barbados property news october november 2012
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Property, Real Estate and Services MagazineTRANSCRIPT
BARBADOS
www.barbadospropertynews.com • October 2012 - November 2012 • Issue 83
Endorsed by the Barbados Estate Agents and Valuers Association Inc. The Crane - Page 30
Terra - Page 11
Altman - Page 15
Vuemont - Inside back Cover
PROPERTYNEWS
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A year in Barbados is a mixture of festivals and seasons and withCrop Over gone the festive season now lies on the horizon. Many Barbadians and their friends were here for Crop Over andmany more will be here for Christmas. It seems that far away fieldsare not so green in recent years and the trips home are welcomebreaks from the drudgery and stress of everyday life in the biggercountries. It should make us appreciate what we have and what ablessing it is to live on a paradise island. Sure we have ourchallenges, but we have so manyassets they have to be put intoperspective when things get ontop of us. That’s the same for ourreal estate. We accept buyers arenot as plentiful as they were a fewyears ago, but there are stillpeople in the market andBarbados Property News has awealth of property to offer. We
also have a website that goes all over the world so whether you are lookingfor a property to rent or to buy, a property service or property product, wehave plenty to offer.Enjoy!. Pamela Hiles - Editor
Editor’s Comments
If you would like to advertise in Barbados Property Newscall Pam at 228-9122 or 232-0692
Publisher – Hiltop Publications Ltd,11 Cottage Ridge, St George, Barbados,BB19071Tel (246) 228-9122, Fax (246) 228-0243Email: sportingb@caribsurf.comwww.sportingbarbados.comwww.barbadospropertynews.comwww.caribbeanpropertymag.comwww.caribbeanmortgageservices.com
Editor/Advertising – Pamela L Hiles
Design and Art Direction – 809
Distribution – Hiltop Publications Ltd,
Printing – Coles Printery
The Material and editorial contained in thispublication have been deemed accurate at thetime of going to print. The views expressed aseditorial are those of the Editor unless statedotherwise. No part of this publication may bereproduced without the consent of thepermission of Hiltop Publications Ltd.
On the cover: Valley View
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1887: Construction started in Paris on the Eiffel Tower; Britain’s QueenVictoria celebrated her Golden Jubilee; and the 18-room Crane Hotel openedits doors on the Southeast coast of Barbados.
2012: Construction is completed on the Tokyo Skytree tower; Britain’s QueenElizabeth II celebrates her Diamond Jubilee; and The Crane ResidentialResort, now boasting 252 rooms, celebrates 125 years, making it theCaribbean’s oldest continuously operating hotel.
With its dramatic clifftop location overlooking spectacularly beautifulCrane Beach, The Crane Residential Resort is one of Barbados’ bestloved historic icons. The beach’s legendary powdery pink sand comesfrom the protective coral reef that protects the small bay. This protectionallowed a small commercial port to develop in the 1700s. A crane wasbuilt on the cliffs at the north end of the beach to raise and lower thecargo carried by the small sailing ships, giving the district its name.The original port is long gone, but the secluded beach remains, and
this beach has always been the key to The Crane’s allure. In the mid1700s, it was selected as a location for the construction of a discreetbathing place for wealthy ladies, who would otherwise not have beenable to freely indulge in sea-bathing. This was a wildly popular activity,in spite of its perceived impropriety, because of a prevailing belief in itshealth-giving properties. That bathing place was called “The Horse” andthe steps cut into the cliff leading down to the water from the oldbathing hut are still visible today.But it was not just the sea-bathing that drew Barbados’ wealthy
plantation owners and merchants to The Crane. The ruggedsoutheastern coast of the island, with its cool tradewinds had, by then,become a favourite retreat from the tropical heat and mosquitoes ofBridgetown.Before the hotel was opened, the district’s main building was a
mansion known as Marine Villa, the architectural style of whichsuggests that it was built around 1790. Marine Villa still exists in almostits original state and forms the lovingly restored eastern wing of theHistoric Hotel.Ownership of Marine Villa changed hands several times, but it was
not until it was bought in 1886 by Donald Simpson, a local civil engineer,that it became more than a private holiday home. Simpson firstconceived of enlarging the house and opening it as a hotel based onthe development of the railway in 1881 to Sunbury, St. Philip fromBridgetown. The four coral stone apartments that comprise thesouthern wing of the hotel (rooms 1, 2, 8 and 9) were the first additionshe completed. The Crane had been touted as a favourite hideaway by the famously
wealthy long before the 1980s TV show Lifestyles of the Rich andFamous listed Crane Beach among its Top 10 Best Beaches in the World.One of the more infamous early celebrities to stay at The Crane wasAmerican cowboy, "Wild Bill" Hickock, who left a gold chain as paymentfor his room charges after staying at The Crane in the 1890s. DonaldSimpson’s descendants still possess Hickock's gold chain to this day. Travel writers have also recommended The Crane for many years.In 1922, the Red Book of the West Indies travel guide stated:
"The Crane Hotel occupies about nine acres on top of a high cliff on thesoutheast of the island and is swept by fresh, invigorating breezes fromthe Atlantic. From its windows is displayed the beautiful sea, fringingwith exquisite colours the white soft sandy beach of the hotel's superbbathing place, that has no superior anywhere in the world.” In 1936, Raymond Savage, the author of Barbados, British West
Indies, gave this opinion on The Crane in his Conducted Tour: “The air is incomparable… its beneficial, ozone-laden wind soonproduces a feeling of intense exhilaration and peace, even to the mostbrain-weary or physically ill of mortals… It is, without exception, themost exhilarating bathing I have ever experienced… Yet, above all, it isthe restful beauty of The Crane which is its chief asset.” In 1971, the editors of Fielding’s Guide to the Caribbean wrote:
“Two-hundred-year-old Crane should be preserved in amber andtreasured just as it is: a nostalgic monument to gracious old days.Barbados’ oldest hostelry has welcomed generations of Bajanhoneymooners and for a century was THE resort on the island…Thisrough diamond overlooks one of the world’s most glorious beaches;this is now the place for those who are satisfied with simple pleasuresand can do without chrome, and plate glass.”
Barbados’ IconicCrane ResortCelebrates 125 years
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Since 1988, the current owner of The Crane, Paul Doyle, has heededthis sage advice and has led a careful and loving restoration of many ofthe original structures that made up Crane Beach Hotel, not just MarineVilla. The Carriage House, once the original stables that housed theproperty’s horse and buggy, is today a poolside restaurant and bar; CliffCot, a beach cottage that stood on the cliff, is now home to an open-airjacuzzi; and The Casino, the original octagonal ballroom, still holdsmany a lavish affair to this day under the name, The Pavilion.Doyle’s vision went past restoration, to encompass a transformation
of the historic landmark into a luxury shared ownership resort, thatwould offer the best value to be found anywhere in the world. True tothat vision, the development that now occupies this tranquil 40-acrespace seamlessly blends the old and the new, maintaining the specialcharacter that inspired travellers in centuries past, while still enticingtheir modern counterparts. No detail has been spared as 19th century grandeur and furnishings
combine with 21st century luxuries and conveniences. The grandresidences, ranging from 800 to 4,000 square feet, benefit from thebreathtaking ocean views and incorporate period architectural features,such as thick coral stone walls, timber tray ceilings from 10-18 feet high,and furniture inspired by the Historic Hotel’s mahogany antiques,including the four-poster king-sized beds. New additions include privatepools, gardens and roof terraces; open kitchens with granite countersand top-of-the-line appliances; marble bathrooms that boast luxuriouswhirlpool tubs and spa showers; and central air-conditioning. The Crane now features 5 restaurants, including 2 award-winning fine
dining establishments: L’Azure, which serves a delectable fusion ofcontinental and Caribbean cuisine; while at Zen, native Thai andJapanese chefs create rare and exotic delicacies in classical Japanesesurroundings. For more casual options, D’Onofrio’s serves up authenticSouthern Italian family style fare, The Carriage House Bar & Grill offersa delicious grilled menu in an al fresco setting overlooking the cliffpools, and The Coconut Grove Beach Bar & Grill serves light fast-foodoptions just steps away from the ocean.The Crane’s world-class amenities also include a full-service spa, a
piano and cocktail bar, flood-lit tennis courts, a café, a well-stockedconvenience store, 2 duty-free shops, a 3,000 square foot state-of-the-art fitness centre and multi-purpose conference facilities. In addition,The Crane offers all the luxury services expected from one of the world’spremier resorts. As a further benefit, there is free WiFi across the resortand free calls to international destinations. However, perhaps the mostwelcomed new convenience for modern guests has been the glass-fronted beach elevator, which gives an easier alternative access to CraneBeach than climbing the resort’s 99 steps. It is fair to say, that although The Crane has undergone a significant
transformation over the last century, the qualities that attracted visitorsthen are still the highlights of any stay today. But what truly sets it apartis the attention to making its shared ownership programme the best inthe world.With a sales model that offers low, fixed prices for one of the world’s
most spacious and luxurious resorts; a no-discount, no-pressurephilosophy; and running costs at less than half the industry average,Crane shared owners immediately see the results of the “best value”promise. The Crane is able to accomplish this because of its full verticalintegration and the bulk purchase of goods and services. The
management company bypasses all middlemen and does virtuallyeverything in-house, from landscaping and security, to laundry andappliance repairs. In addition, The Crane drives down the operatingcosts by the use of standardised appliances, fittings and furnishings.This is combined with an extremely flexible in-house exchange
programme (Crane Points), which allows owners to trade what they ownfor different residence types or different times of year at The Crane. Forthose who wish to see the world, exchanges are easily facilitated throughmembership in The Registry Collection®, the world’s most prestigiousvacation exchange network, with over 190 of the world’s most luxuriousproperties. Crane owners may also enjoy peak season vacations in anyof 4,500 resorts worldwide through the exchange services provided byRCI® Points, the world’s largest vacation exchange company.Value in the product, pricing and flexibility is combined with a
successful rental pool programme. This is demonstrated by the fact thatevery year, for the past 8 years, every Crane owner has covered all costsand made at least a small profit for every week made available to theCrane’s rental pool. In addition, The Crane aligns its interests fully withrental pool owners by limiting its management fee to 20% of net profitafter all expenses. If Crane ever failed to make a net profit, no fee wouldbe charged at all. However, the best demonstration of value for prospective Crane
owners is the history of success with resales. Every owner who held theirCrane property for 5 – 9 years since The Crane started selling sharedownership in 1996 received, on average, a 7.4% return on theirinvestment. Just as telling is the fact that every year, for the past 6 years,over 50% of their sales have been from their current owners upgradingtheir investment. This is truly an achievement worth celebrating in theresort’s 125th year.For more information on The Crane’s history, and the opportunities
to own a piece of this iconic landmark, take a drive along the southeastcoast and stop in to the Property Sales office.
Email [email protected], or visit thecrane.com.
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After four years of globalrecession we have had plenty oftime to reflect and accept thereality that things are not going toimprove quickly. It doesn’t mattermuch whether one expert says weare in recession and another sayswe are out of it or whether adouble recession hangs like anominous threat on the horizon.
The bottom line is we have to make the most of it.Real estate in Barbados was no different than many other
popular destinations pre-2008 and enjoying the dream ofunlimited demand for second home properties fuelled byhundreds of high-income earners from overseas. It was a gravytrain where the construction industry roared with rampantdevelopment, costs escalated and property prices went throughthe roof. Selling agents had a field day every day and bidding waskeen on virtually all the popular real estate units on the market.Sadly, it all turned sour within the space of 12 months throughgreed and deception at the highest level, and as buyersdisappeared from the market, the reality of a new world hit hard.Construction on domestic property ground to pedestrian pace,material and labour costs dropped and property prices fell. Supply and demand is a well-worn economic cliché but it sums
up exactly where a business sits at any point in time. No demandequates to no sales and a business model that is unsustainable.Low demand means belt-tightening and adjustments to try andcreate a sustainable business model and that’s exactly where theBarbados second home market sits at present. An obviousremedy is to cut selling costs and reduce price. Selling agentspillage their advertising budget in tough times or look forcheaper mediums to market, but at the end of the day you won’tsell if you are not in the right market place. Cheap advertisingwill not generate sales-you get what you pay for in the marketingindustry. As for dropping price, is this going to attract a market
that is not there? After all, the biggest number of overseassecond home buyers were speculators and investors looking fora return on investment (ROI) and all too quick to laud thesuccess of their Buy-to-Let portfolios back home. But wisercounsel prevailed and while local lenders have often beencriticized for their prudence, they got it right this time. Thebacklash has seen many of these portfolios decimated and theirowners out of the market. In simple terms, the overseas secondhomebuyers in this sector have gone. But not all is doom and gloom. The overseas second home
market has a steady core of buyers who invest in lifestyle andnot quick bucks. Yes, it is nice to have a steady rental incomewhen off island and even better when property prices increasein value. But this is not the real world and what chance has anyproperty investor of securing good rental returns if they want touse the property at the prime rental times? In Barbados and the wider Caribbean region we sell lifestyle.
We can offer a relaxed beautiful tropical ambience that isunrivalled anywhere in the world and we don’t need to dropprices or compromise our values to generate a market ofspeculators and investors. We don’t have to sell citizenships towoo buyers, but we do need to protect and grow our tourismproduct at the top of the destination ladder. If tourists continueto come to Barbados they will see for themselves what awonderful place this is to live and from their midst more andmore buyers will emerge. Of course, we could reduce legal fees, stamp duties, and
various other punitive costs that make buying here tedious andexpensive, but that’s a subject for another day!
CLARENCE HILES is an independent mortgage broker and anexperienced feature writer on a variety of Caribbean businesstopics. He can be contacted at 230 9215 or by email [email protected]
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Despite the current property lullsales are slowly starting toincrease and although overseasbuyers are quietly returning to thesecond home market, local buyersnever left!It is a buyer’s market in Barbadosreal estate these days and bothoverseas and local buyers canavail of some excellent deals. They
can also avail of good mortgage packages and although theglobal recession tightened lending requirements, the Caribbeanlenders have remained committed to the market. Funding anyproperty purchase is always a challenge and in many cases theapplicants need the professional expertise of an experiencedmortgage broker. It may seem like an extra fee for the frugalbuyer, but when you look at the numbers involved getting theright product could save a buyer thousands of dollars, or worsestill, cost them thousands of dollars if they get it wrong. Howmany borrowers in Barbados are stuck with an expensivemortgage when better offers are available?Stepping into the mortgage maze can be a nightmare for theinexperienced buyer, but it doesn’t need to be as traumatic withthe right professionals in your camp. There are two types ofbuyers and two types of mortgages. The non-resident mortgage is available to overseas buyers andwith current rates in the region of 4% it is an attractive option.General details are maximum repayment periods up to 30 years,payments must be in US$ and max. Loan-to-Value (LTV) is 70%.A bank fee of 1% of the loan is normally charged. Local mortgages are available to residents of three years ormore. The general conditions are max. repayment periodup to 35 years, LTV 95% and interest rates from around6%. Bank fees vary from zero to 1%. At different times 100% mortgages have been
available and the terms vary. A good mortgagebroker will have up-to-date information on allthe products available for prospectiveclients. There are many things to consider before selecting amortgage and it is important that applicants fit all theirfinancial and lifestyle goals within a structure that meetsall their objectives. A mortgage loan is likely to be the
biggest single investment a local buyer will make, but for anoverseas buyer it could be an investment or a retirement home.Different people have different circumstances and differentobjectives and these have to be carefully assessed within anoverall financial plan. It is also important that prospective buyersgo to the right people to get advice as too many people in relatedbusinesses don’t know the facts and can give misleadinginformation.If you are looking at buying property with mortgage finance thenget professional advice from the outset and don’t leave it to thelast minute to get the funding in place. After all, you don’t gointo a shop to buy something without the money to do it.
CLARENCE HILES is an independent mortgage broker and anexperienced feature writer on a variety of Caribbean businesstopics. He can be contacted at 230 9215 or by email [email protected]
Stepping into theMortgage Maze
The Barbados Estate Agents and ValuersAssociation (BEAVA) originated out of TheBarbados Valuers Association which wasformed with approximately 10 members inthe early 1970's. It expanded in the 1980'sto include real estate agents, was renamedBEAVA and was incorporated as a non
profit company (BEAVA Inc.) on January 25th, 2006.
BEAVA is seeking to be the governing body for the real estateindustry. Subsequently it aims to ensure that standards areadhered to so that the public is confident about the uprightstanding of its members which now exceed 150 professionals.
In an effort to ensure that the integrity of its members and ethicalpractices are upheld, it seeks to monitor and oversee theindustry and provide continuous educational opportunities forthem. It seeks to build a good rapport and synergy betweenaffiliated sectors such as legal, banking, government andconstruction entities so that Barbados’ real estate industrycontinues to be seen as a trusted beacon in the Caribbean,fostering local and foreign investment alike.
To ensure that the public is armed with knowledge beforeventuring into real estate transactions BEAVA, through itswebsite www.beavainc.com, provides a plethora of informationto familiarize persons with the logistics of buying and selling realestate, including the associated fees and steps involved instandard transactions. The Multi-Listing Service which waslaunched earlier this year, and features a wide range of propertieson the island, can now be viewed on the site.
Barbados still remains a sophisticated real estate paradise indemand by many. While investors still seek to take advantageof the prime real estate that these shores have to offer, BEAVAdiligently tries to ensure that they are protected through wellapplied and enforced industry practices and code of ethics.
Cherita O’dell (Howard)Public Relations and Marketing CommitteeBEAVA Inc.
The Barbados EstateAgents and ValuersAssociation (BEAVA)
BARBADOS
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