The economic crisis that we have seen globally has had a negative impact on prices in most countries around the world, but it affects each territory differently based on the individual internal financial status and political approach towards fighting the problem. Good old supply and demand also comes into the picture. The number of foreclosures that have taken place across America are mainly as a result of the lapse lending procedures that became the norm in that part of the world.
In the Caribbean, and more specifically in Barbados, the lending institutions were less pressured to secure unachievable returns through risky loans and as a result there have been fewer defaults by far. Most property owners on the island are secure enough to ride out the depressed market and are not forced to sell.
This has resulted in less of the more saleable properties being available as these owners take their properties off the market and wait for conditions to improve.
The idea of “foreclosure” or “distressed” properties going at “below market prices” does not apply to this region in the way that it does in the US or other markets such as the UK and Spain where overzealous lenders were a large part of the reason for careless lending. Yes there are good buying opportunities and bargains to be had but not at the 40 and 50% discounts that we see in the more affected areas. Property prices have softened by between 10 and 30% in the region and there are not many buyers around, but “desperate vendors” and “crises sales” are not situations that are evident.
If you are looking for an opportunity for a “great buy” it would be wise to ask questions of those in the know to see which owners are keener to sell and what kinds of deals there are going around.
If you would like to discuss the above in greater detail or you would like someone to point you in the right direction contact us at (246) 424 6633.
