Over the years a few Barbadian fat cats have been known to have invested in timeshares in the United States. Some have purchased condominiums and other properties. Some people say that some of our Barbadian merchants have been able to setup a web of companies over the years to manage their operations, the result, a redirecting of funds which should be legally destine for Barbados but remain in offshore accounts.

The rise of an affluent and credit worthy middleclass in Barbados in the last fifteen to twenty years has seen an increase in investments over seas by ordinary Barbadians. We suspect that the Central Bank of Barbados maybe alarm at the significant offshore holdings of Barbadians if it were possible to check or is it?

The current economic climate in the United States and the collapsed housing market according to local media reports has attracted the attention of Barbadians investors. A recent report in the Nation newspaper has highlighted high interest in acquiring real estate in Florida, some Barbadians have already signed on the dotted line.

Here is what BU family member Tony Hall has to say on this recent development:

I think Bajans should pay attention to the below article and tread carefully before a decision is made. This reminds me of a company called General Development Corporation, based at the time in Florida which many Bajans and West Indians in the USA fell prey to in the 80s and 90s.The land was very cheap but the developers never told the purchasers that utility lines for connection to gas, water and electricity were far from the land and that these three major utilities combined would cost as much as the value of the land to install.

Let us see if some worthwhile comments can be elicited.

The BU household has nothing against middleclass Barbadians investing to secure their financial future but they should try to do so from an informed position. The little we know about the Florida real estate market suggests that although land can currently be purchased at bargain prices it is extremely costly to build along with the several other legal requirements which makes home ownership in the United States a tricky undertaking.

Barbadians BEWARE!

Nation Article

IT MAY SOUND TOO GOOD to be true, but offers of land in Florida – far cheaper than in Barbados – have not got a number of Barbadians showing interest in the 10 000-square-foot lots advertised for sale in Lake Placid.

According to Harry Martinez, marketing manager of Placid Lakes Development Inc., “not everyone who comes by or calls has made an appointment but we already have seven or eight sales yesterday [Tuesday], and we anticipate at least 15 to 20 sales before I leave [tomorrow]”.

International Preferred Enterprises Inc. (IPE), the parent company, is a Florida-based real estate company specialising in homesite sales exclusively in Placid Lakes, since 1971.

The foreclosure lots going at the “unbelievable” price of US$1.50 (BDS$3) a square foot were advertised in the local media by IPE.

The advertisement said: “All lots 75 feet above sea level and already subdivided with no time limit to build. Financing provided – deeded freehold and at prices limited and subject to prior sale.”

Martinez said a little over 100 lots were left and that the term “subject to prior sale” meant that “we don’t have that many lots that are on foreclosure”.

“These lots at these prices mean somebody else owned them and we had to take them back because of divorce, death or not making their payments.”

He added the company had agents in other areas like Trinidad and Tobago, throughout South America, England and Canada.

Developed lots

“So those 100 lots are divided up between different agents. There, we have fully developed lots where there are home sites. You can build your homes in the future if you want to . . . .

“Most of the clients are foreigners; so we have it packaged for them. We will provide financing for them with the deposit for the basic lots which are 10 000 square feet,” he said.

Asked how could he prove the sale was not a scam, Martinez said: “To prove that this is not a scam, we are in the Better Business Bureau [North America] and as land sales are listed as a highly regulated industry, we work closely with the [US] government and other regulatory agencies.

“Buying this land is better than the stock market. When the stock market drops you lose everything, but land you can keep. It never does devalue, it usually appreciates,” he said.