Housing Market/Property Values

[Mkris7]

Hello All,

Its been awhile but I am back from a long hiatus.

I will be checking on some property I purchased in Trinidad this year and I would like an insider perspective on how the housing/property market is doing. In the USA, the market has been hit hard with devaluation and people loosing equity and in many cases their homes.

Has there been a drop in real estate prices back home (Trinidad)?

Thanks in advance

[Solachica]

Havent seen a drop in prices

[vaio]

Hello All,

Its been awhile but I am back from a long hiatus.

I will be checking on some property I purchased in Trinidad this year and I would like an insider perspective on how the housing/property market is doing. In the USA, the market has been hit hard with devaluation and people loosing equity and in many cases their homes.

Has there been a drop in real estate prices back home (Trinidad)?

Thanks in advance

check us back in 2-3 years time...is shld be quite affordable by then. :ugeek:

[IN-A-QUANDRY]

with immigrants migrating here in droves, I doubt very much prices are going down anytime soon.

[oecarb]

with immigrants migrating here in droves, I doubt very much prices are going down anytime soon.

Where are these immigrants coming from?

[chuff1026]

lol
its not immigrants
we are trinidadians leaving this crazy US market and coming back home..
I Plan to do the same
with expats and the very limited real estate in a small island like trinidad, the price of houses is unlikely to fall

even with government housing available, that would hardly affect the rest of the housing market

[vaio]

lol
its not immigrants
we are trinidadians leaving this crazy US market and coming back home..
I Plan to do the same
with expats and the very limited real estate in a small island like trinidad, the price of houses is unlikely to fall

even with government housing available, that would hardly affect the rest of the housing market

like i said before..in a couple of years time..come and check back! ;)

[Scorpio]

Hello All,

Its been awhile but I am back from a long hiatus.

I will be checking on some property I purchased in Trinidad this year and I would like an insider perspective on how the housing/property market is doing. In the USA, the market has been hit hard with devaluation and people loosing equity and in many cases their homes.

Has there been a drop in real estate prices back home (Trinidad)?

Thanks in advance

check us back in 2-3 years time...is shld be quite affordable by then. :ugeek:

Vaio, if ever the prices of houses crash in TNT, it will most likely be because of an economic downturn, with people losing their jobs and all the other associated social ills.....do you really want this to happen ? :shock:

[Chicabonita]

I dont see prices going down anytime soon but quite the opposite.

[vaio]

Vaio, if ever the prices of houses crash in TNT, it will most likely be because of an economic downturn, with people losing their jobs and all the other associated social ills.....do you really want this to happen ? :shock:


Its not what I want...its just what will happen...do you really think i'd want our economy to experience a downturn...given the fact that crime is out of control now...what do you think will happen when the 'boom' is over...???

Speculators say that it will happen in a couple of years...they have been wrong before...and they have also been right as well.... personally i feel that its gonna take a longer time...but nonetheless, when it does happen... God help us.

[Scorpio]

Vaio, if ever the prices of houses crash in TNT, it will most likely be because of an economic downturn, with people losing their jobs and all the other associated social ills.....do you really want this to happen ? :shock:


Its not what I want...its just what will happen...do you really think i'd want our economy to experience a downturn...given the fact that crime is out of control now...what do you think will happen when the 'boom' is over...???

Speculators say that it will happen in a couple of years...they have been wrong before...and they have also been right as well.... personally i feel that its gonna take a longer time...but nonetheless, when it does happen... God help us.

Exactly.

[serenity]

Actually, I know several ppl who share the view that its the oil money that is the catalyst for all the crime etc. The idea is that when the economy does take a downturn, ppl will turn back to God and will be satisfied living with less bec dey neighbour poor too. But with the current situation of everyone trying to outdo each other etc, morality presumably suffers.

[alieninthecaribbean]

Currently the housing market is in a slump. People are not buying anymore in Trinidad at the rate they used to and construction is slowly stalling. If we wait a few years, it will be a buyers market and prices will fall.

Right now a client that does housing development is desperately trying to sell off their 1million, 2 million and 5 million dollar properties in the east even BEFORE they are finished.

In order to qualify for a the lowest end of their properties (and it not that fantastic, just a basic two-three bedroom lot) you need to be earning a monthly income of at least 30K and over a month and be able to put down 10% on the downpayment.

So even middle class professional couples I know with degrees cannot afford to buy their homes.

The price of real estate was over-inflated and based on NOTHING from the very beginning. We rate property value based on shallow things, like how many expats are living there and whether it is a gated community and how many amenities the property has.

That is why you have people renting properties that are located a long two hour communte from to the city center, with no good schools in the immediate area, no aesthetic features e.g. lovely view, beachfront etc, within a mile of a ghetto or crime ridden area and no recreational services in the immediate area for a ridiculous price.

No standards were put in place as to what makes a property valuable and so everthing just vikey vie.

[guyguy]

What about property in Tobago? I'd like to buy some land and build a house or buy a relitevely new - approx 5-10 year old house and land. I can wait but I wonder if there will be a down turn there, if at all.

[alieninthecaribbean]

What about property in Tobago? I'd like to buy some land and build a house or buy a relitevely new - approx 5-10 year old house and land. I can wait but I wonder if there will be a down turn there, if at all.


guy guy, if you want to buy or build in Tobago, you better hurry boy! Unless the government curbs the rate at which foreigners are buying up the land, locals will not be able to afford it, just like in Barbados.

Don't wait! Try to put at least something down on a piece of land now.

[saltwater]

The dream of home ownership

Looking at television on Friday night, viewing the Land Settlement Agency’s latest round of house demolition and destruction, one could not help but wonder as to which part of our Vision 2020 this fits into?

Of course, we have to regularise State land use and, of course, we have to deal with the squatting problem which is so rampant all over the country.

However, the way that the Land Settlement Agency and the Housing Development Corporation have gone about it in the recent past often left much to be desired.

Surely, it cannot be that the only way to deal with this problem is to arrive at 4 am with a contingent of heavily-armed soldiers and police with backhoes, bulldozers and strong-arm men in tow, and proceed to demolish people’s dwellings.

Granted, in the pictures on the television on Friday night, there seemed to be a dearth of furniture or appliances, so maybe these folks had a chance to move out their possessions, or maybe they were just using these structures as temporary shelters.

But no matter what, a man’s home, however great or small, is his castle. It represents his own space, his place of shelter and refuge against the world outside, and however humble or impoverished it may be, it represents a certain measure of safety, sanctuary and security for him.

The dream

It realises, for him, the dream of home ownership.

Just look at the sub-prime lending crisis which is ripping America apart, and one can see just how important it was for the average blue collar worker in America to feel a part of that American dream, the awe and wonder and satisfaction of owning your own home.

Greedy developers, financiers, mortgage brokers and Wall Street investment firms all fed off that dream, by holding out a poisoned apple to millions of minorities and lower income persons throughout the length and breadth of America, coating it with a sugary-sweet sub-prime initial rate and then invoking the variable clause terms, to later skyrocket the interest rates to a level where homeowners just could not cope any longer and defaulted on their mortgage payments.

Add to that any sickness, death, disability or injury to a major breadwinner in a family, and it was a sure-fire recipe for a foreclosure, all of this in pursuit of the basic human dream and desire and need for having a home, a place of shelter.

Creeping signs

Here in Trinidad and Tobago, the foreclosure frenzy has not hit us yet, but there are creeping signs that we should all be on the lookout, especially when you see those little notices in the newspapers about the upward adjustment of the base prime lending rates, and then you get these cute little notes from your bankers or mortgage companies, telling you that there will now be a slight upward adjustment in your monthly payments.

Add to that, spiralling inflation, rising food prices and the looming threat of increased fuel prices down the road, and then the “it’ will really hit the fan.

We will begin to see more and more of these advertisements for mortgagee sales, and that will tell us we are in our very own mortgage meltdown. Hopefully, that may be for some time yet, and that gives us a unique opportunity to step back and take a long, hard look at the situation and see what steps we can take to prevent this in the future.

The Central Bank and the Government need to begin to look at ways to avoid the errors which occurred in the USA and which had such a massive tsunami effect around the world, with companies like Swiss financial giant UBS posting a $18 billion US loss, the “equal opportunity lender” Ameriquest coming crashing down, Countrywide, once “the largest American home-lender,” going bust and being gobbled up by Bank of America, and the once-financial powerhouse Bear Sterns going on the chopping block at bargain basement prices to JP Morgan.

Greedy traders

Our banks and financial institutions have little to fear in this regard, because they are not so much into the business of selling these mortgages worldwide on the back end, as was done by these greedy Wall Street traders, who gobbled up these sub-prime mortgages by the millions and re-packaged them as mortgage-backed securities to re-sell on the world market.

Everyone fell for it, consumed by insane greed and outrageous promises of profits off these high-risk investments.

Our banks are not at that level, so one’s fear or concern is not for the fate of our financial or mortgage institutions. It is for the small man, the individual, the single mother who is struggling to make ends meet.

When the crash hits her, how will she survive? When the crash hits her, will anyone ever know? Will it make news, will anyone even care? Or will we just look the other way and thank God it is happening to “them” and not us?

What is our Central Bank and our government doing to protect and preserve the Trinbago dream of home ownership for persons who are already home-owners?

What are they doing to prevent our own mini-mortgage meltdown, because sooner or later it will come, and those of you who have preserved this article will then be able to look back at it and remember, that on a Sunday morning in April, 2008, I told you so.

Let’s not wait like sitting ducks for the crash to hit us. Let us start engaging in meaningful and pro-active discussions, to try to preserve for the average Trinbagonian, the dream of home-ownership.
http://www.guardian.co.tt/martingeorge.html

[greall]

The older heads are telling me that I should wait and not buy or build now.My mom says that she recalls her customers returning house keys in the 1980s when she was a property manager for a housing developer in the East.My present boss told me the same thing happened when she worked at the bank and mortgage payments were missed and the owners had no choice but to return the keys to their homes.

We know that the market's cyclical so we just wait for the bust which is inevitably going to happen.

The property values in my area (Bel Air) are absolutely ridiculous and my neighbour says that it's 'average for an area like here' even though I'm seeing people move out down to Otaheite.The prices are ridiculous even where I grew up in Moruga with beachfront property now for sale in the million dollar range and rents increasing forcing the people to begin squatting on our property... :x

Greg

[lexbarker]

What about property in Tobago? I'd like to buy some land and build a house or buy a relitevely new - approx 5-10 year old house and land. I can wait but I wonder if there will be a down turn there, if at all.
Guy, I know someone there who built a simple flat house (concrete) about 4 years ago and he said that it cost him just over TT600,000 to build. He had bought the land about 20+ ago at a reasonable price.

[guyguy]

What about property in Tobago? I'd like to buy some land and build a house or buy a relitevely new - approx 5-10 year old house and land. I can wait but I wonder if there will be a down turn there, if at all.
Guy, I know someone there who built a simple flat house (concrete) about 4 years ago and he said that it cost him just over TT600,000 to build. He had bought the land about 20+ ago at a reasonable price.
Man, for that kind of money I could get a 3-4 bedroom house on a half acre of land not too far from the beach and with all the amenities in Costa Rica.

[dancerboy]

Actually, I know several ppl who share the view that its the oil money that is the catalyst for all the crime etc. The idea is that when the economy does take a downturn, ppl will turn back to God and will be satisfied living with less bec dey neighbour poor too. But with the current situation of everyone trying to outdo each other etc, morality presumably suffers. What took place after the last oil boom ? Do you remember ?.


DANCERBOY

[lexbarker]

What about property in Tobago? I'd like to buy some land and build a house or buy a relitevely new - approx 5-10 year old house and land. I can wait but I wonder if there will be a down turn there, if at all.
Guy, I know someone there who built a simple flat house (concrete) about 4 years ago and he said that it cost him just over TT600,000 to build. He had bought the land about 20+ ago at a reasonable price.
Man, for that kind of money I could get a 3-4 bedroom house on a half acre of land not too far from the beach and with all the amenities in Costa Rica.
I was in Costa Rica about 10 years ago and attended one of those seminars for housing. They were asking about 50,000 at the time for a 2 bedroom flat in a housing development for foreigners.

[Terran]

vaio, you suggest this might happen in a couple of years. I think NOT - it would happen sooner. Before the end of 2009. And a downturn in the economy will bring it on - which is already underway.

Look the IMF done send out big warnings to the Caribbean.

[oecarb]

Man, for that kind of money I could get a 3-4 bedroom house on a half acre of land not too far from the beach and with all the amenities in Costa Rica.

Guy, that don't help people who want to live in Triniland, you know. :twisted:

And I hope you check out Costa Rican immigration law, eh.

[LRD]

The value of the houses are already falling in real terms as they are priced in TT dollars which are pegged to the US dollar. The US Dollar is a doomed currency, those who hold investments outside the dollar in oil, precious metals, resource stocks, swiss francs, euros etc will be able to buy Trinidad property fairly cheap in the years ahead.

[oecarb]

The value of the houses are already falling in real terms as they are priced in TT dollars which are pegged to the US dollar. The US Dollar is a doomed currency, those who hold investments outside the dollar in oil, precious metals, resource stocks, swiss francs, euros etc will be able to buy Trinidad property fairly cheap in the years ahead.

There is no law that says the TT dollar has to be tied to the US dollar. And many oild producers are considering charging in euros and other currencies. Check the Gulf Staes. Also check the price of oil against the value of the US dollar and you will find that every time the dollar goes down, the price of oil goes up. In fact the price of oil is very stable against the euro.

When I left TT to live permanently in the UK (in 1985), the TT dollar was TT$2.40 to the US dollar and TT$2.76 to the British pound. No reason why the TT dollar cannot be revalued.


Oil is a commodity and it is priced in dollars. If dollars decline in value, then the price of oil will rise in inverse proportion.

One need only look at Europe to see what this means.

Over the period from February 1, 2003, just before the start of the Iraq War, when oil prices began to rise in earnest, to Feb. 1, 2005, the price of a barrel of oil in dollars rose about 30 percent, from $30.13 a barrel to $42.91 a barrel. But over that same period of time, the Euro, Europe's new combined currency, rose 21 percent against the U.S. dollar, from .93 Euros to the dollar in February, 2003 to just .77 to the U.S. dollar in February, 2005.

For Europeans, then, the net rise in oil prices over the two years of the Iraq War has been just 9 percent, or less than 5 percent per year-hardly the kind of energy inflation that would cause economic problems.

http://www.counterpunch.org/lindorff04092005.html

[Solachica]

I don't see a decline in house construction. Am more in south west trini and many houses going up, even in the rural area. I was passing thru a rd today and saw 5 houses going up and it wasn't small structures. And this rd is considered rural. They have land for sale there and its $650K for 1.5 acres.

[oecarb]

I don't see a decline in house construction. Am more in south west trini and many houses going up, even in the rural area. I was passing thru a rd today and saw 5 houses going up and it wasn't small structures. And this rd is considered rural. They have land for sale there and its $650K for 1.5 acres.

This is good. Like I said before, buy rural land and build. It's cheaper. I'll bet in a residential development it would cost more than that for a 6,000 sq ft lot.

[LRD]

There is no law that says the TT dollar has to be tied to the US dollar. And many oild producers are considering charging in euros and other currencies. Check the Gulf Staes. Also check the price of oil against the value of the US dollar and you will find that every time the dollar goes down, the price of oil goes up. In fact the price of oil is very stable against the euro.

When I left TT to live permanently in the UK (in 1985), the TT dollar was TT$2.40 to the US dollar and TT$2.76 to the British pound. No reason why the TT dollar cannot be revalued.


I agree, T&T should remove the US dollar peg. However, whilst the peg is maintained the property is becoming cheaper for those holding tangible assets that are rising in today's economy.

House prices will not inflate like oil as the dollar collapses. Worldwide inflation means the price of every day goods is going through the roof, there will not be any excess liquidity left over to push house prices higher. House prices are going to fall dramatically as day to day living becomes very expensive.

[LRD]

Can someone tell me what the average rate is now for a new moortgage in Trinidad and what is the minimum deposit % required?

[Solachica]

Check the TTMF website.

[LRD]

Is this table in TT$ or US$ ?

http://www.ttmf-mortgages.com/applicati ... les&id=774 (http://www.ttmf-mortgages.com/applicationloader.asp?app=articles&id=774)

I heard from a contact that rates were now at 11%, any truth to this?

[robsurrey]

Has any of you guys had a look at TTMF balance sheet and P&L?

Which line corresponds to their bad debt experience/

There doesn't appear to be any write off in respect of bad debts or am I missing something?


Is this table in TT$ or US$ ?

http://www.ttmf-mortgages.com/applicati ... les&id=774 (http://www.ttmf-mortgages.com/applicationloader.asp?app=articles&id=774)

I heard from a contact that rates were now at 11%, any truth to this?

[Scorpio]

Is this table in TT$ or US$ ?

http://www.ttmf-mortgages.com/applicati ... les&id=774 (http://www.ttmf-mortgages.com/applicationloader.asp?app=articles&id=774)

I heard from a contact that rates were now at 11%, any truth to this?


:shock: That table cant be up-to-date, where you getting a house for TTD $350K in Trinidad ?

It can't be too long now before this real estate bubble bursts. :bounce:

[Solachica]

I was looking at house prices and land prices today. Doesn't seem to me tht prices are going down.

A 3br 2 bath house in couva tht I had looked at 2007-8 which was $750K is now $950K :?

Even if prices go down as people expecting how many wud be able to afford buying? And by how much wud it go down? Tht house tht I looked at wud go back to $750K :lol:

[Scorpio]

I was looking at house prices and land prices today. Doesn't seem to me tht prices are going down.

A 3br 2 bath house in couva tht I had looked at 2007-8 which was $750K is now $950K :?

Even if prices go down as people expecting how many wud be able to afford buying? And by how much wud it go down? Tht house tht I looked at wud go back to $750K :lol:

Well the last few years in Trindad has been a seller's market, with the bank having lots of money to lend and a perception that there was a "housing shortage" in TNT.

Many people have now been priced out of the market, and the interest rates have gone up, and with a looming recession, everyone is being more cautious about spending, so I am guessing that it is slowly becoming a buyer's market.

Prices are bound to go down eventually.

[Solachica]

I know people who put land up for sale at high prices. If the price had to go down they wud just take it off the market and wait until price cud be high again.
Many people aren't desperate to sell, they were selling becos they saw they cud make lots of $$$, so just like how some people cud wait or hope for price to reduce they wud wait and hope for price to go back up.

Someone was telling me tht people got greedy when the HCU went around paying big $$$ for any land. So tht had a hand in raising land prices.

[Hance]

I have been told by Real Estate agents and others in the market that I should wait at least until the end of 2009 before investing in a house. The general perception is that prices will go down. The banks are already restricting mortagages on new homes due to the over inflated prices on the market . They are expecting a gradual, creeping increase in foreclosures therefore they are limiting their risk between the market value and actual worth of the houses.

[mammadon]

has anybody heard that hcl is ceasing work on woodbrook one in port of spain Ah heard this recently, since HCL reckon it's not economical to build the flats if the demand for housing is going down.

[Scorpio]

has anybody heard that hcl is ceasing work on woodbrook one in port of spain Ah heard this recently, since HCL reckon it's not economical to build the flats if the demand for housing is going down.

That project has been going on for years now, there must be some problems.

[slick]

Values have started dropping

[sylvestter]

has anybody heard that hcl is ceasing work on woodbrook one in port of spain Ah heard this recently, since HCL reckon it's not economical to build the flats if the demand for housing is going down.i wish they drop the price. i will move in :mrgreen:

[shield_2006]

Values have started dropping

What is amusing about this-is that the value growth was spurned more by greed than realism and that the slide began when the economic fundamentals had not changed.(like Mc Cain). The speculation that fueled it just disappeared and a market correction is taking place. The probability of home ownership returning to the reach of the middle class is a wonderful thing.

[JPersad]

Demand and supply .
I believe there are more properties than prospective buyers .Therefore price will fall .

[saltwater]

I hear land cheap in Mayaro. Just a few years ago it was out of reach to the regular worker.

[jacques]

What about property in Tobago? I'd like to buy some land and build a house or buy a relitevely new - approx 5-10 year old house and land. I can wait but I wonder if there will be a down turn there, if at all.


guy guy, if you want to buy or build in Tobago, you better hurry boy! Unless the government curbs the rate at which foreigners are buying up the land, locals will not be able to afford it, just like in Barbados.

Don't wait! Try to put at least something down on a piece of land now.

Right now there is no mechanism for foreigners to get a licence to buy land in Tobago. Therefore foreigners are not buying anything in Tobago for the simple reason that they are not allowed to do so.... Thank you THA...

[Solachica]

Wht is cheap in Mayaro?
Maybe your cheap is not my cheap :?

[Hance]

How will the CL Financial fiasco impact on the housing market ? I suspect it will speed the decline of prices .

[discipuli]

How will the CL Financial fiasco impact on the housing market ? I suspect it will speed the decline of prices .

I think our housing market is in a bubble that will soon burst , Alot of those 2 million dollar houses were worth 300 000 or less a decade or go .

[Hance]

Hey Guys,

I work abroad but I need to keep in touch with the housing market in Trinidad, I will like to purchase a house sometime this year, hopefully in cash.I would like to know if anyone observe a decline in prices in Trinidad given all the economic problems globally and locally (CL Financial etc) .

What do the real estate professionals say or predict on this matter ?

Foreclosures by the banks are a good indication, maybe a banking person can also comment.

Thanks

[warriorpoet]

Here is the thing about property values in Trinidad
if you look on the listings/ websites we seem to have taken
a decision as a people to value our properties based on what
Foreign nationals might pay for it... thus a older commercial
building in San Fernando might rate at 1 million USD or 6.5 Million TTD
and may be listed as such

problem is that not many locals who will actually purchase that property
will be willing to PAY that price Thus the seller is in a position that he either
chooses to accept best offer or hold for a better offer.

A piece of land in a residential area was being offered at 2.5 Million a year ago,
the owner was offered 2 so he refused and raised it to 3 million LOL

PS that land WAS sold...

Right now land/property values are inflated however the market is carrying it
we have a LOT OF MONEY flowing into the country from legal and illegal sources LOL
that continue to carry values...

People are waiting right now tho... before purchasing/spending soooo we will see
a drop... its a waiting game for the buyers and sellers... a matter of who moves
first... hopefully the sellers will give and drop prices LOL

time will tell

[warriorpoet]

banks in Trinidad are a varied bunch

you have a middle aged bank like RBL that doesnt give you a loan unless we are
80% sure you can pay it back

you have banks like FCB that are looking to improve compeditively so they tend
to be more flexible

then you have Scotia and RBTT who honestly run real risks when it comes to
loans, eg Scotia now banks on customers who could not afford a car with a
five year loan can come to them and take a SIX year loan, paying a year more
in interest....

So by extension the debt delinquency tends to mirror this

so for repossessed items
RBL has few properties and no cars repossessed at present time
while Scotia (which has an efficent follow up of delinqency : ) may
have more cars and RBTT and FCB more properties...

Compound this by the rising loss of employment by a broad base of
industries (PEPSI South, many industrial/industrial service industries,
smaller companies and even (as shown by BIR/Customs situation)
government employment to name a few off top of my head), less
permanent hirings and more temporary and contract terminations.

So to judge the movement of the real estate market you cannot
really use the banking system as any kind of measure... : )

Just my two cents as a banker : ))

[xxx]

It's not the foreign nationals propping up the real estate market, and it's not the small businesses, and not the average employee. Since if what is propping up the market is not going down, how will the market go down?

[Hance]

Warrior Poet....do your bank advertise properties for sale in the newspaper or is there some other means of finding out what properties your bank have for sale ?

[Hance]

Anybody noticed a significant reduction in the residential housing market ?

What about all the townhouses and other real estate developments with property for sale, any reduction in prices ?

I review the site Trinidad Realtor often and I think there are a lot more houses for sale on the site, the prices are the same as last year or in some instances a small drop in price.

I am seriously considering purchasing a house as an investment and then renting it , as I will be working abroad indefinitely.

It is the reason I am very intersted in this site and topic.

All advice and information welcome...the more I know about the market in Trinidad the better....do not hesitate.

[Chicabonita]

Is there such a thing as "rent to own" in Trinidad?

[shield_2006]

Is there such a thing as "rent to own" in Trinidad?


YES-but-only in public housing from the State

[shield_2006]

A friend of mine put up 10 Condos -real nice-not the best location-in my view. We had a conversation two weeks ago in which I inquired as to the situation.

He said that a week after he completed the steel work on the roof-the price of steel fell.

How does he recover that cost in the sales price in a changed market condition where current costs are down. I doh know. He asking $1.5million per unit-and- as far as I can see the probability of sale is very low.

He,however, has the finance cost running as he sits on the units which increases his costs.

The Bank could call-but-they may not be able to recover their investment inside of the debt/equity in the current market-a dilemma to say the least.

[Beetle]

A friend of mine put up 10 Condos -real nice-not the best location-in my view. We had a conversation two weeks ago in which I inquired as to the situation.

He said that a week after he completed the steel work on the roof-the price of steel fell.

How does he recover that cost in the sales price in a changed market condition where current costs are down. I doh know. He asking $1.5million per unit-and- as far as I can see the probability of sale is very low.

He,however, has the finance cost running as he sits on the units which increases his costs.

The Bank could call-but-they may not be able to recover their investment inside of the debt/equity in the current market-a dilemma to say the least.

Banks lend for mortgages based on a professional valuation of the property, so if that valuation is based on replacement cost, your friend is screwed. If it is based on Market value, he might still have a chance since I don't see prices falling yet.

The only question is - who going to buy now ? Everybody is waiting & watching to see when houses prices will fall in TNT.

[Hance]

Newsday Today :-

House prices falling in west Trinidad
By LEISELLE MARAJ Thursday, May 14 2009

HOUSE prices have dropped by as much as 20 percent in West Trinidad, but president of the Association of Real Estate Agents (AREA), Richard Saunders, said it was still uncertain whether prices will continue to go down.

Saunders said the reduction in the selling price of houses in East Trinidad has not been as much as those in the West, which is an area of high demand.

“There is a bit of a standoff in real estate in the West,” he said, adding, “What is happening is potential buyers are waiting to see what happens before they purchase because maybe they think there can be more changes in the market and vendors are on hold maybe because they expect a turnaround so that they will be able to sell at the maximum price.”

Commercial properties, Saunders said, especially those in Port-of-Spain have also been cheaper recently. He explained government projects, which increased the amount of office space available to government ministries, has resulted in a fall off in demand for commercial buildings. “There is a surplus of space which remains unused which results in commercial space either being converted to be used for other purposes or being placed back on the market for sale,” he said.

Prices have been on the decline since one year ago but the reduction was not as much as it is presently, Saunders said. When asked whether prices will continue to go down, he said, this was speculative.

“The survey done by the Housing Ministry revealed that there was a demand for 100,000 houses and that demand still remains. There is still a large unsatisfied demand and we still do not have enough of the product to cater to this number, which in normal circumstances, would push the price in a certain direction. However, if people continue to lose their jobs, the demand for houses will change because people would not be able to afford them. So the demand change is speculative and we do not know what is likely to happen. We have to wait and see,” Saunders said. Scotiabank Managing Director, Richard Young said his bank has experienced a decline of one third the volume of persons applying for mortgage loans as compared to the same time last year.

He added however mortgage rates are on the decline and the bank has tightened up the requirements for mortgage applications.

There has also been an increase in delinquency in mortgage payments but this, he said, was anticipated.

[Huma]

Why people doh like to put links to the stories they copy and paste? Jeez, man.

[Chicabonita]

What I always wondered is why is it that a decent house in a decent area (nothing fancy eh) is being sold like it is luxury? Take Westmoorings for instance, nothing fancy about the area...the houses are quite average yet they want to charge you like if you're living in Beverly Hills.

[bigzack]

What I always wondered is why is it that a decent house in a decent area (nothing fancy eh) is being sold like it is luxury? Take Westmoorings for instance, nothing fancy about the area...the houses are quite average yet they want to charge you like if you're living in Beverly Hills.

Which Beverly Hills?

The one in LA or the one in EDR?

[Chicabonita]

What I always wondered is why is it that a decent house in a decent area (nothing fancy eh) is being sold like it is luxury? Take Westmoorings for instance, nothing fancy about the area...the houses are quite average yet they want to charge you like if you're living in Beverly Hills.

Which Beverly Hills?

The one in LA or the one in EDR?

:lol:

The one in LA

[Chicabonita]

Why people doh like to put links to the stories they copy and paste? Jeez, man.

Here is the link:

http://newsday.co.tt/news/0,100097.html

[miktay]

http://www.trinidadexpress.com/index.pl ... =161476459 (http://www.trinidadexpress.com/index.pl/article_business_mag?id=161476459)


From Trinidad to Tobago, the real estate industry is suffering as the stalemate between sellers and buyers drags on.

Richard Saunders, president of the Association of Real Estate Agents (AREA) said last week that the real estate industry simply reflected the trends of the wider economy.

"As the wider economy contracts so too does the real estate industry," he said in a telephone interview last Friday.

He explained that the current uncertainty of today's economy translated into uncertain investors, especially in the higher end of the real estate industry.

"Real estate rentals and sales in the West have dropped while there remains no movement in the East," he said.

Saunders believed this was because properties on the Western side of the island tend to be more costly because of their proximity to the capital, but in today's economy, high prices equal low sales. He said fear of job loss and income loss meant even high income earners were hesitant to invest in new property.

Stuart Spiers, owner of Stuart Spiers Real Estate Services in St James, said buyers were simply waiting to take advantage of falling prices.

Buyers were waiting for the price to get as low as possible before taking the risk of purchasing.

He agreed with Saunders in that the current state of the market was a reflection of the global environment.

"The movement has slowed especially in the high end market," he said in a telephone interview last Friday.

Actual sales have dropped by as much 20 per cent across the country, Spiers explained, and even devalued property prices cannot urge interested parties to buy.

"Valuators are dropping the cost of property in line with the current economic downturn and still sales are low," he said.

Though his business is experiencing slow sales all around, Spiers said low end property was moving faster than its high end counterparts.

"If the trend continues, we can expect sales to dip a bit lower and then stabilise, at least in the low end market," Spiers said, adding that Government and the Central Bank's premonitions about the zero per cent growth had put a damper on the real estate industry.

While Spiers is worried about the 20 per cent drop in sales, Dawn Glaisher, owner of Sea Jade Investments in Tobago, has experienced an unprecedented 90 per cent drop in sales and said some of her associates have not sold anything since 2007.

She said the introduction of the Foreign Investment Tobago Lands Acquisition Order of 2007 severely hampered the real estate industry in Tobago.

The order states that foreigners who wish to purchase land in Tobago must first obtain a licence from the Tobago House of Assembly.

That law effectively cut sales by 50 per cent Glaisher said in a telephone interview last week.

The other 40 per cent decline, she said, was a result of the international financial crisis.

Glaisher said that the small buffer of sales from local buyers dropped significantly between last year and this year.

[Zinty]

What I always wondered is why is it that a decent house in a decent area (nothing fancy eh) is being sold like it is luxury? Take Westmoorings for instance, nothing fancy about the area...the houses are quite average yet they want to charge you like if you're living in Beverly Hills.


Why?

Location, Location, Location.

[oecarb]

What I always wondered is why is it that a decent house in a decent area (nothing fancy eh) is being sold like it is luxury? Take Westmoorings for instance, nothing fancy about the area...the houses are quite average yet they want to charge you like if you're living in Beverly Hills.

How much are they asking for town houses in Westmoorings these days?

[Chicabonita]

What I always wondered is why is it that a decent house in a decent area (nothing fancy eh) is being sold like it is luxury? Take Westmoorings for instance, nothing fancy about the area...the houses are quite average yet they want to charge you like if you're living in Beverly Hills.

How much are they asking for town houses in Westmoorings these days?

2.5 million TT. :roll:

[oecarb]

What I always wondered is why is it that a decent house in a decent area (nothing fancy eh) is being sold like it is luxury? Take Westmoorings for instance, nothing fancy about the area...the houses are quite average yet they want to charge you like if you're living in Beverly Hills.

How much are they asking for town houses in Westmoorings these days?

2.5 million TT. :roll:

Wow! I have to say that this is a very good reason for not going back to TT when I retire.

This house (5 bedrooms) on half an acre of land is for sale in France for about $1.5m TT. Just outside a large town (about the size of POS) which has all amenities.

http://images.french-property.com/5/1/2/6/1/0/p5126102.jpg

[shield_2006]

Pretty-in the summer doh.

I want my insurer to do my valuation downwards and refund me the premium on the unexpired portion of the insurance-that and snow on El Tucuche

[bigzack]

Wow! I have to say that this is a very good reason for not going back to TT when I retire.

This house (5 bedrooms) on half an acre of land is for sale in France for about $1.5m TT. Just outside a large town (about the size of POS) which has all amenities.

Dah house look haunted.

[oecarb]

Wow! I have to say that this is a very good reason for not going back to TT when I retire.

This house (5 bedrooms) on half an acre of land is for sale in France for about $1.5m TT. Just outside a large town (about the size of POS) which has all amenities.

Dah house look haunted.

Why you say that? Because you aint see no ten foot wall and no big bad dog, you think it have to have a big bad ghost guarding it? :twisted:

[Chicabonita]

This house (5 bedrooms) on half an acre of land is for sale in France for about $1.5m TT. Just outside a large town (about the size of POS) which has all amenities.

I just one similar in Westmoorings for $18 Million :roll:

[shield_2006]

I trying to avoid argument these days-BUT-these comparisons you are making to property values in different countries. Is this sensible? What would be the cost of the same property in say Florida, California USA, Tobago, Barbados, Cannes, St. Moritz and Grand Couva Trinidad?

[Angie]

The 5+ bedroom house on 1+ acres of land I bought in Clayton, North Carolina in August last year sold at approx TT$794000.

[bigzack]

The 5+ bedroom house on 1+ acres of land I bought in Clayton, North Carolina in August last year sold at approx TT$794000.

That is TT$794000 more than yuh neighbors -- Tarzan and Jane -- pay fuh them house.

And before anyone ascribe any negative connotations.

Ah just mean that Clayton, North Carolina is in de wilderness. Westmoorings is by the sea.

Anywhere you go, you pay more to live by the sea than in the wilderness.

[oecarb]

I trying to avoid argument these days-BUT-these comparisons you are making to property values in different countries. Is this sensible? What would be the cost of the same property in say Florida, California USA, Tobago, Barbados, Cannes, St. Moritz and Grand Couva Trinidad?

If you living in a foreign country and thinking of going back to TT, it make sense.

[Angie]

The 5+ bedroom house on 1+ acres of land I bought in Clayton, North Carolina in August last year sold at approx TT$794000.

That is TT$794000 more than yuh neighbors -- Tarzan and Jane -- pay fuh them house.

And before anyone ascribe any negative connotations.

Ah just mean that Clayton, North Carolina is in de wilderness. Westmoorings is by the sea.

Anywhere you go, you pay more to live by the sea than in the wilderness.

Tarzan and Jane lives here next door to me.

[Angie]

double post

[bigzack]

Oh gorsh Saltfish.

It have them illegal Spanish that does wuk cheap.

Whappen tuh yuh lawn?

[Angie]

Oh gorsh Saltfish.

It have them illegal Spanish that does wuk cheap.

Whappen tuh yuh lawn?

This is mine :roll:

[bigzack]

And who is dah fella swinging on that tree behind dey?

[shield_2006]

Any oman who could wet grass and make it smooth so must have real talent ent?

[Angie]

Any oman who could wet grass and make it smooth so must have real talent ent?

You don't have a clue ;) :bounce: :bounce: :bounce:

[Amelia]

Salts, it wasnt u who was talking about the folly of posting where yuh from in the other thread? And u post pic of the house?!

[bigzack]

Allyuh know how we gyul, Salt "Simply Georgeous" Fish, like tuh show off on we lesser mortals.

[ebony02]

Beeeaauutiful home Salts!!!!

[Chicabonita]

Very nice house!

[Angie]

Thanks lovies.

BigZack, the simply gorgeous pertains to my grand daughter in my Avatar ... ain't she adorable?

[Angie]

Salts, it wasnt u who was talking about the folly of posting where yuh from in the other thread? And u post pic of the house?!

These are my response to the thread you are talking about;

we are all adults here who can make a conscious decision whether or not to participate in the named thread, and those who have, I am sure are fully aware of the dangers of posting any information that may be comsidered personal on the internet.

IMHO, this complaint is not a valid one as those who have posted where they came from, also have the option of removing the information as Randall, 03 and Naina has made it possible to edit and remove the contents.


Fal, I didn't think of the forum rules but common sense dictates that one be careful of posting personal information on the internet.

Unless you are like and just don't care .. then again it still have people who do not believe I am who I say I am ad some just think I am mad, and nobody eh go want to harass a mad person ... do they?

Was there anything I said in the above highlihted posts that even suggest I won't post anything personal in nature?

[LRD]

Given that mortgage rates are so high in this country and the ridiculous prices of property you would have to be a fool to buy, you are far better off renting if you cant buy without a mortgage. Interest rates set around 10% is pure robbery, don't give your hard earned money away to bankers.

[Double Trouble]

Given that mortgage rates are so high in this country and the ridiculous prices of property you would have to be a fool to buy, you are far better off renting if you cant buy without a mortgage. Interest rates set around 10% is pure robbery, don't give your hard earned money away to bankers.

LRD,

Paying rent is worse than buying, even at 10% mortgage rate.

[miktay]

^^How so?

[LRD]

Given that mortgage rates are so high in this country and the ridiculous prices of property you would have to be a fool to buy, you are far better off renting if you cant buy without a mortgage. Interest rates set around 10% is pure robbery, don't give your hard earned money away to bankers.

LRD,

Paying rent is worse than buying, even at 10% mortgage rate.


No it is not!

For example a 2.5 million dollar apartment in Cascade can now be rented for 9000 TT a month.

Let say you buy it with a 90% mortgage over 25 years, monthly repayments would be over 20,000 per month and I have not even included all the taxes and lawyer fees to buy the house in the first place. In addition you would have the yearly maintenance and property taxes to pay. To add insult to injury you could end up in negative equity if the prices crash. Indeed only a fool would buy now.

[Redman]

Given that mortgage rates are so high in this country and the ridiculous prices of property you would have to be a fool to buy, you are far better off renting if you cant buy without a mortgage. Interest rates set around 10% is pure robbery, don't give your hard earned money away to bankers.


I think thats simplistic^^^^^^^^
Should we give our hard earned money to land lords instead.??

If we have inflation at 10% then I believe the money costs next to nothing-if the inflation rate is higher than the interest rate on the loan then THE BANK is being paid with currency that is losing purchasing power faster than the bank is making interest- so its in the borrowers benefit

So exchanging todays purchasing power for an asset and for repayment over time in a high inflationary environment IS in fact mathematically sound.

Also historically the general theory is that real estate is a good hedge against inflation-so with enough time you should be OK


Later

[LRD]

I think thats simplistic^^^^^^^^
Should we give our hard earned money to land lords instead.??

If we have inflation at 10% then I believe the money costs next to nothing-if the inflation rate is higher than the interest rate on the loan then THE BANK is being paid with currency that is losing purchasing power faster than the bank is making interest- so its in the borrowers benefit

So exchanging todays purchasing power for an asset and for repayment over time in a high inflationary environment IS in fact mathematically sound.

Also historically the general theory is that real estate is a good hedge against inflation-so with enough time you should be OK


Later

Redman

You cannot be serious? I house is only worth a house. Yes, in a normal market in 25 years time your house would me worth the same as it is today in terms of purchasing power. So if you paid cash for it, it would be worth the same amount 25 years later assuming you had maintained it well over the years. Due to the maintenance aspect of owning houses over the long term they are in fact a losing proposition. Owning a house over the long term is not an investment it is just another depreciating consumer product.

The only time buying houses becomes an investment is when you buy when houses are undervalued and sell when they are overvalued. Prices are now overvalued so those who buy now will get burnt.

However, buying a house with a mortgage is a totally different proposition. In my example you would have paid your deposit of 250,000 and a total of about 6million to the bank over 25 years! Therefore you paid a total of about 6.5 million for the house!

The best you can hope for after 25 years is that you recoup the capital payments you make over the duration, not the interest you paid to the bank!

You said "THE BANK is being paid with currency that is losing purchasing power faster than the bank is making interest- so its in the borrowers benefit"

Now this is a TOTAL ILLUSION, and this is the cunning of the devious banking system. There is no way the bank would lend to you money at 10% in an environment where money is losing it;s value at 10%. Otherwise they would all be out of business! These guys are in the business of fleecing you.

Of the 2.25 million that they lend to you, 90% of that money is created out of thin air, purely a key stroke entry into the banking system. This increases the money supply and pushes inflation higher. This is the fractional reserve banking system. So in actual fact the bank just needs reserves of 225,000 to make a loan to you for 2.25 million. They return 6 million on an investment of 225,5000, now calculate the real interest rate!

[Redman]

LRD,
I am glad you didn't take the simplistic thing personally, I meant it from the stand point that the amount of financial and non financial inputs that go into a house purchase it makes rules of thumbs misleading.

I agree with most of what you're saying-I deliberately put mathematically sound.
But if you keeping a house to the end of a mortgage-you are not focused on the cost that house is a HOME. So factoring in the utility of that and all the ancillary benefits, it becomes worth it.
If its an investment you probably not talking more than 10 years on the outside,and that means the cost in interest drops significantly and then you in the game.

The only time buying ANY asset makes sense is when you get more on the sale than it cost you-all included, whether today prices are overvalued vs 1,3,5 10 years in the FUTURE is a matter of speculation-The past prices have no bearing on the future prices.

You introduced the 10% mortgage breds-9% reducing balance, is what RBL just quoted me on the phone
Im paying 11% on a commercial loan now.

Inflation rates in Trinidad are now somewhere around there and depending on your source higher. Govts world wide under quote their inflation figures.

Its not any cunning,devious plan the banks have a right to make an offer, the public has the right to refuse to borrow.
How the banks gets the money and how its created is not relevant to the thread, different goal posts

And yes I sometimes can be serious
Later

[LRD]

Redman

My contention is that is makes no financial sense to buy at these rates/prices and indeed foolish from a fiscal stand point. I could rent for 9000 and invest 11000 , purchasing a house with the proceeds of that investment in future when the market corrects, with more money upfront to pay and therefore less interest to pay.

If it is "worth it" to you based on "utility of that and all the ancillary benefit" ( I am not exaclty sure what you mean by this, I assume you mean non financial reasons) then this as no bearing on my argument.

It is not speculation that house prices are currently overvalued. A normal housing market has average property prices around 3.5 times average earnings. Buying a house to rent it out should yield you 8-10%, 9000 rent on a 2.5 million property leaves you 11000 to pay to top up the mortgage after you have collected your rent that is crazy.

[Redman]

Redman

My contention is that is makes no financial sense to buy at these rates/prices and indeed foolish from a fiscal stand point. I could rent for 9000 and invest 11000 , purchasing a house with the proceeds of that investment in future when the market corrects, with more money upfront to pay and therefore less interest to pay.


Your possibly fatal assumption is that your investments will go up as house prices go down-ignoring the fact that there are few investment alternatives that have an inverse correlation to housing prices in this country. For housing prices to come down there has to be a catalyst to soften demand-Is there something that will affect housing prices in isolation???



If it is "worth it" to you based on "utility of that and all the ancillary benefit" ( I am not exaclty sure what you mean by this, I assume you mean non financial reasons) then this as no bearing on my argument.

Yes non financial benefits-sorry I wasn't clear.



It is not speculation that house prices are currently overvalued. A normal housing market has average property prices around 3.5 times average earnings. Buying a house to rent it out should yield you 8-10%, 9000 rent on a 2.5 million property leaves you 11000 to pay to top up the mortgage after you have collected your rent that is crazy.


Yes it is speculation-overvalued has to be relative to something,IF prices trend lower in the future then you would be right-In your opinion we are overvalued relative to historical "norms" which most markets spend little time at and most of their time oscillating around in between extremes in valuations,Also there is nothing to say prices are already at their cyclical bottom-You are mixing up PRICE action with value.
Your position also assumes that asset prices will vacillate between two fixed points indefinitely

None of the historical norms are predictive in this environment.

History is replete with investors waiting for a bottom


Later

[Solachica]

Aye I was watch HGTV on dem foreign houses and no wonder it so easy for dem to renovate. They does cut straight thru walls. :?
House does go up in 7days as in Extreme Makeover. Its a wooden frame and insulation and dry wall :? And it looks pretty as ever.
We cud have houses like tht here? Wonder how much it wud cost :?

[Huma]

I wonder about that too. I doh know if those house could handle our climate, and even if they do, they look like they require a lot more work and money to maintain. I rather a concrete house any day.

[LRD]

Your possibly fatal assumption is that your investments will go up as house prices go down-ignoring the fact that there are few investment alternatives that have an inverse correlation to housing prices in this country. For housing prices to come down there has to be a catalyst to soften demand-Is there something that will affect housing prices in isolation???

Yes it is speculation-overvalued has to be relative to something,IF prices trend lower in the future then you would be right-In your opinion we are overvalued relative to historical "norms" which most markets spend little time at and most of their time oscillating around in between extremes in valuations,Also there is nothing to say prices are already at their cyclical bottom-You are mixing up PRICE action with value.
Your position also assumes that asset prices will vacillate between two fixed points indefinitely

None of the historical norms are predictive in this environment.

History is replete with investors waiting for a bottom

Later


Given that there is a great debate now between the recession morphing into a depression that is either going to end with in deflation, hyperinflation or both, the safest investment is gold which will rise in value in inflation and lose less of it's value compared to other assets in deflation. Cash is king during a deflation but it is subject to counterparty risk whereas gold is not. Therefore it is my opinion that gold will increase relative to house prices no matter what, for greater risk gold mining shares. I think this is a wise investment for the next 3 years continuing it's upward trend since 2001.

Yes house prices always move between two points, under valued and over valued. This is due to the business cycle. I remember telling all my friends back in the UK to sell their property 2 years ago for that very reason, but the attitude was that house prices would continue to go up forever. This is when the UK reached "the greater fool period", where the market could not go on much longer but investors were blind with greed, buying houses and flipping them to the next fool willing to buy. When there were no more fools it was game over and those left holding the properties were screwed!

Once the price of real estate is out of whack with wagers and rental yields it's only a matter of time before they start falling in real terms.

Even if I knew for a fact this was the bottom, there is no way I would be buying a house that can be rented so much cheaper it just makes no sense.

[Redman]

LRD,
Thanks for a great discussion that hasnt morphed into something personal,or Im right and you havetobebongtobemustbe wrong ting.(finally)

Moving away from the property value thing yes Gold is a main part of my focus as is oil,junior gold/silver miners and and non USD underlying funds.And some GHL

No asset class in Tdad exhibits a liquid enough existence for prices to reflect a fair market valuation. Itd always too many buyers or sellers.Its most extreme with Real Estate

So while in fact I am a renter on the residential side I actually bought into the commercial side last year and havent had much issues with the valuations.

Later

[Double Trouble]

[quote="Huma"]I wonder about that too. I doh know if those house could handle our climate, and even if they do, they look like they require a lot more work and money to maintain. I rather a concrete house any day.[/quote's

Huma,

What's so extreme about T&T's climate that would be a hindrance to a house that's not made exclusively of concrete?

[Double Trouble]

Given that mortgage rates are so high in this country and the ridiculous prices of property you would have to be a fool to buy, you are far better off renting if you cant buy without a mortgage. Interest rates set around 10% is pure robbery, don't give your hard earned money away to bankers.

LRD,

Paying rent is worse than buying, even at 10% mortgage rate.


No it is not!

For example a 2.5 million dollar apartment in Cascade can now be rented for 9000 TT a month.

Let say you buy it with a 90% mortgage over 25 years, monthly repayments would be over 20,000 per month and I have not even included all the taxes and lawyer fees to buy the house in the first place. In addition you would have the yearly maintenance and property taxes to pay. To add insult to injury you could end up in negative equity if the prices crash. Indeed only a fool would buy now.

LRD,

90% mortgage? You should have atleast a 20% down payment, if you want to purchase residential realestate! Why a 2.5 million condo in Cascade as your first property? Have you considered buying a property with tenants or atleast rental possibilities? What are you paying as rent right now, if that's not too personal a question?

[Double Trouble]

Redman

My contention is that is makes no financial sense to buy at these rates/prices and indeed foolish from a fiscal stand point. I could rent for 9000 and invest 11000 , purchasing a house with the proceeds of that investment in future when the market corrects, with more money upfront to pay and therefore less interest to pay.

If it is "worth it" to you based on "utility of that and all the ancillary benefit" ( I am not exaclty sure what you mean by this, I assume you mean non financial reasons) then this as no bearing on my argument.

It is not speculation that house prices are currently overvalued. A normal housing market has average property prices around 3.5 times average earnings. Buying a house to rent it out should yield you 8-10%, 9000 rent on a 2.5 million property leaves you 11000 to pay to top up the mortgage after you have collected your rent that is crazy.

LRD,

You say you could rent for $9,000. per mth or $108,000. per year, saving $11,000. per mth or $132,000. plus interest! The problem is most people don't have the discipline to faithfully put away that kind of money.

[Trinifieds]

Currently the housing market is in a slump. People are not buying anymore in Trinidad at the rate they used to and construction is slowly stalling. If we wait a few years, it will be a buyers market and prices will fall.

Right now a client that does housing development is desperately trying to sell off their 1million, 2 million and 5 million dollar properties in the east even BEFORE they are finished.

In order to qualify for a the lowest end of their properties (and it not that fantastic, just a basic two-three bedroom lot) you need to be earning a monthly income of at least 30K and over a month and be able to put down 10% on the downpayment.

So even middle class professional couples I know with degrees cannot afford to buy their homes.

The price of real estate was over-inflated and based on NOTHING from the very beginning. We rate property value based on shallow things, like how many expats are living there and whether it is a gated community and how many amenities the property has.

That is why you have people renting properties that are located a long two hour communte from to the city center, with no good schools in the immediate area, no aesthetic features e.g. lovely view, beachfront etc, within a mile of a ghetto or crime ridden area and no recreational services in the immediate area for a ridiculous price.

No standards were put in place as to what makes a property valuable and so everthing just vikey vie.

Excellent post. I could not have said it better. I just hope that waiting for years is worth it in the end!

Everything thinking about the upturn, even here (http://subiecrew.com/blog/?p=1162)

[SeandSand]

We have a few acres in the extreme Northeast area of Trinidad also a house in Woodbrook,near
Wrightson Road,........not far from Movie Towne,Hyatt,etc...........at this time....its not for sale..
"We keep holding on"...........as somebody said in a calypso......"Things Will Get Better"....Just
forget and be ah Fetter....................................ENT?

[SeandSand]

Are those prices in (www.trinifieds.com (http://www.trinifieds.com)) in USD like most things?

[Trinifieds]

/aside ^^ All the prices are in TT$ ;)

[keilysmith]

If you have kept property taxes at current inflated values, cities still have to raise taxes once you hit a double whammy so to speak. At least property taxes on the basic level is lower, so it becomes more difficult to argue for them to increase the tax rate, they really need to reduce costs and budget.