‘Affordable Housing Has To Be Affordable’
The Government-backed plan supporting 100% financing for the Grand Atlantic condos is “another example of a desperate government relying on everyday Bermudians to rescue it from its self-inflicted policy bungles,” Shadow Minister for Public Works Mark Pettingill said last night.
The Grand Atlantic Development in Warwick will comprise of 60 two bedroom/one bathroom homes and 18 three bedroom/two bathroom homes. Prices range from $495,000 for a 2 bedroom home up to $665,000 for an ocean view 3 bedroom unit.
“The OBA supports any sound arrangement that helps Bermudians own their own homes,” said Mr Pettingill.
“However, the Government-backed plan supporting 100% financing for first-time homebuyers treads a very fine line with people who, under normal circumstances, would not be able to afford a condo at the Grand Atlantic development.
“We are very concerned the people looking for affordable housing today will be hard put over the long term to meet the monthly mortgage demand a Grand Atlantic condo will require. 100% financing arrangements have already put a lot of mortgage holders today into difficulty.
“We therefore put great stock in the Minister’s statement that 100% financing will be offered only to ‘qualified’ first-time homebuyers. We are not happy with the fact that the financing scheme is backed by the Bermuda Housing Corporation, meaning taxpayers are on the hook for any failed mortgages.
“It is another example of a desperate government relying on everyday Bermudians to rescue it from its self-inflicted policy bungles – pension diversions to cover its cash shortfalls being the most recent example.
“The 100% financing arrangement puts these properties into direct competition with Bermudian homeowners and landlords, who do not have the luxury of being subsidized by government.
“It may cost them sales or rentals but that is the price they will have to pay for a government scrambling to save a housing project that proceeded without any realistic understanding of the market,” continued Mr Pettingill.
“The Grand Atlantic project clearly missed the mark by building units too expensive for the people wanting to become homeowners. The OBA would have done things differently, guided by careful planning to help Bermudians realize the dream of owning their own home.
“Building for the sake of building – as this government has done at the Grand Atlantic site – is not good enough. Building housing that people can afford should have been the basis of this project, but it wasn’t. It is another example of the Government proceeding without clear thinking – once again putting politics before policy.
“Affordable housing has to be affordable,” said Mr Pettingill. “We would have made sure of that.”
The United Bermuda Party also issued a separate statement yesterday, saying: “”The press release where the government is offering 100% financing for condos in an already saturated buyers real estate market is of great concern to the United Bermuda Party.
“We give the government kudos for good intentions but we are duty bound to question the economic viability and timing of such a scheme considering the state of our present day market.
“We consider a solution to be converting Grant Atlantic condos into long term rental tourism accommodations rather than saturating the market with more entry level housing – a move which would be more in step with Bermuda’s current economic needs.
“We initially called into question the hurried development of this pristine ocean front property and made mention that it is best suited to advance Bermuda’s tourism product.
“Once again property ear-marked for hotel development is being sold off as residential without a hotel development in sight.
“It is noteworthy that prior to the 2008 recession numerous Bermudians purchased homes with little equity, but that also came back to haunt many families, with depreciated property values evaporating equity together with the drying up of job opportunities when the recession took hold and the International Business sector down sized in Bermuda.
“We are concerned that the PLP government’s actions could adversely influence an already depressed real estate market. This at a time when Bermuda desperately could use more hotel beds rather than condos for sale.
“The United Bermuda Party have long supported and built homes designed for entry level home owners. Our concern is that entry level government homes have often become out of reach when they are resold.
“Also, we are also concerned that in this present economic climate, many potential entry level homeowners will not have the ability to pay and/or have a reasonable opportunity to capitalise on this opportunity.
“Our reality is that Bermuda is in the eye of an economic storm, with many potential purchasers for entry level home ownership hanging on by a thread and modern day factors making these prices well beyond the reach of many Bermudians.
“Hence we encourage government to consider leasing these units for long-term tourist accommodation as an alternative to further saturating the real estate market at this time.”
I wonder how many homes Mark Pettingil has?
OBA, waay to get the young professional vote rubbishing plans that provide the opportunity for them to own a piece of the rock.
A friend of mine only had enough saved for a 10% downpayment, but now he can get a place as the bank isn’t asking for 20%.
I don’t see where the OBA gets off criticisng things that HELP!
We don’t all have the option to save 200,000 to put 20% down on a million dollar home. Why doesn’t the OBA get that?
This doesn’t help at all. The OBA are right on this one. The reason none have sold is because people WHO CAN ALREADY AFFORD THEM, don’t want them. So what does the Government do? They are create an avenue for people who CAN’T AFFORD THEM, to be able to buy them through 100% financing.
Butterfield Bank, recognizing the inherent risk with a transaction like this, doesn’t want this liability on the balance sheets and asks the Government to provide a backstop for WHEN the mortgagees fail to keep up with the load payments.
Ultimately, the Government is INDEMNIFYING Butterfield Bank against the risk of default. They are so desparate that they are prepared to further fleece the taxpayers in an effrot to save themselves the embarrassment of another failed project ..which is what this is.
I am not even going to talk about the idea that Goverment is further hurting existing homeowner values by flooding the market with homes when there aren’t people to fill them…
This Govt is clueless.
Questions for you:
Why do you think Loughlands units sold so quickly?
How many Loughlands units are currently being sold on the market because people could not afford them?
Regarding your comment “Goverment is further hurting existing homeowner values by flooding the market with homes when there aren’t people to fill them”
First of all, developers flooded this island with expensive condos that the avg Bermudian could not afford, using up the little land we had. Those who bought them in the hopes to extort people with high rents.. were gambling. Prices still have not reached attainable levels and they probably will not for a while because of the high loss they will sell for.
So due to greed, persons excluded the middle class from the housing market… no that Gov’t wants to assist people are getting vex.
Please tell me the type of people who flocked to the Loughlands Development? Vast majority of white-collar professionals who could not get in the market! Its unfortunate that Government had to step in but if they didnt.. then what? People here are talking about prices going down….. guess what THEY ARE STILL UNAFFORDABLE TO THE MIDDLE CLASS!!
The loughlands sold because the timing was better. Simple.
Your view on property is jaded. Extort? Fact- The market dictates whether something is too expensive or not. Let’s use this development as an example- The reason NONE have sold is because it is not worth the price they are asking for it. Everyone who can afford one (and there are many), looked at them and decided that it is not worth what they are asking for it. If it was such a good deal, they would have sold AT LEAT ONE BY NOW.
Developers are in business. They respond to a need in the market. The reason we saw so many Condo’s being developed is because the market was buying them. Simple economics, supply and demand. The difference between a developer and the Govt is that Developers are not spending Taxpayers dollars. It is a private enterprise and if it fails someone gets are great deal on a new property. The Govt FLOODED THE MARKET WHEN THE SUPPLY WAS ALREADY HIGH AND THE DEMAND WAS ALREADY LOW. That doesn’t make any sense. Further aggravated by the fact that they used your money to do it.
Let me educate you on something else. The main investment of the middle class IS THEIR HOMES !! The Govt is single handedly decimating the value of their main investment by further saturating an already saturated market.
Don’t get it twisted, this is not about the middle class at all. This is about the Govt getting itself out of a hole and using the taxpayers are a ladder.
The last thing they want is this failure of a project hanging over their heads during the next election. Simple.
You clearly forget one important factor in your Loughlands theory.. 5% financing. Before they were even put on the market it was known that you would only need to put 5% down.
You are correct, when you state the market dictates if something is too expensive or not. Rents are not expensive for companies who pay for accomodations or for persons who recieve a housing allowance… for THAT demographic rents were not cheap, however FOR the average Bermudian prices were expensive hence why you see alot of young adults staying at home.
Landlords exploited the IB expat demographic for high rents because they/companies could afford to pay… and yes that is capitalism, but it did not help to the middle class.
Furthermore, ANYONE WHO BOUGHT A HOME AS AN INVESTMENT IS TAKING A RISK LIKE ANY OTHER TYPE OF INVESTMENT i.e. stocks etc… If you bought a condo in the hopes that while you live at home the rent will pay the mortgage.. like the stock market you are taking a risk.
IF YOU BUY A HOME TO LIVE IN AND TO RAISE YOUR FAMILY AND LEAVE IT FOR YOUR FUTURE GENERATIONS THEN DROPS IN PRICES SHOULD NOT AN ISSUE. THE REAL ESTATE MARKET LIKE ALL MARKETS ARE CYCLIC… IT WILL RISE AND FALL time and time again.
You think Bermuda homes have always rose and never declined in value??
I for one want to buy a house and live in it and raise my kids.. I am not buying it to rent it while I live at home or in a crappy apt… I know many others who feel the same way.
I am not too sure what your point is anymore. I know that buying a proerty is taking a risk …I own one.
Govt is not providing “affordable” housing. If they were, that wouldn’t be a problem. They are looking to make a profit on this development. That’s why they are not being offered at cost. They are just competing with its own middle class and diminishing the value of their hard earned investment. You make it sound like the only people who would like a profit from their homes are greedy investors. That’s ridiculous. Anyone who buys a home and spends their life paying it off wants to protect their investment.
The problem is that the Govt is now in direct competition with those Bermudians (Some are Granny’s and Grandpa’s, you know, everyday Bermudians) and thereby reducing the value of people homes. Worse yet, they used taxpayer money to do it and have increased taxes on them to pay for it all.
If you are a homeowner, you are losing up front on the value of your home and then you are getting taxed more to pay for it all.
That’s wrong and that’s my point.
What’s yours?
How much did it cost to build these units? You are assuming Govt is made a profit, until you have facts either post them or continue to speculate.
My point is if you bought a house to live in and raise a family and intend to keep it in your family, it should not matter the flucations of value, because housing prices are cyclic.
If I bought a house in order to eventually sell it to make a profit, then I would be upset and overly concerned the values..
@Truth (Original)- I agree 100% mate. I dread the day when these people can’t keep up their mortgages (and it will happen) and then my hard earned money will be taken from me to cover the Governments (PLP’s) ass. It’s very aggravating.
All I can do is hope no one takes them up on their offer of 100%
After listening to the radio talk show yesterday on this housing subject I learned that the 495,000.00 condo will cost you (interest and all) over a million. So much for affordable housing. They really need to school these buyers with full disclosure and honesty before buying because most don’t realize just how much this home is costing them.
We’d all love a piece of the rock but not at a cost that will have my family living below the poverty line.
Isn’t this the same irresponsible behaviour which got us into this financial mess in the first place??
As a young Bermudian homeowner, I HATE the fact that this Government is competing with me and my family and are taxing us heavily to do so. The OBA and the UBP are right on this one. The Government has lost its way.
DO NOT BUILD ANY MORE UNITS and USE THE EXISTING UNITS AS SHORT TERM TOURIST ACCOMODATIONS !
Those rooms are too small to attract any serious purchasers and the price is too steep. Anyone who can afford to purchase that will opt to purchase something better seeing as the price of those is in line with regular market prices.
I am so disgusted with this Government.
Obviously you have not seen or viewed homes that are currently on the market… and obviously you have not done any research by making these comments, which makes me think you just are on here to spew falsehoods.
tell me any DECENT condo on the market that is a comparable in location, age and size to these units and their listing price?
The market is still steep regardless of the current price drop… pure robbery out there.
The location is negated by the fact that it is a 3-storey concrete jungle.
Funny that a particular large scale condo development in Hamiltop P, selling for much higher and it looks like a concrete jungle.
Check Bermudarealty, condos and then sort by price. If these were such a great deal, they would have sold by now. You think those places are a nice size? seriously? Did you see the bed and 2 night tables touching each wall?
You’re in lala land if you think that these places are a good investment. Anyone who can afford it, won’t buy it because they will have done thier own analysis and will have come to the same conclusion as everyone else …those are bad buys.
Here are a few:
http://www.bermudarealty.com/displayproperty.aspx?ref=d6c668d2-2453-4e76-b7c7-509ed053eb07&ssp=0&sc=0&sd=0
http://www.bermudarealty.com/displayproperty.aspx?ref=189b9f11-ba7b-4956-a67b-cda31e60ccfd&ssp=0&sc=0&sd=0
http://www.bermudarealty.com/displayproperty.aspx?ref=716860c9-9e21-4469-bac7-b35311908112&ssp=1&sc=0&sd=0
The first property I went there to check it out… decent, but you would still need to spend at lease 100k to do some renovations.
second property in St. Davids, not a bad deal, but some might have reservations in staying there
third property, in Sandys, visted that one, needs some work, rooms very small. Will need to spend a few thousand… on the basement area alone. Plus you can only expand the property from the rear.. it was built very close to one of its boundries.
And yes, they are decent, but you still have to pay more money to get them to a standard.
@ truth.. no one said the condos are for an investment.. Im sure most people who are interested in buying them just want home ownership to raise a family… not to make a profit.
One thing that I liked about these properties was the fact that they are cottages, which gives one a real piece of the rock. For me personally, I would rather pay a bit more for a house with land, than for a condo, but to each his own. And I do understand what you are saying, it is rough out there trying to find something to call your own.
Whine Whine Whine. Why does the OBA always have some negative stuff to say and ofer no solution. That’s why this crazy PLP government will win again.
The OBA are the opposition; they are supposed to oppose. The OBA will not give Ewart’s PLP/BIU Party and good ideas to steal….
You want ideas? Then elect the OBA. Simple.
Cuz all Ewart’s PLP/BIU Party is doing is digging an even deeper hole for Bermuda to disappear into. They have NO SOLUTIONS for their self-created massive financial misadventure. And WE are not gonna bail them out. Got that!
It is affordable… to professional couples making 7-8+k per month. Professional couples who make 7-8k per month cant even get a mortgage for a regular home on the market.
Pettingil has to realize there is a difference between affordable and low-income housing. Guaranteed if they made the prices lower people would be complaining about the ‘type’ of people that would live there (as someone in another article stated already). These houses are priced for middle class professionals, the only other housing for that demographic is Loughlands and those units are filled with professionals.
Pettingill states: “The OBA would have done things differently, guided by careful planning to help Bermudians realize the dream of owning their own home.”
lolol…. Planning how? by telling them unless you have $175,000+ stacked away and make 100k per year you might be able to buy a house?
A few years ago, people were complaining about the housing market and that “government should do something about the prices”…. Government tries to assist and then what backlash.
IMO OBA would not have done anything to assist the average Bermudian to own their own home…. never once did they mention it when members were part of the UBP or when members were on BDA… You never had the middle class on your platform.. always about the Business and those who have wealth.
I happen to make the 7-8K per month and there is no way I would pay $4000 per month, which would be 50% of our monthly income. Not for a Condo anyway. To me owning a piece of the rock means I own the land as well as the house it sits on. Having paid a mortgage just last month that had a 6.5% interest rate, I paid back 3 times what was borrowed.
100% financing is a bad idea, but anyone who does take one of these condos, more power to them.
One would be extremely lucky to make 7-8k and be able to afford a cottage in this market.
IMO 100% financing can be bad, but it can help people depending on their situation. Some people make good money, but they have not yet saved 20% of a down payment on a 900k house. Does that mean they cannot afford it a 4-5k mortgage? Not necessarily…
Then you have the bank that still has to approve the loan… it’s up to the bank to decide who can pay back the loan.
How about (RENT TO BUY) ever thought about that people…? You all need to work with us not try to break our pockets!
I have continousily suggested Rent to Buy for the last 14 years,but no one listens.
The properties could be generating revenue and not be vacant.
The fact is that this project is not to help the home buyers but the “investors”.
I was just talking to a friend about this today. The PLP claims they are for the people, so why not help the people? Why make people take on 30 year $4000 – $5000 mortgages when these units could be paid off in 20 years paying between $2000 – $3000? If the plan is to make it affordable, make them affordable.
TRuth, no one is listening to you
I for one am happy to see the government providing an alternative to the private sector as this is the only way to keep prices affordable. The private sector is in the game to profit and often defend prices as due to supply and demand. They can influence prices by controlling the supply resulting in prices rising. With the government building houses the supply increases and prices fall. This is good for the economy. Real estate firms do not have a right to profit at the expense of everyone else so their complaints ring hollow. I laugh whenever i see the term”affordable” used because it is a relative term so while it may be affordable for some it most definately is not for others!
The govt is in this to make a profit as well. Wake up. They are not selling these units at cost ! They are looking to make a profit, that’s why they are regular market prices.
Geesh.
These are NOT government built units. When are you going to get that through your head? They are built and financed by the private sector and sponsored by government.
Help me out. Gilbert Lopes builds them and then Govt pays him in full, after the completion of each phase.
How is that not sponsored by the Government?
Sorry, I misread your post. Who cares if they are Govt built or not. They fact that they were not built by Govt means that they were probably done more efficiently and could therefore offer them at a lower cost. The point is that Govt is looking to make a profit.
What was the point of your post?
Any prudent businessman would have had at least 10% of these units sold in principle even before the ground was broken. This just reeks of amateurism.
Plus…the place looks nice inside, but from the outside the whole complex is just ugly.
They will be very affordable once they drop into the ocean . . . Any Bermudian person would think twice before buying a condo on an eroding coast! Plus how expensive is the insurance on these places for wind, storm etc.? And if you do your sums & research, you can presently rent a 2 bedroom 2 bath condos with pool, tennis courts or a dock for far less than a morgage at “Grand Atlantic Folly” or a 2 bed cottage with a garage & garden. Quite frankly, a Bermudian couple would be better renting for awhile & saving for a deposit & then buying . . . much less stress for partnership too!!! Needless to say, who ever wrote or signed the contract on Government’s behalf they are not very bright as i’m sure the contractor is laughing all the way to the bank!!!
As for the Bank of Butterfiled agreeing to do this, are they nuts during these recessional times or is there an alterior motive to sink the Bank further that the overseas investors buy out the local shareholders for cents???
Funny how no one says this about the Reefs, or any of the South Shore houses that are selling for 3 mill?
If the Reefs owner, or any other private owner for that matter, wants to take on that risk, then that is their problem. The Bermuda government taking on that risk is my problem.
Apart from Dr. Wingate… whom I was unaware that he was a structural engineer, how many professional engineers have issue with the site? If possible can you name them?
Not being facetious, but I am curious.
what i’m curious about is what is the name of the professional engineer that thinks building there was a good idea?
Wee Pow,
The Reefs is private money and their market is geared to wealthy foreigners who want to vacation her . . . Bringing in foreign exchange & chances are the owner will not be here to ride out hurricanes and their shoreline condition is no where near as bad as Grand Atlantic! As for the private homes on the south shoreline, most are owned by non-Bermudians too. As we all know, the Grand Atlantice property shoreline has been eroding for years & Bermies know it, so we’re not that stupid to invest that amount of money in it!!! Rather save, and buy a fixer-upper cottage with grounds in any neighbourhood than live in a condo development that also could drop into the sea & or become a crappy hood! So this has become another Brown & Cox Governments’ Folly with OUR TAX $$$$$$$$$$!!!!!!!!
How this could become a crappy hood if you have professionals living in it? Would you say the same about the Hamptons in Southampton?
Exactly, just like, people saying they’re not good for Bermudians since they’ll slide into the ocean, due to the cliff erosion, but yet these same bloggers are saying to let them be geared for tourist?! So, are they saying once tourist are in them, they won’t slide in to the ocean? Erosion only occurs if Bermudians purchase and occupy them? Hmmmm…….. I think we can read between the lines.
What is OBA’s price for “Affordable Housing”?
And if you offered them to the tourist, hotels and guest houses will cry out.
lol.. Guess they didnt think of that one… they would rather damage an economic pillar that is already in bad shape…
And these are supposed to be ‘good businessmen’.
“Long-term tourist accommodations” is the key here. This actually presents an opportunity to grow a new area of tourism.
This is rich:
Pettingill states: “The OBA would have done things differently, guided by careful planning to help Bermudians realize the dream of owning their own home.”
I’ll read into that they would have left young professionals out to dry in the market. The OBA just don’t get it, look at loughlands, look who is in there, ask them if they would have rather leave it up to chance with the ridiculous market or get an affordable home.
For all of those people on here complaining, find me one new 3 Bedroom condo on the open market under 700K. I’ll wait for your responses patiently.
This WILL backfire against the OBA
does this one count?
http://www.bermudarealty.com/displayproperty.aspx?ref=d04a29a8-8781-420a-b3de-92a1062f1c14&ssp=0&sc=0&sd=0
or the 7 others like it or how about this one
http://www.bermudarealty.com/displayproperty.aspx?ref=eb7da760-539d-44a8-b702-93928db866a6&ssp=1&sc=0&sd=0
He need to drop the Reason in his name and just call himself “The Voice”……
LOL no reasoning at all….
Have you ever built a home in Bermuda?
Some people just don’t understand a lot of the facts. This government has proven… Once agin that they are not a forward thinking government with a concrete plan. The fact that 100 percent financing has been offered will not necessarily make payments easier for buyers. Intact it will actually make payments harder and more expansive over a longer time period. Think about making payments of 3000-4000 dlrs a month, then on top of that you have to pay electricity, cable, groceries, insurance, gas bill, car bills and then on top of all that a maintenance fee. One must realize this is how the USA got themselves in such a bad situation, because of 100 financing and that was when things were good. For all of you that say the OBA just complain should listen to what’s being said by them. It is also the OBA’s responsibility for find fault with any government program which they believe would cause disruption to the country. The flipflop PLP need to learn how to govern and run a country the correct way if they want to be a government and not expect for the people of Bermuda to bale them out everytime. Once again the PLP have proven they have lost their way and have certainly run out of ideas. Every program they try to impliment there is a fault. I say good luck to anyone that purchases one of these units because they are built on soft sand and only the next major hurricane will determine their long term stability. I just hope they are not built like the dockyard pier took major damage after one major storm!
So cancer.. how the current market stands, mortgages are around 5-7k per month on average. Plus the expenses you stated, PLUS a large portion of your savings for the down payment.
So, compare that to what Gov’t is offering and what is easier?
P.S the 5-6k per month mortgage is not for an exectutive home/condo either…
**The flipflop PLP need to learn how to govern and run a country the correct way**
They could never run a real ‘country’ ’cause as we can all see , they can’t run or manage a 21 square mile (reef) ISLAND !
Eventhough I normally do not agree with Mr. Pettingill on most things, I believe he is correct (to a certain extent).
This is not afforable housing – - our standard of living and geographical location prohibits such a lable being placed on any housing development in this country. “Affordable housing” by Bermudian standards would be frowned upon by even the most jaded Bermudian – - “that is cheap looking”, “I ain’t living in no ghetto”, etc. So in that respect, he is correct – the government has not provided affordable housing in the current market.
However, the government has done something – - middle class professionals who have the means have been given an option – plain and simple. The market is flat and everyone is having difficulty in finding housing which suits their lifestyle and pocketbook. Additionally, the lack of downpayment capital is a serious factor for most interested home buyers today. This gives them the option – - wait, continue to save and something may present itself – - – OR get the 100% financing and pay further down the road (but you have a piece of the rock to live and build your family upon).
But that is a risk and a choice that all home buyers take – - leave it up to the individuals to make the decisions themselves – - but you can’t blame the government for providing an option – - even if it was a blunder on their part – maybe?
Yng Black Mind
(those who know understand)
As a young professional looking to buy a housing, the idea makes some sense in a market that has been overpriced for such a long time. The problem is, that given the current state of the world economy, and the instability in Bermuda, purchasing a property that may be quickly under water makes absolutely no sense…and I mean underwater financially and literally.
Basically, the market is saying that those properties aren’t worth the selling price, or that better opportunities are presently available.
Now I will buy one of these if the government guarantees that when I sell up in 5 to 10 years I will at least be able to get my full purchase price plus fees. I would even be willing to split the potential upside. I would buy that.
But that would just put more liabilities on the books.
@yng Blak Mind- the option to build was unnecessary. There wasn’t a shortage of places when the Govt started building these units. Middle Class professionals are not going buy these places, that’s why they are now offering 100% financing. They are now looking for a tier below middle class.
Having these mortgages backed by BHC is a further sign of the desperation this Govt is in and I ca guarantee you that 100% financing attracts higher interest rates.
If the Bank were to be unscrupulous, why wouldn’t they give as many mortgages as they could know that ultimately, if the mortgages Gail, they are protected by BHC? This is a recipe for disaster when all parties to a contract do not share some risk.
I think the rent to own idea is EXCELLENT!!!
I’ve been saying that for years but for whatever reason no ones listening!
@wee pow – What government is offering may easier? If so recommend one of those ugly grey Lego block buildings to one of your sons, daughters, or cousin and take the risk that it would still be there after the next hurricane with absoluty no damage. Then cross your fingers the following year that your relatives don’t come to your for assistance with their insurance because of your recommendation!
I predict most people will want to sell within two years!
as opposed to buying a run down cottage for 600k in a crappy neighborhood then having to spend a further 200k for it to be in a livable standard?
Actualy for that square footage with no structural changes you could probably do it for around 70K.
Funny thing is, it looks like Westgate.
Walk down the stairs or if your on ground level try walking to the ocean.
Mrs Coxachov……….Tear Down This Wall.
Another point to make about this development, the monthly maintenance fee is $450.00 per month. In the private sector when it comes to condo developments the maintenance fee cover, at the minimum, the following:
Exterior painting (walls and roof), landscaping and building insurance. I know of one condo development where the maintenance fees were low and when it came to doing some major work there was not enough money in the pot to do it so each owner was assessed, if I remember correctly, $5,000. to pay for the work.
Wonder if this aspect has been thought out too??
Build it, they come.
Just wanted my cheque? Got it.
What do we do now.
Call ‘Coast Busters’.
Anyone who purchases one of this is a fool.
Now, off to Marthas for a glass of Bermudiana Del Rocko………plus Uighers…great service.
What are the criteria that qualify persons to purchase one of these units?
These Condos no matter which you flip it are a complete and total Government F&#K UP!!! thatisall
Good day after reading the article I would like to know:
1. What is the criteria for owning one of these units?
2. Who does the screening of these requirements?
3. If I take a mortgage with the bank is this seperate from the management company that runs the complex?
4. What are the hidden maintainence fees that will be tacked on after my mortgage in my monthly / quarterly expenses?
5. Which entity, private or government will maintain them?
6. Are they a freehold unit or a lease hold unit?
7. What if I want to use HSBC or Capital G to be my lender will i still get the 100% financing option?
8. When will the green component be added to this development and at what cost to the owner will that have?
9. What cost to the taxpayer to maintain and afford this development?
If you can assist me with some answers to these questions i think it might help me and many others that are having a problem deciding on owning one of these units?
One last question, Where are the tender documents for the various contractors that submitted RFP’s to this project and was Gilbert Lopes the more experienced in this style of complex, was he the most cost effective, and what were some of the other issues you had with some of the other contractors?
@ true dat,
I, along with many others await the answers to these questions!
typo—meant for Trying to own a piece of the Rock.
Sorry.
@ Trying to own a piece of the Rock: Thank you for those very valid questions. I think there are many of us who would like answers. I am not trying to down the government. Personally, I would like to see them do something that stood up to criticism for once. After all, I helped to vote them into power, so their failings are an embarrassment to me. I want them to get it right for once. However, I am not at all sure this is it.
I don’t like the look of the buildings – too utilitarian; I have grave doubts about their ability to stand up to hurricanes; the room sizes appear small, and I worry about cliff erosion. That is such a pretty stretch of South Shore, I have to wonder what the architect was thinking. If those apartments were really designed for the young middle class professional, with so many prettier cottages around, there was a serious miscalculation. However, I am willing to wait for the landscaping. Maybe there’ll be an improvement.
On the other hand, I can’t understand someone who really wants a piece of the rock settling for a condo. I don’t understand how you own the land, especially if you aren’t on the ground floor. Someone please explain it to me.
With regard to mortgage payments, people whose mortgages are in the $3-4K area often can’t afford to live in the houses they have bought, unless they have a rental unit attached. It’s not about being greedy, it’s about simple economics. By the time you pay for necessities, especially if you have children, that mortgage is a killer. It leaves very little wiggle room for savings or luxuries. And we are talking about 30 year mortgages. Living nose to grindstone for 30 years in a barracks wouldn’t appeal to me.
@Paster Sly – ” That is such a pretty stretch of South Shore, I have to wonder what the architect was thinking. If those apartments were really designed for the young middle class professional, with so many prettier cottages around, there was a serious miscalculation. However, I am willing to wait for the landscaping. Maybe there’ll be an improvement.”
Some statement you made there but my comment is that that stretch of road and land has been ruined. Landscaping will not do much to beautify the area ESP from the roadside. Driving west passing the big new gas station all you can see are big ugly grey blocks. That whole area is a concrete jungle. Any plantation on the site will be hidden by those lego buildings. Just think of it as one of Bermudas most beautiful stretches of land has been ruined!
They would be a tough sell as tourist rentals as well. Would require another 30 to 50 k for furniture for each and then you might only get $300 a night, less cleaning costs and maintenence, I don’t think they would even make in the current vacation rental market, and if they did , again they would hurt already existing vaca rentals that are trying to survive. Gov should not be in the real estate biz, or any other biz.
what would make the most sense (and therein is the problem) would be to tear down these overpriced eyesores and plant trees…..they are not needed, unaffordable and should not have been built…..even Governments make mistakes so admit this is one and do not throw anymore good money after bad…..we cannot afford it…..
The real scandal is that the Bermuda Government allowed a beautiful piece of unspoiled oceanfront land to be built upon specutively in this environment a testament to the fact they have no clue of world economics and its impact on Bermuda. At a very minimum there should have been a cadre of preapproved purchasers with all of Bermuda’s banks. The architects and planners should have consulted with the pre-approved purchases to design and build the condos that were at least desirable and value for money. In the end due to excessive greed and improper project oversight and management, we have an expanse of land that is destroyed, an eyesore, many unattractive buildings and no purchasers either because they can’t afford the units or they have no interest in them. What a waste, travesty and embarrassment thanks to the Bermuda Government. There are some prospective purchasers who passed up on the opportunity to buy at Loughlands in order to avail themselves of the bigger and supposedly more upscale Grand Atlantic Development. Well, they must feel like fools now…