BASSETERRE, St. Kitts – A detailed and pragmatic insight into the mechanics of real estate investment in the Caribbean was given at last night’s (June 30) Real Estate Investor Symposium, jointly organised by the Eastern Caribbean Central Bank (ECCB) and the University of the West Indies (UWI) Open Campus (St. Kitts).
The three-hour event brought together a number of individuals from the financial services and real estate sectors along with emerging realtors hoping to get an eye-opening interaction with presenters.
One of the featured speakers, Susan Lafond, known realtor and CEO Caribbean Paradise Realty, opened the symposium with her presentation on real estate opportunities in St. Kitts-Nevis and in Dominica. She said within both countries, there exists a number of real estate opportunities including rentals for foreign students, purchase of land for future sale or development, commercial building for rentals and residential buildings for private use or rent.
In recommending tips for real estate investment for rentals, the seasoned central banker said, “You must be able to market your property to specific target groups and furnish it to a high standard that meets the needs of the group. You cannot have a high rent for a low-end product. And, if the space is empty, it is wise to rent short-term to returning nationals or foreigners,” Lafond outlined.
CEO St. Kitts and Nevis Homes Faron Lawrence gave a comprehensive presentation on evaluating the viability of investment opportunities. He acknowledged that the economic situation may discourage investment, but noted that with the promising outlook in real estate, it is a good area to invest in.
He however, warned that individuals must ask themselves a series of questions regarding the location of the property, the target market to rent the property, the rent to be charged and the consistency with the rent charged and the going market rent.
“These questions are very important because individuals must do a proper analysis before they go and start spending their money. If economic times are tight, you could very well end up having used your savings to invest and then you lose your job. So, you just have to be very careful, assess your economic situation properly and assess the outlook on your job and the business you are about to go into,” Lawrence cautioned.
To tackle the daunting tax and legal issues in the acquisition of real estate and the issue of confidence in the loan process, Manager of Personal Financial Services at Royal Bank of Canada, Dawne Heyliger gave a presentation explaining the importance of proper financing for projects.
She noted that the notion that investors see the bank as a hurdle is “just a myth”, adding that prospective investors must try to gain an understanding of the financial requirements by asking questions to get appropriate information.
“The bank is not supposed to seem like a threat to any investor. What people need to do is to make sure they garner the right information, come prepared, have an open mind and ask questions. Ask persons who have gone through the process so that they have an idea of what it is like and what questions to ask,” Heyliger added.
She concluded that once investors are honest in their interactions with the bank, a loan could be structured to assist the individual in order to avoid the threat of foreclosure.
The event received overwhelming reviews from the organisers and participants who admit that they are now fully prepared to make wise and informed investment decisions.
