Jamaica Real Estate Industry gets a boost! April 24, 2009

The highly anticipated reading of the budget by our minister Mr. Audley Shaw was the highlight of this week. With promise of increase in taxes, the country was on edge as we all pondered how much more will they demand of us. With a buzz of road blocks and threats of possible demonstrations, with only 2 hours to go before all was revealed, many Jamaicans were glued to the airwaves! Whilst we were not happy to know we will now pay tax on petrol and items like oates, it is clearly a general concensus that this was a necessary act to sustain the country. This is evident in the fact that there were no significant outbreak of violence, which is usually the norm when Jamaicans are not satisfied with the decisions made by the governing politicians of our country.

On a high note, the Real Estate industry has once again received  well needed stimulation by the decrease in Transfer Tax from 5% to 4% and Stamp Duty from 5% to 3%.  Even though this change will not take effect until January 2010, it does however mean prospective buyers can start looking actively for that ideal property as this now means that only a deposit of 10% as oppose to the popular practice of having to pay out 15% deposit of the selling price, will now be readily accepted.

True, this decrease in taxes does not address the core problem within the industry, with 80% of NHT contributors not qualifying for the current $3.5 million being offered to qualified first-time home owners, and the high interest rates being charged by the various lending agencies. On an interesting note, RBTT has decided to enter the industry by providing residential mortgages alongside its’ rivals Jamaica National Building Society and Victoria Mutual Building Society. Being new to the industry, we can only assume that a very competitive interest rate, possibly lower than what is currently being offered by the competition, can be expected, if RBTT plans to successfully capture any kind of market share. Of course, I am equally fascinated with how the competion will respond, either way, it’s a win win for the Real Estate industry all together!

Is it a good time to buy? April 13, 2009

Since the major crash of various investment schemes, coupled with the swift global recession which invariably affects us here in jamaica, there has been a serious “hoarding”. The Real Estate Market activity has slowed down. On the surface, it is easy to understand the reasons why people are reluctant to invest  in property right now. Afterall, mortgage interests rates are high, employment level is at a serious low, as companies are downsizing everyday. The economic outlook is dismal, as one cannot predict the future and so has to exercise caution with regards to their income and expenditure. So, back to the question, “Is it a good time to buy?”  as an Agent of course I’m going to say YES!!!!!!!!!! afterall, I have to defend my bread and butter, but do not misunderstand my intentions, I will now justify my response

Every buyer is unique, and so is your situation. Buying a home is not something done on a whim. It’s a decision carefully thought out and planned for, backed by savings of the “deposit of 15%”. Now if you are serious about buying, you would have been smart about it and get pre-approval. The key to success when buying a home is to trust an expert, so the decision to use a  Realtor is a wise one. Get someone you trust and is comfortable with, ensure they are licensed with a reputable broker. It’s important to have an idea of what you want in your desired home,  the ammenities and of course the neighborhood of choice. be realistic about your budget and the area you have chosen, it’s no secret certain areas command top dollar so be prepared to pay for it, then leave the rest to your Agent.

The rule of thumb is that you should be able to afford a mortgage 3 times your income. So coupled with savings and your NHT assuming you are a contributor you will have an idea of what your final budget for that home you desire will be at the point of pre-approval by your chosen lending agency. Word of advice, don’t go into shock at the asking price of a property you are interested in, break it down and look at what your monthly mortgage would be, compare that with what the property would command if you were to rent the said property and this should help to put things into perspective!

So, armed with your Agent and your budget, you are ready to scope out available properties that suit your needs. Irrespective of the economic turmoil, you have planned for this, you have found that ideal property, it’s in good shape, move-in ready, the price is right, are you going to buy? Of course!!!!