Jamaica - Community Living

What exactly does that title mean - ‘community living’? In Jamaica today, community living is just another catch phrase for being resident within a ‘gated community’. Gated communities are thriving, not only in Kingston but throughout the island and are surely today’s prime real estate in Jamaica. Drive around any of the upscale residential areas of Kingston: Norbrook, Liguanea (especially Millsborough Avenue, Paddington Terrace) Russell Heights, Long Lane, Old Stony Hill Road and the roads leading off and a proliferation of well-established gated communities and many others in various stages of completion can be seen. Gated communities got their start in the 70’s and have flourished ever since. So, it’s safe to assume that developers would not be building these enclaves at such a rate if they were not in such demand. A recent visit to a development in progress in Millsborough Avenue and interview with developer, Michael Millwood. Mr. Millwood is building 18 spacious homes where, not long ago, there was only one large, single residence. He said that nearly all of the homes under construction had been sold already and from his years of experience in constructing such communities, this is and has been the norm. The homes are often sold well before they are finished. Corporations buy them not only as sound investments but as suitable residences for their top management and in particular, for expatriate residents in Jamaica who come to fulfill 2 or 3 year contracts and sometimes, opt to make their home in Jamaica even when their contract is finished. Of course, Jamaicans want to own their own home as well and the trend is, to make it one within a gated community – their current popularity knows no bounds! The big attraction for homeowners to live in and form part of, a gated community is security. The ready-made, built-in security is a huge pull for the homeowner. The idea of entering and leaving one’s place of abode without any fear of being held up either at the gate or possibly alighting from one’s vehicle or even at the front door, cannot be emphasised enough and this goes for Jamaicans and ex-pats alike. As well, those dwelling within feel they can rest assured that the constant monitoring of all those who enter and depart the community is another reason to feel safe, secure and at peace. So although outsiders might think that their absolute privacy may be compromised in such a setting, insiders benefit from ‘quiet enjoyment’ of their property with all the security they need in place and this factor alone acts like a magnet; to be part of such a community in a country like Jamaica which does have a serious crime problem. Security is the most salient factor in the Jamaica’s ever expanding gated communities but it’s not the only plus. There are other features of the gated community which are attractive – the maintenance of the grounds and the privacy when one enters one’s own home. There is usually communal land within the community as well for entertainment purposes, often with a well-kept swimming pool. The houses (and apartments) themselves may sometimes look fairly small from the outside but inside they are remarkably spacious and well laid out. Homes in such developments are not cheap, however, and can cost anywhere from J$15-30 million plus depending greatly on the size and location of the community. It’s safe to assume that these properties will certainly continue to appreciate as, even the most casual observer cannot fail to notice the speed at which these developments are springing up in Jamaica. Their popularity does not look like diminishing any time soon and, the gated community under construction visited recently was the fourth such development in Millsborough Avenue.

Affordable Living? Affordable Real Estate? Is there such thing?

Downsizing, cutting corners, call it what you will but, every year after the dreaded Annual Budget, we all try and find ways of ‘affordable living’. One thing remains constant; when it comes to Jamaica real estate (like most Caribbean property) it holds its value and if you can hang onto it, do! This is true even in the hardest of times and despite occasional political unrest together with a fairly constant high crime rate, simply because Jamaica is such a beautiful land with an idyllic climate. The tourism industry, through it all, not only stays afloat but keeps relatively strong. So if you’re trying your utmost to survive; struggling to keep your head above water – don’t sell that gorgeous property – yet! Real Estate in Jamaica will continue to increase in value and be sought after for years to come, especially as waterfront and island homes are becoming harder to find.

With all the gloom, doom and worldwide recession, Jamaica has still managed to make tremendous strides in creating an environment conducive to enterprise development and as such, has maintained a strong international profile so, the secret is out, Jamaica is a destination for trade and investment in all sectors and some of the world’s leading companies have made Jamaica their home. This all bodes well for those who have invested in local properties and real estate. Hang on to your land – it can only appreciate. Now, away and apart from Jamaica real estate, we think there is indeed such a thing as affordable living on a day to day basis and we base such a claim on the following facts. Take your average Jamaican box lunch, still remarkably cheap especially if you convert it into US$ or sterling. The ubiquitous box lunch is going, on average, for about US$4.00 or £2.70p!! And, the Jamaican box lunch is a life saver: good Jamaican cooking and extremely filling. When our local vegetables are in season, they are a steal – literally! Local lettuce is going for J$50 to J$60 for 2 nice ‘heads’ in a pack as one example and, we can all still find and head off to a free beach on a sunny day; all we need is our bus fare/gas money and enough for a, you’ve guessed it, box lunch! And then a day out in magnificent Hope Gardens is still entirely free! Let us not forget a good friend somewhere cooking a huge pot of ‘Saturday soup’ which is invariably delicious and is accompanied by plenty of lively debate thrown in, on the verandah, of course. Beyond the image of a tropical paradise, the country’s people have a solid reputation as innovators (especially when “money tight”) and trend setters. Jamaicans are ordinary folk who often rise to great heights; their vibrant energy and indomitable spirit set them up for achievement in all spheres of life, be it culture, commerce, politics, public service and last, but by no means least, sport. So, whether its real estate or living life, Jamaica, still great value for money! Food, still cheap…

How to Flip Jamaica Real Estate

Can you flip Jamaica Real Estate?

Of course you can, property in Jamaica is no different from anywhere else, you apply the same principles. The idea is to make a quick turn around, and as much cash as possible.

Try not to take on more that you can chew. For your first flip, try something simple, like a coat of paint, changing fittings or even and new bathroom or kitchen.

BeforeBuying: Set a budget, along with an emergency fund. Make sure you stick to this, as you don’t want to be eating into your profit.

Check out the local real estate market, it won’t be long before you become an expert on price. You can always ask a real estate agent for recent property sells in the area. By the time you have done your research, you should know, how much a potential neglected property would fetch, once fixed. Make sure you get a builders report on your Jamaican real estate, before purchasing, as you don’t want to find structural problems or any damage, and the whole flip project turning into a nightmare.

Do not over capitalize: Location, location, location is very important. Know your potential buyer, as this well help when fixing the property. Keep colours simple, as this is a property you are selling, so try to keep your own personal preferences out of it. This is where some flippers make a mistake, they fix the property with what they like, but not everyone has the same taste, so keep away from patterns and keep it simple. You don’t need to buy the most expensive fittings, as it won’t make a difference on the selling price. Remember you do not want to over capitalize!

If you have a mortgage on the property, remember the longer it takes to flip, the more it is costs, so set a time frame.

Setting the price: Now you have fixed up your property, you need to set a price. Don’t set your price too high, as you will push yourself out of the market. Invite three real estate agents to look at the property, ask for an appraisal, this would be a good place to start.

Never get attached as this is a business, the longer you hold out, the less you could be making! So when you finally get an offer that puts you ahead, consider selling. Maybe your will be looking out for you next Jamaica real estate to flip.

Google Sidewiki entry by Anne

Great site, very useful directory.

in reference to: Real Estate Board - JAMAICA (view on Google Sidewiki)

JAMAICA PROPERTY FINDER

User friendly, easy access around the site. Useful information for potential sellers, on how to present their home and how to select an agent... Click on resources and find lots of tips. Happy browsing..

in reference to: Jamaica Property Finder (view on Google Sidewiki)

Things you should know before putting your property on the market!

How to select an Agent

1. Like anything else, shop around.
2. Go to open homes, and watch the agent in action.
3. Interview at least 3 agents.
4. Select an agent who has good knowledge of your area.
5. Choose an agent who listens to your needs & one you can trust.
6. Search on the internet and look at the agent's article and photos on their listings, as this is the person who is going to be representing your home. If their work is slap dash, then you can expect the same!
7. Look for an agent, who can negotiate, it's their negotiating skills that will get you the best deal!
8. Understand the difference between a pushy agent and one who knows how to sell.

Questions you should ask the Agent:-

1) How many listings do you have?:-

If an agent has too many listing, you may find that they won't be giving your property the attention it deserves.

2) Do you have any referral letters from past clients:-

It is always good to see the comments of past clients; remember the agent is a stranger that you will be giving your most expensive asset for sale. If you are able to get contact numbers to speak to past clients, this would be great.

3) What are your fees and commission structure?:-

It is always good to find this out, as some agents will negotiate their fees. Bear in mind that the cheapest agent may not be the best agent!

4) How are you going to sell my home?:-

All good agents should be able to provide you with a marketing plan of at least 4 weeks; this should also include a weekly report as to what events have taken place.

5) Who pays for advertising?:-

Remember this is your home... some agents may offer to pay. Consider before accepting, is it in your best interest! Once an agent pays, they now have an invested interest in your property. They do not need any incentives; they have the commission as one.

What kind of listing should I have?

1) Open Listing also known as Multi Listing:

Pros:

· More commission for the selling agent, which does not affect the vendor.

Cons:

· Security - If you are handing out keys to your property.

· Agents give less attention.

· Multiple signage - makes the vendor look desperate

· Top agents will not list

It's a myth that the more agents you have the more buyers! All agents have the same buyers.

2) FSBO - For Sale by Owner

Pros:

· No agent commission fees

Cons:

· Likely to get less money...

· Less inspections

· Lack of negotiating skills

3) Exclusive Listing

Pros:

· Likely to get more for the sale

· Quicker sale

· Dealing with one agent rather than four

· More attention

If you opt for an exclusive listing, make sure that the agent is prepared to conjunct with other agencies. Any agent that is not prepared to conjunct with outside agencies is not working in your best interest

Cons:

· Locked into an agreement, with one agent who may not be working very well.

It is important for you to do your research when selecting an agent. If you are not happy with your agent and want to terminate your agreement, you should put your request in writing to the broker. If an agent has not fulfilled their duties you have every right to terminate.