12

Real Estate - Investing in a Dream

Embed Size (px)

DESCRIPTION

Investing in Real Estate in Barbados.

Citation preview

Page 1: Real Estate - Investing in a Dream
Page 2: Real Estate - Investing in a Dream

2. SUNDAY SUN SPECIAL. | FEBRUARY 24, 2013

WHETHER you are looking to diversify yourinvestment portfolio, build a potential secondincome earner, or simply put a roof over yourhead, real estate offers several benefits.

AS FAR AS financialinvestments go, the lowupfront costs coupled with thelengthy repayment options of real estate may tickle your fancy.

While for other investments, such as stocks, you may needthe full amount upfront, real estate requires less out of pocket.

Of course, how much you will have to put forward willdepend on your lending institution and your own personalchoices; there are some lenders that won’t even require a down payment! But we’ll get to that later.

MANY PEOPLE DREAM of the day that they canpurchase their “piece of the rock” and take pride in sleeping under their own roofs. For them, real estate is a symbol of their independence and maturity.

Owning your own home allows you to make yourown rules. Your house can even become a furtherextension of you when you begin to incorporate yourown personal style and flair. And the joy doesn’thave to end with you; people often revel in theopportunity to create a space for their family.

Having a family home helps furnish memoriesthat your children will cherish forever.

IT’S NO SECRET that properties are more expensive than theywere ten years ago. For investors, this is another benefit of realestate. While there is no absolute guarantee of what willhappen to the market in the future, history has shown realestate to be an excellent source of profit through the increasein investment property value over time.

Another plus is that you also have some control over this.Renovating the interiors and exterior of your home when youare ready to sell, even with the simplest of upgrades, can addvalue to your property.

Now that we have examined some of the benefits ofinvesting in real estate, it’s time to get down to the nitty-gritty:how to go about investing in the dream.

SOME PEOPLE may never be able to affordtheir own property, or simply choose notto. Instead, they may opt to rent.

This automatically becomes an incomeearner for an apartment or house owner.Rental properties provide a steady streamof monthly income which you can use tosupplement, or in lieu of, your regularsalary. The beauty of this investment is

that it can eventually pay for itself.Inflation can also be a proven benefit foryou, because even though your mortgagewill stay fixed for a time, factors such asrises in construction costs and populationgrowth can drive up rental prices.

Some people even make this their full time job, owning and caring for severalrental properties.

STORIES BY APRILLE THOMAS

Page 3: Real Estate - Investing in a Dream

A lot of the houses in Barbados,particularly the older ones, have similarcharacteristics. If you are looking tocreate unique spaces and incorporatenew architectural elements, you will haveto build that for yourself.

To build your own home, you will firstneed to work with a builder to producethe plans that you will need to thensubmit for approval to the Town andCountry Development Planning Office.This process can take anywhere fromthree to six months.

Once approved, you will need to find aconstruction company. If you’re using amortgage, the bank will release apredetermined amount of money for eachphase of the building process.

If everything goes smoothly and thebank’s deadlines are met for

WHEN MAKING the decision to invest in realestate, one of the first questions is usually oneof whether or not it makes more sense to buy orbuild.

The truth is that there is no “good” or “bad”decision here, it all depends on your wants, andyour budget. Different people are looking fordifferent things in a home and while some mayfind these in a pre-existing house, others mayhave to start from scratch to make sure thatthey get what they want.

Pros and cons for building

Let’s say that you are very into homeimprovement and design and are constantlyreading magazines and watching televisionshows about new and exciting properties. Youaren’t the only one. Unfortunately, if you areabsolutely sure of and not flexible with yourdesires, you may find that the houses currentlyon the market don’t satisfy you.

This brings us to the first pro of building yourhouse: it allows for customization.

FEBRUARY 24, 2013. SUNDAY SUN SPECIAL 3

BUYING A PROPERTY is an excellent choice for people who want to avoid thehassle of building. (RC)

BUILDING YOUR OWN HOUSE ensures that you get exactlywhat you want. (FP)

Page 4: Real Estate - Investing in a Dream

4. SUNDAY SUN SPECIAL. FEBRUARY 24, 2013

each phase and the inspector is satisfied that project is on track, thenthe bank will continue to release fundsuntil the completion of the project.

From that highly summarizedexplanation of the process, you candeduce the two biggest cons: time andstress. Waiting, making sure thateverything is always on track, anddealing with setbacks, are all realisticconcerns when it comes to building.This is not a good choice for the impatient.

Another con is that you will need tobuy the land. This is indeed an expensethat you need to consider; however,some lending institutions will offer landloans that you can transform when you

are ready to build. Speaking of expenses, building

a house can in the long run be moreexpensive per square foot than buyinga pre-existing one.

Our final two pros are that buildingwill be less work on your part, and youcan ensure that your house is fully up to date. A pre-existing house cancome with several issues that requireyour attention and is probably best leftto handy people who don’t mindhome projects.

When you choose to build, you havefull control over the finishings andaccents that will be used and as such,you can ensure that your home is asmodern as you want it.

Page 5: Real Estate - Investing in a Dream

FEBRUARY 24, 2013. SUNDAY SUN SPECIAL 5

A closing consideration for building a home is whether you plan to livethere for good. If your house is “toounique” you may have a challengeselling it in the future. This issomething you should think about.

Pros and cons for buying

Buying a pre-existing house is still a very popular choice. Just likebuilding, it has its pros and cons and inthe end it comes down to yourpreferences. This is an excellent choicefor people who are “in a hurry” to buyand don’t want the hassle of building.

The first pro when buying a house is that it’s a packaged deal. Unlike theoption of building, you don’t have toworry about buying land first.

On the flipside, you have tosettle for the pre-existing land’ssize and location. For example,you may find a house that youreally like design wise, but youmay have wanted a largerbackyard,or to live in a different neighbourhood.Bearing that in mind, the bottom lineis that the house will already be there.

And if you’re buying a house that’srelatively new or well taken care of, itmay be move-in ready. That fact woulddefinitely attract prospective property owners.

Indeed, if the house isn’t updated,you may also have to factor in the costsof remodelling and/or renovating. Thiscan be expensive if you need to make a lot of changes.

Another consideration is the amountof work you will have to put it in if you

don’t want to hire a professional. Areyou handy with tools and projects? Youneed to think about this when buyingan older home.

Besides the major surface issues,you also need to consider that after awhile, things will go wrong. You can’tescape it. Getting the house inspectedbefore you buy it may save you some surprises, but be prepared for unexpected problemsof varying natures.

The final pro of buying a pre-existingproperty is that you get what you see.You would be able to see andunderstand the character of the housein an already establishedneighbourhood and decide if that’swhere you want to be.

So in the end, buying or building, it’sup to you. Whatever you decide, wehave compiled some key points in thisfeature that should help you get startedon your journey.

ONE OF THE PROS of buying a pre-existing property is that you get what you see. (FP)

Page 6: Real Estate - Investing in a Dream

WHEN PLANNING for a real estateinvestment, you will probably spendlots of time considering your wish listand hoping that you can find a property that delivers.

When shopping in Barbados, youwill find that there are many factorsto consider, including location andyour lifestyle choices. We’ve gatheredsome of the choices that you maycontemplate in an attempt to helpyou get the ball rolling on what you want.

THESE ARE OFTEN considered primespots. After all, who wouldn’t want to wake up to an ocean view outsidetheir bedroom window, sit on a deck and watch the sunset, orbe able to take a dip in sea with just a few steps?

The pros of a spot like this are easily recognizable, but thereare some considerations.

A higher price tag is the first and most obvious concern. Ifthis is indeed a problem for you, try looking at maybe getting aproperty that isn’t necessarily beach front, but just across theroad or somewhere nearby. This way you can get a lower pricetag and still be close enough for a quick beach run. Also, if you’re planning to buy a property near the sea, considerthe high maintenance that may be required, especially for yourstainless steel appliances, as the salt in the sea water is of a corrosive nature.

6. SUNDAY SUN SPECIAL. FEBRUARY 24, 2013 FEBRUARY 24, 2013. SUNDAY SUN SPECIAL 7

WHILE our “country” and “city” definitions may not be as clear-cut as those in larger countries where there’s amore prominent distinction between the two, there is a relativedifference between living in Bridgetown and its environs versusa property in the middle of St Andrew.

Obvious benefits of living in highly populated areas in St Michael include quick access to gas stations,supermarkets, businesses and bus routes. Your commute towork will be shorter, for those working in the more popularcommercial areas of St Michael or Christ Church, which willsave you each month in gas. However, you will be sacrificingspace and will probably have to pay a higher price for thesesought after spots.

The first con most people think of with regards to thecountry is the distance they will have to travel each day and thegas required to do so. The upside to this, however, is that youwon’t have to fight heavy traffic. Another reasonable concern is the lack of resources such as supermarkets and businesses,in close proximity.

That leads us to the two major positives of country living,which are the more spacious lots and lower price tags.Additionally, you are more likely to find a peacefulneighbourhood in the country and a great sense of community.

So whatever your choice, whether it is a cute home in a gated community where you can play golf whenever yourheart desires, or a spacious, less expensive home on the EastCoast with amazing ocean views, make sure that you havecarefully thought out your decision. If in doubt, try talking to afriend, family member or real estate agent. Sometimes otherpeople who know you well can offer useful advice when property hunting.

YOU MAY BE FAMILIAR with some of thegated communities in Barbados such as Millennium Heights, RoyalWestmoreland, and even the relatively newValley View development. Driving past theseclosed gates, you may be curious aboutwhat life is like behind them.

Whether or not living in a gatedcommunity is “better” is surely debatable,but at the end of the day it’s simply a matter of preference.

On the positive side, gated communitiescan offer residents a greater senseof security and privacy as well as a feelingof exclusivity. Gated communities are oftenquiet, beauteous and well kept, which

would be another plus for homeowners whoare taken with kerb appeal.

On the other hand, some people mightfind these very factors to be unattractive.Some may view the constant monitoring as an invasion of privacy. The rules of thecommunities may be seen as encroachingon their freedom and as a result somewould rather live in an open neighbourhoodwhere everyone is free to come and go as they please.

Lastly, the costs that may be associatedwith the upkeep of the neighbourhood maynot sit well with everyone, especially thosewho would feel their money is better spent elsewhere.

IF YOU’RE PLANNING to buy a property near the sea, consider the highmaintenance that may be required. (RC)

THERE IS a relative difference between living in Bridgetown and its environs versus a property furtherinland. (RC)

†Conditions apply. Subject to credit approval. Ask for details in the branch. *Trademark of The Bank of Nova Scotia, used under licence ( ).

Discover what’s possible

Get a free mortgage check-up and see how you could:

Reduce your monthly payments.Save thousands in interest over time. Add living space or upgrade with a renovation you can afford.

Bring us your mortgage and we’ll show you how to save†.Visit your nearest branch today.

barbados.scotiabank.com

ON THE POSITIVE SIDE, gated communities can offer residents a greater sense ofsecurity and privacy. (FP)

Page 7: Real Estate - Investing in a Dream

WHEN PLANNING for a real estateinvestment, you will probably spendlots of time considering your wish listand hoping that you can find a property that delivers.

When shopping in Barbados, youwill find that there are many factorsto consider, including location andyour lifestyle choices. We’ve gatheredsome of the choices that you maycontemplate in an attempt to helpyou get the ball rolling on what you want.

THESE ARE OFTEN considered primespots. After all, who wouldn’t want to wake up to an ocean view outsidetheir bedroom window, sit on a deck and watch the sunset, orbe able to take a dip in sea with just a few steps?

The pros of a spot like this are easily recognizable, but thereare some considerations.

A higher price tag is the first and most obvious concern. Ifthis is indeed a problem for you, try looking at maybe getting aproperty that isn’t necessarily beach front, but just across theroad or somewhere nearby. This way you can get a lower pricetag and still be close enough for a quick beach run. Also, if you’re planning to buy a property near the sea, considerthe high maintenance that may be required, especially for yourstainless steel appliances, as the salt in the sea water is of a corrosive nature.

6. SUNDAY SUN SPECIAL. FEBRUARY 24, 2013 FEBRUARY 24, 2013. SUNDAY SUN SPECIAL 7

WHILE our “country” and “city” definitions may not be as clear-cut as those in larger countries where there’s amore prominent distinction between the two, there is a relativedifference between living in Bridgetown and its environs versusa property in the middle of St Andrew.

Obvious benefits of living in highly populated areas in St Michael include quick access to gas stations,supermarkets, businesses and bus routes. Your commute towork will be shorter, for those working in the more popularcommercial areas of St Michael or Christ Church, which willsave you each month in gas. However, you will be sacrificingspace and will probably have to pay a higher price for thesesought after spots.

The first con most people think of with regards to thecountry is the distance they will have to travel each day and thegas required to do so. The upside to this, however, is that youwon’t have to fight heavy traffic. Another reasonable concern is the lack of resources such as supermarkets and businesses,in close proximity.

That leads us to the two major positives of country living,which are the more spacious lots and lower price tags.Additionally, you are more likely to find a peacefulneighbourhood in the country and a great sense of community.

So whatever your choice, whether it is a cute home in a gated community where you can play golf whenever yourheart desires, or a spacious, less expensive home on the EastCoast with amazing ocean views, make sure that you havecarefully thought out your decision. If in doubt, try talking to afriend, family member or real estate agent. Sometimes otherpeople who know you well can offer useful advice when property hunting.

YOU MAY BE FAMILIAR with some of thegated communities in Barbados such as Millennium Heights, RoyalWestmoreland, and even the relatively newValley View development. Driving past theseclosed gates, you may be curious aboutwhat life is like behind them.

Whether or not living in a gatedcommunity is “better” is surely debatable,but at the end of the day it’s simply a matter of preference.

On the positive side, gated communitiescan offer residents a greater senseof security and privacy as well as a feelingof exclusivity. Gated communities are oftenquiet, beauteous and well kept, which

would be another plus for homeowners whoare taken with kerb appeal.

On the other hand, some people mightfind these very factors to be unattractive.Some may view the constant monitoring as an invasion of privacy. The rules of thecommunities may be seen as encroachingon their freedom and as a result somewould rather live in an open neighbourhoodwhere everyone is free to come and go as they please.

Lastly, the costs that may be associatedwith the upkeep of the neighbourhood maynot sit well with everyone, especially thosewho would feel their money is better spent elsewhere.

IF YOU’RE PLANNING to buy a property near the sea, consider the highmaintenance that may be required. (RC)

THERE IS a relative difference between living in Bridgetown and its environs versus a property furtherinland. (RC)

†Conditions apply. Subject to credit approval. Ask for details in the branch. *Trademark of The Bank of Nova Scotia, used under licence ( ).

Discover what’s possible

Get a free mortgage check-up and see how you could:

Reduce your monthly payments.Save thousands in interest over time. Add living space or upgrade with a renovation you can afford.

Bring us your mortgage and we’ll show you how to save†.Visit your nearest branch today.

barbados.scotiabank.com

ON THE POSITIVE SIDE, gated communities can offer residents a greater sense ofsecurity and privacy. (FP)

Page 8: Real Estate - Investing in a Dream

8. SUNDAY SUN SPECIAL. FEBRUARY 24, 2013

WHEN PLANNING your purchase talk to your mortgagespecialist, supplying the necessary details in order to determine what’s best for you. (FP)

WHEN YOU ARE considering purchasingreal estate, the financial aspect is no doubta major concern for many. How are yougoing to afford it? How much will you offeras a down payment? However, the firstquestion that you should be asking is,“What can I afford?” This will be the mostimportant question to answer.

By the time you have made the decisionto purchase any kind of property, youprobably would have already started savingwith a goal in mind. If you are just thinkingabout the future and haven’t yet startedplanning for your big purchase, that’s not a problem. We have advice for you as well.

Shop aroundThe first thing that you should

do is go window-shopping for properties.Yes, it may sound counterintuitive to goshopping without money, but you need tosee what is out there. You can do thisseveral ways: by looking in the newspaper, searchingonline databases, or even just driving around andlooking at properties with “for sale” signs.

This puts you in a good position to understand whatyou want. Let’s say that you have a mental budget of $180 000 and you want to buy a plot of land. Youshould know what parishes have land available in thatprice range and what square footage you can get forthat price. The answer will vary by parish, and you mayend up deciding that you don’t need to spend that muchmoney, or that you want to spend a little more to getexactly what you want, where you want it.

Save upFrom there, it’s time to get the down payment. How

much you need will depend mainly on the financier youchoose. Some may offer you as little as five per centor nothing at all. Ultimately, the more you have for adown payment, the less you have to borrow andtherefore the less you will have to pay back. Talk to yourmortgage specialist about these details to determinewhat’s best for you.

Consider what debt you already have. That isn’t to saythat you will be automatically disqualified because of an outstanding car loan, but your debts will be takeninto consideration. If possible, why not wait until youhave paid off your major debts?

Ask questionsAnother aspect that you may want to ask your lender

about is mortgage insurance. Some people opt to takeout a policy for their mortgage to avoid having to havetheir life insurance policies tied up in the transaction.For example, you can get insurance that will protect youin the event of your spouse’s death. Some lenders willmake insurance mandatory if you are borrowing above a certain amount. The particulars will vary from lender to lender.

All that being said, here is a general list fromScotiabank of what you may be expected to provide for a mortgage application. Be sure to double check withyour particular lender for their requirements.

Mortgage application checklist

For mortgage loans:Agreement of saleCopy of deed/certificate of titleValuation reportCopies of lease receipts (if applicable)Up to date land and building taxes and water ratesCertificate of complianceTwo forms of valid identification (identification card,Driver’s permit/passport)Confirmation of savings/debtJob letterRecent pay slip (If self-employed, evidence to supportincome, for example, financial statements for the last12 months or more)Builder’s risk and comprehensive home insurancecoverage

For new construction loans:Approved building plansBuilder’s detailed estimateBuilding contractQuantity surveyor’s report

Gettingyourfinancesin order

Page 9: Real Estate - Investing in a Dream

A PROPERTY will probably be the most expensivepurchase you make in yourlifetime. And when you’relooking at spending hundredsof thousands of dollars, somepeople may look to cut out asmany extra costs as possible.

One of the ways they maylook to do this is by neglectingto involve a real estate agent.While on the surface it mayseem like a nice way to savesome cash, the truth is thatthere is a reason why so manypeople have turned to realestate agencies for help.

Time is money The first reason of course,

is time. Unless you have aflexible job that will allow you totake up house hunting as part-time employment, you may find it beneficial to use an agent.The hunting process can be very time consuming, andseeing as this is such a luxury purchase, wouldn’t you wantto have someone on your side who will give your case theirundivided attention? You want to make sure that you getyour money’s worth, whether it is $100 000, $500 000 or $1 000 000.

Having the know-howReal estate agents’ most valuable asset is their expertise.

They have literally been there, done that. Especially in amarket as small as Barbados’, established agencies havehad the time to know everything there is to know. While youmay just go online and see a house that you like, a realestate agent can offer a more critical way of looking at ahouse. For example, is the house overpriced or underpriced?Does the house require major repairs? These are all thingsthey will consider. Also, some agencies specialize in specifictypes of real estate, such as luxury villas. Choosing anagency with a niche may expedite your search.

Seeing the invisible When spending so much money, who wouldn’t want

a deal? Some sellers choose not to publicly advertise for whatever reason, but will still list with an agency.Therefore, your “diamond in the rough” may be awaiting you,but by choosing not to hire an agent, you’ll never even havea clue.

Let’s say that you really want an outdoor kitchen with a built-in barbecue. Even if your dream house is listed onlineor in the newspaper, the seller may not include that featurein the listing. However, it’s an agents business to know howmany houses in Barbados have outdoor kitchens with built-in barbecues. Again, you could be missing out big timebecause you didn’t have an expert on your side.

Be preparedDo you have a lot of space in your current home? That’s

what you will need if you choose to buy a house without anagent. Paperwork is a major aspect of purchasing aproperty. A lot of the paperwork can be convoluted withterminology and customs that you may not fully understand.But an agent will know how to complete the necessarypaperwork like the back of their hand. I’m sure that afteryou set your sights on a house, you don’t want to lose out on it because of an avoidable error.

What next?After you have made the decision for or against an agent,

you may want to familiarize yourself with the process. Youwon’t need to remember every figure for every step, but thisis your money that you’re spending so you should at leastbe aware.

Altman Real Estate has prepared a summarized guideabout the process and some facts that you may not haveknown, whether you are buying land or a house. Of course,this list is by no means exhaustive and you should definitelyspeak with your agent or lawyer about how each of theserelates to you and your specific situation.

The buying processThe buyer puts in a verbal offer on the property they

would like to purchase.Once the offer has been accepted, the buyer will

require a registered Barbadian attorney to search theregister and establish the title to the property prior.

FEBRUARY 24, 2013. SUNDAY SUN SPECIAL 9

Sagicor Life Inc is rated “A-” Excellent by A.M. Best Rating Company.

Page 10: Real Estate - Investing in a Dream

The contract is prepared by the vendor’s attorney,which provides for a deposit to be made securing theproperty.

This ten per cent deposit is held by the vendor’sattorney in escrow until completion, when the balance of thepurchase price is paid and the title passes to the purchaser byway of the conveyance. The remaining 90 per cent of thebalance due is paid at time of conveyance.

The title may be taken in an individual's name or through a corporate vehicle set up to own the property. It is usual in the case of non-residents of Barbados that theypurchase property through a company which may beincorporated outside Barbados, but which must be registeredto do business in Barbados.

Town and Country Development Planning approvalIf the purchaser is buying vacant land, the vendor will

require a certificate of compliance from the Town and CountryDevelopment Planning Office (TCDPO), which certifies that theroads and services have been provided in accordance withplanning guidelines.

If the purchaser is buying a built property that is to beimproved, or intends to build a property on the land, he willrequire planning permission from TCDPO.

In all cases application is made to the TCPO andpermission is usually granted within a period of twoto six months.

Legal feesEach party bears their own legal fees, which are based on

a scale of fees ranging between 1.5 per cent and two per cent+ 17.5 per cent Value Added Tax.

Total selling costsApproximately ten per cent. When selling a property the

vendor would normally incur sales commissions of five per cent, transfer tax of 2.5 per cent, stamp duty of one per cent and legal fees of approximately 1.5 per cent.

Annual ownership costsResidential land tax is taxed on the improved value at the

following rates:0 per cent on first $150 0000.1 per cent on next $250 0000.45 per cent on next $600 0000.75 per cent on excess of the value greater than $1 000 000A tax cap of $60 000 has been placed on residential properties.All unimproved land is taxed at 0.6 per cent of the site value.All other properties are taxed at 0.65 per cent of the improved value.Pensioners occupying their own residences shall pay land

tax calculated and payable on only 50 per cent of theimproved value of the property in excess of 150 000.

Land used exclusively for agricultural purposes may begranted a rebate of 0.5 per cent of the land tax paid, someconditions apply.

For villas, a rebate of 25 per cent of tax paid is granted on production of a Certificate from the Barbados Tourism Authority.

Property insuranceThe main other operating costs would include insurance,

which ranges from 0.4 per cent for residences; 0.6 per centup to 0.8 per cent for commercial buildings; 0.9 per cent forhotels, and in all cases would depend on characteristics ofthe building and the site. Other major costs would includemetered utilities and any common assessments applicableto master planned communities.

10. SUNDAY SUN SPECIAL. FEBRUARY 24, 2013

ALL UNIMPROVED LAND is taxed at 0.6 percent of the site value. (RC)

Page 11: Real Estate - Investing in a Dream

FEBRUARY 24, 2013. SUNDAY SUN SPECIAL 11

Out with the oldAS PREVIOUSLY STATED in this feature, buying an olderhouse and remodelling it is definitely an option worthexploring. It is often a great choice for potential propertyowners who want a lot of the features of a newer home butcan’t afford it, or those who simply prefer the charm of an older home.

When considering this option, you should seek to educateyourself about the task you’ll be undertaking. You can neverprepare for everything, but this is an expensive decision thatyou want to make sure you have thought through fully.

You’ll start with a plan of the house that you intend to remodel. Although you can attempt to go about this yourself,it’s highly advised that you turn to an expert for such a potentially extensive and expensive job. As such, youshould hire an architect, with whom you will sit and create agame plan. The final plan will then have to go to the Townand Country Development Planning Office for approval.

Then it’s time to hire a contractor. Many advise that youuse a contractor who is insured, if this is possible. You canalso ask your architect to assist you with the process of selecting a contractor. The architect will then take on theresponsibility of inspecting the site on a continual basisonce the construction has begun.

It will be the architect’s job to ensure that the contractoris fulfilling his mandate. Another duty of the architect will bethe certification of funds to the contractor, including therelease of the retention after all of the remedial work hasbeen completed.

Even in the most well planned, well thought out cases,you should still expect some type of delay along the wayand some additional expenses. We have compiled a list ofsome of the issues that property owners planning a remodelmay encounter.

FoundationThis is a fairly obvious potential problem, because

the foundation has to withstand the test of time.Foundations that aren't strong enough can crack, allowingwater to penetrate.

Lead pipesWhile we are all well aware of the dangers of ingesting

lead, there was a point in time when houses were built withlead pipes. Rather than embark on the vast task of replacingall of the pipes, some homeowners may choose to install afiltration system that will extract the lead from the water.

ElectricityYou should consider the year that your house was built

and what codes and regulations were in place at the time.This ensures that you will be prepared for any surprises thatmay come when the construction starts, such as theelectrical wires just being buried in the wall without anyconduit or capping.

Hurricane protectionIn the past, houses may have been built with the roof

trusses secured to the header by just a nail driven in at a 45 degree angle. While this initially serves itspurpose, it can become hazardous in the event of ahurricane. You may therefore have to look into havinghurricane straps installed, which will offer a stronger holdand can sometimes come galvanized to prevent corrosion.

WHEN RENOVATING an old building one should payspecial attention to the electrical wiring, plumbingand roof reinforcement. (FPs)

Page 12: Real Estate - Investing in a Dream

Printed and published by THE NATION PUBLISHING CO. LIMITED, Nation House, Fontabelle, St Michael, Barbados. Telephone (246) 430-5400.