Deciding on your family’s main home is a big decision. You might be wondering whether it’s better to buy an existing house or to build one yourself. Both paths have their own advantages and things to consider. Let’s look at some key points to help you decide whether building or buying is best for your family.
Building or Buying Cost Comparison:
It’s always important to consider the money. When you buy an existing house, the price is usually clear upfront. However, you’ll also need to factor in costs like conveyancing fees (legal costs for transferring the property) and a budget for renovations to make the house truly yours.
The costs for purchasers (National and Non-National purchasers) are:
- Property Transfer Tax – Nil
- Proportionate part of land tax – This amount will vary depending on the value of the property and the time of the transaction.
- Out-of-Pocket Expenses – BDS$300 (Approximately)
Legal Fees are legislated as follows:
1. Up to $25,000 – $1,000
2. On the next $75,000 – 2.5%
3. On the next $100,000 – 1.5%
4. On the next $300,000 – 1.25%
5. Thereafter – 1%
VAT of 17.5% is payable on legal fees
A non-national purchaser must remit the purchase price to Barbados in foreign currency, after which it will be converted into Barbados currency and registered with the Exchange Control Authority of Barbados to facilitate a subsequent repatriation. Exchange Control Authority permission is also necessary for the purchase itself. This is usually readily obtainable once the purchase monies have been registered.
Building a new home can seem like you have more control over costs, but it can also have surprises. You’ll need to buy land first, then pay for architectural plans, building materials, labour, and permits.
According to the Town and Country Planning Office, average construction costs range between BDS $300–$450 per square foot, depending on finishes and location. The Barbados Statistical Service has noted that the cost of building materials can fluctuate [1]. It’s wise to get detailed quotes and have a contingency fund for unexpected expenses.
Timeline Considerations:
Time is another crucial factor. Buying an existing house is generally quicker. Once your offer is accepted and the legal processes are complete, you can move in within a few months. Building a house takes much longer.
Finding the right land, getting plans approved by the Town and Country Planning Development Department [2], and the actual construction can typically take between 6 and 18 months. This requires patience and careful planning. Delays are common in construction due to weather, supply shortages, or waiting on contractors.
Land Availability in Different Parishes:
If you choose to build, finding land is the first step. Land availability and prices can vary significantly across Barbados’ parishes. For example, land on the popular West Coast tends to be more expensive and less readily available than in some areas of St. Philip or St. George.
- Christ Church and St. Michael – Higher prices due to demand and access to amenities.
- St. Philip and St. George – More affordable land and growing infrastructure.
- St. Thomas, St. Lucy – Better value, more rural settings.
Many locals already own land through family or inheritance. If you do, building could be a more affordable long-term choice.
When looking at land in different parts of the island, consider where you work, your family’s needs (like schools), and your budget.
Construction Challenges Specific to Barbados:
Building in Barbados comes with its own set of challenges:
- Hurricane-resistant designs are necessary, especially on the coast.
- Skilled labour can be limited, and good contractors are often booked months in advance.
- Material costs fluctuate, and imported materials can face delays or shortages.
- The need to meet Town and Country Planning regulations may require changes to your plans before building starts.
Long-Term Value Considerations:
Thinking about the future value of your property is wise, whether you buy or build.
Generally, well-maintained property in a good location tends to hold its value or even increase over time. Building a new home allows you to incorporate modern features and energy-efficient designs, which can be attractive in the long run.
However, the value will also depend on the quality of construction and the desirability of the area. Researching property trends in your chosen location can be helpful.
Making the Right Choice for Your Family:
The decision to buy or build your main home in Barbados is a personal one. Buying offers speed and a clearer upfront cost, while building allows you to create a home tailored to your family’s needs. Carefully consider your budget, timeline, where you want to live, and the potential challenges of each option.
At Hannah Properties, we understand the local market and are here to help you find the best path to your dream home. Whether you’re looking for an existing house with good bones, a plot of land with potential, or simply need guidance on the process, we are the real estate agent for the people, ready to assist you. Contact us today to start your journey home.
References:
[1] Barbados Statistical Service. (Various Years). Construction Statistics.
[2] Town and Country Planning Development Department. Website Information on Planning Permissions.