Buying A House In Barbados
Our guide takes you through the process of buying property in Barbados from beginning to end, including an introduction to the real estate market, the buying process and the taxes you will need to be aware of.
buying a house in barbados
Property on the market ranges from elegant apartments in beach and golf communities and luxury villas along the coveted West Coast to secluded beach houses on the quiet East Coast and historic plantation great houses in more rural parishes.
It is never a wonder why there are so many properties popping in Barbados. In fact, investors from North America, Europe and the United States are just some of the many who got their pieces of land to develop. The real estate market has never been soaring as more luxury home investors believe in the economic stability of the country much more than its neighbors; St Lucia and Grenada. And here in this page, we present to you our widest selection of investment opportunities-from beach apartments, golf resorts, luxury houses and even graceful colonial-style plantations nestled on acres of grounds in more rural parishes. These properties and more can be yours just read our guide in buying properties in Barbados or contact us for more details.
Our website is the perfect source to discover a wide selection of villas, houses and homes, and also apartments and condos for sale in Barbados. Click the links, and you might find the property you have been looking for in the Caribbean!
Looking forward to spending a couple of weeks relaxing on a beach or exploring the beautiful island of Barbados? Barbados Property Search has complete listings of villas, apartments and houses to rent all across the island.
Whether you are currently living in Barbados, or looking to invest from overseas, there are several things to consider when buying or selling your property. This Guide will help answer some of the many questions you may have. For additional information, please feel free to contact us directly.
The remainder of this Guide outlines other considerations to be considered in deciding to invest in Barbados Real Estate. It also gives a very simple outline of the process of buying real estate in Barbados.
There is a ceiling of US $30,000 where the dwelling house is used exclusively as a residence by the person who owns the land on which the dwelling house is erected. For additional information, please see Barbados Land Tax info.
The land tax rate is 2.5%, payable by the vendor upon the sale of the property. Where the transaction is land only, the property tax is paid on the full amount. However, if the transaction includes a dwelling house, the first BBD$150,000.00 is exempt from the tax. For additional information, please see Barbados Land Registry.
Where the property is rented on a short term basis and income exceeds BBD$5,000 monthly or BBD$60,000 per annum, the owner will be required to register for VAT and charge VAT accordingly. In Barbados, VAT is imposed on the supply of a dwelling house that is rented to persons for use as a vacation or holiday home at the rate of 7.5%.
This is our guide to buying property in Barbados. With over fifteen years experience of selling properties on the island we have collated the most frequently asked questions by prospective buyers and provided answers to help you . Our expert teams based in both the UK and Barbados will be more than happy to answer any further questions you may have on the purchasing process, please do get in touch.
It is not uncommon for properties in Barbados to be held through a local or foreign company that is registered to do business on the island. Your lawyer will advise you on the pros and cons of buying in your own name or via a company.
Yes, there are many professional firms who will manage your property if you choose to rent it out. Many owners in Barbados do rent out their properties to cover costs and provide spending money in Barbados. To visit our property rentals site go to barbadosdreamvillas.com
You have found the property of your dreams! A beautiful big villa near the ocean with a gorgeous view and the price is just too good to be true. It might just be a great rendering to let you believe there already is a house, roads, and amenities. Or a picture shows a beautiful beach with a gorgeous ocean view. Often this is just the nearest beach and you do not have the promised ocean view. All the sellers are trying to sell you the dream which can easily be your biggest nightmare. I personally have seen desperate real estate agents lying to get the deal done.
My advice: Make sure to see the property yourself. Do this in person! Never buy off of photos alone. Investigate the property thoroughly, if possible with an independent third-party professional. A lot of the agents do not have any obligation to tell you the real reason why the seller is trying to get rid of their dreamy house. Find out for yourself.
I have seen a lot of houses in the Caribbean build in several pods. Which to me is stupid. Maybe fun for a vacation but a no-go if you need to live there. If it rains or you get caught in a hurricane you do not like to walk through the heavy rain to get from the kitchen to our bedroom.
I thought I knew what I was doing, but I still had to solve issues, every day! It was (sorry for my language) a shitload of work for me to keep the builders on track and building the house like the blueprint.
Hmm. Even though islanders are easy-going, the Caribbean governments can make a process difficult for foreigners, even for locals, when buying a home. Government bureaucracy and the cultural differences can make purchasing your dream home a long and drawn-out process.
My advice: Make sure to check your budget even before you start searching. Make sure to be aware of all the additional costs like taxes and building costs before bothering a real estate agent. Tell the realtor a slightly lower amount so you still have some wiggle room if he or she comes up with a perfect house just above your budget.
Good afternoon! My wife and I are currently atop a mountain in NC, US. She, my in-laws and I have discussed buying a livable home in the Carribean within a few years. I want to do the research and make the right choices. Could use some help and advice.
Hi Michael, I am Russian from NY, have been living in Dominican Republic for many years, country is beautiful, safe, inexpensive and there are plenty of Russians buying there. I can give you more info if you like.
Dear Nathan,I would recommend you to visit a few of the islands that have your interest. All islands are completely different. Curacao, for example, is a flat very dry island, but it has great restaurants and lots of activities. And houses here are very affordable. The remote small islands such as the BVI and USVI are beautiful green and is a great place if you like to unwind. Prices here are much higher.It all depends on the location what the normal rate is for property managers. It can get as high as 45%. But there are many islands who take a lot less. Hope this information helps and you find your getaway from home in paradise!
My wife and I traveled to Curacao in February and loved it. I have been spending lots of time looking at houses for sale, particular at Coral Estates where we stayed (at the Oasis). There is a lot to figure out and would appreciate some local insight, not to mention from a realtor on the island.Thanks.P.S. loving your articles about Curacao. I enjoy recognizing some of the places in the photos.
Before you begin your house search in Barbados you should have a preapproval letter in hand from a lender and an idea of your comfort level with a prospective house payment. Realtors Limited can help you begin the search for homes or land for sale that fits your budget.
Most buyers start searching for a home online on websites such, but you can also ask our sales team to help you. You can request email alerts that notify you when a home that fits your list of priorities comes on the market. You can evaluate a home first by looking at photos and a description online. The next step in your house hunt is narrowing down your priorities to find the home that meets your needs. Your sales agent will help you look at both new homes and existing homes. New homes are sometimes more expensive than existing homes, but they require less maintenance and often have lower utility bills because of their energy-efficient features.
If you are looking to buy or invest in Barbados property and need to fund your purchase with a mortgage, there are a number of options available from Barbadian Banks.There are six commercial banks in Barbados, and each of them has various mortgage options for you to choose from. You don't have to be a national to obtain a mortgage in Barbados, but you will need to have proof of income from your home country, or a letter from your employer in Barbados stating your years of service, the position that you hold within the company, and your current gross annual salary.You will also need to present photo identification such as your national ID card or passport. You will need proof of your current address by presenting a utility bill. You need to provide a letter of reference from your bank (if it is a different bank) to apply for a mortgage along with an agreement of sale from the person selling the property and contains the accepted offer. If you are buying vacant land and intend on building, you will need to show them a construction estimate of costs along with approved plans for the build.Mortgages are available in Barbados to buy an existing property, to buy land, new construction, or to make renovations to your current property.At Royal Bank of Canada in Barbados they offer up to 95% financing on the property. If you bought a house that cost $600,000 Barbados dollars you would need to put down a deposit of $30,000 Barbados dollars and the bank would lend you $570,000 Barbados dollars. The fixed interest rate is approximately 8% at the time of this writing (September 2008) and depends on whether you take out a variable or fixed rate mortgage your repayments each month could be approximately $3800 on the $570,000 Barbados dollar mortgage.They also offer up to 30-year repayment plans up to the age of 40, so the mortgage is repaid by the time you reach 70 years of age. Another interesting option is you can either pay your mortgage monthly or every other week.The bi-weekly option allows you to repay your mortgage quicker and you pay less interest. This does of course mean your overall monthly repayment is more, but the benefit is you do get it paid off a lot quicker and with less interest over the term of the mortgage.At First Caribbean International Bank, they also offer up to 95% financing for existing properties and in some cases up to 100% for land loan purchases. They also offer up to 35 years to repay up to the age of 35 as again the mortgage must be repaid by the time you are 70 years of age.If you want to pay lump sums off your mortgage then this is allowed providing you give the bank 3 months notice and will not incur any penalty. Penalties are only incurred if you repay your mortgage within one year of taking out the loan and can often be two and half years before the prepayment penalty can be avoided. They also offer interest only mortgages, which can work out cheaper on a monthly basis and can work to your benefit if you plan on paying a lump sum at a later date.When deciding how much you can afford to borrow, the banks in Barbados requires your monthly mortgage repayment be no more than 40% of your gross monthly salary. Therefore to buy a property for $600,000 Barbados dollars based on borrowing 95%, you would need to be earning at least $10,000 Barbados dollars per month.The bank would also stipulate including your mortgage, credit card and other debts you are servicing can total no more than 50% of your gross monthly income and you have a minimum of 5% disposable income each month.If you are looking to refinance on an existing property, the bank will ask you get a valuation of your home from a Real Estate agent and will need a balance on your existing mortgage. They will lend you up to 80% of the equity you have in the property. This will be treated as a separate loan and you can negotiate the interest fee on this type of loan depending on the amount borrowed.On all mortgages the bank will charge of a fee of 1% at the closing of the sale and the person selling the property is responsible for paying the stamp duty to the government.Butterfield Bank in Barbados have been known to run some good reduced rate mortgage offers as low as 6.75%, however these were not available at the time of writing (September 2008). They offer 95% mortgages and do not charge a penalty on early repayment if you give at least 3 months notice.Barbados National Bank offers up to 100% financing on property and mortgage rates as low as 7.75% for over 80% financing and on less than 80% financing the interest rate drops to 7.5% for to a two year fixed mortgage. They also offer up to 35 years repayment. This is one of the best mortgage offers on the market at the time of writing (September 2008.)Scotiabank offer 30-year mortgages and have an interesting option allowing you to repay up to 15% of your mortgage every year without incurring a penalty.Other lenders in Barbados are Royal Bank of Trinidad and Tobago (RBTT) and the Barbados Public Workers Union Cooperative Credit Union who you would need to contact directly to find out about specific offers and products. 041b061a72