Globally the residential markets continue to underwhelm with only a handful of markets demonstrating year on year price growth. A recent Business Week article appropriately characterized the sector as ‘limping into 2012.’ The Irish and Spanish markets continue to lead the underperforming category, while conversely the Canadian and French markets have experienced up to 5% inflation-adjusted YOY price growth. In addition to the obvious fundamentals, this growth is underpinned largely by a tighter supply and a considerably more sensible approach to underwriting residential mortgages.
Terra Caribbean has strengthened its brokerage and advisory department expanding the range of services offered to clients. We are delighted to announce that Director of Brokerage and Advisory Services, Hayden Hutton, has become the first real estate professional in the island to be awarded the prestigious Certified Commercial Investment Member (CCIM) designation.
On Tuesday August 16th, The Minister of Finance, The Honourable Mr. Christopher Sinckler presented to the House of Assembly, the Financial Statement and Budgetary Proposals for the year 2011. Relevant to the real estate industry, there was a proposal to modify the land tax value bands, which at first glance would mean lower taxes. It is important to note that these changes impact improved residential properties only (no changes to vacant land or commercial properties). This follows on the heels of the new land tax valuation notices issued two months ago when many property owners were faced with an increase in assessed values.
Within the past week the new notices of valuation have been arriving at mailboxes around the island. In Barbados, every three years is a valuation year. The last valuation year was in 2008, thus making this year, 2011, a valuation year as well. Here is a quick background on the valuation legislation and the process to be followed.
As real estate valuers, it is inevitable that at some point a client will be disappointed in our opinion of value of their property, particularly during the current recessionary period. At the peak of the market, owners disposing of their property were likely to achieve a premium above their original investment but may not be so fortunate under current market conditions. Notwithstanding the prevailing market forces, there are a number of actions taken by property owners, which fall within their full control but which impact their property’s value negatively. One such example is excessive and elaborate construction.
Incredibly we are here again, another year of Independence for our beloved island with Christmas not far on its heels. For us at Terra Caribbean, it means one other thing (well two if you count the annual staff party) The Red Book is coming! The Red Book is the most comprehensive review of Barbados real estate and the 2011 edition will be the fourth annual publication.