In This Economy...



Frequently Asked Questions that you might have regarding the property market in this economy

 

Is this a good time for me to sell my property?

Right now isn’t the best time to get your property sold in this market. Now isn’t a good time to sell for many reasons as there are fewer buyers and there are a lot of properties on the market being offered from people who have no choice but to sell. There are still several persons looking to buy property in this economy but there is a much greater need now for property owners to set their prices right and reasonably in order for them to be sold sooner. In this economy people are looking for a steal and good value for money now more than ever.

How long will it take for my house to sell?

This all depends on how competitively you’ve priced your property and how willing you are to reduce the price if the property doesn’t move after a certain period of time. You need to be willing to be aggressive with the pricing if the property is not moving. A property with lots of great features may generate a lot of interest but no one might be willing to make an offer because of the price. If you are aggressive you should plan for about three months. If you’re not willing to be responsive to the market then there’s no telling, it could take a long time. 

If I want my house to sell quickly should I focus on the local or international market? 

This will partly depend on the property you’re selling. A beachfront property on the West Coast will more than likely draw the attention of the UK buyer specifically and overseas buyers in general. If you’re selling a house in Sargeant’s Village then it is less likely to appeal to the average overseas buyer. Having said that, a small home in Kingsland Gardens will appeal to a returning national who may have family here. That individual is technically a part of both markets all at once. For the smaller more affordable properties your marketing will be more geared towards the local market, whereas larger higher end properties with a view or some premium status are likely to be more attractive and also fetch a higher price from an international buyer.

Is now a good time to buy property if I can find the money?

Definitely.

Is it difficult to get loans to buy property? Or is it easier?

Right now banks are being more selective and discerning with their lending. They are requiring more in depth information and are less willing to take a risk. For a secure borrower (a borrower who is low risk) they will be very competitive with their rates and want to lend but in general they are being more careful than they were when the economy was doing better and house prices were continuing to rise. I don’t think house prices in Barbados have ever dropped before the way they have over the past few years. They want to lend money but they are being more careful with who they lend to.

Is property still a good investment? Has the recession impacted the Barbadian property market in any way?

It most certainly has. We are susceptible to external shocks and foreign influence because of our tourism based economy, therefore when our home markets/biggest markets (UK, Canada, USA) suffer any form of recession we feel the effects. If you can buy well then yes property is still a good investment. It is only a matter of time before property prices improve here just as they have in other countries. I am optimistic about the future of the Barbadian economy so long as we put the right policies in place and can learn to better manage our economy and the limited resources that we have. I look forward to seeing leaders emerge with good ideas, vision and strategy to see us through our current situation and restore good economic growth. Once the economy improves our property market will once again become flooded with opportunities for both buyers and sellers. I look at other small economies like Singapore and I see them encouraging business and attracting foreign investment, they have an open free economy and they are seeing tremendous growth year after year. If those countries can do it so can Barbados. 

We in Barbados need to encourage foreign investment and entrepreneurship, and be more competitive in every aspect of our commerce. We need to follow the lead of countries like Singapore where entrepreneurship is encouraged and government plays a smaller role in managing the business of the economy. (There’s less red tape). Yes we need regulations but they should encourage business, business transactions and investment. That whole framework needs to be addressed. Look at how other countries are looking for ways to encourage solar energy and other renewable energy sources. Innovation is key. At CIP we recognize that being innovative and introducing new ways of doing business or buying property, new ways of thinking, and new ways of bringing value to our customers are important. We focus on this along with solid training and market research to help our clients enjoy the best possible real estate experience available today. Innovation is what helps to drive our business forward.

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