Melville Street in the capital city.

• Banks, restaurants, shops and the Cruise Ship Terminal are all • Ample parking is available • 24-hour security will be provided within walking distance

Floor Area: 1,295 sq. ft.

Price: US$2,383 per month

T: + 1 (473) 439-3993 | E: infogd@terracaribbean.com | terracaribbean.com

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C O M M E R C I A L R E N TA L S

JOY COMMERCIAL COMPLEX Maurice Bishop Highway, St. George Well-built, modern commercial spaces for rent located along the Maurice Bishop Highway, enjoying high levels of vehicular traffic and visibility.

• Fresh, modern, spacious office units in a central location with

• Excellent visibility and easy access to the surrounding areas of road frontage onto the Maurice Bishop Highway

• Individual units with a shared conference room Grand Anse and the capital of St. George's

Floor Area from: 596 sq. ft. to 1,020 sq. ft.

Prices from: US$1,261 - US$2,159 per month

58

C O M M E R C I A L R E N TA L S

NATIONAL INSURANCE SCHEME - TOP FLOOR ANNEX Melville Street, St. George’s

• Brand new, well-appointed, top floor commercial • • •

space located along Melville Street in the capital of St. George’s Banks, restaurants, shops and the Cruise Ship Terminal are all within walking distance Can be divided into two spaces and rented separately Ample parking and 24-hour security provided

Floor Area: 3,407 sq. ft.

Price: US$3,762 per month

BRUCE STREET MALL GROUND FLOOR UNIT Bruce Street, St. George’s

• Rental space on the ground floor of a large • •

retail/commercial building, located along the busy Bruce Street in St. George’s Features an escalator, elevator, firefighting equipment on every floor, air conditioning, building maintenance and security service Centrally located in an area with high pedestrian traffic with local shoppers and tourists from the nearby Cruise Ship Terminal

Floor Area: 738 sq. ft.

Price: US$3,280 per month

THE COLONIAL BUILDING (GROUND FLOOR) Cnr. Of Lucas Street & Church Street, St. George

• Spacious ground floor commercial space located on • •

the corner of Church & Lucas Street in the town of St. George Features a kitchenette, and his-and-hers toilets Banks, supermarkets, law offices, restaurants, local transportation and the Cruise Ship Terminal are in close proximity

Floor Area: 1,600 sq. ft.

Price: US$2,761 per month

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C O M M E R C I A L R E N TA L S

PENIEL HOUSE Lucas Street, St. George’s

• The two floors can be rented separately or together • Each floor is divided into 4 large rooms with air • Move-in ready with finished floors and ceilings

conditioning and its own kitchenette and bathroom

Floor Area: 2,322 sq. ft.

Price: US$2,687 per month

ASTER BUILDING H. A. Blaize Street, St. George’s

• Spacious office spaces available along the H. A.

• Each unit enjoys a private restroom and a stunning Blaize Street

• All utilities and roadside parking are readily sea view overlooking The Carenage available

Floor Area: 3,600 sq. ft.

Price: Second Floor - US$2,024 per month Ground Floor - US$4,417 per month Middle Floor - US$4,417 per month

GCNA MEZZANINE A Lagoon Road, St. George

• Ground floor commercial unit in the GCNA • •

Shopping Complex conveniently located on the Lagoon Road The shopping complex houses retail stores, beauty salons and offices Close proximity to the Cruise Ship Terminal, marinas, retail stores and schools

Floor Area: 2,017 sq. ft.

Price: US$1,559 per month

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C O M M E R C I A L R E N TA L S

THE ESPLANADE MALL UNIT 112 Melville Street, St. George’s

• The Esplanade Mall is centrally located in the prime • •

area in St. George’s on the Esplanade, and consists of a variety of retails shops, restaurants and convenient stores The Cruise Ship Terminal is adjoined to the Mall High levels of pedestrian traffic when cruise ships are docked

Floor Area: 349.38 sq. ft.

Price: US$1,456 per month

DAFFODIL Church Street, Carriacou

• Ground floor commercial space located on Church • •

Street, Hillsborough, on the beautiful sister isle of Carriacou Features 4 separate spaces suitable for private offices and 1 bathroom Conveniently located within walking distance from all basic amenities and public transportation

Floor Area: 600 sq. ft.

Price: US$552 per month

CREME CARAMEL - OFFICE UNIT Lower Depradine Street, St. John

• Newly refurbished commercial space located on • Outfitted with modern fixtures, tiled countertops Lower Depradine Street

• Utilities are readily available and ceramic floor tiles

Floor Area: 620 sq. ft.

Price: US$478 per month

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Residential Rentals Residential rentals are divided into three categories: corporate, classic and SGU rentals.

Corporate rentals refers to the rental of executive homes typically occupied by non-Grenadian professionals, who have relocated to Grenada on a work contract. Executive homes can be defined as high-end, stand-alone properties with 3-5 bedrooms, located along the southeast coast of St. George and St. David, close to the capital city of St. George’s and sub-city of Grand Anse. These rentals usually range from US$2,500 to US$5,000 per month.

Classic rentals can be defined as apartments and stand-alone homes, featuring standard finishes, located no more than half an hour drive from the capital city. These rentals have anywhere from 1-4 bedrooms and are occupied by a broad demographic of clients both Grenadian and non-Grenadian.

Rental rates for a classic rental range from US$500 US$2,000 per month.

SGU rentals is the term used to describe rental accommodation built to supply the rental demands of students and faculty of the St. George’s University (SGU). SGU is the largest institution in Grenada and therefore has a remarkable impact on real estate in the South of Grenada. With the continuous influx of

a vast number of students and a large faculty base, the demand for rental accommodation has transformed surrounding neighborhoods and has ruled rental rates in the south of the island for the last 20 years.

This category of rentals is specifically located along the southern end of St. George no more than 2 miles from the University, in the following neighborhoods; True Blue, Lance Aux Epines, Point Salines, Calliste, Frequente, Mont Tout and Golf Course. These rentals are mostly apartments within apartment complexes ranging in price from US$400 to US$4,000 per month. Prices depend on location, size and amenities.

C O R P O R AT E R E N TA L S

BEYAZEV VILLA Egmont, St. George Set within the tranquil and enamouring area of Egmont lies this exquisitely designed house that sits on the water’s edge, enjoying extraordinary views overlooking the Le Phare Bleu Marina and the exclusive Calivigny Island.

• Features 3 private, separate, en-suite bedrooms along with a

• Each private bedroom enjoys the following amenities: Queen sized 2 bedroom / 3 bathroom self-contained main house

• •

or King sized beds, TV, air-conditioning and a kitchenette which includes dishes, kettle, microwave and a mini fridge Beyazev features a beautiful Al Fresco dining area, and a cozy lounge and sun deck perfect for entertaining A tropical lawn and secluded beach are footsteps away, offering the ideal ambiance for relaxation

Floor Area: 3,500 sq. ft.

Price: US$7,500 per month

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C O R P O R AT E R E N TA L S

EUGENIA - LA PALMA 11 Lance Aux Epines, St. George Architecturally designed, Mediterranean styled villa nestled in a gated community located in the prime residential neighbourhood of Lance Aux Epines.

• Beautifully designed 3 bedroom / 2.5 bathroom, open plan villa

• The en-suite master bedroom has a spacious walk-in closet and a equipped with modern furnishings and state of the art appliances

• The kitchen and living room lead onto a semi covered patio which balcony overlooking the peaceful neighbourhood consists of a lovely plunge pool

Floor Area: 2,192 sq. ft.

Price: US$4,000 per month

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C O R P O R AT E R E N TA L S

MONTANA HOUSE Westerhall Point, St. David Uniquely designed, Caribbean styled home majestically perched on a hilltop in the prestigious neighbourhood of Westerhall Point.

• The design of this 4 bedroom / 4 bathroom home is open plan

• All bedrooms are en-suite and are housed in separate cottages and allows each room to capture a fabulous sea view

• Private swimming pool area featuring a bar, powder room and with outdoor walkways interconnecting to the main house

• Tastefully furnished with a fully fitted kitchen • Ideal for those who love outdoor living patio for Al Fresco dining

Floor Area: 4,000 sq. ft.

Price: US$4,000 per month

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C O R P O R AT E R E N TA L S

FRANGIPANI - LA PALMA 5 Lance Aux Epines, St. George Mediterranean styled villa nestled in a gated community, located in the sought-after residential neighbourhood of Lance Aux Epines.

• Architecturally designed 3 bedroom / 2.5 bathroom, open plan

• The en-suite master bedroom has a spacious walk-in closet and villa equipped with modern furnishings and appliances

• The kitchen and living room lead onto a semi covered patio a balcony that overlooks the beautiful neighbourhood which consists of a lovely plunge pool

Floor Area: 2,110 sq. ft.

Price: US$3,500 per month

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C O R P O R AT E R E N TA L S

FREEDOM HILL VILLA Lance Aux Epines, St. George

• Stunning and unique hillside villa perched on one of • Ocean and mountain views are captured from all the highest points in Lance Aux Epines

• Features 4 bedrooms / 3 bathrooms and spacious living angles where cool sea breezes abound

• The lovely swimming pool has a built-in Jacuzzi and spaces that open onto the wrap around patio waterfall feature

Floor Area: 2,335 sq. ft.

Price: US$4,500 per month

VUE SUR LA BAIE Egmont, St. George

• Architecturally built 4 bedroom / 3.5 bathroom home • • •

located in the well sought-after neighbourhood of Egmont First floor features an en-suite guest bedroom, lounge area and balcony Ground floor features an open plan kitchen, dining room and living room which lead onto a spacious pool deck Fantastic ocean views and views of the Egmont Harbour are captured from every level, especially from the beautiful swimming pool

Floor Area: 3,000 sq. ft.

Price: US$2,800 per month

CLOVELLY Lucas Street, St. George

• Historic and beautifully designed home conveniently • Unfurnished with 2 bedrooms / 2 bathrooms • Can be used for either residential or commercial located on Upper Lucas Street

• Provides a captivating ocean view and large tropical purposes garden

Floor Area: 1,200 sq. ft.

Price: US$2,500 per month

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C O R P O R AT E R E N TA L S

PINQUIN UPPER COTTAGE Point Salines, St. George This beautiful cottage is set above the gorgeous Pinquin Beach and is located within close proximity to the world renowned Sandals La Source Resort & Spa, Grenada

• Offers a fully furnished, 2 bedroom / 2 bathroom, functional

• Includes resort complex security, backup generator and ample open plan design

• The location provides a spectacular view of the evening sunset, water supply

Southern coastline beaches and the town of St. George’s

Floor Area: 1,700 sq. ft.

Price: US$2,600 per month

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C L A S S I C R E N TA L S

EGMONT 126 Egmont, St. George

• Charming bungalow located within the desirable • Features 3 bedrooms / 2 bathrooms as well as an neighbourhood of Egmont

• Property is fully fenced with a well-manicured open plan living/kitchen/dining area

• Only a 15 minute drive from the world famous garden and spacious gazebo Grand Anse Beach

Floor Area: 1,900 sq. ft.

Price: US$2,000 per month

AMORPHA Baillies Bacolet, St. David

• Spacious and tastefully designed 3 bedroom / 3 • Enjoys modern furnishings and appliances and bathroom, top floor apartment

• Back patio and rooftop lounge perfect for

an open plan living / kitchen / dining area

• Protected by burglar bars on all windows entertaining

Floor Area: 1,000 sq. ft.

Price: US$1,700 per month

SUNSET COURT APARTMENT 2 Fort Jeudy, St. George

• Modern, 2 bedroom / 2 bathroom, 2-storey • • •

apartment located within the sought-after neighbourhood of Fort Jeudy First floor enjoys an open plan living / kitchen area that opens onto a covered veranda Both floors include a charming and spacious en-suite bedroom All outdoor spaces overlook stunning ocean views

Floor Area: 800 sq. ft.

Price: US$1,300 per month

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C L A S S I C R E N TA L S

CINNAMON BUN Confer, St. George

• Spacious top floor apartment located in the quiet,

• Consists of 3 bedrooms / 2 bathrooms, living room residential neighbourhood of Confer

• Features a semi-circular veranda where cool breezes and open plan kitchen/dining room and a distant sea view are captured

Floor Area: 1,000 sq. ft.

Price: US$1,104 per month

JASMINE Westerhall, St. David

• Cozy and well-appointed 3 bedroom / 2 bathroom • • •

home located in the quiet residential neighbourhood of Westerhall Enjoys a fenced and gated yard with adequate parking Lovely lawn space enhancing tropical outdoor living Covered veranda where a beautiful sea view of Westerhall Bay is captured

Floor Area: 1,500 sq. ft.

Price: US$1,104 per month

CHOCOLATE MOUSSE Calivigny, St. George

• Charming and exquisitely designed 3 bedroom / 2.5

• Features a spacious kitchen / dining / living area and bathroom top floor apartment

• Only a 15 minute drive from the world famous

two verandas perfect for unwinding and relaxing Grand Anse Beach

Floor Area: 1,515.66 sq. ft.

Price: US$1,104 per month

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C L A S S I C R E N TA L S

SUNRISE APARTMENT Fort Jeudy, St. George

• Beautifully decorated 1 bedroom / 1 bathroom

• Nestled in tastefully designed landscaping with an apartment located in a peaceful neighbourhood

• Cozy feel which provides for comfortable living expansive view of the nearby bays

Floor Area: 700 sq. ft.

Price: US$1,100 per month

GPS APARTMENT 1 Tempe, St. George

• Fully furnished and equipped 3 bedroom / 2 • •

bathroom apartment located in a peaceful residential neighbourhood This spacious, upper level apartment also features a loft that can be used as a fourth bedroom Features a balcony that overlooks the gorgeous Mt. Parnassus mountain range

Floor Area: 1,200 sq. ft.

Price: US$1,000 per month

CAMELOT APARTMENTS Red Gate, St. David

• Newly built, unfurnished, self-contained 2 bedroom • Each bedroom is en-suite with its own balcony that / 2 bathroom apartments

• Banks, supermarkets, restaurants, and hotels are captures a distant view of the Atlantic Ocean located within a 15 minute drive

Floor Area: 800 sq. ft.

Price: US$920 per month

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C L A S S I C R E N TA L S

FANTASY TOP FLOOR APARTMENT Mt. Parnassus, St. George

• Spacious 3 bedroom / 1 bathroom, top floor

• Nestled on the hillside with a distant view of the

apartment located within a serene neighbourhood

• At the rear of the property lies a tropical garden sea and surrounding villages

populated with fruit trees and flowers

Floor Area: 1,200 sq. ft.

Price: US$663 per month

CASA DE DIOS APARTMENTS Mt. Parnassus, St. George

• Apartment complex located within a quiet

• Each apartment offers comfort and convenience residential neighbourhood

• The apartments are large and airy with modern with views of the valleys

•

conveniences including fully equipped kitchens, large bathrooms and breezy bedrooms Conveniently located just minutes from the town of St. George's and 25 minutes from the airport

Floor Area from: 800 sq. ft. - 1,100 sq. ft.

Price from: US$294 - US$552 per month

COCONUT Marian, St. George

• Newly built, well maintained 1 bedroom /

• Tastefully decorated with modern furnishings 1 bathroom apartment

• Enjoys an open plan living/kitchen/dining room and appliances

that opens onto a lovely veranda

Floor Area: 377.70 sq. ft.

Price: US$460 per month

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S G U R E N TA L S

EASY ESCAPE Mont Tout, St. George Conveniently situated near all amenities lies this newly built top floor apartment, just steps away from the world famous Grand Anse Beach.

• Extremely spacious 3 bedroom / 3 bathroom apartment • Features an open concept living/kitchen/dining area • Each bedroom is en-suite and includes a patio, which provides • All furnishings and appliances are new and modern

a birds’ eye view of the surrounding neighbourhood

Floor Area: 1,659 sq. ft.

Price: US$2,800 per month

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S G U R E N TA L S

THE ARBOR Lance Aux Epines, St. George Located in the highly sought-after neighbourhood of Lance Aux Epines lies The Arbor, a small apartment complex featuring four comfortable apartments in excellent condition.

• Property features three 2 bedroom / 1 bathroom apartments

• Amenities include an alarm system, air conditioning, washer and one 3 bedroom / 2 bathroom apartment

• Each apartment also enjoys a spacious veranda that looks onto and dryer and modern furnishings

• Ample parking is available at the front of the property a beautiful garden

Conveniently located along the SGU bus route

Floor Area from: 800 sq. ft. to 1,806 sq. ft.

Price from: US$1,400 - US$2,000 per month

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S G U R E N TA L S

PLUMBAGO Lance Aux Epines, St. George This charming apartment is part of a small apartment complex located in the prestigious neighbourhood of Lance Aux Epines, just walking distance from the SGU bus route.

• 2 bedroom / 2 bathroom, well-maintained and tastefully

• There is a communal pool at the centre of the property which decorated apartment

• Adequate parking is available

adds to the ambiance and overall comfort

Floor Area: 750 sq. ft.

Price: US$1,700 per month

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S G U R E N TA L S

VILLA STUDIO APARTMENTS Lance Aux Epines, St. George Conveniently located within the peaceful neighbourhood of Lance Aux Epines are these fully furnished studio apartments.

• • • •

The size of the apartments vary by Block (A, B & C) Rent includes internet, basic cable, water, and laundry facilities A lovely central swimming pool is available for all tenants All apartments are pet friendly

Price: BLOCK A - US$1,045 per month BLOCK B - US$825 per month BLOCK C - US$660 per month

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S G U R E N TA L S

ALAMANDA - LA PALMA 10 Lance Aux Epines, St. George

• Architecturally designed and Mediterranean styled • •

villa nestled in a gated community within the residential neighbourhood of Lance Aux Epines Features 4 bedrooms / 3.5 bathrooms which includes an en-suite master bedroom with tub, shower, and walk-in closet Beautiful plunge pool and a spacious patio, perfect for entertaining

Floor Area: 2,514 sq. ft.

Price: US$4,000 per month

GRAMILLIONS WAY 3 Lance Aux Epines, St. George

• Extremely spacious, 4 bedroom / 3 bathroom • • •

upstairs apartment in the prime residential neighbourhood of Lance Aux Epines Includes a spacious veranda ideal for unwinding and relaxing Fully fenced and pet friendly Walking distance from two SGU bus routes

Floor Area: 2,500 sq. ft.

Price: US$2,800 per month

BUTTERCUP Point Salines, St. George

• 3 bedroom / 2 bathroom, top floor apartment • •

conveniently located along Sunset Valley Road, Point Salines Features an open plan living/dining room, en-suite master bedroom with walk-in closet, and a patio overlooking a beautiful tropical garden A short walk from the SGU bus route and in close proximity to the airport and amenities

Floor Area: 2,700 sq. ft.

Price: US$2,000 per month

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S G U R E N TA L S

TITASONG APARTMENTS Lance Aux Epines, St. George

• Three 2 bedroom / 2 bathroom apartments with a

• Each apartment enjoys an open plan living / dining / beautiful communal swimming pool

• •

kitchen area complete with high-end finishes and kitchen appliances Each bedroom is en-suite and features a king sized bed and study desk An SGU bus stop is located at the entrance making this location very convenient for faculty and students

Floor Area: Units range from 750 sq. ft. - 850 sq. ft.

Price From: US$2,000- US$2,500 per month

WHITE HOUSE APARTMENTS Lance Aux Epines, St. George

• Charming apartment complex housing 7 apartments: • •

two -1 bedroom /1 bathroom, four-2 bedroom / 1 bathroom and one-3 bedroom / 2 bathroom Features a lovely swimming pool with deck and gazebo, fenced yard, ample parking and a mature tropical garden Located close to the SGU Bus Route, beaches, restaurants, banks and shopping areas

Floor Area From: 1,000 sq. ft. - 1,100 sq. ft.

Price From: US$1,000 - US$1,800 per month

YACHT VIEW APARTMENTS True Blue, St. George

• Tastefully built apartments located in the prestigious • Features both 1 and 2 bedroom apartments • Access to a gorgeous swimming pool, tennis court neighbourhood of True Blue and well-equipped gym

Floor Area: 242 sq. ft. - 500 sq. ft.

Price: US$900 - US$1,700 per month

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S G U R E N TA L S

CASTLE VIEW APARTMENT Karland Park, St. George

• Unique 3 bedroom / 2 bathroom apartment, sitting • •

majestically on a ridge overlooking the beautiful Grand Anse Beach Features a large patio perfect for entertaining family and friends Close to all amenities such as shopping centres, beaches, banks and restaurants

Floor Area: 2,000 sq. ft.

Price: US$1,600 per month

SECRET HARBOUR UNITS Lance Aux Epines, St. George

• Rustic, fully furnished studio apartments located

• Each unit is waterfront, capturing exceptional ocean within the Secret Harbour Marina

• Features a communal swimming pool, restaurant views and cool breezes and tennis court

Floor Area: 765.98 sq. ft.

Price: US$1,500 per month

SEAVIEW DRIVE 4 Lance Aux Epines, St. George

• Fully furnished 2 bedroom / 2 bathroom house in the • It offers great sea views, a large and well-landscaped

prime residential neighbourhood of Lance Aux Epines

• Perfect for a family or students who are looking to stay garden, and front and back porches

in a comfortable home instead of an apartment

Floor Area: 1,000 sq. ft.

Price: US$1,500 per month

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S G U R E N TA L S

BENOITS APARTMENT 8 Grand Anse, St. George

• Features 2 bedrooms / 1 bathroom, along with a

• Centrally located within the sub-city of Grand Anse, shared kitchen and living space

•

along the SGU bus route and in close proximity to supermarkets, restaurants, bars, gyms, beaches and a cinema Pet friendly

Floor Area: 750 sq. ft.

Price: US$1,200 per month

PREMIUM LAE Lance Aux Epines, St. George

• Cozy 2 bedroom / 1 bathroom, ground floor

• Secured by fencing and is pet friendly • Conveniently located along the SGU bus route and apartment within a 2 storey apartment building

only 5 minutes from the sub-city of Grand Anse and the Maurice Bishop International Airport

Floor Area: 900 sq. ft.

Price from: US$1,200 per month

PREMIUM PROPERTIES APTS. True Blue, St. George

• Self-contained 1 bedroom / 1 bathroom apartments • •

located in the True Blue area, along the SGU bus route Safely secured by security cameras and a security guard at night Premium Properties offers a morning shuttle which takes tenants to and from the SGU True Blue Campus

Floor Area: Units range from 304 sq. ft. - 405 sq. ft.

Price From: US$990 - US$1,100 per month

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S G U R E N TA L S

SANDYS Frequente, St. George

• Comfortable 3 bedroom / 1 bathroom apartment

• Features A/C units in all bedrooms and a cozy living conveniently located in Frequente

• Situated along the SGU bus route and approximately room area

10 minutes from restaurants, shopping, banks and beaches

Floor Area: 1,000 sq. ft.

Price: US$900 per month

COUPER SUITES Karland Park, St. George

• Modern studio apartments located a short walk from • All apartments are fully furnished and feature a Flat the SGU bus route

• Offers a lovely in-ground pool which can be Screen TVs

enjoyed by all tenants

Floor Area: 500 sq. ft.

Price: US$850 per month

CHERRY MANOR 1 Lance Aux Epines, St. George

• Extremely comfortable 1 bedroom / 1 bathroom

• Amenities include private washer & dryer, a well apartment

•

equipped kitchen, cozy living room and A/C in the bedroom Conveniently located along the SGU bus route and walking distance from the Lance Aux Epines beach

Floor Area: 300 sq. ft.

Price: US$800 per month

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INVESTOR’S GUIDE

Buying Property in Grenada The process that follows the purchase or acquisition of property in Grenada entails: • A written offer and acceptance (often through a real estate agent) • A sales agreement prepared by the vendor’s Attorney-At-Law and sent to the Purchasers Attorney-At-Law • A deposit (Customarily 10%) is paid by the purchaser on signing of said Sales Agreement.

A title search is then carried out by the purchaser’s attorney-at-law. The deed of transfer or conveyance is then prepared by the purchaser’s attorney-at-law and executed upon satisfactory completion of any matters pertaining to good title. This process can take 1 to 4 months, depending on whether or not an alien landholding licence is required, or other stipulated time between the parties.

Property Ownership Requirements All non-Grenadian corporations and non-nationals of Grenada are required by the Alien Landholding Regulation Act to apply for and obtain an Alien Landholding Licence prior to purchasing a property. This licence is reviewed by Cabinet and upon approval, the licence is issued.

Ownership of property may be in the name of an individual, a corporation, a foreign company, a trust or other entity.

The Alien Landholding Licence Fee is 10% of the agreed purchase price for non-residents (only).

Application forms are available from the Prime Minister’s Ministry or from the purchaser’s Attorney-at-Law. There is no additional government charge for this application.

Vendor’s Position: The expenses incurred by a vendor will be as follows: • Property Transfer tax: 5% of the selling price for Grenadians and members of the OECS • 15% of the selling price for non-nationals first EC$20,000 on the property’s selling price before the Transfer Tax is calculated) • Legal Fees: Approximately 2% of the purchase price + 15% VAT • Real estate commission: Approximately 5% of the purchase price + 15% VAT • Out-of-pocket expenses: Approx. EC$500 The Sales Process: • Vendor signs listing agreement with agent to market property • When agent finds purchaser and offer is accepted by vendor, agent writes letter to purchaser advising that the offer has been accepted • This letter is copied to the vendor’s Attorney-At-Law and purchaser’s Attorney-At-Law • The vendor’s Attorney-At-Law uses this letter to prepare a sale agreement The sale agreement is sent to the purchaser’s Attorney-AtLaw for perusal and once approved; it is forwarded to the purchaser for signature and payment of the non-refundable 10% deposit • The deposit is retained by the vendor’s attorney-at-law • Title search is carried out and Conveyance prepared by the purchasers attorney-at-law

Purchaser’s Position: The expenses incurred by a purchaser will be as follows: • Alien Landholding Licence Fee: 10% of purchase price for non-residents (only) • Legal Fees: Approximately 2% of the purchase price + 15% VAT • Stamp Duty: Approximately 1% of the purchase price • Land surveyor’s fee: Approximately 0.5% of the value of the land • Out-of-pocket expenses: Approximately. US$500

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• The purchaser then makes final payment, which is sent to the vendor’s attorney-at-Law • In conclusion of the sale, the vendor’s attorney-at-Law pays certain selling costs on the vendors’ behalf, including paying the 5% government tax and agency commission • The new deed is registered in the registry and the vendor receives all final paperwork thereafter ENDS

PINK PAGES

Location, Location, Information As the old adage suggests, location, location, location is key to the value of all real estate.

Understanding the market in which one operates is paramount in assessing value and investment and financing risks.

On many occasions, financial institutions are required to make sound lending decisions in territories with which they are not familiar and so depend on valuations and local market data to contribute to their understanding of the market. The location of an investment can dictate the potential for success based on the required strategy in terms of marketing and exposure required to make the investment work.

Grenada has proven to be very stable as it relates to the locations of high demand, solid appreciation and good resale values. There are other areas that require a more strategic approach to maximize the potential for success.

The following provides a snapshot of the Grenada real estate market. Though there has been an increase in the overall sales for the past few years, the trends related to activity, sales prices and classification of real estate transactions have been relatively stable with few variations even in negative growth in the industry.

there are some variations noted. The points of note that impact the value, salability and the marketing period required include, but are not limited to, the following: Location The location of the property is a critical factor in the determination of the achievable sale price (value) and marketing period required to achieve a transaction. Over the past several years the locations achieving the most sales transactions have been consistent, with St. George achieving the highest, and St. David and St. Andrew achieving the next spots though they interchange from time to time for second and third place. It should be noted that the sales in St. David and St. Andrew combined is usually less than the sales achieved in St. George alone.

350

The total number of sales transactions registered for 2015 was 638 while the sales transactions for 2016 were noted at 656 representing a marginal increase in terms of the number of transactions, approximately 2 %. However, the increase in the value of transactions was noted at 10% over 2015 with a value of approximately EC$160 million (US$59 million) up from approximately EC$146 million (US$54 million).

TRANSACTIONS

300 250 200 150 100 50 0

Carriacou St. Andrew

St. David St. George

St. John

St. Mark

St. Patrick

St. Mark

St. Patrick

PARISH

The parameters of the sales market have proven to be consistent over the past several years in terms of the location, classification and achieved sale prices though

Number of Transactions by Parish 2016

350 300

700

250

TRANSACTIONS

800

600 500 400 300

200 150 100 50

200

0

Carriacou St. Andrew

100

St. David St. George

St. John

PARISH

0 2009

2010

2011

2012

2013

2014

2015

2016

Number of Transactions by Parish 2015

Number of Transactions per Annum

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85

600

600

550

550

500

500

450

450

400

400

350

350

TRANSACTIONS

TRANSACTIONS

INVESTOR’S GUIDE

300 250 200

300 250 200

150

150

100

100

50

50

0

0

Agricultural Commercial

Residential

Agricultural Commercial

CLASSIFICATION

CLASSIFICATION

Number of Transactions by Classification 2016

Number of Transactions by Classification 2015

Properties located in St. John, St. Mark and St. Patrick present increased risk in terms of the required marketing period and achievable sale price based on their location and the lack of demand for property in these parishes. It should be noted that over 36% of the population resides in St. George and as such the demand for residential and commercial property in this area is consistently higher than other parishes.

Classification The classification or use of the property also contributes significantly to the salability and required marketing period to achieve a transaction. There is significantly higher Land Only

Improved

TOTAL

507

149

656

77%

23%

100%

Number of Transactions by Property Type 2016

Land Only

Improved

TOTAL

503

136

639

79%

21%

100%

Number of Transactions by Property Type 2015

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Residential

demand for residential property than any other use - this is a historically consistent trend with approximately 90% of the market being the sale of residential property over the past 3 years.

Property Type Vacant land has proven to be the preferred type of property purchased. Historically most locals and foreign buyers want to buy land and build their improvements rather than purchasing a property that has already been improved.

This has continued though there has been an increase in the purchase of improved property, which has stabilized within the past 3 years. This has been well noted in the sale of vacant land versus improved property. Additionally, as would be expected in most cases, the marketing period required for land (all things being equal) is significantly less than that of improved property.

Price Price is a significant parameter in the determination of the salability of properties given the demand in the market.

There is a significantly greater demand in the market for properties EC$200,000 and below. This results in greater marketing period for properties over this price point.

Furthermore, within the EC$200,000 threshold there are various levels of demand based on the changes in price.

This trend has been stable over the past several years, though it is on a marginally upward trend.

600

600

550

550

500

500

450

450

NO. OF TRANSACTIONS

NO. OF TRANSACTIONS

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400 350 300 250 200

400 350 300 250 200

150

150

100

100

50

50

0

0

0 to 200K

201K to 600K

601K Plus

0 to 200K

SALE PRICE IN EC$

201K to 600K

601K Plus

SALE PRICE IN EC$

Number of Transactions by Achieved Sale Price in EC$ 2016

Number of Transactions by Achieved Sale Price in EC$ 2015

Year

Carriacou

St. Andrew

St. David

St. George

St. John

St. Mark

2015

157,109.43

138,270.51

170,258.33

352,405.67

75,691.70

193,167.45

60,315.22

2016

174,643.60

102,126.32

227,595.05

352,235.41 89,219.79

97,621.28

139,995.58

Average with one-off large transactions 2015 Average with one-off large transactions 2016

St. Patrick

62,982.31

96,366.19

100,156.48

202,455.05

Note: Figures shown in red are averages with one-off large transactions removed as this may skew the results for that given year.

These transactions happen from time to time but are not annual occurences.

Average Price per Parish

Average Price per Parish

Conclusion

The general trend in terms of the average price per parish has also proven to follow the expected trend with the highest average price being achieved in St. George and the lowest one in St. Patrick, with the other averages consistent with the level of demand and types of property available for sale in these locations.

Though the real estate industry is one with many parameters and risks to be evaluated, there are many constants and precautions that can be taken to mitigate some risks. This is achieved by adequate analysis of the market and alignment with the necessary industry professionals to provide the best advice possible. Though the analysis is a high-level look at the local real estate industry, it provides immediately obvious insights that will assist investors, financiers and market participants in general with information to make more informed decisions.

There were some one-off transactions noted which may skew the results from time to time. These were particularly noted in St. David, St. Mark and St. Patrick. When the oneoff transactions are isolated the trend is more consistent from one year to the next.

Leila Maria La Touche Director, Terra Caribbean Grenada

Note: The data used was taken from the local registry and the dates of the transactions are the document dates (date the conveyance was registered and not the date the transaction took place) as such there may be some variation between the actual closing date and registration of the conveyance.

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INVESTOR’S GUIDE

Doing Business in Grenada; New Fiscal Incentives 2017 Doing business in Grenada is easy. There is minimum entry requirement; no restriction on foreign ownership; no restrictions on foreign currency transactions; easy movement of capital, profit and dividends; and, attractive fiscal incentives. Foreign investors are given equal treatment to domestic investors.

Investors in Grenada can benefit from a stable democratic style of government, stable economy, developed infrastructure, reliable investment support services, low crime rate and good quality of life.

Investment opportunities can be found across a wide range of sectors. Priority areas for investment include tourism and hospitality (boutique hotels and villas, eco-tourism, wellness tourism, adventure tourism and yachting ), health and wellness (day spas, natural preparations, assisted living facilities, treatment/rehabilitation centers), information communication technology (call centers/business process outsourcing; medical billing and coding, software development, mobile device applications and animation), agri-business (organic farming, herb and spice production, GAP farming, food products for wellness services, value added processing) and alternative energy (geothermal, solar, wind, hydro).

The Grenada Investment Development Corporation (GIDC) provides a “one stop investment facilitation” service for all investors. The services offered by the Corporation include business and investment advice on doing business in the country, registration of applicants for fiscal incentives, assisting investors to secure all required approvals, certificates, work permits, land for projects’ realization, and such other support and assistance as investors may require to establish and to operate their projects. Business support services including technical assistance for business diagnostics and the preparation of business plans and access to affordable operating space are also provided.

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Through the GIDC, a full programme of investment incentives is available to investors. Grenada has undergone a review of its incentives programme and has revised its investment incentive framework to one that is streamlined, transparent, performance-based and compliant with international laws and regulations.

The new Investment Incentives Regime aims to improve the business environment by streamlining its investment procedures to enhance Grenada’s attractiveness as an investment destination. Through GIDC, a full programme of investment incentives is available to qualifying investments. Incentives includes investment allowances, loss carry forward, deductible expenditure for training, research and development, property tax waivers and customs duty exemptions.

More details on doing business in Grenada and on investment incentives can be found at www. grenadaidc.com or www.grenadaidc.biz.

Ronald Theodore Vice President, Promotion & Marketing- Grenada Industrial Development Corporation

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New Opportunities for Business with the Time Share and Vacation Plan Act Grenada’s Time Share and Vacation Plan Act, which came into effect in 2015, provides yet another real estate investment option for persons looking to buy or sell property here.

The Act sets up a legislative framework for the:

Protection for Purchasers

“creation, regulation and management of time-share and vacation projects … for the protection of purchasers of time share and vacation plans; and … for related matters.”

For the further protection of purchasers, proof of title, declarations, descriptions, by-laws, notices of termination and other instruments regarding timeshares and related land, are required to be registered in public registries.

Time Shares Treated as Land Perhaps the most notable aspect of the Act, is its recognition of a time-share interest as real property, meaning that a purchaser can resell, lease, dispose by will or otherwise deal with his timeshare in the same way as it if it were a piece of land. There may also be more than one purchaser in respect of a timeshare interest.

Detailed contracts of sale are required between buyer and seller and the Purchaser is entitled to a copy at conclusion of the sale.

Each time share project requires the appointment of a time-share managing agent.

No Alien’s Landholding Licence Required

Time share interests must be sold as part of a “time share plan”, which must in turn be a part of a time share project.

Licencing Requirements All projects must be approved and licenced by a Committee set up under the Act.

Ownership of a timeshare interest is not conferred by reference to nationality, so that there is no requirement for a non-Grenadian to obtain a licence to purchase a timeshare.

Kim George Attorney-at-Law- Kim George & Associates

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INVESTOR’S GUIDE

Insurance and its significance in the World of Real Estate In 2004, Grenada suffered from the passage of Hurricane Ivan. Reports had 90% of properties damaged - many severely, some totally. The insurance industry in Grenada rallied to the call, and after 49 years of no hurricanes, paid over a half a billion dollars in claims. Quite a significant sum considering only 15% of 30,000 homes were insured at the time.

But the bigger problem in the aftermath of Ivan was that 8 out of 10 homeowners were underinsured. What is under insurance? An insured (policy holder) is the one responsible for giving the insurance company the total value to insure their property. This value is known as “the sum insured”.

This is an estimate at the present time. Therefore it is not unusual to have differences between the sum insured, and the total value. If the value of the property is higher than the sum insured - this is known as “under-insurance”. Simply put, in the event of a total loss, the sum insured will not pay for the full value of the claim.

Insurance policies do not respond well to underinsurance.

When a claim (partial or whole) is made for property under an insurance policy, it is likely, as in the case following Hurricane Ivan, insurers as a matter of course, would conduct a valuation on the property.

If the property owner is considered “under-insured,” the insurer has the right to (sometimes governed by legislation) apply "average” to the policy.

As mentioned earlier, average is an insurance principle which has frustrated many Ivan claimants. So here is an explanation to help you avoid a similar experience. If an item or property is underinsured, the insured must bear a rateable proportion of each and every loss. Technically, you become your own insurer for the balance of the loss.

under-insured. Confused? This is probably best explained by a numbers example: A policyholder insures their home for $500,000.

Following some loss by a covered peril, say fire or hurricane, the insured claims $50,000 under their policy. The insurer's valuator assesses the correct total value of the home to be $625,000.

Note the insured took out a policy for only 80% of the total value ($500,000 / $625,000. In this case the claimant will only collect $40,000 (80% of the claim).

Insurance companies apply average for good reason: to prevent underinsurance, to obtain a full premium for the risk, and to ensure that both the insured and the insurer bear respective fair shares of each loss.

All this could be avoided by simply ensuring that your values are always updated, practically annually, and particularly when additions and renovations are made to your property.

Some insurers would even include an indexation clause to ensure your values keep up with inflation. Today, the number of homes insured in Grenada have doubled from the days of Hurricane Ivan. But that still leaves the majority uninsured.

Put another way, the insurer is allowed to reduce their pay out in the event of the claim in proportion to the amount

Richard Strachan Managing Director, Netherlands Insurance Company

Richard Strachan earned his Bachelor’s degree in Business Administration (with honours) in insurance and actuarial science from Howard University Washington, DC. He has over 30 years of experience in insurance company operation and reinsurance management in the Caribbean and USA. Currently managing director of Netherlands Insurance Company (WI) Ltd., he has attended several technical conferences on insurance in the USA, Europe, Latin America and the Caribbean, and has been a resource person at seminars in insurance. A former public relations officer of the Association of Grenada Insurance Companies (AGIC), he was instrumental in leading key issues to the Government on insurance regulation. He is currently chairman of the Road Safety Committee of AGIC, and is the recipient of the Grenada Chamber of Commerce Business Leader of the Year 2015.

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Financing your own Home Buying your first home is likely to be one of the most significant decisions you will make in your life time and therefore requires careful planning. Most new homeowners will require financing.

In planning to finance your home, it is critical to think long term to ensure that you are able to sustain your loan payments and ensure full ownership of your home.

In this article, we will consider the key points to ensure you acquire sustainable financing by reviewing / exploring: 1. Mortgage Planning for new homeowners: determining the size of loan for which you can comfortably qualify and service 2. Shopping / Project cost: Adjusting your building costs and keeping strictly within agreed building costs

institutions will go as high as 50% of gross salary dependent on your disposable income.

Add up monthy commitments

Meet with Bank to discuss what you can afford

To receive a quick indication from your bank as to the amount you can afford you need to gather:

Negotiate interest rate

3. Effective use of home equity for existing homeowners 4. Financing Options: Fixed vs variable interest rates Mortgage Planning for New Homeowners

Use professionals to achieve building goals

Before making plans to build or buy a home, your first stop should be your banker / financer. Why? When you go shopping, you need to know what you can comfortably afford. Additionally, it gives you the confidence to negotiate and places you in a position to quickly secure your preferred home.

A very safe way to determine your ability to qualify for a mortgage, is to add all of your monthly commitments [loans, credit cards hire purchase and your new mortgage payment, estimated land taxes, property insurance] together. These commitments when added together should ideally not exceed one third of your gross salary. This is a rule of thumb, however, the most important aspect of the assessment is ensuring that your disposable income is sufficient for you to maintain a comfortable lifestyle and allow you to adapt to unforeseen circumstances. Some

It is also very important to have a very good credit history. The better your credit history the greater your ability to negotiate a favorable interest rate.

At all costs keep within Budget!

1. Pay slips / job letter 2. Bank statements showing a pattern of saving is always very useful 3. If you are a small business owner, you will need you recent financial statements or bank statements 4. All of your outstanding loans, hire purchase, credit card payments etc.

5. If you already own land and you are building, walk with a copy of your conveyance or property tax statement With the above you should be able to get an amount for which you will qualify and now it’s time for shopping.

Shopping / Managing Project Cost You can acquire your home through purchasing land and building or purchasing an already completed property. Let’s start with the more complicated cost to manage, building your own home. The cost to build your home will be determined in part by the quality of the finishes you choose and the square footage of the home. These are variables you can adjust to help you keep within budget. If you are a first time homeowner you may have a dream home but cost may be critical. In such cases, its best to work with builders and architects that provide you optionality in their design.

You may want to build a home of 3,000 sq. ft. but can only

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afford 2,500 sq. ft. In this case it may be best to discuss how best to achieve a fully completed home of 2,500 sq. ft. which gives you the option of completing the additional 500 sq. ft. at a time when financing is possible. A similar approach could be taken with fixtures, where affordable fixtures can be used until financing allows for maintenance and upgrade. Once you have agreed to the size of home, fixtures and the project fits your budget, do not under any circumstance vary from this budget or you will be left with an incomplete property which both you and your banker / financier would not benefit from. Projects which go over budget are also unlikely to be favourably viewed by the Bank and financing at this stage is very difficult and sometimes impossible. Ideally it would be best to secure a fixed price contract so as to fix your costs. At all costs, keep within budget!

If you are purchasing a property always consider the cost to renovate to make it your own. Therefore, if you know you have a budget of $500,000, look for a property for $450,000 as an example. This gives you flexibility. This gives your room to negotiate and also gives you the option to renovate the property on acquisition.

year term, you can visit your bank and say, I have paid an interest rate of 10% for the last 5 years and I have paid very well, also interest rates are currently 8% - what can you do for me Mr. Banker? You now have the power to negotiate.

If interest rates are rising and mortgage rates go up to say 12% for new mortgages, you may be able to negotiate a lower rate based on your credit history or walk away altogether and move to another financial institution.

1

2

FIXED RATE

VARIABLE RATE

Existing Homeowners Maintaining your property enhances its value and protects your investment. During periods of economic growth the demand for properties tend to increase. Increases in demand for properties, all other things equal, will lead to an increase in property prices. Therefore if you purchased yours more than 5 years ago and you have paid your mortgage well and on time, you may have some equity within your property. This means that if you purchased your home for $500k as an example 10 years ago, it may be worth $540k today and your mortgage balance may be down to $475k. You now have ownership / equity of $65k.

Let’s hope your income over the last 10 years have grown and your debts have reduced. You can visit your banker and borrow additional funds to improve your home, which hopefully will increase its value beyond its current position.

If you have been paying very well, you may also be able to negotiate a lower interest rate for your additional funds.

This allows you to protect and improve the value of your investment.

Fixed Interest Rates vs Variable Interest Rates Some financial institutions will give you a choice of fixed vs variable interest rates. Be sure to choose the one which is of benefit to you. As a rule of thumb, if you have a fixed income you should choose the fixed rate. Some institutions will give you a rate fixed for a specific term e.g. 3 or 5 years. This means that while you may pay your mortgage over 30 years, the interest rate is guaranteed for 3 or 5 years at a time. This gives you flexibility. At the end of that 3 or 5

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MORTGAGE OPTIONS Variable mortgages are more attractive to financially sophisticated persons on a variable income. This mortgage rate provides greater optionality and is re-priced more frequently. A borrower who believes interest rates are declining may not want to be locked into a rate for 3 or 5 years and can negotiate a one year rate. Therefore, if rates decline during that year, the borrower is well placed to reduce his borrowing cost at the end of the year. However, if rates rise, he may negotiate a higher rate making his repayment increase and it’s for this reason, this product is not suggested for persons on a fixed income.

Purchasing a home can be exciting but it requires careful planning which includes making the right financial decisions. The above provides general guidance on ways you can plan to acquire financing that fits your needs. It is best nevertheless to visit your banker / financial institution to discuss all available options to ensure you effectively plan the best way to secure financing.

Roger Archer Country Head - Scotiabank

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