Real Estate in Northeast Florida and Around the World

On a recent trip to Bermuda, I spent a couple of days touring the island and spending time with Albert Moura of Albert Moura and Associates, a real estate brokerage firm based in Hamilton, Bermuda.  As a fellow member of the Certified International Property Specialist network, connecting with Moura was easy and efficient, and because of the mutual interest and education in dealing with global properties and customers, there was an immediate mutual interest in each other's respective market activity.

Here are a few "fast facts" regarding Bermuda:

• Capital and Government:  Hamilton, Overseas Territory of the United Kingdom, Parliamentary/Self-governing
• Economy:  Bermuda third highest per capita income in the world, more than 50% higher than that of the US; economy primarily based on providing financial services for international business and luxury facilities for tourists - remains the island's number two industry. Most capital equipment and food must be imported. Bermuda's industrial sector is largely focused on construction and agriculture is limited, with only 20% of the land being arable. 
• Currency:  Bermudian Dollar - fixed against the U. S. Dollar, both are accepted on the island.
• Population:  68,000+/-,
• Median age:  total: 41.6 years; male: 40.2 years; female: 43.1 years (2010 est.)
• Geography:  54 sq km - a bit more than 13,000 acres. 
• Bermuda real estate cannot be vested in a non-Bermudian, nor in a trust which may benefit a non-Bermudian, unless a licence is obtained on behalf of the non-Bermudian. The fee for the licence is a substantial percentage of the market value of the real estate.
• With some limited exceptions, only real estate in the hands of non-Bermudians is available for sale to non-Bermudians.
• It is common for Bermuda real estate to be owned by a trust.
• Each building must have its own cistern to contain its water supply, gathered from specially-engineered rooftops which allow efficient drainage from rain runoff.  Regular cleaning and whitewashing of the rooftops is a part of everyday life in Bermuda to ensure a clean and fresh water supply.

Bermudians are very friendly, but following in UK style, are more reserved and formal than most coastal areas in the US.  A gentle, polite society, but very proud of their island of 9 "counties" or boundaried areas.  Hamilton is one of these areas, and where I spent the majority of my time.

 So, after the fast facts, just what would it cost to own a piece of this beautiful volcanic island?  In general - a  lot more than in the states.  In fact, a small house or condo that needs a major improvement overhaul can be done for around $800,000.  This is the price range where a government-assisted loan program can be obtained for Bermudians seeking home ownership.  A modest  condo in average condition could be obtained for about $3 - 4 million USD, where an average single family detached house will run you about $10 - 13 million USD.  In addition, you will pay an 18 - 25% one time license fee, and of course, if you purchase a condominium, there will be association fees ranging from $750 - $1000 per month in addition to your purchasing expenses. 

Another option to outright ownership is fractional ownership, which is similar to a time share, the difference being in how you are able to occupy the residence.  When you purchase your fractional ownership, your ownership will likely rotate each year, so that every fractional owner has the opportunity to stay in their residence during a different season every year.  In addition, if you wanted to stay in your house on short notice, you can do so if the house is not being occupied by its owner during that period.  Fractional ownership is very common, and has become the most economical real estate option for most people.

If you are planning to visit Bermuda or are interested in real estate investment opportunities, please allow me to personally introduce you to my professional colleagues there.  If there is another global destination in which you have an interest to invest in real estate, please let me know by emailing me, and I will provide you with "fast facts" information as well as get you connected with one of my world-wide contacts to personally guide you through your search and transaction.

In the meantime, I'll be seeing you around the neighborhood - give me a wave!