Caribbean Property Magazine 2013

Caribbean Property Magazine, isa Caribbean production published byHiltop Publications Ltd, 11 Cottage Ridge,St George, Barbados.Tel: (246) 228-9122 Fax: (246) 228-0243email: [email protected]: Antigua, St. Kitts & Nevis,Pamela Hiles - Trinidad& Tobago, Barbados & St. LuciaImportant Websites:www.caribbeanpropertymag.comwww.caribbeanpropertysearch.comwww.sportingbarbados.comwww.barbadospropertynews.comEditor: Clarence HilesAdvertising: Pamela HilesDesign: 809 DesignEditorial thanks to Paul Doyle, Cicely Lees,Edward Childs, Tamara Siemens, OllieGobat, Scott Jaynes, Anita Ashton, DavidAlleyne, Paul Altman, Simone Ward, PaulJenkins, Clare Hiles & James Pollard.Unless stated otherwise, the other editorialis attributed to the editor.Photography Thanks to the variousdevelopments for their permission toreproduce photographic material.Copyright: Caribbean PropertyMagazine 2013 Volume 12. Thematerial and editorial content in thispublication was deemed correct inMay 2013 when it went to print.The publisher accepts no responsibilityfor any change or error and recommendsall readers should verify the currentdetails direct with the advertiser andwhere appropriate seek professionaladvice. No part of this publicationmay be reproduced without the consentof the publisher.

Acknowledgements

COVER IMAGEArd Na Mara - BarbadosCompliments of Apes Hill,Barbados

Now’s The Time To Buy!From The Editor - Clarence Hiles

Ard Na Mara: Apes Hill Club

Crane Resorts Delivering World’s Best Valuein Luxury Shared Ownership

Cayman Is Bubbling: Tamara Siemens

Mixed Fortunes in St. Lucia: Ollie Gobat

The Dynamic St. Kitts Real Estate: Scott Jaynes

Positive Signs in BVI: Edward Childs

Bajan Beauty: Laura Henderson

Interior Design: A Sound Investment: Terri Archer

There’s More to Oran than Meets the Eye

A Man with Great VisionPaul Altman - Altman Real Estate

Valuing in a Challenging MarketJames Pollard - BCQS

Private Wealth BankingPaul Jenkins - Scotia Bank

Know What Those Terms MeanDavid Alleyne - United Insurance

Spread Your Risk and Buy With A LoanAnita Ashton - Caribbean Mortgage Services

The Economic Benefits of MusicClare Hiles Interviews Cover Drive

Diamonds: An Investment in LoveSimone Ward - Diamonds International

Economic CitizenshipCecily Lees

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It doesn’t matter where you live in the world as this region cancompete with any other country on the quality of life and the thingsthat really matter. Many people live within their own paradigm andcan’t envisage a new beginning, but more and more are looking forsomething different and a better life. It may not be immediate, but thesmart investors always look to the future.

The University of Life is a wonderful ongoing education that mostpeople of our generation have happily accepted or made the most ofuntil five years ago. We have enjoyed a better quality of life, materialbenefits, an electronic revolution, and the opportunity to travel farbeyond the imagination of our predecessors. It was a gravy train wethought would never end, but like many of the good times in life it wasthe height of the cycle and when the wheel started to turn downwardsit gathered unprecedented momentum. Post-2008 has been a verydifferent place and despite the optimistic predictions of better times tocome, nobody has brought any certainty as to when this will happen.Indeed, quite the contrary in places like the UK where the CoalitionGovernment struggles to come to terms with rampant costs,exploitation of the welfare state and unemployment. Businesses areclosing daily and the situation has got so bad that many immigrantswho came of Britain for a better life are now returning to theirhomeland. Others are reduced to living on government benefits.Newspapers and television exacerbate a depressing picturecompounded by six months of dismal weather every year.

Not everyone has the opportunity to see life outside the box, butmany retirees in the past generation have relocated from Britain toSpain, France, Portugal, Florida, Eastern Europe and the Caribbean.The numbers have been increased by second home owners and to alesser degree by speculators with surplus funds eager to cash in onescalating property values and revenue from property rentals. Thesecond home owners and speculators virtually disappeared in theimmediate post-2008 years, but the retirees were driven by different

If ever there wasan ideal time toconsider buying

in the Caribbeanthen this is it!

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Now’sthe timeto buy!

FROM THE EDITOR

CARIBBEAN PROPERTY MAGAZINE

Not everyone has the opportunityto see life outside the box, butmany retirees in the pastgeneration have relocated fromBritain to Spain, France, Portugal,Florida, Eastern Europe and theCaribbean.

objectives and have essentially remained. It is notdifficult to see why as the Caribbean has not changedand its wonderful attributes of sand, sea andsunshine remain intact and are complimented byfriendly people, relaxed lifestyle and more and moreamenities and facilities. It is not 100% perfect, but itdoes offer a lot more than the drudgery of greymornings and afternoons six months a year,declining economic times, depressing newsbulletins and cash-strapped governments fighting tobalance their books in the face of adversity.

The vast majority of people who have moved to theCaribbean in the past two decades are people whowant a better lifestyle and feel the region ticks mostof the boxes. Nowhere is perfect and throughout theCaribbean small island economies grapple with thechallenges of the current global economicmeltdown, but the quality of life has not beeneroded. Many people have had to tighten their beltsand the drop in overseas property demand has hitthe construction and real estate industries hard, butthey have adapted and moved forward. Most of theregion’s economies are driven by tourism and whilefigures have dropped from depressed areas, thedemand to holiday in the Caribbean still sits high onthe Bucket-List of many internationalholidaymakers. And from their midst a smallnumber love the lifestyle and ambience so much thatthey will eventually decide to relocate either secondhome or full-time.

A quality lifestyle in a tropical paradise will always be the Caribbean’sbiggest attraction and local governments have recognized our prizeasset and made it easy to purchase. Property prices have dropped in thelight of reduced demand post-2008, but their quality and location hasnot changed so bargains are readily available all over the region.Overall the Caribbean has held its own in tough times, but the samecannot be said for other popular second home locations in Europe andUnited States where property prices have slumped and re-sales are atan all-time low. Lenders in the Caribbean are still willing to offerattractive mortgage packages to suitable clients so the circumstanceshave never been better to purchase. The big challenge is to look outsidethe box and plan for the future. If you want a better lifestyle in yourlater years or a better environment for your family to enjoy then aCaribbean home should be considered.

We hope the contents of our 2013 edition will stimulate your interest.

Clarence HilesEditor

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Property prices havedropped in the light ofreduced demand post2008, but their quality

and location has notchanged so bargains are

readily available all overthe region.


Ard Na Mara‘Ard Na Mara’, the Gaelic interpretation of ‘Sea View’, is the latest luxury villa tobe created by the Apes Hill Club Project Management Team. This latest gem atthe prestigious Apes Hill Club was completed in twelve months and underbudget, a habit that the Project Management Team are keen to foster, pridingthemselves on close collaboration with the client and a hands-on approach todesign and construction, the Team at Apes Hill Club are pleased to have anotherhappy customer;

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“Before we embarked on this project in 2011 we were inclined to buy acompleted house rather than purchase land and build. We werenervous of building as we had no experience of such matters, Barbadosis a long way away and everyone has nightmare stories about builders.Using the Apes Hill Club Project Management service made theprocess straightforward and enjoyable. Looking back now we are soglad that we were able to specify our own house rather than inheritsomeone else’s old house.” Owners, ‘Ard Na Mara’, Moonshine Ridge

‘Ard Na Mara’ enjoys a private elevated position within the exclusiveMoonshine Ridge community and is a professionally designed fullyfurnished four bedroom, 5 bathroom luxury villa sitting on close to anacre of tropically landscaped grounds. The property has beenpositioned to take advantage of the cooling breezes at Apes Hill Cluband the panoramic views of the West Coast of Barbados and theCaribbean Sea whilst also offering views to the magnificent Apes HillClub Golf Course. The quality of workmanship and attention to detailmake this a truly special property. This stunning property is currentlylist for sale at US$6,5 Million.

"We are happy to have chosen the Project Management Service for theconstruction of our new home at Apes Hill. Donovan Bagwell and histeam have been highly professional and very much responsive to ourneeds in a timely manner. We would have no hesitation inrecommending their services to future homeowners." Owners, TerraNova, Moonshine Ridge

The suite of services at Apes Hill Club does not stop at design andconstruction, as the Property Management Team provide Landscape,Property and Swimming Pool Maintenance, as well as HousekeepingServices to ‘Ard Na Mara’. The convenience of these services is not loston our owners at Apes Hill Club.

“In the summer of 2012 we purchased a new built property situatedwithin the Apes Hill Club gated development and decided to engage theApes Hill Club Property Management Service to manage all aspects of theproperty. We have found the Management and Staff to be delightful,helpful and efficient. They resolve issues with outside bodies, such asCustoms, Light & Power and suppliers, thus providing the completeservice and removing all the stress for offshore owners. The grounds ofApes Hill Club are well maintained and all the staff, even those notdirectly involved with our property are always polite and helpful. Wecould not be happier with the services provided and the options available,all provided at reasonable cost.

We have the advantage of being able to compare Apes Hill Club PropertyManagement with others providing the same services and can say withouthesitation that Apes Hill leave the others standing in the range of servicesofficered, the quality of those services and not least cost. Having nowstayed in our new home on two occasions, the latter being for 3 months,we can say that Apes Hill Club Property Management and their staff giveus peace of mind that our investment is in good hands and that allows usto enjoy the property and Barbados.” Owners, ‘Linger Longer’, HoldersMeadow.


"We are happy to havechosen the Project

Management Service forthe construction of ournew home at Apes Hill.

Donovan Bagwell and histeam have been highly

professional...”

We have theadvantage of being

able to compare ApesHill Club PropertyManagement with

others providing thesame services and cansay without hesitationthat Apes Hill leave theothers standing in the

range of servicesofficered...

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Crane ResortsDelivering "World'sBest" Value in LuxuryShared Ownership

"Price is what you pay; value is what you get."

This definition by Warren Buffet certainly resonates with buyerslooking at vacation real estate on the luxury end of the sharedownership market. As the industry has matured, these buyers nowhave a multitude of options to investigate resorts in almost everycountry, residences of every size and style, exchange clubs, pointsprogrammes, rental programmes, resale programmes, and moremaking the complete value proposition, not just price, the decidingfactor in where to invest.

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Crane Resorts' value proposition begins at the point of sale with low fixedprices, which, the company asserts, represent "the world’s best value inluxury shared ownership." They are certainly very proud of their pricingandmake it easy for buyers to compare with any shared ownership resort,anywhere in the world. They have a "no-pressure" sales process, providetheir best price upfront and fully respect the buyer's right to think it over.

In terms of the physical product, Crane Resorts provides buyers withgreat value in world-class locations, residences and amenities.

The first of their two properties, The Crane Residential Resort, covers 40cliff-top acres which encompass a half mile of ocean frontage on thesoutheast coast of the island, with magnificent views and one of the mostbeautiful beaches in the world. Crane Beach’s pink powder-soft sand ledLifestyles of the Rich and Famous to name it “one of the ten best beachesin the world.”

The Crane stays true to its history and heritage with architecture andfurniture inspired by the original 1887 hotel, with coral stone walls, four-


Crane Resorts' valueproposition begins at the

point of sale with lowfixed prices, which, the

company asserts,represent "the world’sbest value in luxuryshared ownership."

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poster mahogany beds, 10-18 feet high timber tray ceilings and marblebathrooms with luxurious whirlpool tubs and spa showers. The Crane’sresidences are grand in scale, ranging from 800 to over 4,000 square feet.Many feature large private swimming pools and tropical gardens.

The Crane’s five restaurants include two award-winning fine diningestablishments, L’Azure (Mediterranean/Caribbean cuisine) and ZEN(rated #1 for food in Barbados by Zagat for its authentic Japanese/Thaimenu). Crane's world-class amenities include five outdoor pools, a full-service spa, floodlit tennis courts and a glass-fronted elevator to CraneBeach.

In Crane Village, modelled after a 19th century Barbadian town, guestsenjoy al fresco dining, a café, a well-stocked convenience store, duty-freeshopping, a lively piano bar, a 3,000 square foot state-of-the-art fitnesscentre and multi-purpose conference facilities.

The new resort, Beach Houses, sits on the 1% of coast line that remainsoutside of Barbados’ East Coast National Park. Spread across a gentlysloping 50 acre hillside overlooking Skeete’s Bay Beach and CulpepperIsland, Beach Houses enjoys 180 degrees of spectacular ocean views fromanywhere on the property.

BeachHouses is designed to be respectful of its proximity to the East CoastNational Park. It is a secluded, high privacy, low density, environmentallyresponsible development which, when finished, will feature only 61 freestanding “beach houses” and a small boutique hotel. Each two- and three-bedroom residence will sit on approximately 6,000 square feet of land andwill enjoy approximately 70 feet of unobstructed ocean views. All residenceswill include a separate studio accommodationwhichmay be used or “lockedoff” by the user according to his/her needs. Each residencewill feature floorto ceiling glass windows for spectacular ocean views; two infinity edgeprivate pools with hot tubs, one 37 feet wide and the other 19 feet wide (onefor themain residence and the other for the “lock off” studio); 100% privatepatios; outdoor showers, hammocks and BBQ grills; and built-in owners'storage.


Each two- and three-bedroom residence willsit on approximately6,000 square feet ofland and will enjoy

approximately 70 feetof unobstructed ocean

views.

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Beach Houses will offer the same level of luxury amenities for whichThe Crane has become famous, including two exciting restaurants, a bar,a stunning spa located in a five-acre ocean front nature preserve and amodern wellness centre - all featuring stunning panoramic ocean views.

In terms of the product features not related to the "bricks and mortar",buyers can also expect to receive great value from resort services.

The Crane has had over a century to perfect its services and offers all theluxuries expected by today’s most discerning travellers, such as conciergeservices, room service from the restaurants, full daily housekeeping, andfree Wi-Fi and VoIP long distance calls. By offering these services andmore, The Crane was awarded Four Diamonds by AAA (given to the top4.2% of 31,000 resorts worldwide).

A key feature that delivers enormous value in shared ownership is anexchange programme, and Crane Resorts offers the ultimate in flexibility.

In addition to the right to enjoy a specific residence at the same time eachyear, Crane Resorts’ owners are also able to easily exchange to any type ofCrane accommodation for any period throughout the year or even use

Crane Resorts hasalso eliminated the

very expensive salesand marketing

practices favouredby the shared

ownership industry.Most importantly,these savings are

passed on to buyersby way of low fixed

prices.

multiple residences at the same time, if required. Owners can also enjoyvacations in any of 4,500 RCI®Points resorts worldwide, or in 200 of theworld’s most exclusive and luxurious fractional properties through TheRegistry Collection®.

In terms of value on the financial side, Crane Resorts delivers in theupfront price and in the ongoing costs.

The company has been able to dramatically reduce development costs bydesigning and constructing all residences and amenities in-house. CraneResorts has also eliminated the very expensive sales and marketingpractices favoured by the shared ownership industry. Most importantly,these savings are passed on to buyers by way of low fixed prices.

For example, ownership in perpetuity of a fully furnished and equippedluxury two-bedroom two-bathroom residence with its own private garden,swimming pool and dining gazebo starts from US$13,895 for a week.

For buyers who are motivated primarily by the international vacationsfacilitated through a points-based exchange programme, US$10,000purchases ownership in perpetuity of 2,000 Crane Vacation Points morethan adequate to enjoy one week's accommodation every January in athree-bedroom residence in a RCI® Points golf resort in the Bahamas.The annual fee charged to owners by Crane Resorts is approximately half orless than other luxury shared ownership resorts in the region and iscomparable to ordinary timeshare apartments that feature minimalamenities and services. The company is able to achieve these savingsthrough full vertical integration and an obsession for value in everything itdoes. Crane bypasses expensive third party suppliers, and is responsible forall aspects of resort operations including security, laundry, landscaping andappliance and TV repairs.

For owners who purchase more than they can use immediately, CraneResorts delivers value by offering the option to participate in the rental poolprogramme. This allows owners to receive a share of the resort's rentalincome for the weeks they do not use. The success of the rental pool isdemonstrated by the fact that Crane Resorts was able to report a profit for allparticipating owners. Rental profits were realised even during times ofextensive ongoing construction and economic instability. The company wasable to achieve this by driving higher revenues, increasing the quantity andvalue of room rentals, lowering expenses through achieving cost efficiencies,and sharing the profits fairly betweenowners and themanagement company.

CraneResorts also offers unprecedented value to buyers interested inwholeownership: the amenities and services of a five-star resort; turnkey servicesthat cover everything (including property taxes, all utilities, VoIP, WiFi,interior maintenance, daily maid service and replacement of furniture,fixtures andutensils); unrivalled vacation exchange opportunities inBarbadosand throughout the world; and a rental pool that pays for all fees andmakes a net profit for every week an owner does not use his/herresidence.

Whole owners enjoy discounts on shared ownership pricing, andbecause of Crane Resorts’ shared ownership legal structure; they are alsoable to enjoy even greater capital gains, flexibility and liquidity with theoption of reselling all or some of their interest in fractions or by the week.


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To learn more, visitwww.craneresorts.com, email:[email protected] or call

(246) 423-6220.The Sales Office at The CraneResidential Resort conductstours daily from 9:00am to

4:00pm.

In fact, many owners start as whole owners and profitably sell a week ortwo each year, covering their lifestyle expenses in retirement.

In the absence of shared ownership legislation in Barbados, CraneResorts has adopted the UK regulatory framework for shared ownerprotection. Crane Resorts’ shared ownership is in perpetuity and isprotected by a third party trust structure. This means that a CraneResorts ownership interest can be willed, transferred, or sold at anytime,easily, quickly and at minimal cost.

Crane Resorts' value proposition does not end until an owner wantingto sell his/her shared ownership interest is able to profitably do so. As ofFebruary 2013, the 94 owners who resold their shared ownership interestthrough the Crane Resorts resale program have, on average, earned asmall profit after all fees and commissions (with 64% of these salesoccurring after December 1st, 2007, the beginning of the recession).Most importantly, this profit was in addition to the enjoyment of years ofluxury vacations at a tiny fraction of what they would have paid as non-owners the real reason they purchased shared ownership in the firstplace.

The real value delivered through Crane Resorts' resale programme iseasily quantifiable, and is a testament to the enduring value of theproduct. This truly sets Crane Resorts apart from all others in the sharedownership industry.


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It has been another tough year for real estate across the Caribbeanregion yet Cayman appears to have done better thanmost locations.What lies behind this success?

Cayman is not your typical Caribbean destination. It is just an hour’s flightfrom the Florida mainland and is easily accessible. It has a solid reputationfor offshore business and continues to attract a variety of new business.These businesses bring more visitors and new buyers. For example, thereare new medical facilities being introduced and a healthy number ofoverseas workers are involved in their construction. When the medicalfacilities are complete they will attract a large number of visitors needingspecialist treatment. The tax incentives will always attract high net worthindividuals and corporate entities, as Cayman is a sophisticated commerciallocation. In addition, it is safe and has a wide range of property options tosuit most budgets.

Give us an overview of property in Cayman and what sells best.

Much depends on the budget. Beachfront locations demand the bestprices and there aremany beautiful seafront properties thatwill appeal to thehigh net worth buyer. Detached properties dominate the US$1 million plusmarket, while condos sell best below that figure. Cayman also has somebeautiful canals, which offer excellent waterfront locations and sell well.Many second homebuyers can get good value in the US$500,000 pricerange, and even a $150 000 apartment can give a good return to an investor

Where do your buyers come from and are there any changingtrends?

Themajority of buyers come fromUnited States, Canada and theUK.Ourclose proximity to North America is the obvious reason for attracting buyersfrom there, but in recent times we have experiencedmore interest from theUK where potential buyers are looking for a better tax environment and ofcourse, better weather.

Has commercial property been as successful as domestic propertyand is there a big influx from offshore companies?

Although the commercial market has been relatively quiet in recent times,there have been some major overseas purchases this year have boosted themarket. There is also unused commercial space in key areas that could bere-zoned and used for both retail and domestic use. This could revitalizesome commercial areas inGeorgetown andmake better use of prime space.

Cayman IsBubblingAccording to ReMax Realtor Tamara Siemens

The best returns comefrom long-term rentals,

but this poses aproblem if the ownerwants to use their

property for a holiday.


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Are commercial rental packages part of the attraction thatbrings offshore business to Cayman?

Perhaps not Offshore Companies, but offshore investors. ManagedFunds and investors buy property to rent and get good returns fromcommercial tenants, as rents in Cayman are generally high incomparison to other locations. Most Offshore Companies rent sodemand is consistent.

Do second homeowners get a good return on their investment?

Much depends on what the second homeowner is looking for. Thebest returns come from long-term rentals, but this poses a problem ifthe owner wants to use their property for a holiday. You can’t get thebest of both worlds so you have to make a priority decision and stickwith it. Returns of 6-10% are typical for a long-term rental while short-term rentals are seasonal, depend on availability.

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What are the most popular types of property purchased by non-residents and in what price range?

Condos dominate the Cayman market and numerically representover 75% of sales. The most popular sector is the price rangeUS$150,000 to US$750,000. Mortgages are also available up to 80-95% Loan-to-Value depending on amount.

Are there any restrictions on non-residents buying in Cayman?

There are no restrictions, but buyers are subject to Stamp Duty of7.5% of the purchase price. There are no other taxes associated withbuying and selling property.

Are there any particular developments or properties that youfeel are excellent buys in 2013?

Any property is a great investment at the moment as the market hascertainly recovered, or is recovering and we have passed the lowestpoint. It is an excellent time to buy, as prices are firming up, and weshould start showing some growth again.

Tamara Siemens, an awardwinning realtor in the Cayman

Islands, who has enjoyed asuccessful eight years executive

sales career with REMAX,Cayman’s premier realtor.

Tamara provides a polished levelof assistance to both purchasers

and sellers of luxury property. Shecan be reached at 345-926-3430

email:[email protected]

You can also visit the website onwww.mycaymanrealtor.com

In general terms real estate sales in the Caribbean region havesignificantly dropped in the past few years. Has St Luciaexperienced any different?

St Lucia has not been any different, and like many other locations thereal estate market slowed down after the strong years from 2003-2008when the world was engulfed by the global financial crisis – banksstopped lending, people stopped spending on overseas property andgenerally took less investment risks. However, some lifestyle buyerswith cash to spend and a philosophy that you only live once continuedto buy property and where better to spend time than this beautifulisland? That said we seem to have lost the overseas investor building aproperty portfolio and looking for a 6% plus return. However, we arestill getting interest and trades.

We understand some major development plans have been put onhold and there are rumours of existing developments goinginto receivership. Is this true and has it affected investorconfidence in the St Lucia market?

The last few years have been a period of survival and consolidation forresorts and resort development all over the world. Building a newresort would not have been a very sound idea, so understandably manydevelopments plans have been put on hold. Inevitably there have beencasualties and some receivership, but amidst the global economicmayhem this should not come as a big surprise. On a positive note theFreedom Bay development on the south of the island is scheduled tobegin later this year subject to final planning approval. Jalousie is nowcalled Sugar Beach and has continued to develop, and there are severaldevelopers currently looking at opportunities. These examples wouldindicate that confidence in the St Lucia market has not been too badlyaffected, but we have to recognize that overseas confidence throughoutthe region has been affected by events in the bigger countries and theknock-on impact in the Caribbean.

Like most Caribbean islands St. Lucia has lostsome of its glitz in recent times, but localrealtor Ollie Gobat highlights mixed fortuneson the island...

MixedFortunes inSt. Lucia


Ollie Gobat is anexperienced St Lucia

realtor who specializes inresort management,

resort development andproperty sales. He has

strong UK links and hasbeen involved in sales tooverseas buyers for over

a decade. He is a partowner of the impressiveCap Maison Resort and

manages the equallyimpressive LandingsResort and is a keen

sportsman. Ollie can becontacted at (758) 452

0422 or by email atogobat@thelandingsst

lucia.com

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Cap Maison is another. Itdoes not charge its

owners condo dues,maintenance fees, or

utilities so there are literallyno costs after purchase.

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Why are some developments experiencing success against thetrend?

The developments that are well funded and in great locations havedone well. Sugar Beach has continued its development at a majesticlocation and it is now a stunning resort operated by Viceroy. Thebusiness model is sound as both the buyers and the developer havefunded the development and this has ensured a consistent cash flow tocomplete the job. The commitment to make it an outstanding resorthas been resolute and success has followed. The Landings has comethrough a period of consolidation and is now operating as a successfulresort with homeowners seeing some major improvements. Lifestylebuyers are still buying properties because the product is good and theresort is being managed successfully. Any development that is runninga successful operation has bucked the trend somewhat, and SugarBeach and the Landings are two good examples. Cap Maison is another.It does not charge its owners condo dues, maintenance fees, or utilitiesso there are literally no costs after purchase. In addition, the ownershave also been paid a dividend each year so this resort continues to bea success against the trend.We also see land being sold and individual houses being built. Therehas also been development of commercial property in the north of theisland, so St Lucia is not stagnant by any means.

Is anything happening to stimulate real estate sales?

There is only a certain amount that can be done to stimulate sales asthe island is greatly affected by events in the economies of ourtraditional visitors and investors. St Lucia remains a stunninglybeautiful island, which combines lush scenery and rainforests withgorgeous coves and beaches, a mix that is as dramatic as any island inthe Caribbean. The St Lucian people are warm and welcoming, so thecombination of the two remains our biggest asset and will appeal tomany overseas investors. However, the performance of the economiesin Europe, Canada and United States will largely determine thenumber of second home investors and retirees who purchase. Someother islands have stimulated their real estate market by introducingcitizenship schemes whereby an owner gets a passport if they buy aproperty of a certain value and fulfil the other requirements of thescheme. This is something the St Lucian government is looking at,although it is at a very preliminary stage. Invest St Lucia is theorganization that helps generate inward investment, and is assistingwith various incentives for new developments and inward investment.

St Lucia remains as beautiful as ever, but overseas investorconfidence is still a big challenge. How do you see the future?

Confidence in overseas investment is not St Lucia specific, and youcould argue that the softening of the market is not even a confidenceissue. I think times and priorities have significantly changed as thereality of how overextended our target market economies had become.It is hard to see a quick return to what it was like a few short years ago,and realistically we will not see such buying activity in the mediumterm. I see the near future as continued consolidation of our touristindustry and existing developments. I also see the commencement of


The Landings has comethrough a period of

consolidation and is nowoperating as a successful

resort with homeownersseeing some major

improvements

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one new development, which is a mixture of fractional and outrightownership. This is a trend that may become common throughout theregion. Fractional ownership increases the market size and reducesindividual exposure, but at the same time creates a similar lifestyle orinvestment opportunity. There are also two other potentialdevelopments which given their prime location, could work.Developers must be wary of being undercapitalized as relying tooheavily on quick sales is potential suicide. This business model won’twork in the current climate. As the US economy recovers, hopefullyfollowed by the UK economy, sales will pick up again. St Lucia has notlost any of its appeal, and the airlift remains solid so things will getbetter again. Predicting exactly when is very difficult.

Are their great deals in the real estate market at present?

Yes, it is very much a buyer’s market. There is great value in land allover the island and it can be purchased as individual lots, or largerplots for development. There are some spectacular properties for saleat greatly reduced prices from their original release, and condos andapartments on offer far below what they were going for five years ago.Now is a great time to pick up high quality property. We have seenbetter sales this winter than last year, so the deals are being snappedup and I don’t feel there will be as many next year.

Where do you see your overseas investors coming from in thefuture?

St Lucia airlift is still strongest out of the United Kingdom, UnitedStates and Canada, so these areas will remain our key markets, alongwith our regional market. We would love to open up to South Americato the Caribbean as it has so much potential, and of course, if anycitizenship scheme is introduced that would create another potentialmarket.

You have had a long involvement with the visionary LandingsDevelopment. How has it been doing in the face of thesechanged circumstances?

The Landings was fortunate in that enough property was sold beforethe recession so it had a very solid Homeowners Association in placeand was already operating as a successful resort, complete with all theamenities to enjoy a luxurious Caribbean lifestyle. The resort side isnow doing well. It has 141 completed apartments, three pools, tenniscourts, restaurants, bars, beach club, spa, and gym, all beautifullyfinished at one of the most idyllic beach locations in the region.Unfortunately the Development Company went into receivership, butthe resort is a separate entity and thriving with happy guests andowners. The opportunity remains for a new developer to complete theproject as originally planned, but currently owners and guests arehappy the way things have emerged and we have also seen a few re-sales go through which is always a good sign.

It is a beautiful resort and one of the best marina developments in theCaribbean.


There is great value inland all over the island

and it can be purchasedas individual lots, or

larger plots fordevelopment. There are

some spectacularproperties for sale at

greatly reduced prices

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What is the current state of the St Kitts property market?

There are a wide range of properties available (sizes and priceranges) but no greater number of properties than over the past fewyears. Interest from offshore investors has increased in 2013. Ibelieve 2013 will be a better year, with regard to property sales, than2012.

Is it much the same in Nevis?

Yes. The curtailing of flights to St. Kitts and Nevis (all Caribbeanislands for that matter) by American Eagle has affected Nevis morethan St. Kitts. In order to travel to Nevis one now is dependent uponLiat or by flying one of the large carriers to St. Kitts then taking aferry or water taxi over to Nevis.

Is St Kitts a little Caribbean haven that few people havediscovered?

Yes, but the number of new visitors (not counting cruise shippassengers) to the island is increasing on an annual basis. St. Kittshas remained a "hidden gem" primarily because government wasfocused on the sugar cane industry until just a few years ago whensugar production was abandoned in favour of tourism. Now that jetairlift to the island has increased (American Airlines, US Air, Delta,and British Airways) more and more visitors are arriving, staying atleast a week, and falling in love with the island.

There were great plans for the development of the SouthernPeninsula. How has this progressed?

Unfortunately, development of the St. Kitts Southeast Peninsula isstill slow. New commercial and residential developments have beenannounced but activity at those sites is minimal or non-existent. Theworldwide economy seems to be rebounding but it is slow to trickledown to the islands. The Southeast Peninsula still has hugepotential.

The Dynamicin St. KittsReal Estate

Developer Scott Jayneshighlights the dynamic in

St. Kitts real estate…

St. Kitts hasremained a "hidden

gem" primarilybecause governmentwas focused on thesugar cane industryuntil just a few years

ago when sugarproduction was

abandoned in favourof tourism.

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You are a developer at the high end of the property ladder. Howhas your market been affected by global meltdown in recent years?

Prospective investors have held on to their money waiting to see whatwill happen worldwide. We at The Estates on Sundance Ridge havespoken to a number of prospective buyers over the past several yearswith little to show for it. The good news is our product is top-drawerquality and our site is spectacular and cannot be equalled on-island.Neither of those factors will change so we remain a great investment tothose who can appreciate the long-term value.

You fell in love with St Kitts and moved your home over adecade ago. How has the island changed in your time?

A great number of homes and villas have been completed over the lastten years. Many new developments have been constructed during thattime (and some are still underway). Other new developments havebeen announced and have not broken ground to date. Property valueshave increased but are still way below that of neighbouring islands(namely St. Martin and Antigua). With increased airlift and theheightened awareness of our island by tourists from around the globeproperty values will naturally increase as more and more visitorsrecognize the charm of this small island and its people. To those whoinvest soon the property appreciation will be significant.

The Economic Citizenship program is a controversial facilityacross the region. Has St Kitts benefitted from it?

That is a hard one. St. Kitts and Nevis has had many developments jumpout of the ground to satisfy the "citizenship urge" but I would guess only10% of those buyers (my opinion only) have any interest in holding theirproperty for more than the five-year requirement of the program. The

The citizenship programhas brought millions ofdollars to the islands ofSt. Kitts and Nevis but it

is hard to say if it willhave any real long-termbenefit to the people

who live here.

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Economic Citizenship program has not helped Sundance Ridge as we area "lifestyle" purchase rather than a "citizenship" purchase (our Buyersqualify for application to the Citizenship Program but few come to us forthat specific need). The citizenship program has brought millions ofdollars to the islands of St. Kitts andNevis but it is hard to say if it will haveany real long-term benefit to the people who live here.

Where do you see potential real estate buyers coming from inthe future?

Citizenship buyers come from the world over for a myriad of reasons.True real estate investors will come from the US, UK, France, andCanada. Airlift is key to continued growth. Once a vacationer has visitedSt. Kitts I'm sure he/she starts thinking about coming more often andpossibly owning property themselves. As I've said before, St. Kitts andNevis are "hidden gems" and once a visitor comes to either island the"wheels just start turning". If you are familiar with either St. Kitts orNevis you love them! Either one becomes part of you very quickly.

By his own admission former American realtor Scott Jaynes and his wife Connie fell inlove with St. Kitts the first time they visited the island and very soon after made it theirhome. They are the driving force behind the stunning hilltop Sundance RidgeDevelopment in St. Kitts and take an active part in many community activities. Scott canbe contacted by email at [email protected]

With the 2012/13 high season over, now is a good time to reflect onthe state of the market. Across the Caribbean, real estate agents havereported a greater volume of interest from prospective purchasers and,more importantly, increased interest from the North American market.This trend has also been evident in the BVI where a busier high seasonfor agents has boosted confidence that the market may be turning.

The past twelve months have been mixed for the BVI. The continuedeconomic downturn in Europe has led to continued pressures on theoffshore financial centres to conform to tax treaties. With a domesticbudget that depends on income generated through the financial sector,the BVI Government remains keen to preserve the lucrative companyformations market while looking to diversify into new products.Shipping and aircraft registrations are both areas identified for possibleexpansion. In 2013, attacks on the financial centres have continued anddamaging leaks of proprietary information from trust companies to theinternational press have focused attention once again on the questionof taxation in Europe and the ability of individuals and companies toreduce their tax exposure through the use of off-shore companies,particularly for property acquisitions.

The BVI Government has continued to search for ways to raiserevenues locally and also to open up new markets. With one of the twinpillars of the economy under pressure (the other being tourism), theGovernment is keen to identify an alternative area of business that cancomplement both the financial industry and tourism. While the BVI isnot as suited as some islands in the Caribbean to agriculture, the offshore fishing grounds have been identified as a possible source ofrevenue. The BVI Government is also looking at long-terminfrastructure projects, most notable of which is the extension of theexisting runway at Beef Island airport to allow direct flights to theEastern Seaboard of the United States. With American Eagle ceasing

Edward Childs give an overview of life amongstthe rich and famous...

PositiveSigns inBVI


While the BVI is not assuited as some islands in

the Caribbean toagriculture, the off shore

fishing grounds havebeen identified as a

possible source ofrevenue.

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For Sale - Sugar Mill Hotel, Tortola

flights from Puerto Rico to the BVI in March 2013, the need to controlairlift to the BVI is seen as a priority for the expansion of tourism in theBVI. The plans for the expansion are well advanced and bids have beenreceived from three international companies for the airport expansion.In the private sector, the North Sound area of Virgin Gorda continuesto flourish with on-going development at Oil Nut Bay, Mosquito Islandand Necker Island, where the replacement for the main residencewhich was burnt down in the summer of 2011 is close to beingcompleted. Oil Nut Bay recently opened The Cliffs, three one-bedroomluxury suites perched dramatically above the Caribbean Sea. Withmuch of the infrastructure now finished, this luxury resort is nowlooking forward to the 2013/14 season with the completion of thecentral facilities behind the beach club. Land sales at Oil Nut Bay havecontinued at a good pace over the past twelve months, including thesale of one 28 acre serviced site for $25M. The YCCS Marina has justfinished hosting some major regattas including the Loro PianaCaribbean Superyacht Regatta, which was held in March and attractedtwenty sailing super yachts. This marina, located at the heart of NorthSound, has opened up a new market to the BVI through the superyacht regattas. Construction on Mosquito Island gathered pace in 2012with construction of the central areas now under way and expected tobe completed by May 2014. The first sites on the island have been sold,but with only a very limited number of sites available, there are notmany opportunities to become a part of this exclusive islanddevelopment.

Elsewhere in the BVI, Nanny Cay Resort and Marina is completingthe final phase of its successful condominium development.Construction is also underway on new commercial buildings toimprove the services offered to the Nanny Cay community. The ownersare also finalizing the plans for a large expansion to the marina, whichwill increase the number of available berths by 100 slips and open upmore land for further residential development.

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...the need to control airliftto the BVI is seen as a

priority for the expansionof tourism in the BVI. The

plans for the expansionare well advanced and

bids have been receivedfrom three international

companies for the airportexpansion.

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BVI Home Price Index

The historical sales data for the sale of villas over $500,000 in theBVI between 2003 and 2012 provides a stark picture of the impact ofthe recession on villa sales in the BVI with three years of reduced salesbetween 2009 and 2012. Although the number of villa sales in 2012declined, the total value of sales transactions increased from $11.5M in2011 to $16M in 2012. The median sale value also increased, from$615,000 to $950,000 over the same period. This was due to theclosing of two villas at $4.5M and $5.0M respectively during 2012.

The graph showing the categorization by sale price indicates that themarket for property below $1.0M saw a substantial reduction in salesin 2012 with only five sales recorded against twelve in 2011 and sixteenin 2010. There were also only two sales in the $1.0M - $3.0M category,which was slightly down on prior years. However, there were two salesin the $3.0M+ category, which was the first time sales in this category,had been recorded since 2008.

There are now around 270 properties actively being marketed in theBVI above $500,000. While total annual sales remain low, this is alarge inventory that will need to be sold before the market can correctitself. What is not evident from the above graphs is the change in themarket over the past twelve months on Virgin Gorda, primarily due todevelopment activity in the North Sound area. While historically themarkets on Tortola and Virgin Gorda have been very different, we arenow seeing a marked contrast between the two islands in terms ofpricing achieved and the response of sellers to the market in terms ofreducing asking prices.

We have analyzed sales on both islands since 2010 in the $1.0M+price category and compared the difference between the initial askingprice and eventual sale price for each property sold. This analysis issummarized in the table on the following page.

The table shows that vendors on Tortola lowered prices by an averageof 28% to achieve a sale compared to 22% on Virgin Gorda, althoughthe statistics for Virgin Gorda are somewhat skewed by one sale wherethere was a 67% difference between the asking price and the eventualsale price. The average sale price in Virgin Gorda is now over 40%higher than the prices being achieved on Tortola.

We have also looked at current listings of villas over $2.0M on the twoislands and compared asking prices for these properties to a year ago.On Tortola, villa owners have started to lower prices and of twelvelistings analysed, eight have reduced their asking prices by an averageof 18%. Of seventeen listings on Virgin Gorda, only seven have reducedtheir asking price albeit by an average of 22%.

With the requirement of overseas investors to obtain a land holdinglicense from the Government, it can take a number of months for salesto close. Therefore, any progress in the market seen over the 2012/13high season may not be reflected in Land Registry records until 2014.While the agents may be reporting a general improvement in themarket, it will still take a while for this to be reflected in the statistics.In previous years, the cyclical nature of the economy has resulted in thegains that have been felt in North American and European economiesin the winter months (Q4 and Q1) being reversed during the summermonths (Q2 and Q3) when economic conditions have deteriorated.However, with the American economy gathering pace, and the fiscalcliff being at least temporarily avoided, there remains hope thatconfidence in the economy will remain positive during the summer of2013, indicating that a sustained recovery may finally be here.

Edward Childs graduated from Newcastle University in 1985 beforeundertaking a postgraduate diploma in Land Economy at AberdeenUniversity. Following three years of post graduation in London, Edwardbecame a member of the Royal Institution of Chartered Surveyors in 1990.Edward joined Smiths Gore in 1990 having trained with Savills in Londonin commercial property surveying. He established the commercialdepartment at Smiths Gore and was instrumental in expanding the firm’spresence in the Caribbean region. In commercial property, Edward hasspecialized in resort and marina operations, undertaking valuations andsales throughout the Caribbean. Over the past ten years, he has also beeninvolved in a range of development consultancy positions, guiding clientsthrough the development process including environmental, planning andgovernmental issues. He can be contacted at tel: 284 494 2446 or by email:[email protected]

TABLE SHOWING THE COMPARISON OF ASKING PRICES TO SALES PRICES IN SELECTED VILLAS ONVIRGIN GORDA AND TORTOLA IN THE US$1.0M+ PRICE CATEGORY

Island Number of Sales * Average Asking Price PSF Average Sale Price PSF %

Tortola ** 11 $850 $613 -28%

Virgin Gorda 8 $1,127 $878 -22%

Difference 33% 43%

* Includes properties in contract

** Includes one Scrub Island sale

On Tortola, villa ownershave started to lower

prices and of twelvelistings analysed, eight

have reduced theirasking prices by an

average of 18%.


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...including six spectacular penthousesuites and three deluxe penthouse suitesenjoy a secluded waterfront setting fringedby tropical greenery, exotically scentedgardens and shady terraces.

Tour Barbados and the island’s real-estate heritage stands proud fromevery seascape and hilltop balcony – from the bijou chattel houses andpastel coloured stilt cottages once transported from one plantation toanother, to the rambling Colonial estates dressed in styles that spanPalladian Regency to neo-Gothic. One niche residential sector thatencapsulates the island’s well-mined bricks and mortar evolution morethan most however, is that of resort living, with landmark developmentSt Peters Bay a quality benchmark to emulate.

Nestling on 4 acres of prime west coast beachfront, the resort ticks allthe essential ‘castaway living’ boxes – a pristine frontline location, clearblue waters and a refined collection of leisure amenities. Whatparticularly appeals is the small-scale, boutique feel of the development:just fifty-seven luxury homes, including six spectacular penthousesuites and three deluxe penthouse suites enjoy a secluded waterfrontsetting fringed by tropical greenery, exotically scented gardens andshady terraces. Just a short barefoot schlepp from my villa and I can dipmy toes in the glistening freeform pool which borders the beach.Scooting up to nearby bustling Speightstown for a spot of al frescolunch is a breeze – a quick tilt of the sun hat to crewman Reco and theresort’s private water taxi is ready and waiting to whisk me away. In factdecompressing guests into prescribed holiday mode is a finely-honedskill at St Peters Bay, with an attentive in-house concierge service tocater to your every whim from securing ‘best table’ bookings at the toprestaurants to planning day trips to the island’s key note attractions,arranging in-residence dining and even scheduling water-sports, golfand sailing activities.

Residences epitomise refined comfort. Meticulously designed andstylishly appointed, my stunning home-from-home for the duration ofmy stay was a super-sized three-bedroom penthouse: 2,700 square feetof fan-cooled, louvre-windowed living space comprising a spacious,elegant master suite, bespoke design bathroom with rain shower andfreestanding bath, two additional en-suite bedrooms, a state-of-the-artgalley kitchen and the ultimate indulgence - an outsize gallery terracecomplete with spa pool; the perfect spot for an early morning dip.

Bajan BeautyOne of the island’s newest five-star resortadditions on the Barbados Riviera, LauraHenderson samples a taste of the des-reshigh life at St. Peters Bay

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Interior décor palettes complement the resort’s traditional Caribbeandesign with authentic detailing - sconces and picture windows – walls incoral rock with much of the woodwork ‘pickled’ pine, a whitewash thatgives a pleasant and light effect, while pastel drapes complete themuted, restorative theme.

Deluxe penthouses don’t skimp on luxury trimmings either. Boasting6,330 square feet of space, interiors comprise a spectacular master suitewith large walk through dressing area and bathroom, three additionalen-suite bedrooms, a terrace bar and private roof deck with full-sizepool, and a state-of-the art media room and home office.The litmus test of any successful development is engendering thatspecial feeling of having left the world behind. In the case of St PetersBay it’s the buzz on the beach by day, a stunning property within earshotof the waves, and above all, a place to unwind and, where the staff areonly too happy to take the strain, so you can just kick back. That, in anutshell is St Peters Bay. It’s the ultimate dose of luxe island flair.

Laura Henderson is editor of UK luxury property magazine Abode2 –www.abode2.com

St Peters Bay – The Facts

Property prices at St Peters Baystart from $1.95m for a three-

bedroom residence rising toupwards of $7.75m for a deluxe,

four-bed penthouse with roofdeck, pool and kitchen.

On-site management include a fullgym and yoga studio, hair and nail

salon, concierge, and beachsidegazebo bar serving light lunches.

A water taxi service with access tothe nearby yacht club is also

available.

In addition to the above portfolioof services, owners have the

opportunity to purchase a berth atthe recently launched luxurymarina development of Port

Ferdinand.


53


Whether you are purchasing a home for your personal useand enjoyment or the property is to serve as an investmentand is expected to cover its costs or provide a return, the useof a professional interior design team is of paramountimportance. Taking this approach will enable you to create aspace that functions well in practicality and aesthetics. Thisnot only makes for a sound investment in the present, butalso creates a competitive advantage for the future potentialof a resale.

First impressions are crucial in today's extremely competitive marketwhen selling a property in theCaribbean. By appealing to the emotional sideof a buyer you can reach far beyond the sales pitch and financialspreadsheets. As a leading Caribbean interior design company with over adecade of experience, Archer’s Hall Design Centre has witnessed thedramatic difference in the rate at which properties have sold once theypossess well designed interiors and quality furnishings compared to theirunfurnished counterparts. Buyers have repeatedly expressed that viewing awell-appointed, furnished property takes a large unknown factor out of thepicture and enables them to see exactly what they will be purchasing. It isoften very challenging for potential buyers to visualize their dream home orto see the advantages of a space as compared to other properties beingconsidered for purchase if they are unfurnished. This allows them toidentify with the lifestyle and atmosphere they will be purchasing up frontand the furnished home leaves nothing to the imagination ultimatelycaptivating the potential buyer.

Another very important consideration when trying to determine if showhomes should be furnished is that once a turnkey package is included, thepotential buyer is in a position to begin to have the use of their investmentimmediately upon concluding the transaction to purchase. This has provento be equally important for persons buying and wishing to be able to enjoya holiday in Barbados in their newhome or renting the property if it is beingpurchasedwith that consideration inmind. The entire process of designing,ordering, shipping and furnishing a home can take a minimum of fourmonths, which may mean a buyer could miss an entire winter seasonbefore being able to use or rent their property.

INTERIOR DESIGN:Optimizing YourInvestment

56

...we have witnessed adramatic difference in theproperties that have soldsuccessfully with a welldesigned interior andfurnishings compared to theunfurnished properties.

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Additionally, there is also the fact that many buyers find the experience ofoutfitting a new home oneself to be a daunting experience. This alreadytricky process is made more complex by the fact that they are unfamiliarwith Caribbean and the logistics involved in navigating all that goes withpurchasing and shipping items. Many islands carry a variety of importduties, while shipping and logistics can be strategically challenging.Archer’s Hall Design Centre offers the benefit that a buyer can establish abudget based on their knowledge and experience and end up stayingwithintheir allotted amount to outfit their space. They also navigate the manyintricacies involved in purchasing, consolidation, international shipping,brokerage, customs, duties and other regulations and related matters.

Archer’s Hall believes firmly that it is important to outline the overall scopeof works at the beginning of a project and establish a budget and time frameto completionas this allows a client comfort of knowingbeforehandwhat theycan expect.Quality is also of the utmost importance to themas they recognizethat by providing well-made items with good design, their clients will receivean added benefit and not have to refurbish for many years to come.

It is this peace of mind that allows clients to hand over the responsibilitywhen they leave the islands and wish to return with everything done, everydetail taken care of and arrive with simply a suitcase in hand.

The team at Archer’s Hall Design Centre takes great pride in ensuring thatonce contracted as the interior design company on a job, deadlines are metand budgets are adhered to. They have focused on building lastingrelationships with local developers and their individual clients have in severalcases engaged them repeatedly in respect to subsequent purchases. Theyplace great emphasis and work diligently to ensure that every project receivesthe attention itwarrants and to ensuredelivery on timeandwithin thebudget.

It is for the many reasons outlined above that it will prove extremelybeneficial to either the developer or individual property owner to engagethe services of a professional interior design company and thereforemaximize their return on their investments and also ensure a seamlessprocess in achieving the furnishing of their property.

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The team at Archer’sHall Design Centretakes great pride inensuring that oncecontracted as the

interior designcompany on a job,deadlines are metand budgets are

adhered to.

www.archershall.comTel: (246) 422 0400

email:[email protected]

At Oran Ltd. we believe that there is a solution to every problem anda design for every customer. We design our products in the Caribbeanand for the Caribbean with the confidence to know that they can standup to the environmental demands of our climate and the discerningtaste of our consumers. Therefore we are confident that ourexperienced sales staff can guide you through the choices, and help youarrive at a solution that right for you.

Currently there is a diverse range of products with added valueoptions that are designed for different applications available on themarket. With all these choices at hand and a limited budget,consumers face the challenge of finding the right product to fit theirbudget. Consumers should consider two important criteria:performance and aesthetics. Does the product or combination ofproducts protect my home adequately? And do these products bringout the beauty of my home?

In today’s market for windows and doors there has been a lot ofattention given to the advantages of UPVC and aluminum. While bothmaterials have different properties, for example UPVC cuts down onheat transmission more than aluminum without the aid of a thermalblock, both materials are fairly comparable in the context of theCaribbean environment. UPVC has been labeled the preferred materialfor coastal products; however, aluminum itself does not rust fromexposure to salt spray. In reality it comes down to the consumer’spreference. Both products have different appearances and are availablewith different options. At Oran Ltd. we offer a wide range of UPVC andaluminum products tomeet the needs and specifications of all customers.

For consumers focused on maximizing their homes resilience tohurricanes and high winds, we recommend products that have had

...UPVC cuts down onheat transmission morethan aluminum without

the aid of a thermalblock, both materials

are fairly comparable inthe context of the

Caribbean environment.

There’s more toOran than meetsthe Eye

Having been in the window business for almost50 years, Oran Ltd recognizes that a window ismore than just a pane of glass to fill an opening.Rather, windows and doors are a major aestheticfeature of your home or building that when usedfunctionally can provide practical returns on yourinvestment and enhance your living experience.


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their designs certified by Miami-Dade and Broward counties for largemissile impact. Products like the RoyalGuard ™ Impact Line fromOran Ltd. and MaestroShield® Roller Shutters are backed up by thecertification and engineering to protect your home against flying debrisfrom high winds. In addition to these options for certified hurricaneproducts, Oran Ltd. offers laminated glass, consisting of two pieces ofglass surround by a poly-vinyl butyl interlayer, in various thicknesses inall of its products, providing varying degrees of protection from debrisand water penetration. Windows can also be fitted with coverings, suchas louvre shutters, simultaneously providing protection as well as anaesthetic appeal.

In addition to protection against destructive weather, windows canalso mitigate the negative features of an environment. Insulated glass,otherwise known as double glazed glass, can be used to block soundtransmission, creating a quiet and peaceful environment in your home.Insulated glass can also be used to cut down on heat transmission,keeping your home cooler when using air conditioning and cuttingdown on cooling costs. Similarly, glass tints add to the look of a homewhile reducing UV and solar heat transmission, which can warm yourhome and damage finishes. Special coatings, for example Lowemissivity coatings, can also be added to glass to improve theperformance glass in cases where sunlight is direct and intense.

These value adding performance features can add a unique andtasteful design to complement your home. Both aluminium and UPVCwindows offer customizable options for a number of frame colours toblend in with your home’s décor. Aluminium frames are powder coatedproviding a long lasting durable finish, while UPVC frames are in fact‘painted’ using a proprietary staining system, called RoyalBondtm,which is accompanied by a 20 year warrantee. Glass tints can also beused to accompany frame colours, and when used with customizedmuntin designs will add a unique look to your home.

When combined with different styles of windows these value addingoptions make you windows unique; however, it is the window or dooritself, which is the main feature. Each style of product has its appeal.Double hung windows have been a bench mark design of traditionalplantation houses for decades, because they maximize airflow byallowing hot air to escape through the upper open vent. Meanwhilecasement windows provide an unobstructed view when open andmaximize ventilation. When combined with vanishing pull downinsect screens, flying pests are no longer a disadvantage of thisparticular window style. Similarly, sliding and bi-folding doors can beused to capitalize on both airflow and aesthetics opening your home tothe beauty of the outside world, whether it is a manicured garden orpicturesque view of the ocean. In addition, window coverings, such aslouvre shutters or the high end louvretec operable shutters can also adda sophisticated and sleek look to modern designed homes, and can becombined with various window and door products offering innovativesolutions to the toughest design choices.

Whether you are building a home, re-designing a room, or simplyreplacing a window, Oran Ltd’s experienced and knowledgeable salesteam is ready to assist you in choosing the product that adds the mostvalue to your project.

Double hung windowshave been a bench

mark design of traditionalplantation houses for

decades, because theymaximize airflow by

allowing hot air toescape through the

upper open vent.

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A Man withGreat Vision:Paul AltmanPAUL ALTMAN

pg 72

PrivateWealthBankingPAUL JENKINS

pg 80

Know Whatthose TermsMeanDAVID ALLEYNE

pg 84

Spread yourRisk and Buywith a LoanANITA ASHTON

pg 88

Diamonds:An Investmentin LoveSIMONE WARD

pg 94

EconomicCitizenshipCECILY LEES

pg 96

The economicBenefits ofMusicCLARE HILES

pg 90

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Business& Finance

Valuing in aChallengingMarketJAMES POLLARD

pg 76

Caribbean Property Magazine

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A man withgreat visionPAUL ALTMAN

You are an institution in the Caribbean real estate industry.What keeps you motivated in these challenging times?

We have worked very hard over the past 35 years to build an industrythat did not exist, in a formal way, previously. We always saw Barbadosas the “strength location” among our Caribbean neighbours and ourinvolvement throughout the Caribbean has been one of nurturing –planting seeds and ideas – in order to present a spread of opportunitiesto investors, aimed at everyone’s benefit. That keeps me motivated. Iam a very positive person and, if I can continue to motivate others,then I remain motivated.

Are you positive about Caribbean real estate in the next fewyears or do you see major challenges for some islands?

We all have our challenges in the Caribbean. My view is that we havethe ability to “buck the world economic trend”. Let me explain: we livein one of the world’s most beautiful places – the Caribbean; one that issheltered in peace, with great energy among its people. Our Universityhas and continues to develop clear-thinking, clever minds. We mustbreak through the mindset that we are caught in a global crisis. Thereare pockets of continued strong growth among the general decline,where clever leadership has prevailed. It is not business as usual. Theworld has changed and we must change. Without a paradigm shift inour own way of thinking we will continue to “go with the flow”. Whynot build an island or start the Pierhead project? Give tourism what itreally needs. Sometimes overall changes send big messages:

• Build one overpass.• Build the jet ways.• Start drawing plans for a monorail to follow the Constitution

River (the old riverbed now under beautification) and thusreduce traffic congestion in the city.

• Guide new development (redevelopment) over the next 20years in our towns – Bridgetown, Oistins, Holetown,Speightstown – and all the waterfront locations, which haveimmense redevelopment potential.

• Take advantage of our World Heritage designation.• Pass really meaningful legislation which makes it so attractive

for investment that businesses can’t fail to notice or take

...we live in one ofthe world’s most

beautiful places – theCaribbean; one thatis sheltered in peace,

with great energyamong its people.

Business

advantage of it. It can be done by using one investor as anexample that works – unhindered, no hurdles, fast track. If thechallenges facing investment were minimized and, evenfurther, guided into an easy experience, there would be a hugeinflow of new development. The word needs to get out that wecan make it comfortable for development to happen!

We will benefit if this shift in mindset occurs. It cannot happen if wecontinue to operate in the normal way. We have to scream out in order toachieve this paradigm shift.

Do you feel the industry needs to change to be more competitive?For example, is it realistic to expect sales commission of 5% from aseller in a highly competitive market? Would Finder¹s fees be apositive step forward?

Absolutely. The industry needs to change – to become more competitive.It has already changed. There are so many new companies and theindividuals in the business. All it takes is a payment of BDS$750 to theRegistry Office and anyone can sell property officially – not to mention thehundreds who do it “silently”. Which other professions offer this ease ofaccess? For those of us with larger companies - which employ a number ofpeople, have significant marketing budgets, international affiliations, andwork hard to bring business to Barbados - it is extremely costly to operate.Everyone benefits and the smaller companies, who do not have overheads,can afford to charge reduced fees. The larger companiesmust reduce fees inorder to become competitive. We accept that finders’ fees are an alternativeand, although not prevalent, have reason to becomemore prevalent.

What do you see as ³Best Buys² in 2013 and why?

Thebest buys in 2013 have to be re-sales versusnewbuild. There are a largenumber of properties listed for sale which have been built and owned overthe past 20 years, some over 15, 10, 5 or less. Owners who want to or need tosell can factor in value of personal use, rental income, and inflation. They canafford to accept less than new build. That is why a number of projects arestalled. This has a negative effect on our economy (the construction industry,employment etc). There are an abundance of “for sale” signs all over theisland. This gives the impression that the island is for sale andworks againstall of our better interests... but who will remove their signs first? We are in abuyers’ market like never before – not to mention the banks, which haverepossessed properties and are starting to enter the equation.

You have been heavily involved in the visionary Limegrove RetailComplex in Barbados-how successful has it been to date and arethere plans to expand and develop?

Limegrove is there as a reality for all to enjoy. There is no doubt that ithas made a difference to Barbados as a destination. What excites memostis the fact that so many Barbadians, who first saw it as only for visitors,have warmed up to the enjoyment of liming at Limegrove. Limegrove hassomething for everyone – food, fashion, film, art and much more. It hasturned outmore evenmore spectacularly then I had envisioned, and thereis a lot more to come! Burberry and Hugo Boss will open soon. New foodand entertainment options and lots of events – there will be a full calendarof events! We are now focused on our residential component so that thetheme “Live, Work, Play” is fully on board.

Business

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The second home market has made a huge contribution to theeconomies of several islands across the region, but over the pastfour years it has slumped.What can be done to stimulate sales andforeign investment?

The secondhomemarket has indeed become amain player in our tourismaccommodation. It is more than accommodation - it represents a vestedcommitment in our economy. People who buy vacation homes spendforeign exchange, create significant employment and are ambassadors forBarbados. They pay land tax, spend fortunes on maintaining theirinvestments (supporting a major service industry), spend on other localservices, rent and purchase cars, eat in restaurants, buy in our retailestablishments etc. This armof foreign investment can easily be tuned to theengine of our tourism plant. We should also highlight their philanthropiccontributions - they feel committed to improve the quality of life on thisisland and give millions of dollars annually to help in almost every area ofdevelopment and need. Once this is recognized, then it is up to our tourismsector to highlight this contribution and help to build it into amuch strongereconomic contributor. Maybe World Travel Market in London and ITB inBerlin could highlight the villa component. A tourism survey is currentlyupdating statistics on the villa sector. This will help to demonstrate itsimportance.

What has kept Altman real Estate at the forefront of theindustry over the past two decades?

Altman Real Estate has diversified. Our main lines of business are stillreal estate sales, rentals and management. However our partner business- Property Consultancy Services – provides professional services to theindustry - including valuations, reports and project management - whilefocusing on our significant involvement in the Fortress property Fund aspartners and investment advisors. We not only act as Principals, but wealso get directly involved. We have helped to shape the industry over thepast three decades (plus) and are proud of our continued contribution.

Do you see yourself continuing in your current role or have youother challenges on the horizon?

I have no intention of leaving my position. It is my work and myenjoyment. It keeps me focused each day and, as long as I feel I canmake a contribution to this industry and to Barbados, I will continue. Iam, at the same time surrounding myself with some of the brightestminds -who help to inspire me. That speaks well to the future of AltmanReal Estate and to our industry.

Paul Altman has been involved in the real estate profession for over thirty years. He is theManaging Director of Altman Real Estate. He has been at the forefront of developments in theluxury residential market: he was among those instrumental in the establishment of the RoyalWestmoreland golf residential community; led the development of the highly successful Sugar HillResort; and helped to set the tone for resort communities in Barbados on a whole. He is at thehelm of the development of the Limegrove Lifestyle Centre, Barbados’ first mixed-use centre.Mr. Altman is involved in urban renewal programs in Speightstown, Holetown and Bridgetown.He is a Past President of the Barbados National Trust and led the development of twomuseums, which are both linked to the Trust, the Nidhe Israel Museum in Bridgetown andArlington Museum in Speightstown. Currently, he serves as Chairman of the Masonic LodgeRestoration and Preservation Trust.

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Limegrove is there as areality for all to enjoy.

There is no doubt that ithas made a difference to

Barbados as adestination. What

excites me most is thefact that so many

Barbadians, who firstsaw it as only for

visitors, have warmedup to the enjoyment ofliming at Limegrove.

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The global financial crisis has had a major impact and has brought a newset of challenges to the Barbados property market. This article exploreshow falling transactional evidence and reductions in the availability offinance is impacting on the ever evolving field of valuation.

What is Market Value?

The definition ofMarket Value is founded on the principle that valuers areestimating the contract price that a willing buyer and seller would agree inan arm’s length transaction on the open market. Valuation techniques aretherefore used to ascertain the price at which a property would sell for ata particular moment in time. Market value differentiates from InvestmentValue or Worth, which represents the value of a property to a particularinvestor, or class of investors, for identified investment objectives, whichmay not necessarily be representative of the market as a whole.

Transactions Market

Across all property sectors, values have declined from their peak in 2007,as a consequence of diminishing purchaser demand. The decrease inearnings and increase in bad debt provisions has cautioned lenders. Thisis reducing the availability of debt funding, which in turn is reducingtransactional activity in the market. Capitalisation rates have softenedfrom the levels reached during the boom. Not only has there been limitedpurchaser demand, but owners, who have seen values reduce over thisperiod of time, have been reluctant to bring assets to the market.

Debt remains the greatest challenge in the market. From the mortgageproviders’ perspective, constraints on credit supply means that the levelsof finance at their disposal have been dramatically reduced. Mortgageproviders, having adopted a more conservative approach to their lendingpractices, now have stricter criteria governing when they are prepared tolend. Whilst previously many loans were based solely on relying on loan-to-value ratios, there is now a greater reliance on location, the producttype, management and the ability of the borrower to service debt.

Valuing in aChallenging Market

James Pollard of BCQS highlights why acomprehensive understanding of currenteconomic conditions together with local andsector property knowledge are essential toproduce accurate valuations in today’schallenging market.

Challenges to the Valuer

The Barbados property market is currently in an uncertain phase with alack of finance and a declining number of potential buyers. This isreducing the number of transactions and consequently the volume ofmarket data available is currently limited. This lack of data is making anassessment of current market conditions more challenging.

Confidence in the Barbados property market has weakened. In the midstof this uncertainty, it is important to emphasise that this is likely to be thefirst down phase of the property cycle that many owners will haveexperienced in Barbados. This has, perhaps, intensified marketnervousness, and along with the change in the financial landscape, hasadded to the uncertainty of existing owners as well as prospectivepurchasers. Prospective purchasers are requiring greater reassurance andit follows that their confidence in the market needs to be restored.

To undertake valuations it is critical that the valuer has an in depthknowledge of the local market and a comprehensive understanding ofthe specific characteristics that drive the value of property. This willinvolve assessing the transactional evidence of similar properties andhaving knowledge of the investment characteristics related to theproperty which are likely to impact on value. It must also beappreciated that depreciated replacement cost plus the value of land isnot necessarily indicative of market value and caution should beexercised in using this approach in isolation.

In the commercial sector, it is becoming increasingly challenging to assessvalue, given the risks associated with current economic conditions. At the

The Barbados propertymarket is currently inan uncertain phase

with a lack of financeand a declining number

of potential buyers.

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height of the market, purchasers were basing bids on aggressiveappraisals, assuming ever increasing rental levels without fullyaccounting for potential risks such as tenant default or longer voidperiods. It is, therefore, crucial that the valuer analyses marketconditions to assess the returns that purchasers require at any giventime. This will be dictated by a number of factors, including theavailability of funding, the risk profile associated with a particularasset, and its location. So, during a deteriorating market, it is essentialthat the valuer has a full understanding of the likely purchasers in themarket and the likely returns that they require.

Knowledge is Key

In conclusion, it is essential that valuers have an in depth knowledgeof the local property sector as a whole. It is also critical that valuerscomprehend current market conditions and trends, as well as thereturns required by purchasers in the commercial market. Maintaininga thorough understanding of all the key factors that dictate value in thiscurrent climate will assist the valuer in producing accurate valuationsin such challenging markets.

James Pollard is aSenior Valuation

Surveyor at BCQSInternational in theirBarbados Office.

He can be contactedby telephone at(246) 428 8091or by email at

[email protected]

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Not many people outside the banking world know what PrivateWealth Department is all about. Can you give us a brief overviewof what is on offer to customers?

Private Wealth Management discreetly assists affluent clients build,preserve and transfer their wealth.

At Scotiabank, we create customized Wealth Management solutionsthat incorporate Investment Advice and Management, WealthStructuring and Trust services and Private Banking.

For example, as a private banking client, you will benefit from ourpersonal, attentive and professional service with an emphasis onanticipating and addressing all your banking needs quickly, accurately,and efficiently.

Working with a team of credit specialists, your Private BankingRelationship Manager can facilitate borrowing needs, and providetailored lending solutions that meet the demands of your individualfamily objectives.

Covering everything from your day-to-day banking needs to the mostcomplex investment, trust and insurance strategies, our solutions areintegrated into a customized package that will effectively meet your localand international wealth management needs, all in exclusive facilitiesthat respect your need for privacy.

When you partner with a dedicated private banker or investmentadvisor, the result is a seamless experience that saves you time:

• Simplify borrowing by combining a portfolio of your assetsheld in different locations as collateral for a single investmentline of credit

• Increase borrowing power by incorporating investmentindustry margin loans

• Offer access to global investments and research in marketsoutside the region.

• Provide a dedicated relationship manager that assists indiscreet day to day banking.

• Enjoy quick, hands-on management of time-sensitivetransactions in coordination with your other trusted serviceproviders.

• Obtain help handling bill payments or other tasks madedifficult due to travel or work schedules

• Offer wealth-structuring services that provide families withcustomized solutions addressing transfer of wealth fromgeneration to generation.

Private WealthBanking

Scotiabank’s PaulJenkins answers some

key questions...

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How do prospective customers come to your table?

Our clients tend to arrive at our private offices discreetly and usuallythrough referrals from satisfied existing clients. We pride ourselves inprivacy of referral along with excellence in discreet/personalizedcustomer service.

You specifically operate in the Investment Section. What areyour main areas of expertise?

My expertise is in wealth management; specifically fixed incomesecurities. Bonds, or fixed income securities, tend to have less risk thanequities and usually are core components of institutional accounts.

However my commitment is to a partnership with the client that willallow us to engineer sound personalized international investmentsolutions that are inclusive of both bonds, stocks and other regulatedinvestments.

My goal is to deliver objective advice and long-term returns for aportfolio that minimizes one’s exposure to risk. My team of supportand service can fully support the development of a portfolio byproviding you with leading international products and services,including timely market strategies and portfolio reviews. Clientsbenefit from the integrated team of experts and our partners acrossScotiabank.

It is usually best to start with a full understanding of a client’sfinancial situation. Working through a strict advisory process wereview and analyze client needs and goals and create a personalizedinvestment portfolio based on those goals, time horizon, risk tolerance.

We also focus on aspects of international portfolio construction thatmay have implications that pertain to asset allocation, geographicdiversification differing currency exposure.

Through our Scotiabank partners, we have access to investmentsolutions, research, and tools from around the world to incorporate themost appropriate investments for your needs.

Our office offers the following types of investments:

Fixed Income - International Investment Advisory has access to thelong-standing expertise of Scotia Capital in fixed income, and we havethe knowledge and capacity to build a fixed-income portfolio tailored toyour unique investment goals.

Equities - The equity group at Scotia Capital provides us with tradingand advisory services for a full range of equities as well as preferredshares, income trusts and options. In addition we have access toFutures and Commodities trading.

Investment Funds - We have access to a breadth of investment funds,including mutual funds, specialized funds and hedge funds. Weanalyze each fund statistically as well as looking at its portfoliomanagement process, style and discipline, mandate, and inherentrisks.

However mycommitment is to apartnership with the

client that will allow usto engineer sound

personalizedinternational

investment solutionsthat are inclusive ofboth bonds, stocksand other regulated

investments.

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Alternative Products - Through our partners we are able to offeralternative investments that meet the more sophisticated needs of yourinvestment strategy.

Research and Tools - We use industry-leading research and tools to createthe investment portfolio that is right for you and your investment goals.

Can the bank offer better services than traditional investmentbrokers or fund managers?

Banking and investment products tend to be very similar. We feelwhat differentiates Scotiabank from the competition is our customerservice, attention to detail and the desire to offer excellence.

As a bank we offer extensive services across the region and have thesupport of external financial services experts. We have a physicalpresence in Barbados that can facilitate complicated financialtransactions. I like to say to clients ‘What you can do in London,Toronto, New York or Singapore, you can do right here in Barbados”.I’m sure all Scotiabank staff say the same in their respective locations.

What mortgage facilities do you offer?

Our private banking team can assist in customized lending to clientsin the region. Types of borrowing tend to be individual loans, lines ofcredit and mortgages.

One of our popular debt structures tends to be US dollar non-residentmortgages.

These mortgages assist global clients whommay wish to borrow fundsto purchase a second home in the Caribbean. In some instances theseclients do not need to borrow, but choose to do so because it assists intheir tax savings strategy.

The banking dynamic doesn't sit still in the modern world.What is happening at Scotiabank Private Wealth to move withthe times?

You are correct. Today’s clients want more integrated solutions andaccountability. We find clients are more involved in all processes andthey have an understanding and are respectful of increased compliancedemands. At Scotiabank we do our best to engage our clients inefficient, transparent and collaborative solutions.

We offer dedicated relationship managers, on line access to viewportfolios and accounts. We understand that relationships can bestronger with accountability trust and intelligent service.

The financial world certainly does move quickly, and we feel we safelyand intelligently move our clients along with it.

Paul Michael Jenkins isresponsible for

international investmentadvice within the

Scotia Private ClientGroup (Scotia Capital) in

the Eastern Caribbean. Heis based in Barbados. Mr.Jenkins has worked withinstitutional and private

clients in Canada and theCaribbean for over 11

years. With a backgroundin industrial-organizational

psychology, he holdsan Honours Degree fromThe University of Western

Ontario, and an MBAspecialising in finance

from Manchester BusinessSchool in the UK.

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At United Insurance, we want to be sure that you are not disadvantagedby not having enough insurance to protect your beautiful home. Webelieve you shouldn’t wait until you experience a loss to wonder whatthose technical insurance clauses in your policy mean or even if yourinsurance is adequate.

So we’ve explained a few insurance terms every homeowner shouldfully understand and get comfortable with. An appreciation of thesefundamental components of insurance covers is essential in makingsure that you have adequate protection for those treasured possessions.

SUM INSURED

Your ‘sum insured’ or “limit of indemnity” is the value/limit ofinsurance you have under your policy. If your sum insured is $100,000,it means that you’re insured for a value of up to $100,000.

When determining your sum insured, there are 2 options to beconsidered as you attempt to secure adequate coverage for your property- Indemnity or Reinstatement. These are explained below:

INDEMNITY

Indemnity or to be indemnified is the process of putting you back in theexact position you were in prior to a loss. An indemnification thereforeis a protection, security or compensation for damage or loss sustainedwhich, in respect of a household insurance policy, takes intoconsideration “wear and tear” or depreciation. On this basis ofinsurance, your sum insured therefore should represent no less thanthat amount that reflects the current value of the assets you own. Whatit also means is that any settlement is limited to the sum insured youhave chosen and no more.While you can’t claim for more than what your property is worth, youcan be confident that at United Insurance, we do our best to ensurecompensation for insured items is fair and as close to what you have lostas possible; subject to the adequacy of your sum insured.

Know what thoseterms mean

There are a few insurance terms everyhomeowner should know Whether you live inthe Caribbean 365 days a year or spend 3weeks a year in a home you own in theCaribbean, there are a few terms you need tounderstand when it comes to making sureyour home is protected.

David Alleyne,Chief Operating Officer

United Insurance

REINSTATEMENT

Reinstatement is the cost of replacing or rebuilding a property whichhas been lost or destroyed.

If your home is destroyed by an insured peril such as fire and you seekto rebuild, you will be given the funds of equal value to what it costs toreplace your home, as long as you have insured it for 100% of itsreplacement cost. But, do not expect to receive funds to build a 6-bedroom mansion, if you are replacing a 3-bedroom bungalow.

You can even use the compensation received for a property which hasbeen lost or destroyed, to rebuild elsewhere. Isn’t that great? It is veryimportant for you as a property owner to continually update your policyto be sure that your insurance coverage is consistent with yourreinstatement/replacement value. If, under your insurance policy, yourhome or business is insured at a substantially lower value than the costit would take to rebuild it (i.e. your reinstatement cost), or you decidenot to rebuild, your settlement will revert to indemnity (or settlementbased on wear and tear or depreciation). In other words, it would be asif you had not in the first instance insured the property for replacement,but instead it was insured for what it is currently worth (indemnity) andthus, the settlement would be on that basis.

United’s Uniplan 2000+ Homeowner’s policy automatically offersreinstatement, but as explained above, the sum insured must besubstantially correct.

It is important to fully understand the fundamental difference betweenthese two options as they can have a significant impact on settlement andon the ability of a homeowner to be adequately compensated for loss.

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It is very important foryou as a property

owner to continuallyupdate your policy to

be sure that yourinsurance coverage isconsistent with your

reinstatement/replacement value.

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UNDERINSURANCE and AVERAGE

This is one of the terms we at United strive to explain to clients whenthey obtain a Uniplan 2000+ Homeowner’s policy from us. Subject tothe explanations above, it is important that you insure your property ata value that accurately reflects your intention (either indemnity orreinstatement) as this will be the basis of the insurance agreement. Ifyou insure your property for less than what it is worth and your propertyis unfortunately partially damaged, your compensation may not beequivalent to what you expect to receive---even if your sum insured isway in excess of the claimed amount.

For example, if the indemnity value of your home is $900,000.00, butyou have insured your property for only $450,000.00 (half of the realworth), the property is ‘underinsured’ by 50%. Consequently, if there isa partial loss, you will be deemed to be your own insurer for theremaining 50%, and any amount claimed will be reducedproportionately: - in this case by 50 %. This is called Average.

EXAMPLE:Indemnity value of the Home..........$900,000.00Policy Sum Insured............................$450,000.00Amount Claimed .................................$90,000.00Amount Paid......................................... $45,000.00 (less any deductible)

We understand that it may be difficult for you to arrive at an accuratedollar value for which your property should be insured. In order toensure that your property is adequately insured we recommend thatyou obtain a professional valuation.

We also suggest that you call or visit any United Insurance locationtoday or visit us at www.unitedinsure.com and let our team of trainedprofessionals provide you with sound advice aimed at ensuring youhave adequate insurance coverage.

DEDUCTIBLE

A deductible or excess is the amount of money each policyholder isresponsible for in the event of any loss or damage which is coveredunder your insurance policy. Once the dollar value of your loss exceedsthe value of your deductible, your insurance policy kicks in and you’recovered up to the value of your coverage (sum insured). Thesedeductible amounts are generally small dollar values when compared tothe amount for which you are covered. We undertake to quickly processclients’ claims and the settlement will generally be made minus thesmall deductible. For certain types of policy and peril, your deductible iscalculated as a percentage of the sum insured. For example, in respectof your home or office, a deductible of 2% of the sum insured is appliedin respect of the perils of hurricane, cyclone, earthquake, volcaniceruption, tornado or windstorm and/or flooding or overflowing of thesea caused by any of these perils.

We trust that you now have a good understanding of these key terms.However, if you have any questions, please contact United Insurance,visit one of our locations in the 14 territories in which we operate, orvisit us online at www.unitedinsure.com. Whether you’re a Unitedclient or simply looking for some information to help you navigate theworld of insurance, we’ll be happy to assist you.

David Alleyne is the ChiefOperating Officer of UnitedInsurance and also sits on

the Board of Directors ofthe company. In his role as

COO, David is responsiblefor running the day-to-dayoperations of United. Priorto his appointment to the

Board of Directors and asGeneral Manager in 2008,

David was the OverseasManager, responsible for

United’s 13 territories withinthe region (excluding

Barbados), for over 18years. David is a CharteredInsurer being an Associateof the Chartered Insurance

Institute (ACII) of the UnitedKingdom and an Associatein Reinsurance (ARe) of the

Insurance Institute ofAmerica. He also holds anMBA from the University ofDurham. His service to theindustry includes sitting on

the Executive Committee ofthe Insurance Institute of

Barbados, lecturing underthe Barbados Diploma of

Insurance programme (BDI)and serving as a Director of

The insurance Associationof the Caribbean (IAC).

David can be contacted at246-430-1900 or via

email [email protected]

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Experienced Mortgage Broker Anita Ashton offers some advice tocautious buyers...

Spread your riskand buy witha loan

Risk has always been a catchword in the investment business, but ithas hardly been a major factor in modern times when buying propertyas property values were generally on the increase year after year.However, all that changed in 2008 and since then lenders and propertyinvestors have become as risk-averse as any other lender or investor.Nowadays we live with a much more cautious lender and discerningborrower than we had five years ago and while the lender continues tomassage terms and conditions to extract the quality customer, thatsame customer is goggling the lender to check their credentials in anew financial world of suspicion, distrust and diligence. Perhaps it wasthere all the time from the lender’s perspective, but the borrower’sconfidence has been eroded by global scams at the highest level infinancial institutions, many of which have had disastrousconsequences in the United States and Europe. Many property lendershave disappeared from the landscape, and some have been bailed outby governments while others have been so tarnished by the experiencethat their lending terms have been tightened to minimise their risk.Inevitably the good customer has suffered with the bad, but lendersstill need to lend to exist and attracting new customers remains a highpriority in their overall development strategies. Times may havechanged, but mortgages are still available as lenders have a securedloan and generally speaking, most borrowers value having a roof overtheir head and a security that will be a valuable asset when the loan isrepaid.

Amidst all the international mayhem, Caribbean lenders have stoodfirm and continued to provide mortgage funds for local residents topurchase a home and also provided packages for non-residents.Admittedly the terms and conditions have tightened, but lenders stillneed to lend to generate income. Local mortgages are generally lowrisk as Caribbean people place the highest priority in owning theirhome and while delinquency has increased in recent times, the level isrelatively low and foreclosures are rare. Perhaps not so with non-resident loans where the speculators who purchased on the back ofprojected rental returns have found it tough to maintain theirrepayments and high income earners have fallen on tough times intheir domicile. But lenders have continued to stay in the business albeitloan-to-values have decreased, the risk spread has increased and therisk analysis has become much more investigative. This is

These are good times tobuy in the region asproperty values have

dropped in certain areasand real estate agents

and vendors have finallyaccepted a culture of

negotiation. Also,mortgage interest ratesare lower than ever with

rates in and around 4% fornon-residents and 6% for

local residents.

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understandable given the changed environment and indicative of thecautionary strategies of the Canadian banks who dominate Caribbeanlending and who have come through the challenges of the last fiveyears virtually unblemished.

Overall this is good news for the borrower. At local level lenderscontinue to compete with each other so the terms and conditions arecompetitive, and packages are available for non-residents. It is the latterwhere lenders see more risk and where terms and conditions havebecome tighter. Self-employed persons have been particularly affectedand where income has been pegged low for tax efficiencies at theirdomicile this will seriously affect the amount they can borrow. Also,dividends are being treated as ‘optional income’ and either ignoredcompletely or significantly marked down. Key components of themortgage process remain the credit report and the applicant’s trackrecord. Of growing importance is the need to submit the applicationpapers correctly and professionally. This is where the experiencedmortgage broker earns their salt, as a poorly presented applicationthese days is almost doomed from the outset. Overseas borrowers oftenfail to appreciate local lending conditions and try to equate them withtheir homeland, but Caribbean lending is very conservative and it is aculture that has stood the industry in good stead during the currentglobal crisis. It won’t change, so comparing apples with oranges doesn’twork in this instance!

As with all mortgage lending the lender wants to get quality businessand they want to see commitment from an equity injection by theborrower. The borrower simply wants the best terms and conditions tosuit their needs and from a reputable lender with a track record of goodcustomer service. The challenge for the mortgage broker is bringingthe two objectives together.

These are good times to buy in the region as property values havedropped in certain areas and real estate agents and vendors have finallyaccepted a culture of negotiation. Also, mortgage interest rates arelower than ever with rates in and around 4% for non-residents and 6%for local residents. Loan-to-Value varies from island to island, but localmortgages can be as high as 95% and in some instances 100% inspecial circumstances. Loan-to-Value for non-residents will notgenerally exceed 70% and may drop to 50% depending on the propertymarket at a particular location. The mortgage market is a potentialminefield for some buyers so the importance of seeking good advicefrom an experienced mortgage professional cannot be overstated. A feeis involved but the right advice can save the borrower thousands ofdollars.

Every investment carries a risk element and in the lending businessthat risk is now twofold. The lender will offer terms and conditionsonce their risk requirements are met, while the borrower has thebenefit of accessing funds to be able to purchase. This also means aborrower can spread their risk with the lender so there are mutualbenefits for both parties. These may be tougher times, but businessgoes on and Caribbean lenders are committed to providing mortgagefacilities to suitable applicants.

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Anita Ashton is aDirector with CaribbeanMortgage Services and

has over 25 yearsexperience in Caribbean

and UK lending.She lives in Barbadosand travels regularlythrough the islandsproviding mortgagefacilities to overseas

buyers and developers.She can be contacted

by telephone at(246) 230 5824or by email at

[email protected]

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Bob Marley may not have discovered Jamaica, but his music put it onthe world map and long after the great man’s death it inadvertentlycontinues to serve the island’s tourismwell. Rihanna is doing the same forBarbados where the tourist chiefs have appointed her an IslandAmbassador and gone to great lengths to use her in their internationalmarketing. The initiative doesn’t sit comfortably with everyone, butmillions more people know about Barbados because of her music and thespinoff for tourism is immense. But Rihanna is not the only musicianmaking a big contribution to Caribbean tourism as Clare Hiles discoveredwhen she interviewed the talented Barbadian group Cover Drive…

Anyone who faces the four-piece band that is Cover Drive cannot helpbut be immediately hit by their stunning ‘Bajan’ good looks and vibrantpersonalities. Playful banter flows continuously between Amanda, T-Ray,Barry and Jamar, who are completely at ease as they sit in their own livingroom in idyllic Barbados with blinding sunshine streaming through theopen windows. ‘Comfortable’ is the word to describe the Barbadian band,who formed two years ago at the suggestion of T-Ray’s mum, who toldthem to ‘stop wasting time and make it happen!’

“I used to babysit T-Ray when I was 15,” laughs Amanda, who sportsvibrant red hair, freshly dyed for another new music video. “He was justthe cutest little munchkin!” Amanda’s playful dig at the youngest bandmember prompts a swift “Carry on!” from him, as the rest of themembers laugh at his expense. Barry, Jamar and Amanda were all in thesame friendship group in their small island home and had gone to collegetogether. The four then united and built upon their strong friendship toform Cover Drive, a name they chose because of T-Ray’s Dad’s love ofcricket.

Since that humble prompt fromT-Ray’smum, Cover Drive has explodedonto the international music scene, collaborating with British rapsensation Dappy and American hip-hop artists Far East Movement. WithAmanda as lead singer, T-Ray on drums and vocals, Jamar as the bassistand Barry’s guitar skills, their debut album, “Bajan Style” producedNumber 1 hit single “Twilight”, and with over 21 million YouTube hits.With plenty of new music on the way, the band look poised to enjoy evenmore success in the future.

Cover Driveshowcases theeconomicbenefits of music

Clare Hiles is aFreelance Features

Writer and is currentlycompleting her MastersDegree in journalism atLondon University of theArts. She specializes inmagazine articles and

has worked for anumber of quality

international glossypublications. She canbe contacted by emailat [email protected]

“Our newmaterial is really cool,” says guitarist Barry, the oldest memberof the group and a former rally car driver. “I’m in love with our new song‘Hey You’ at themoment.” The band was back in Barbados recording theirnew album, and enjoying a return to their roots. “We just wrote andrecorded ‘Something to Say’, which has a great energy to it,” says Jamar,“but it is always great to be back home.”

The Bajan band’s single, “All My Love”, was fittingly released onValentine’s Day and the fun, pop-infused tune had already swept throughYouTube to become yet another Internet sensation for the group. CoverDrive famously got their ‘big break’ from the net, with their ‘FedoraSession’ cover songs attracting a lot of attention in themusic industry, andestablishing their strong following. They also record a ‘Weekend Lime’segment for their fans, which is currently going strong in its fifth seasonand gives their audience a zany insight into their busy personal lives.

“All My Love” is teamed with an eye-catching music video featuringAmanda in a stunningmermaid costume, which only her sensational figurecould pull off, and the boys decked out as creative alter-egos Barnabus(Barry), Angelow (Jamar) and Leroylicious (T-Ray). “All My Love” utilizes thebeautiful Barbadian setting along with the carefree vibe Cover Driveresonates. You can’t help butwish youwere therewith the group, or even justa part of the comfortable friendship the bubbly four demonstrate.

“I used to babysit T-Raywhen I was 15,” laughsAmanda, who sportsvibrant red hair, freshlydyed for another newmusic video. “He wasjust the cutest little

munchkin!”

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Despite the excitement abouttheir new material, the band stillcredit some of their original songsas big favourites. “I love to play‘Lick Ya Down’,” says T-Ray, thedrummer. “I love the rock elementwe incorporate into the liveperformance of the song.” ‘Lick YaDown’ was the band’s first singleand its success catapulted theminto UK recognition and celebritystatus when it debuted at Number4 in the iTunes UK charts. Thetitle, a Barbadian phrase, has beena source of entertainment for thegroup as they always run intotrouble explaining what it means.“We wanted a first single that wasreally Bajan (Barbadian), and was

fun, but we didn’t realize that the world would think it meant somethingelse!” laughs Amanda. The innocent phrase simply means to knocksomeone down, and it an example of Bajan ‘slang’.

Since ‘Lick Ya Down’, Cover Drive has opened a major gig for superstarRihanna at the Kensington Oval, and also for American star Kelly Clarkson.Describing themselves as the ultimate lovechild ofNoDoubt andBlack EyedPeas, their self-confessed ‘Carib-pop’ sound has attracted a unique audience,and opened international eyes to even more Barbadian talent. They rateopening for Rihanna one of their career highlights, and thoroughly enjoyedworking with the Barbados TourismAuthority alongside her to promote theisland. T-Ray says, “We are always looking for new ways to work with theBTA and promote Barbados. We are always in touch.”

And its Barbados the band misses the most when they travel, and they’requick to point out that they didn’t realize exactly how hard it would be toleave. T-Ray says, “It’s the little things that you miss the most and take forgranted. Like when we’re in England you realize that there’s no whistlingfrogs when you go to sleep.” “And the sun,” adds Amanda, “The sunshinealways makes you feel warm. Not to mention the macaroni pie!” Themention of Bajan food generates a chorus of agreement among the band-mates, with Barry adding that Chefette (a Barbadian fast food chain) is onething he hates living without in the UK.

Currently, the band lives between Barbados and London, traveling everythree months back and forth. They all agree that the worst part of the wholejourney is dealing with the planes, and luggage allowance. “One time wewere traveling back from Barbados,” says Amanda, “And we hadSEVENTEEN pieces of luggage. Thankfully the ladies at the desk were sonice and gave us some passes to go through,” but T-Ray adds, “The secondtime we weren’t so lucky.”

Despite their globetrotting they have no plans to leave their islandpermanently, and are content to return to ‘the Rock’ to record their albumsand recharge the batteries. It highlights the affection and love they have fortheir home and the huge economic spinoff is that many more people willwant to share that experience having been introduced to it through theirmusic.

‘Lick Ya Down’ was theband’s first single and its

success catapultedthem into UK recognition

and celebrity statuswhen it debuted at

Number 4 in the iTunesUK charts.

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We spend our discretionary income much differently from thatearmarked for investment purposes. Still there is some cross-over in theseoften contrasting goals. Houses are regarded as an investment. Yet peoplefall in love with properties based on an emotional response they feel whilein the house.

Those same heartstrings often pull on diamond shoppers.Most diamondjewelry is bought for sentimental reasons rather than for investment. Wecelebrate important milestones in our life with diamonds partly becauseof their beauty, rarity and durability. These attributes make diamonds theperfect mile-marker for our personal achievements.

So are diamonds considered an investment? We like to think ofdiamonds as an investment in your love---your life story---yourcelebrations. When customers discuss buying their diamonds forinvestment, we encourage them to choose diamonds that are meaningfulto them; for reasons of the heart.

Still, over the years, we've observed interesting trends in diamonds thathave gone to market after being in a private collection. Certain aspects ofdiamond ownership impact their resale desirability. Famous personalitiessell their diamonds all the time at astronomical figures that have more todo with their celebrity quotient than the diamond itself.

Fancy colored diamonds have witnessed the most impressive resalerecords; most often sold through major international auction houses. Acouple decades back, many people were unaware that diamonds wereproduced in color. The name "fancy color" as it refers to diamonds meansa natural diamond of a prominently attractive color that has notundergone any sort of treatment to enhance or produce a color. Thesetreasures can sell upwards of $1million dollars per carat depending on therarity of the color and the size of the stone being sold.

Whenever you have a diamond that is unusual and attractive, you havesomething special. Savvy diamond collectors nowadays look for specialty

DIAMONDS:An investmentin love

Diamonds International Marketing ManagerSimone Ward offers an attractive option toinvestors…

We like to think ofdiamonds as an

investment in yourlove...your life story...your celebrations.

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cut diamonds that out-perform previous diamond cuts. It's all about light,as any diamantaire will tell you. Masterful cutters will transform abeautiful rough diamond crystal into new shapes that release morebrilliance than previously achieved. One of this centuries' most brilliantspecialty cut diamonds has turned out to be the 90 facet round Crown ofLight diamond. In fact, it is so exclusive, the US Patent and TrademarkOffice granted a patent for this remarkable cut. Each of the 90 facets,which is nearly double that of conventional round diamonds, acts like amirror reflecting back light to the viewer. That's what makes the Crown ofLight give off such superior brilliance. Examined side by side with similarquality round diamonds, the Crown of Light appears whiter, lighter andbrighter than its conventional counterpart.

But it's always best to see for yourself when considering which diamondto choose, since buying a diamond is an important decision, and you willwant to enjoy it for years to come. For that reason, the courteous staff atDiamonds International will give you plenty of time to select from thewide array of diamonds they carry. You can judge for yourself which is thebest choice for your taste, your style, and your budget. Buying a diamondis an investment in your life. It should represent your unique story, like anextension of your personal style.

Your diamondwill last beyond your lifetime. It can be lovingly passed downto be cherished by your loved ones. But at Diamonds International, yourdiamond can also be brought back for full-value trade up any time you’reready for a larger stone. Inquire for more details about this program.

Diamonds International is the only sightholder in the Caribbean, withbuying power that translates into quality, selection and value for everycustomer. The exclusive 90 facet Crown of Light premium diamond isavailable only at Diamonds International. So stop by DiamondsInternational today to experience an investment for your heart withreturns that will last a lifetime.

... at Diamonds International,your diamond can also bebrought back for full-valuetrade up any time you’reready for a larger stone.

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EconomicCitizenship

Economic citizenshipcan be used as a toolin Estate Planning. Insome parts of the

world people cannottravel or carry on

business outside oftheir country becauseof the activities of their

leaders.

Economic Citizenship is a relatively new concept in theCaribbean and has its critics in some jurisdictions. Why hasDominica offered this facility?

Dominica has offered this facility as a means of raising revenue.

What type of person would seek dual citizenship?

People seek dual citizenship for a number of reasons. For some it ispart of their estate planning, for some because of their country of birthit is difficult to travel for business or pleasure, for the discerning fewthey have decided they want a different way of life and wish to live andconduct business in Dominica.

Safe Haven Offshore Limited is an authorized by thegovernment to process applications. What types of citizenshipare available?

Citizenship is based on an investment which is not project specific..

Package A: Single ApplicantAn investment of US$100,000.00

Package B: Family Application One(Applicant and Spouse)An investment of US$175,000.00

Package C: Family Application Two(Applicant plus spouse and two children below the age of 18 years)An investment of US$200,000.00

Package D: Family Application Three(Applicant plus spouse and two children below the age of eighteen)An investment of US$200,000and an additional US$50,000 for additional children belowthe age of 18.

Any person 18 and upwards will be processed as a single applicanteven if they are still living at home and maintained by their family.

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Obviously the fees are a crucial part of the process. What feesare generally involved?

In addition to the investment any-one seeking economic citizenshipwill be obliged to pay Due Diligence Fees which can range fromUS$5,000 and upwards. The Due Diligence Agents used to conductenquiries have to be on the Government approved list and theauthorised companies are Bishops , Kroll Financial Examinations &Evaluations, Inc.. The Agents authorized by Government to processapplications also charge for their services. This is not regulated byGovernment. There will also be minor application fees the largest ofwhich is a processing fee of US$1,000 paid per family.

Is there detailed due diligence done on the applicants or is anyperson accepted who can meet the other requirements?

Due diligence must be done on the family and this is undertaken as Isaid by Kroll, Bishops and Financial Examinations & Evaluations, Inc..Reports go direct to the Financial Services Unit and neither theApplicant or the Agent see the report. Due diligence must be carriedout anywhere the individual has lived for more than six months.

What are the general benefits of Economic Citizenship?

Economic citizenship can be used as a tool in Estate Planning. Insome parts of the world people cannot travel or carry on businessoutside of their country because of the activities of their leaders. Thereare many who are law abiding professionals and because of the lotteryof where they were born they cannot travel or carry on business in therest of the world. However, there are a number of exempt countries andif you are a citizen of these countries you cannot apply for economiccitizenship under the Dominica programme.

How would you answer critics who feel this facility invitesapplications from individuals with dubious character andbackground?

The Due Diligence procedures are very thorough and in addition theApplicant has to attend an interview which should prevent suchpersons getting through. It is also incumbent upon Agents to actresponsibly and if they become aware of suspicious behaviour to reportit to the Financial Services Unit and not to process the Application.

How long does the application process take and is there arefund available if it is not successful?

The process can take three months or more but it is essential that thechecks are properly undertaken and sometimes the due diligenceprocess can be lengthy.

Where can persons get more information?

You can visit the Government website http://dominica.gov.dm or visitour website at www.safehavenoffshore.com

Business

Cecily Lees is a UK trainedAttorney who read about

Dominica 14 years ago andafter visiting the island fell

in love with it. She latermoved to the island and

set up business. She is anowner of Safe Haven

Offshore and Safe HavenReal Estate with

Archipelago Trading Ltd aDominican Company

owned by Yvor Nassiefand his wife. Their website

can be found atwww.safehavenrealestate.com

Cecily can be contacted bytelephone at

(767) 448 5718/440 0878or by Email at

[email protected]

Documents

Caribbean Property Magazine 2013