Coldwell Banker Islands Blog

The following Q & A session was reported by Vanessa Hansen in an interview in Caribbean Construction with Anthony Ebanks, agent with Coldwell Banker Cayman Islands Realty.

1. VH: The construction market in the Caribbean has seen the trickle-down effect from the global economic recession. What will it take to turn this around? Have you seen indications that things are turning around?

AE: In my opinion, Caribbean real estate is generally seen as a luxury item or secondary investment vehicle by most purchasers, and those types of things are always the first to get the axe in difficult times like these.

2. VH: What will it take to turn it around?

AE: First, let’s take a look at a typical small buyer / investor’s profile. They are the bread and butter of our industry, and the target demographic for most developers:

^ Married couples, typically 45-60 years of age
^ 2 or 3 children, at least one in the 16-24 age bracket
^ Professional occupation. Typically doctors with a specialty, lawyers, accountants, etc. (Some entrepreneurs, self-made individuals as well)
^ Median income of US $200 ^ 350,000 per year
^ Generous retirement savings and / or disposable income
^ From a northerly location of the US or Canada. They are what were once referred to as “Snow Birds”. (UK / European buyers are a much smaller percentage of the buying pool overall here, but form a higher ratio in islands that enjoy direct flights from the continent)

The second, motivation to buy / invest is a complicated equation, but here are the main factors:

*Prices being at or very near historic lows. We’re there right now. There’s great value in the marketplace.
*Stock market stability and predictably steady growth, particularly in blue chips, mutual funds, energy and other ‘traditional’ investments
*A solid assurance that the US is seeing the economic turnaround

3. VH: What are the current trends in Cayman’s real estate market?

AE: There are two main trends, both geared towards addressing the local demand:
*Detached residences of around 1300 square feet, under the magic CI $200,000 price point, on around 0.2 acre lots
*Semi-upscale condos/townhomes under the CI $250,000 price point in convenient locations adjacent to population centres in George Town.

4. VH: So what you’re seeing is fewer of the “Snow Birds” and more growth in the Grand Cayman market with first-time home buyers and small families.

Contact an agent in our Coldwell Banker Cayman Islands Realty office to discuss specifics of the real estate market here, and your options to buy or sell.

Neat three storey townhouse approximately 1663 sq. ft. 2 bedrooms plus den 2.5 bath. Terrace & private garden. Enclosed single car garage. High elevation, hurricane shutters, pool, close proximity to just about everything. Asking $341,500.

More photos on our Coldwell Banker listing page.

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent whom you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the agent you chose is both highly skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer. You risk losing out on the home of your dreams.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family and friends - the people who will be living in and enjoying the home.

4. Accept that no house is perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take. Our Coldwell Banker agents are trained and experienced negotiators.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself - room size, kitchen, etc. - that you forget about important issues as noise level, location to amenities and schools, and other aspects that will have a big impact on your quality of life.

7. Plan ahead. Don’t wait until you’ve found a home and want to make an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers. Our Coldwell Banker agents can explain fully the process and what you need to do in what order.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and then let your home deteriorate. This adds even more stress.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home in the first place, and what made you fall in love with the property you purchased.

10. Choose a home first because you love it; then think about appreciation. A home’s most important role is to serve as a comfortable, safe place to live.

Stop by our Coldwell Banker office and talk to any of our knowledgeable agents about taking the stress out of your buying experience.

More than 300 people recently attended the 40th anniversary banquet for the International College of the Cayman Islands. The keynote speaker was Carlyle McLaughlin.

The founder, the late Hugh Cummings, ThD, took special interest in the young man’s college education when his family could not afford college and scholarships were limited in the 1970s. McLaughlin recounted, “Dr. Hugh approached me and told me to come to ICCI. I said I couldn’t afford it, and he said, ‘Don’t worry about it. We’ll get you a scholarship.’” McLaughlin went on to a 25-year career with Ernst & Young.

The current President, John Cummings, PhD, echoed thoughts of those attending when he said how vital a college is to the Cayman Islands, to be able to obtain that education at home. The home page of the College states, “The ICCI education provides attitudes, behaviors, sensitivities, skills and knowledge that are essential. The ICCI experience promotes a potential for leadership and a commitment to community service. Our mission is to equip graduates with practical skills of critical thinking, problem solving and self-directed learning for success in the 21st century job market.”

Email admissions@myicci.com for information.

Cydonie Mothersill powered to the women’s 200m title in 22.89 seconds at the Commonwealth Games held in New Delhi, bringing the Cayman Islands their 1st gold medal.

Mothersill, the 2001 world championship bronze medallist, came out of the bend and into the final straight in front and never looked like losing. The winner said, “I have welcomed the challenges because I have Cayman soul.”

The Cayman Islands have won only one medal before, when Kareem Streete-Thompson took bronze in the long jump at Manchester in 2002.

Our congratulations to Ms. Mothersill!

Many of us put off repairs until it’s time to sell. If your home needs work to get a better price from a buyer, here are some suggestions to make sure you get good work done and in the timeframe you need.

1. Get at least three written estimates.

2. Check references. If possible, view earlier jobs the contractor completed.

3. Check with the local authorities for complaints.

4. Be sure the contract states exactly what is to be done and how change orders will be handled.

5. Make as small a down payment as possible so you won’t lose a lot if the contractor fails to complete the job.

6. Be sure that the contractor has the necessary permits, licenses, and insurance.

7. Check that the contract states when the work will be completed and what recourse you have if it isn’t.

8. Ask if the contractor’s workers will do the entire job or whether subcontractors will be involved too.

9. Get the contractor to indemnify you if work does not meet any local building codes or regulations.

10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.

11. Guarantee that the materials that will be used meet your specifications.

12. Don’t make the final payment until you’re satisfied with the work.

Check with our Coldwell Banker agents for advice on what repairs you need to make to sell for top dollar.

Located in the exclusive area of prestigious Crystal Harbour this is an incredible opportunity for the right developer. Scenic coastlines and spectacular views of the North Sound. Anything is possible with this site. Soil tests have been procurred and underground utilities. Wonderful site for a hotel or prestigious condominium Development. Willing to sell separately. 14.05 acres. Asking $9,995,000.

(photo is not of property but Crystal Harbor Ramada Resort)

Contact our Coldwell Banker office for details.

According to BusinessWire.com, “For the third consecutive year, Condé Nast Traveler readers have chosen the [Ritz-Carlton, Grand Cayman] hotel as the best resort in the Caribbean. In the magazine’s 23nd annual Readers’ Choice Survey, more than 25,000 readers voted and ranked the best cities, cruise lines, airlines, hotels and resorts worldwide.

“In addition to the latest Condé Nast Traveler award, the hotel also received the coveted Five Diamond Award for both the hotel and Blue by Eric Ripert for the fourth consecutive hotel and restaurant evaluation by AAA. Blue by Eric Ripert is the only restaurant in the Caribbean region to have been awarded five diamonds with the closest establishments to have earned this honor being in Mexico and Bermuda.”

Now through December 16th, the resort is offering its Peace of Mind package starting at $399, featuring accommodations, breakfast and a complimentary third night.

Spanning 144 acres from Seven Mile Beach to the North Sound, the resort features 365 guestrooms and suites, Silver Rain, a La Prairie Spa, five dining venues including a restaurant by Eric Ripert of top-ranking New York restaurant Le Bernardin, the island’s largest ballroom, a tennis center by Nick Bollettieri, Ambassadors of the Environment by Jean-Michel Cousteau eco-adventure program and Blue Tip, a Greg Norman-designed nine-hole golf course.

The leading banking and finance magazine, The Banker, has named the Cayman Islands as the top specialised financial centre for the second year running in its 2010 IFC Rankings released this month.

Cayman has been awarded first place by an increased margin over other jurisdictions such as Bermuda, Jersey, Guernsey, Malta, Gibraltar, Monaco and Cyprus.

The Banker’s ranking of international financial centres is based not simply on the size of the financial services industry in each location, but focuses instead on the level of international business and the value offered to institutions seeking to expand their overseas operations.

Statistics from the Cayman Islands Monetary Authority (CIMA) note that Cayman still maintains US$1.795 trillion in deposits and interbank bookings and is the world’s largest domicile for hedge funds, healthcare insurance captives and catastrophe bond transactions.

The Cayman Islands is recognised as one of the top international financial centres in the world, with over 40 of the top 50 banks holding licences on the island.

Download the full report through this link at The Banker.

(resource: CaymanFinances.com)

Predicting the Future: One Real Estate Agent’s Quest for Market Analysis

Anthony Ebanks has been in real estate for almost four years and it did not take him long to notice what the markets in the Cayman Islands, and the Caribbean at large, were missing, “There is not much in the way of true real estate market analysis,” says Ebanks.

“For example, until now, there was no easy or convenient way to analyse the market performance of, say, 2 bedroom pool-view condos on Seven Mile Beach, versus anywhere else for a given timeframe. Possible, yes ^ if you do it manually.”

But to perform that manual analysis would be extremely time-consuming and less than convenient. That’s why Ebanks decided to put his technical and engineering background to work.

He designed a tool called RealtyScope that performs detailed market analysis and presents the results both numerically and visually. Ebanks describes the tool as a “data-visualisation analytical engine.”

Technically speaking, Ebanks says RealtyScope “uses highly advanced query methods ^ operating simultaneously on multiple information sources - to gather results and then present them graphically in a variety of formats.”

Caribbean Construction’s Vanessa Hansen finds out more about RealtyScope and talks with Anthony Ebanks of Coldwell Banker Cayman Islands Realty.

1. VH: Does RealtyScope provide analysis of properties only in the Cayman Islands?

AE: For the moment, yes, that is our focus. However, as a data assembly, correlation and analytical process, it can be applied virtually anywhere ^ not only to real estate, but in fact to almost any information source. In other words, if the data is provided in a structured manner, RealtyScope can almost certainly process it.

2. VH: Who can benefit from the use of RealtyScope?

AE: Anyone in the real estate market. Buyers and sellers who need to zero in on their market’s activity and values; investors who require both market analysis with income and expense information with an eye for finding the best combination of ROI, location and future appreciation; and developers who more or less require everything above along with the best possible advice on where and when to actually build their type of project. This is achieved by correlating the market data with economic/demographic data.

3. VH: What are the key performance indicators (KPIs) in real estate?

AE: That somewhat depends on the market sector, price range, and also the timescale in question, but there are a few that always apply.

In no particular order:

^ The sales price to list price ratio (sometimes also referred to as the Bid to Ask Ratio). This indicator, represented as a percentage of the Sales vs. List Prices, is a strong indicator of a market’s health. For example, if properties were shown to be selling on average for, say, 50% of the asking price in a given area versus 95% overall, then it could be reasonably inferred that there exists a strong motivation to sell in that particular area.

^ The average days on market. Tells us how long, on average, properties of a given type stay on the market before sale. This is an important barometer of market activity and seller expectations.

^ The quantity of transactions, their average value, and sales volume. Generally speaking, the higher those numbers get, the healthier the market.

^ The minimum and maximum sales prices. These serve as outliers, or borders, for market activity. They once again help to frame expectations and provide an indication, in terms of sales values, of market composition.

^ Sales growth. Usually expressed as a percentage over a given timeframe, e.g. growth over previous quarter/year, etc.

As we get more specific, other KPIs come into play such as sales prices per square foot, sales price per acre, etc.

Also, depending on the type of analysis requested and the level of detail required, we can reveal subtle trends such as standard deviation (and its volatility derivative) and several other factors. These KPIs, while admittedly esoteric in nature, can also be quite important to specific types of buyers or investors.

4. Give me the bottom line of what RealtyScope does for the real estate market in Cayman?

AE: By providing a means to instantly perform a numerical market analysis on any sector of the market ^ and also represent those results visually ^ RealtyScope fills an important void in the services offered by real estate professionals.

To learn more about RealtyScope visit www.yourperfectproperty.net or call Anthony Ebanks, Coldwell Banker Cayman Islands Realty, office 345-623-4411, cell 345-916-1782.