Buying land in Barbados can be a very long and drawn out process. If you’re thinking about buying land in the near future, there are some things that should be taken into consideration. These tips are not in any particular order, but attention should be paid to all of them.
1. Find out the loan amount you qualify for
Having an idea of how much your financial institution is willing to lend you is advisable. This will let you know what pieces of land are out of your reach and will keep you focused on finding piece that is within your budget. The amount you qualify for is usually based on your salary and monthly commitments.
2. Choose a Location
Deciding where you want to live might seem like a daunting task. Choosing the neighbourhood that’s right for you can be difficult especially if you have not thought about your plans for the property. Peruse the realty sites and contact the property owners to arrange viewings. Ask yourself ” Can I see myself living here?” and be honest with your answers.
3. Find out the price of the land
Usually this is the first thing that people look at, when deciding on a piece of land to buy. Land prices in Barbados have jumped considerably and finding a cheap piece is usually rare. Sad to say, some extremely cheap pieces of land, might have flaws, which the sellers do not want to disclose.
4. Take a drive to your chosen location
After you’ve decided where you want to live, you should take several drives to the location. I would advise that you go when it’s raining or just after a large downpour. This would give you an idea of any flooding issues, if they exist. Many people have been duped into buying lots that collect all the water in the neighbourhood when it rains. A few hours can save you many years of distress.
5. Talk to your potential neighbours
Ask the people in the neighbourhood their opinion of the area. Bear in mind that you will get varying answers. Ask questions about the utilities – are they many water and electricity outages. Also find out about the security of the area. Have there been many robberies? Are there any rowdy and boisterous people who cause problems in the community?
6. Find out the down-payment required
Financial institutions do not usually give one hundred percent loans to purchase land. This means that you will have to come up with at least five percent of the purchase price as a down payment. For example, if you want to buy a piece of land which costs $150,000, you will need a down-payment of $7,500 ( some institutions require 10%, which means that you would need $15,000 for your down-payment).
7. Inquire about the length of time to pay back and the pay back amount
Financial institutions allow you to pay back you loan in as little as ten years or up to twenty years. Sometimes this can be dependent on your age, salary and financial commitments. This then usually impacts how much your monthly pay back will be.
8. Take note of attorney fees and other fees
Many people often forget that lawyer fees need to calculated and paid up. The percentage that usually goes to the lawyer is usually between one and two percent of the sale price. You, the buyer usually pay your attorney’s fees as well as the bank’s attorney’s fees. In addition to this, there are other fees specifically VAT, searches on the title, stamp duty and agent fees if you go through a real estate agent.
9. Prepare to have surveyor’s report done
Many banks usually require that you produce a surveyor’s report which states the approximate value of the land. This value can influence how much the bank is going to lend you. If the cost price of the land is greater than the value reported by the surveyor, the bank will only lend you the value amount and you have to come up with the shortfall.
10. Be knowledgeable about covenants and rules of the development
These usually state the limitations of what you can and can not do with your land. In many of the newer developments, the covenants are very strict. They may specify the type of structure to built, what pets are allowed or how high your house can be built.