No Comments

Reduction in Transfer Tax in 2019 (PT35)

Right now there is a lot of buzz about the Minister’s proposal regarding a reduction in the rate of transfer taxes.

But what we care about is  ” How does this really afffect my Jamaican real estate transaction”?

It is being proposed that the transfer tax rate will be reduced from 5% to 2%.

So let’s say you are selling an apartment for $18 Million JMD before Apirl 1, 2019, as the seller, you would pay the $900,000 JMD which is the equivalent of  5% of 18 Million.

Now with the proposed reduction, you’ll only pay 2% which equates to $360,000JMD after April 1, 2019.

Now, this is putting more than half-million dollars back in your pocket! So if you are thinking about selling your property give me a call at 876-513-9222 and we’ll help move it get it from For Sale to SOLD!

 

 

No Comments

What happens when you make an offer to buy a home in Jamaica? (PT13)

What if my offer is rejected?

Here are 3 things that could happen when you make an offer.

Worst-case scenario, the seller can either flat out reject your offer because there was a better offer, or maybe because they didn’t like your offer. But if you really want the home, make another offer.

Now, the seller could also make a counter offer, this means you are still in the running. If you are okay then you close the deal and start the sales process.

However, if you are not satisfied you also counter this offer. Now you see where this is going? You could have a lot of back and forth until both of you reach an agreement.

In the perfect world – you could put in an offer and the seller could accept. You close the deal and move on with your process.

Need more information? Get all the details in our free ebook, How to Buy an Apartment or Condo in Jamaica.

Need help finding your new home or office? Give us a call at +18765139222 or email me at cherine@mypowerliving.com

No Comments

3 Mistakes Jamaican Home Buyers Make in 2018

Buying your first home is both a financial and emotional decision. Here are 3 mistakes we hope our Power Living buyers won’t make in 2018

1.      BARGAIN SHOPPING

Jamaicans like to bargain shop. They’ll ask for a discount on something that’s already been discounted! While bargaining can be a legitimate strategy if you believe the property is overpriced, an offer that is too low could come off as offensive or even cause you to lose out on your dream property.

In a buyer’s market, bargaining might be perfect but the current state of the Jamaican real estate market is one where most sellers, especially developers, don’t budge. Remember, many sellers are emotionally tied to the home they’ve invested in and that properties are ‘for sale’ not ‘on sale’.

Power Tip: Where the competition is fierce, going in with a reasonable offer should always be encouraged.

2.     NOT STICKING TO WHAT’S IMPORTANT TO YOU IN A HOME

“Know what thou wantest.” If you have a growing family of five, why look at a 2 bedroom 700sq ft condo in the most expensive neighborhood? For the same reason, a single mom might need to search for a bigger space for a growing son.

Many virgin buyers lose sight of what’s important to them in the process. After many viewings it’s understandable that you become influenced by granite counter tops, 24 hours security, and a pool among other things. Remember this is your first home, stay on budget and consider the most important things to you and your family.

Power tip: Here it is important to analyze how you live and create a checklist of some core ‘home must haves’.

3.     NOT DOING A HOME INSPECTION

“Every girl want fi live a Jacks Hill” in the words of Beenie Man – but with cooler climates come a moisture problem (I could write a book about how I lost 30 pairs of shoe in one year because of moisture living near Jacks Hill). Some areas in Kingston 6, Kingston 8 and Kingston 19, due to their hilly terrain and frequent rainfall have serious moisture issues.

Realize that the home you buy is where you intend to be for years to come and the emotions that come with getting that ‘perfect house’ will wear off. So be practical when doing your home inspection.

Power tip: Find someone you know in the area you want to buy and ask them about any concerns they have may have.

No Comments

Can I Afford A Home In Jamaica?

There comes a point in most of our lives when we leave the nest and try to make it on our own. Some of us opt to explore our freedom and create our own space by purchasing a home.  While buying a home can be exciting and thrilling, it can also be an overwhelming experience, especially for virgin home-owners. It demands a certain level of financial maturity, determination and commitment. These make all the difference between just owning a home and being a successful homeowner. So, here I have put together a little checklist to help you decide.

HAVE YOUR ‘UNDER DI MATTRESS STASH’

Granny always says ‘every mickle mek a muckle’. And she is so right. When purchasing a home there is your accepted offer, but outside of that, there are fees associated with home ownership that are paid up front.  These fees include the 10% deposit, closing costs, valuation and surveyors fees as well as your attorney expenses. You should also consider your 1%-3% legal fee. So make sure you have your savings to go in with as you can use it to cover these additional costs.

MONEY ROLLING IN

It’s always great to have steady monthly income. Ideally, a mortgage should account for 30-40% of that.  Other expenses such as insurance, property taxes and monthly maintenance fees can eat away at your income and fast. Furthermore, you are now the landlord and you will have to foot the bill for unexpected maintenance costs associated with plumbing, water heater, doors, damages during hurricanes, etc. These costs could all be buffered by a steady stream of monthly funds. Bear in mind that an inability to make three consecutive mortgage payments may result in penalties or even repossession.

CAN YOU SAY ‘I DO’?

A house is not a pet, nor is it that new pair of shoes you saved for, only to wear it a few times before deciding it was out of style. You can’t dispose of a home that easily. Chances are, if you’ve been pre-approved for a mortgage, you will have to make anywhere between a 10 – 30 year commitment.  This requires some level of certainty, for instance, knowing the type of house that best suits your future needs and where you would want to live. Why buy a studio knowing you want a large family in 3 years?  And why buy now when you plan to relocate in 6 months, or worse if you have plans to migrate? Think about your life goals and how you want to live as it will determine the level of commitment you can make to your future home.

No Comments

Top 3 Thing You Must Know Before Renting In Jamaica

JAMAICA IS CURRENTLY IN A RENTER’S MARKET. SO FOR ALL OF YOU READY TO MAKE THAT BIG MOVE TO RENT YOUR FIRST APARTMENT, SINGLE FAMILY HOME OR COMMERCIAL SPACE, IF YOU HAVE A BUSINESS, THEN HERE ARE THE TOP 3 THINGS TO KNOW.

1. LET’S TALK BUDGET

Most of us want our dream home, you know, that mansion overlooking the Caribbean Sea. But remember, that all things perfect, come perfectly priced. So what is your budget? Let’s start by being realistic about what you can afford and how much it will cost to live every month. Remember, you have to get that bill paid in full and on time for the duration of your lease. My suggestion, ensure you have about 3 – 4 month’s rent already in the bank because anything can happen. Also, try to keep your rent payment to about 28%-30% of your salary because you will need cash for your other basic needs.

2. WHERE TO RENT AND WHAT TO RENT

Now that you have decided on your budget, your search begins. I will always suggest that you get a realtor. Why? Because we have access to computer systems and databasesthat gives us information on hot new listings daily. It’s easy to go online and click on a pretty picture. But the pretty picture will not tell you everything, for instance, what is the crime situation in the area or is it a good neighbourhood for schools?

3. RENTING ALONE, WITH BAE, OR WITH A FRIEND?

Ok let’s get real. You have to know who you are getting in bed with, literally and not so literally.  But no seriously, you have to be really smart about choosing a roommate. Sometimes when lovers fall out of love, all common sense gets kicked out the door and there is no part on your lease agreement that says, ‘for payment, guh ask mi boyfren’. Many times if your roommate or business partner forfeits their agreement, you have to ultimately pay their share of the rent. Are you prepared for that?

BEFORE YOU GO

Learn How To Buy An Apartment or Condo in Jamaica

This FREE (and highly resourceful) eBook will give you several tips and strategies to help you buy an apartment or condo.

I do not want to buy an apartment