Investing in real estate as millennials in The Bahamas
Investing in real estate is widely considered to be the soundest decision an individual can make. But for most millennials, particularly in this market, we are, for the most part, outpriced. Frankly there are a lot of roadblocks that prevent us from securing a quality piece of the ‘rock’ for our own. According to a leading real estate company, the average cost of a home in The Bahamas is $646,279. It isn’t hard to see why many Bahamians can’t afford a home, and this problem cuts across the lines of skilled and unskilled citizens.
For most Bahamians, purchasing real estate and building a home will be the largest financial investment of their lives. It will also be the longest financial obligation to fully pay off. The average mortgage time period can range from 25 to 30 years. With such high stakes, it is imperative that this decision is made after careful evaluation and consideration. Here are some of the key steps and decisions that must be made to ensure that you stay on the right path when purchasing real estate.
1.) Decide if you just want to buy property at first or if you want to buy a home. This should be a decision you make, either on your own after careful research, or with the help of a realtor. Determining which route you choose will be key and will result in a major price difference if you just buy a piece of property.
2.) Set up an appointment with your primary bank/credit union to confirm how much money you qualify for to secure a mortgage.
3.) Find a good realtor who understands your needs and financial capabilities. You should never overexert yourself financially with a mortgage. It is a long-term commitment. By consulting a realtor you will know what is in your price range. A good realtor will work with you and present various price ranges for what you are looking for.
4.) Inspect the property or home with your realtor. This will allow you the opportunity to ask various questions about the property and give you a chance to see the area in which the property is as well as the physical structure of the home.
5.) Get an independent appraisal value of your home. This will ensure that you aren’t overspending on your purchase and that you are getting a good deal.
Buying a home is important for so many financial and social reasons. It is something every millennial should begin looking at as soon as possible. If you are fortunate, a property will be handed down to you as a foundation by family as a head start. But most of us aren’t usually afforded this privilege. So saving and making wise decisions is the best bet. It can appear to be a daunting task but approaching this huge decision strategically is key.
Finally, once you purchase real estate or a home you will automatically add to your assets and will be in a position to get a profit on your investment if the opportunity arises. A local real estate guru once told me, “The land you own is the pillar to your success, my friend.”
- Quinton C. Lightbourne is a certified financial planner with the Chartered Institute of Bankers in Scotland and vice president of the Bahamas Investments & Securities Business Association (BISBA). E-mail: email@example.com.