INVESTING IN SAINT LUCIA
No matter what happens in the world of politics, for most of us life will continue to be a struggle to cope with the financial challenges of providing for ourselves and families with the necessities of life.
In this article, we will discuss the topic of Investing in Residential/Income Property. A few days ago, I got a call from a young lady who wishes to own a plot of land, enquiring about how she should go about it. I thought her request was timely since I planned to deal with the topic in this month’s blog. Investing in real estate demands a well thought out strategy. The first step is to pre qualify yourself. Ask yourself some serious questions. Find your Why. Arrange an interview with your Loans Officer and find out if you qualify for a mortgage and if you do – how much? Armed with a positive feedback, you now have a budget – how much you have to spend?
In my book “Winning Strategies for Micro, Small & Medium Enterprises”, I discussed the importance of forging a relationship with a Real Estate Agent. Discuss your specific needs with the Agent and put him/her to work for you. If you are looking for land (how many square feet/acres) or land and building, location, special features, such as view of the mountains, near to the sea, near to schools, shopping malls, churches, etc. When looking for land and building you will need further information such as single family or apartment building, bungalow, two storey, or multi level, number of bedrooms, bathrooms, etc. Find out what you can and cannot do on the property – check the covenants. Always spend some time in the area finding out about the people and conditions in the area. Is the area prone to flooding? What about garbage disposal? It boils down to doing your due diligence.
In recent times there are lots of housing developments springing up and these will be very easy to acquire details if you are seeking to buy land only. However, always try to negotiate the price. Get in early on the development.
Once you are a pre-qualified candidate for a mortgage, shop around to secure the best mortgage rates. The younger you are the better when it comes to the period of the mortgage, up to 30 years is possible, and special arrangement can be made for extended periods.
At this stage you are now ready to advance the process by requesting the relevant documents for the property from your Agent, and arrange an appointment with your Loans officer to discuss the details on going forward. You will be presented with a request for a list of documents from the banker that will be necessary to process the mortgage. There is the possibility of acquiring 100% mortgage in some instances but in the event you do not fall into that category, ensure you have a minimum of 10% of the cost of the property. Some banks will seek to facilitate the entire transaction but an independent Attorney will be fine. A valuation of the property you are seeking to acquire is necessary whether you are borrowing money or not. When borrowing money, the banker will provide you with a list of suggested Valuers whose valuation will be acceptable to the institution.
Cash is King! If you are privileged to be in this category, after doing your due diligence armed with your valuation and land register in hand, you will bypass the Loans Officer and head straight to your Attorney to prepare a Deed of Sale.
Make sure that the vendor is as ready as you are to proceed with the sale. NIC, Income Tax and Property Taxes Clearances must be available. Any lien on the property will be shown on the land register, and your lawyer will ensure that any indebtedness is cleared.
I recommend that you get a Free copy of my e-book – Introduction to Investing in Real Estate in St. Lucia, available at https://stluciagreatpropertydeals.com
