Buying land and building a dream home is a common practice in Barbados, this because it is a developing country.
To build a perfect house with rolling countryside and ocean view with an ideal location, Barbados has so many lands for sale.
In Barbados, you don’t need to buy an existing home. You can easily buy land and build a house with your ideal thought and design. To avoid the stressful construction situation by making your home on your own, you can hire any reputable builder from Barbados.
Table of Contents
Funds from the banks in Barbados
The first thing that you have to do is to register your fund In the Central Bank of Barbados, if you purchase the land from overseas and you need a fund for buying that land.
If you want to take out the money and leave the country in the future, you can.
There are specific loans for buying land in the banks in Barbados, in case you want a mortagage to fund your purchase.
If you have a good income score and income proof of your own country, you can put in an application for a land loan, in case you are a non-resident citizen of Barbados.
For an existing house, the bank loan is usually higher than the Mortgage. The offer from the bank is for those people, who have no hurry to build a house but they want to buy land and secure it for the future.
Get suggestions for a budget-friendly house, you have to contact a reputable construction company.
Buying Home in Barbados Process
In Barbados, if you make sure to buy land and build your house, you have to hire a builder to draw up the plan and put it forward for approval by the country and town planning in Barbados.
For grant of approval, you have to wait for 3 to 6 months.
You can start the building work with the selected construction company after the plans are approved.
The bank will set a deadline to complete the construction and access a predetermined cost to the construction if a mortgage is funded your purchase.
When the building inspector who is sent by the bank is satisfied with the project, then the bank will release the next fund amount.
The building inspector will investigate the work progress and either the building phase moves along the project or not.
The progress in the construction in each phase ensures the satisfaction of the bank and the construction company gets salaried by the bank and you will ensure that your construction work will be finished on time.
Location Of Building An House in Barbados Cost
Location is the main influencing factor on cost. If you want to buy a large land, then the cost per square foot will be reduced as compared to small land.
If you decide to buy land which is located on a beachfront with a sea view, then the cost per square foot will be much higher than other ones.
The buying process in Barbados
- Search your ideal property first then make an offer
- To conduct a title search, you have to hire a Barbadian attorney after the offer of the property is accepted
- The contract will prepare by the attorney of the seller
- Until the sale is completed, the property will be held in escrow by the attorney of the seller which you need to spend a 10% deposit for the property security.
- If you are not a resident of Barbados, then you have to apply permission for purchasing property through an exchange control authority of Barbados.
- The remaining 90% deposit should be payable till the conveyance of the property which is a period of 3 to 6 months.
Cost per square meter in Barbados
$120 is the average cost per square meter of an apartment situated in the center of the city of Barbados.
The center would be either the financial capital or the administrative capital or the center of the rental market. The cost of residential square meters is calculated by in-house research through the Global; property guide.
The research is based on the offers for sale, advertisement, resale houses and apartments, and offer for rent.
Properties with good facility, redecorated, and in excellent conditions in last 5 years would be in high demand. As compared to the pre-existing property, the newly-built house is higher in cost.
The official price statistic of houses doesn’t publish by Barbados. The central bank of Barbados publishes the general economic statistic.
Then if you are still not sure about building an house in bardabados, you can check others place as for example the Cost To Build a House in The Bahamas.
Types of houses in Barbados
You can be built a chattel house or a concrete house in Barbados. They both are providing shelter and economic-friendly. There is no major difference between these 2 types of houses.
Any people can afford these and gain experience of ownership of a house and represents the architecture of Caribbeans.
Difference between concrete house and chattel house
If you want to know more and all details of these 2 types of homes, then you can find more than one difference. The elements used for the construction, maintenance cost, efficiency, building cost, philosophy, and the environmental impacts are the main difference between the concrete house and the chattel house.
Aesthetics
The only visual difference between these 2 types is aesthetics. With a focus on the functionality of the hose, the chattel house is designed as simple and traditional.
The construction materials and the simplicity are the wow factors in this type of house. To add some beauty to the chattel house, the shutters, shingles, window hoods, and fretwork can be used.
In any shape and any size, the concrete house can be made. Cement, concrete blocks, and steel with elaborate design are used in this.
Barbados House Building cost
As compared to the cost per square foot of a chattel house is less than the concrete house. In Barbados, $75 per square foot is the cost of a modern chattel house.
The cost includes building materials, labor, steel, cement, blocks, plumbing, and electrical fittings. In 3 months, a small chattel house can be built. $125 per square foot is the cost of a concrete house.
This cost also includes all the elements like a chattel house. The time duration for complete the house depends upon the size of the house.
Maintenance cost
Compared to a concrete house, the chattel house needs more upkeep because it is made up of wood. Due to wind, rain, and sun exposure, the board will decay and rot eventually. The walls will be repainted and the roofs will be replaced every few years. You have to do a treatment against the wood-loving bugs.
Although the cost of a concrete house is high it needs low maintenance. There is no fear of the rooting of the cement wall. The roofs will be replaced if it needs.
Environmental impact
The chattel house are built by using concrete material.
So they are called environmentally friendly. If you are a nature lover, then you can build a house with recycled timber and wood without using chemicals.
A chattel house can be made by using re-purposed material and it needs low maintenance also.
Concrete homes are believed as energy-efficient homes. But it is not environmentally friendly. The construction of a concrete house needs more expenses and materials.
Why Build an House in Barbados?
As per your shelter need, you have to decide which house is ideal for you. The influencing points on your decision are- a stipulation of the building and your budget.
Transaction cost
- 1% to 2.5% is the attorney fee and VAT is 17.5%
- The proportionate cost of the land tax would be expected to be paid by you
Annual owing cost
- US$2.50 to US$3.25 is the insurance per US$500 of a property
- There is a need for contents insurance. The cost is between $3.0 to $3.75 per $500.
- Land tax:
1. 0.8% is the taxed site value for under 4000 square foot unimproved land
2. 1% is the taxed site value for over 4000 square feet of unimproved land
Based on the improved value of residential land tax-
- At first $75,000 is 0%
- On excess than $75,000 but not greater than $225,000 is 0.1%
- On the greater than $225,000 but not greater than $425,000 is 0.7%
- On the greater than $425,000 is 1%
- On residential property, a tax cap is $50,000.
Best places to buy land for building a home in Barbados
- Christ church
- East coast
- Holetown
- Paynes Bay
- Sandy Lane
- South coast
- St James
Buying guide for a foreigner in Barbados
Overseas buyers are allowed for investment and buy property by the Barbados government. The real estate and buying seafront land laws are the same for Barbadian citizens and foreigners.
The non-residents only have to get permission from the Barbados Exchange control authority and they must have registered with the central bank of Barbados.
Conclusion
In the Caribbeans, Barbados is the most popular destination for living in there with an unparalleled reputation. During this article, you saw, how can you buy a property, how can you building your own house, the building cost, what is the tax, and which house you should buy in Barbados. Before you buy land and building a home in Barbados, you have to know the monthly cost of electricity, water, cable tv, condo fees, and garden, pool maintenance.
