By Colin Scott
Most times, investors are not aware that the buying property in Jamaica is not as simple as buying some new furniture or motor vehicle.It is a complex matter and could take an individual a long time to finalize a sale. In addition, there is the overall cost to take into consideration, as this will include government taxes and service fee for an attorney. If you want earn solid return on this investment, you have to look at areas in high demand such as New Kingston, Ironshore, West End or the popular resort towns.
A decision to do any form of real estate investment in Jamaica would prove to be profitable in the long term, especially if this property increases in value through rental or lease. For instance, if you own apartments in Kingston, you could be looking at a steady rental income anywhere between $1000 – 2000 US monthly. This is a good area for rental, as there are diplomats, business travelers and others who visit this city on a regular basis and want to enjoy modern conveniences outside of a hotel.The property values in Jamaica are usually established through a number of factors, which could include the erection of a perimeter fence or even a new driveway. But, there are a number of factors to help property owners maximize returns on their real estate investment in Jamaica if they want.
This job is actually done by a reputable valuator, who would utilize various techniques to find out the true property value. There are several different companies in Jamaica, but they usually do sale comparisons in the area to determine the value of the property.
Most times, they would do a comparison using similar properties which were sold in a certain time period and also the final sale price. For instance, if they want to determine the value for a condo in Columbus Heights in Ocho Rios, they would probably do comparisons with an apartment at Sandcastles.
In cases, where the property is used for rentals, the revenue earned yearly and other factors would be taken into consideration. The earnings or capitalization associated with the rents will be utilized through calculations of exactly how much could be acquired in future rentals. If you are seeking to get a value for a vacant lot, this is usually determined from the current market, plus any minor or major alteration in dimensions would also be considered.
In case you need to get a property in Kingston Jamaica valued before entering into a transaction, ensure that this person or company is licensed with the Jamaica Real Estate Board. But, this usually attracts a cost, so be prepared to pay this amount if you seriously wants to buy.
The valuators usually charge 0.3% of the property value, but this might not be fixed and will be dependent on the company you select.
When it comes to Jamaica real estate, you should understand that the valuation used would end up being the one which provides the most effective data regarding the market value in the current market.
Here are some other factors to consider, when you are buying property in Jamaica.
- Get commitment letter from a financial institution, if a mortgage is needed.
- Ensure that you have the sufficient money to make a deposit of 15% upon the signing of the sale agreement.
- Ensure that your attorney gives you a copy of the transaction statement, keys, copy of the title and the letters for utility companies and possession of the property.
Colin Scott is real estate and marketing expert.
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