Home Decoration & Real Estate

Posts Tagged ‘Crisis’

Jamaica Real Estate is a Solid Investment despite World Economic Crisis

“Uncertainty in global financial markets has created a surge for more solid investments” says Edwin Wint, President of the Realtors Association of Jamaica. Mr. Wint goes on to say in a recent press release that, “real estate is a stable and concrete investment, and the global economic fallout is increasing demand for property in Jamaica.” The Association recently staged its First Annual Expo under the theme, “Secure Your Future with Real Estate”. The publishers of the Jamaica Real Estate Guide were there providing their valuable resource for all homebuyers and investors of Jamaican Real Estate.

Over on the North Coast of the Island, developments are abound with Solis The Palmyra Resort & Spa offering 277 apartments and 11 villas at prices ranging from US$500,000 for a studio to US$3.5 million for a beachfront villa. There is also the Colony at Half Moon with plans for development of 30 private villas. Richmond Development in St. Ann offers a World Class Residential Community with units starting at US$195,000. These developments have been marketing heavily to overseas clients who are looking for a tropical getaway that is in close proximity to the U.S. There are more than 300 International flights coming into Sangster International Airport in Montego Bay weekly and there are no restrictions to foreign ownership of Real Estate in Jamaica. In addition to easier access to beachfront property in Jamaica than in the U.S., Jamaica Real Estate is quite an attractive investment.

On the financial side of things, latest numbers from the Planning Institute of Jamaica in their report of Mortgages issued in Jamaica from NHT, NHDC, Building Societies, Life Insurance Companies and Credit Unions indicate that the volume and value of mortgages disbursed declined.  The total number of mortgages disbursed fell by 8.2% to 8,553 during January –September 2008 compared with January – September 2007.  This is a turnaround compared with the continued annual increases recorded in volume and value of mortgages disbursed.  The number of mortgages disbursed went from 10, 556 year ending December 2006 to 12, 469 year ending December 2007 according to the report.   The value of disbursed mortgages amounted to $31,595 million for the year ending December 2007, this compared with the $25,563.9 million disbursed for the year ending December 2006.

INFORMATION, INFORMATION, INFORMATION

In order to make an educated decision when investing in any commodity, you need information. It is no different for Jamaica Real Estate. The Jamaica Real Estate Guide aims to be a friendly and informative partner for prospective homebuyers and investors. The latest issue which was featured at the Realtors Association Expo 2008 at the Hilton Kingston Hotel on November 23rd has an article about Mortgage basics, a handy mortgage worksheet and a checklist of items for a loan application. Additionally, readers will find the usual delivery of full colour listings by Real Estate brokers and developers who promote their listings actively in this handy resource guide.

The Jamaica Real Estate Guide which was first published in 2006 started with the mandate of being a partner to the Jamaican Homebuyer, arming them with information about local real estate trends and the home buying process. With the demand increasing for Jamaica Real Estate from the local population and the Diaspora, so has the readership of the guide. The publishers of the Jamaica Real Estate Guide responded to demand by increasing the distribution of the magazine from 3,000 to 20,000 copies in print per issue. In addition, the website was redesigned to allow for free online viewing of the magazine. Response to the new website feature has been great with downloads coming from Countries like Australia, Bermuda, Canada, Denmark and of course the USA, Canada, our very own Jamaica and other neighbouring islands.

Homes located in areas with very cold climate are never without a good heating system.   The system is a source of heat during the winter season to keep families warm and comfortable. As winter approaches, a home’s heating system will prove its worth once more amidst the reality of an energy crisis caused by the high oil prices around the world and a weak U.S. economy.

Homeowners, however, are experiencing a lot of anxiety this early worrying as to how they’re going to cope with the increasing prices of home heating oil. Compared to 2007, they will have to spend more this year in order to have their usual supply of fuel. This is in addition to the high heating bills they will have to deal with as a result of the increased electricity rates. Heating bills are expected to increase by an average of 20 percent making it probably the worst winter for low-income people.

Even with a decline in the price of crude oil, home heating oil prices normally go up during the winter months. And although prices of heating oil have actually fallen from their peak levels but they are still above the 2007 levels.

The ones to suffer most here are families with low income and the elderly. A survey of utility arrearages and shutoffs done by the National Energy Directors Association (NEADA) found that 15 million households including those occupied by the elderly are having difficulty paying arrearages from their heating bills last year. The figure is up by almost 10 percent compared to the same period last year. It also revealed that at least 1.2 million homes suffered disconnection from electric and natural gas service three months after getting shutoff notices.

The U.S. Department of Energy is expecting prices per gallon to go up by 25 percent resulting in an average cost for heating oil at more than $4 a gallon across the country. This translates to higher household expense of $720 this 2008 winter.

 On the other hand, the Energy Information Administration projects home electricity prices to hike up by three percent this year. People living in states undergoing market restructuring are seen to experience faster price hikes by as much as 50 percent due to the expiration of rate caps and as electric firms passing on to the consumers the high fuel costs.

With this looming energy crisis, more people are cutting on their expenditures. Another NEADA survey showed that 70 percent of low-income families have lowered their spending on food due to high gas and energy costs. Additionally, 31 percent have reduced their medicine purchases while 19 percent lessened their education expenses.

 It’s a good thing that some senators are exerting extra effort to help provide relief to the affected sectors. A new legislation known as the “Warm in Winter and Cool in Summer Act” has been introduced with a goal of providing $2.53 billion more emergency funding this winter for the Low Income Home Energy Assistance Program (LIHEAP). The program gives direct help to families with low income, senior citizens and the disabled who are having a hard time paying their heating bills.