RE/MAX Bay Islands ‘turns savvy, informed clients into Successful Homeowners, Investors & Sellers’
Culture Shock
It is pretty simple; here is not there.
Yes, it is true that the Bay Islands are a part of Central America, and also, for the most part, English speaking. That being said, just because people speak English, does not mean that they think, act, or reason in the same manner as people from North America.
The people groups on the Bay Islands act and think differently than you do. The Bay Islands are a melting pot of sorts. There are two separate and different black cultures, white islanders with bloodlines back to fishermen from the U.S. in the 1800’s (along with a few of pirate genealogy). There is a subgroup of Spanish people. Some are newer (the last 10 years) and some have been here for 2-3 generations. In addition, visitors will also see darker colored white people who are descendants from the Paya Indians. Though there are obvious cultural differences, I have never experienced any issues with the various people groups of the island.
Weapons/Tools of trade
Guns
A commonly asked question and one of the obvious misconceptions about life on the Bay Islands, has to do with guns. Guns are legal, and unless one has a permit to carry, guns are kept at home.
Armed security guards are stationed at locations, which generate a large amount of cash such as banks, grocery stores, and gas stations. To the average North American, security guards look as if they are heavily armed. People may see the guards and feel as if life here is dangerous. That is not the case. The size of the gun has to do with economics. Shotguns are cheap. Pistols, (Glock, Ruger, S & W), are expensive. Honduras is poor country and even the security guards spend their money wisely. The presence of the guns should make us feel comfortable not uncomfortable. Big guns = no robberies. (note – previous newsletter on Bay Islands on crime/security/murder rate). https://www.roatan-realestate.com/roatan-remax-newsletter-securitysafetycrime/ (yes, the Bay Islands murder rate is less than half what it is in the U.S. Virgin Islands).
Machetes
Island visitors may also find themselves surprised to observe men walking along the road or in fields carrying a machete. Please know these machetes are not weapons, but tools. These hardworking locals “chop the bush” for a living. Carrying a machete is no different than a carpenter having a hammer on his tool belt. Sometimes I think people have seen the moving Touristatoo many times.
Garifuna Days
One of the cultural highlights of the year on the island is Garifuna Days. Garifuna Days is held each year in Punta Gorda. If you are living on the island or visiting at this time of year, Garifuna Days is something you may wish to experience. As Garifuna Days, can make for a fun day of culinary and cultural experiences.
Garifuna Days celebrates the first arrival of the Garifuna people to the island historically noted as April 12, 1797. At this event, visitors will see the typical historic and colorful dress, hear the Garifuna language, witness traditional dances, and eat Garifuna food such as Casava bread, topada, (seafood soup), the machuca (mashed plantain or plantain soup), the traditional coconut bread, guifity (a local alcoholic brew), and much more.
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Now some real estate
Is now the perfect time to buy? Yes, it seems to be the case.
Traditionally, real estate here is a year or two behind the U.S. in up or down swings and that may be the case now with many of the warm weather climates there rebounding. We have had just a little of that. This year started out very flat but seems to be coming out of its shell over the past couple of months with things getting a bit perky right now for properties in the “Pending” category. For Buyers from the U.S., you have an added advantage in that the dollar is very strong now, (not an advantage, of course, for our Canadian friends).
Our market is so small here that the Canadian dollar has taken a bath in the past couple of years and Canadian Nationals are not buying as they were. Therefore, there is less demand here, so there is less pressure for property prices to increase.
“The U.S. dollar is stronger than it’s been in the last 12 years, and that means that retiring overseas just got more affordable. A LOT more affordable. According to Bloomberg , the dollar is up a whopping 25% since July, when compared to a basket of international currencies. Practically speaking, it means lots of places are on sale today. And it’s not just the price of real estate that’s lower for you when you’re shopping with dollars… it’s the cost of living, too. Everything from dinners out, to clothing, to the fee you pay the gardener and the cost of a taxi ride across town. From Mexico to France, your greenbacks are going further than they have in over a decade. That makes today a VERY smart time to be considering your best options overseas.” Jackie Flynn, Publisher, International Living
The bottom line is that we are an international market and with most of our sales coming from the U.S. and a disproportionate amount (based on population), from Canada, when the Canadian dollar is down, it has a negative effect on the quantity of total sales. What that means to this market is that sales are flat, price points in that they are not sinking, but are barely rising. In 2013 to 2014, the average price of residential properties was up 2%. The median price of vacant land has dropped year after year with the median listing price at 10.6% less in 2014 vs. 2013. This seems to be attracting more of the developer types, which is a good thing in regard to our ever-decreasing residential (condos & homes) inventory.
There are a couple of things to note in this discussion. First, we are a tiny market. Percentages can and have fluctuated greatly based on a large dollar sale or two. “Averages” are not always what they would be where you have many sales each year. Secondly, the prices at this point, are very low and overall, this is a cash market. People will sell, like they did there, via short sales to get cash. This artificially lowers prices below actual values.
How do you know if you are getting the “right” price when you buy or sell here?
When vetting your real estate company here on Roatan, make sure your agent, whether you are listing or purchasing, is using the excellent database of actual sales to obtain the listed price they are suggesting or the offer price when you buy.
Some people naturally do not wish to lose money on their purchase, so automatically start there, add some wiggle room, and real estate commissions to determine what they wish to sell at. This is setting a price with their hearts not their heads. A quality real estate agent will do a Comparative Market Analysis (CMA), which will give you exactly what the market will pay for your property. The same goes for purchasing. Before you write an offer, you should have your Agent do a CMA. If they are not doing this, then you nor they are doing it with you heads, but with your hearts. It really is no different than if you own a stock that is worth $100/share but you call your broker and tell them that you would like to sell, but at $125/share. Listing at higher than the market price will not get you a sale. Buying works the same. You should pay what the market price is at that point in time, not what someone thought they want for it.
If you are working with a REALTOR now or plan on choosing one soon, make sure they are working in this manner to ensure you get what you should when you are selling and pay the correct price when buying.
One thing that all of our readers have in common is that you all have an interest in is the Bay Islands and may already own property here, think you may want to own property here or you know you are going to own property here but just have not yet purchased.
One thing that some readers often do not consider and maybe should is “land banking” or the purchase or vacant land for future use. As mentioned, vacant land is at the bottom of the market at this point in time and there is a lot of it for sale. The odds of you finding an excellent location for you to have your little piece of property for a future buildout of a vacation, relocation or retirement is not only good it is very, very good.
This month I will suggest that it may be just the way to go for many of you. As a cash market, considering a purchase of a home site or land may be absolutely perfect. Owning a home form afar has some very cool aspects but that said, absentee ownership can also have it’s challenges. The purchase of a vacant piece of property however, has you prick out the perfect location for you to invest with many possible options for the future with little responsibility or mental stress. Buying at the bottom of the market will pretty much assure a nice return some years down the road. Property taxes in comparison to most places, are very inexpensive. If you always want it to look good and have it ready to build on you can buy in a planned community and that will automatically happen.
Vacant land ownership is a great way for you to own your own piece of paradise in a carefree manner.
“Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security. “ Russell Sage – American Financier and Politician
Check some of these options out.
One of the three most affordable ocean view lots in the Bay Islands – $36,000 U.S.
https://www.roatan-realestate.com/listing/listing-375-most-affordable-oceanview-lot/
Are you looking for that perfect little place to call your own and have it right on the water? $49,000 U.S. https://www.roatan-realestate.com/listing/listing-199-waterfront-place-for-boat/
A quiet hillside lot in a top end planned community with nice views and breezes –
https://www.roatan-realestate.com/listing/listing-308-lot—133-/
The best of both worlds – a nice small building site with views to the sea AND it comes with a free boat slip.
100 yard walk away is a nice beach and all for just a little over $50,000 U.S.
https://www.roatan-realestate.com/listing/listing-236-brick-bay-home-site/
Two great options in the quality community of Lawson Rock.
Strategically located halfway in between the International airport and the nicest beaches on the island you get to take your choice of a smaller lot adjoining a community pool or a nice large, estate sized with old growth trees –
check these out- https://www.roatan-realestate.com/listing/listing-370-lawson-rock–45/ or https://www.roatan-realestate.com/listing/listing-357-lawson-rock/
How about a little more remote but a white sand beach front lots? Always a great investment.
https://www.roatan-realestate.com/listing/listing-352-white-sand-beachfront-lot/
or
https://www.roatan-realestate.com/listing/listing-389-camp-bay-east/
How about a home site on a Pete Dye design golf course? The lowest priced home site in the development! http://www.roatanrealestate.com/listing/listing-367-pristine-bay/
Some residential offerings –
NEW Listing- A nice home near West End that may be just the place for you! Just $239,000 https://www.roatan-realestate.com/listing/listing-390-sunset-ridge-value/
Six bedroom home- live, rent, live & rent ONLY $129,000
https://www.roatan-realestate.com/listing/listing-373-6-bed/-home/
Home on a spacious 1.25 ac homesite -Edible Landscape!
https://www.roatan-realestate.com/listing/listing-365-charming-roatan-style/
A couple of Hotel/Condo units on West Bay Beach that pay their own way- https://www.roatan-realestate.com/listing/listing-363-condo-223/
or
https://www.roatan-realestate.com/listing/listing-258-beachfront-condo/
NEW Listing- A nice home near West End that may be just the place for you! https://www.roatan-realestate.com/listing/listing-390-sunset-ridge-value/
Mid island condos that are very nice units, with a health spa, the best sports bar in the country and one of the best restaurants on the island, swimming pools, (four of them), quality construction, secure, convenient-
Four units to choose from starting at $179,000 – https://www.roatan-realestate.com/listing/listing-270-2-bedroom–2-bath–unit-311/
Great home/great price – 150 feet from the water- Utila- https://www.roatan-realestate.com/listing/listing-392-casa-paradise—oceanview-home/
Beachfront !
Home near West End- Excellent rental income potential https://www.roatan-realestate.com/listing/listing-362-serenity-beach/
Condo – Walk to West End-video tour https://www.roatan-realestate.com/listing/listing-360-3br beachfrnt/
Do you have our Mobil MLS on your phone or your IPad? Paradise at your fingertips!
http://mymobile.flexmls.com/BayIslandsRealEstate
Do you want to search for your own piece of paradise? Check out our MLS right here – http://link.flexmls.com/oq9ggfooh53,2
Know who you are feeling with in the Bay Islands – We are here with the RE/MAX Forever Guarantee https://www.roatan-realestate.com/roatan-about-us/
Are you new to the search and research? Here is your FAQ page-https://www.roatan-realestate.com/roatan-buyers/
Photography by Devon Stephens, Roatan (want a closer look? Click on the photo to enlarge really nice photos)…..
