85 room beachfront condominium hotel on the southern tip of Barbados, with full security and gated access, The natural beauty and secluded location of this villa hotel offer the perfect blend of solitude and adventure for every purchaser. When completed in early 2008, the development includes an expansive pool area, spa facility, exercise area, two storey open concept restaurant and martini bar and everything else you would expect in a trendy boutique villa hotel.
There are three varieties of accommodation lavishly finished with granite and marble, cedar cane faced closets and coral stone accents. A fantastic deck embracing the hotelís beach frontage is set to be an extra special feature of the property that overlooks the magnificent beach and everything it offers. This beachfront condominium hotel is one-of-a-kind in Barbados and ideal for the savvy investor.
The Developers are a private property development company incorporated under the laws of Barbados. The owners and Directors possess a wide and diverse range of business experience and expertise in hotel management, real estate, finance, sales & marketing and publishing.
The Finishes & Amenities
Pull out queen size sofa bed (Only in 1 bedroom units), lounger chairs, coffee table, flat Screen TV, DVD player, console table, liner curtains, artwork
King, twin or double bed, 2 bedside tables, 2 bedside lamps, armchair, alarm clock/radio, high quality linen, 6 hypo-allergenic pillows, mattress pad, duvet with cover, beach towels, 2 bathrobes
Table & chairs
Fridge, kettle & microwave oven
2 restaurants, 2 swimming pools, martini/wine bar, spa, fitness suite, expansive deck
overlooking beach & wireless internet accessated with normal over seas property purchase.
Ownership Structure & Rental Programme
The Villa Hotel functions as an 85 room boutique hotel. Each unit is owned individually and it is obligatory to place the unit into the hotel rental pool. The hotel is managed and operated by a subsidiary company owned by the developers. The hotel operation has been functioning since November 2006.
Each unit is owned freehold and the owners have the right to sell at any time.
Owners are entitled to six weeks usage in a calendar year, three of which must be taken at non-peak time. All cost associated with the running of each unit will be absorbed by the Rental Management Company and profits will be distributed on a pro rata basis based on the level of your original investment.
Purchasers not only have the benefit of staying at an upmarket beachfront hotel for six weeks every year, they have no property management expenses, no additional costs and they get an annual return on their investment. They should also expect significant capital appreciation at this attractive beachfront South Coast location. As part of the purchase package owners buy into a standard furnishing package and subsequent replacement furnishings are also funded out of the rental management expense budget.
The Condominium Villa Hotel ownership is a hybrid of several ownership mediums with many innovative features that enhance its value for money. It is a sound investment that removes many of the risks associated with conventional rental property ownership.
Mortgage & Financing Structure Details
Mortgage Facilities and General Information
Mortgage facilities are available for both local and overseas purchasers. In cases where the property is purchased in a holding company, the shareholders and the company will be joined in the mortgage. Local residents and non-residents are treated differently for mortgage purposes and the Central Bank of Barbados has determined that three years continuous residence is required before an applicant can be deemed a local resident for mortgage purposes. All Barbados nationals whether resident or non-resident, are treated as resident for mortgage purposes. Banks are the principal mortgage providers and the general turnaround time from application to completion ranges from two months to two years. We seek to get formal approval within five days and then liaise with attorneys to expedite completion.
Local Purchasers and Barbadian Nationals
Loans of up to 100% are available with repayment terms as high as 30 years. Current interest rates are in the 7 Ė 8 % range, and fixed term rates are available. As a guideline to the approx. cost borrowers could use BDS $7 per BDS $1,000 borrowed at 7.5% over 30 years and multiply it by the amount they wish to borrow. There are also fees and charges that have to be negotiated.
Overseas and Non-Nationals
Loans of up to 70% maximum are available with repayment terms as high as 20 years. These loans are in US$. The interest rate is normally aligned to US$ LIBOR (the London interbank rate) although our mortgage providers are Caribbean lenders. Interest rates affect demand because both will influence purchasers that need to borrow high and low rates. Local mortgage rates have decreased slowly during 2009 and it appears that the fiscal policy of the new government is to move in this direction.
Overseas buyers have the option to raise funds in either Barbados with a non-resident mortgage loan.
Local banks continue to offer attractive mortgage packages for non-residents at rates in and around 4% at the start of 2010.
Most loans are capital and interest repayment, although fixed rates can be quoted and interest-only loans may be available in certain circumstances.
The interest rate is set at the drawdown of funds.
These figures quoted are for illustration purposes only, as all costs including legal fees should be determined upfront, and buyers should request figures relating to their specific circumstances.
Building insurance is obligatory, while life assurance depends on the applicantís personal circumstances, and the lenderís terms and conditions. Life insurance is not normally required for non-resident mortgages.
In recent years the Barbados Government has reduced Property Transfer Tax to 2.5% and there is no purchase tax for the buyer.
This makes Barbados one of the cheapest places in the Caribbean to buy and sell property.
Sales commissions and survey costs are borne by the vendor. Each party bears itís own legal fees, which are based on a scale of fees ranging between 1.5% - 2%. On average, the cost would be approximately 1.5% for the purchaser. This is the only purchase transaction cost other than incidental costs of forming and registering a company if a corporate vehicle is to be used. When selling a property the vendor would normally incur sales commissions of 5%, transfer tax of 2.5%, stamp duty of 1% and legal fees of approximately 1.5%. Operating Cost
The owner of improved property (house and land) in Barbados will have to pay an annual land tax at the following rates:
0% on the first US$62,500
0.10% on US$62,501 - US$175,000
0.65% on US$175,001 - US$425,000
0.75% on Excess over US$425,000
The other main operating costs would include insurance, which ranges from 0.4% for residences and in all cases would depend on characteristics of the building and the site.
Barbados Real Estate Sector
Barbados has enjoyed a boom period in real estate growth and construction over the past decade. This has seen property prices steadily increase annually in the 7 - 10% range but much higher in beachfront locations where demand has greatly exceeded supply.
The Barbados real estate product offers a large range of properties, but the driving force in its growth has been the increasing numbers of overseas buyers. Much of this growth has been stimulated by a strong Euro and Pound Sterling, on the back of a weak US dollar.
UK buyers dominate the overseas market in Barbados and with the US$ trading at approximately 2 to 1 against the British pound, the market has never been more attractive for UK buyers.
Other factors that have made Barbados an attractive overseas investment opportunity include;
Low tax incentives
Relatively crime-free environment
Progressive and visionary government
Excellent tourism product and facilities
Proven performance at the top of the hospitality ladder
Wide range of property types
Proven return on investment and capital appreciation
Available mortgage facilities for purchase
The Barbados market has also benefited from a drop-off in the Spanish and Portuguese markets, that for so long held the UK buyers interest.
Construction in Barbados gathered increasing momentum in the build-up to the 2007 ICC Cricket World Cup and the huge media hype that surrounded this tournament is likely tonproduce a positive spin-off for Barbados real estate in the coming years. Most of the
developers have concentrated on prestigious beachfront sites to lure all the overseas investors, but with diminishing supply, property values are increasing and new developments have been forced to look outside the historically more popular West and South Coast locations. West Coast prices have traditionally been 50-70% higher then South Coast prices, but as more developments appear in the South Coast, the gap has significantly narrowed.
The Condominium Villa Hotel Development is well placed to take advantage of the current opportunity within the Barbados real estate market place. This complex offers a beachfront location on a superb beach, it is competitively priced well within the range of most UK second home buyers, it offers a complete one-stop investment package that answers virtually all the management challenges that face an overseas investor, it will be marketed professionally, and it has a plethora of amenities, features and facilities that are not normally available with a traditional property purchase.
With the increased awareness of Barbados in the post-World Cup era, plus its continuing success in the general tourism sector, Barbados is expected to show higher tourism arrivals in the next few years and history has shown that good tourism figures produce good real estate sales.
With its excellent product, the Condominium Villa Hotel is well positioned to be a successful boutique villa hotel.
Purchasing Property in Barbados
In Barbados property passes by conveyance of title, evidenced by the recording of title deeds and certified survey plans at the registry of title. A purchaser will require a registered Barbadian attorney to search the register and establish title to the property prior to the completion of a sale.
Between the time of executing the sale contract and the completion of the sale, the legal representative of the purchaser will search the title, and ensure that there are no encumbrances, charges, encroachments, or other impediments to the sale. The title may be taken in an individualís name or through a corporate vehicle set up to own the property.
It is usual in the case of non-residents of Barbados that they purchase property through a company which may be incorporated outside Barbados, but which must be registered to do business in Barbados. In many cases, non residents use such a corporate vehicle in order to make the onward sale of the property simple.
Frequently Asked Questions
- Q: What is the Condominium Villa Hotel?
A: The Condominium Villa Hotel is an 85 room condominium resort community on the south coast of Barbados
- Q: Who is the developer?
A: The Condominium Villa Hotel is owned and developed by a local owned Barbadian consortium of developers.
- Q: How do I purchase a condominium?
A: The steps to purchase the condominiums are: -
I) Payment of refundable reservation amount of Bds $10,000.
II) Thirty (30) days to sign contracts sent to your Barbadian attorney.
III) After which a 10% (less reservation amount) non-refundable
deposit is due.
IV) 90% balance due on completion of sale.
- Q: What are the monthly costs associated with ownership?
- Q: Is financing available?
- Q: How will I make the necessary payments?
A: It is advisable to make all payments through your attorney at law, either by wire transfer of bankersí draft, so that the monies may be registered on your behalf. Payments to the developer will be made by your attorney-at-law.
- Q: What responsibilities will my Barbadian Attorney at law have?
A: Your local attorney at law will be responsible for, among other things:
I) Advising you of the nature of the various agreements which give rise to your entitlement to the unit and your responsibilities under the various agreements before you sign it;
II) Advise you when payments are due, register the funds on your behalf and pay over the sums to the developer;
III) Investigate the title to the property to ensure clear title;
IV) Advise you on any tax efficient methods to hold the property whether as an individual or through a corporate entity.
V) Peruse and finalize the conveyance to yourself
- Q: Can I buy a share in a condominium unit?
A: While the proposed development does not offer fractional ownership, groups of individuals can buy a condominium unit through a corporate vehicle with each holding shares in that company.
- Q: Is the rental programme mandatory?
A: Yes, Condominium Villa Hotel is run for the profit and benefit of its owners.
- Q: Can I rent my unit myself?
A: No, the Hotel Management Company markets and rents all hotel rooms as a
collective for the benefit of all owners.
- Q: Can I personalize my unit?
A: No, the Condominium Villa Hotel is marketed as such to guests from around the world. The hotel must remain a standard offering to all.
- Q: Does it matter if my unit rents less than the guy next to me?
A: No, profits are shared equally amongst all owners and weighted only on the basis of the level of the original investment.
- Q: What kind of return can I expect to make?
A: The Condominium Villa Hotel or any agent representing it is not allowed to offer any indications or guarantees regarding how much revenue an owner may receive. We will say that history shows that beachfront property has offered some of the best returns in Barbados.
- Q: What if a guest of the hotel damages the furniture in my unit?
A: This is not a cost to the unit owner and is borne by the Hotel Management Company.
- Q: What are the price ranges of the condominiums?
A: The Condominium prices start at the low figure of US$200,000. and the best beach front units can be purchased at US$560,000.
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Topography: Slight elevation.