When I travel, I always check out two things: The price and type
of real estate available, and the types of unique goods made in the
area. Bermuda, where I recently attended an intense but
invigorating real estate conference, surprised me in both
quests.
When I travel, I always check out two things: The price and type of real estate available, and the types of unique goods made in the area. Bermuda, where I recently attended an intense but invigorating real estate conference, surprised me in both quests.
First of all, there is nothing uniquely Bermudian. Well, nothing is a pretty strong word. But almost everything there is imported. I’m sure you can guess what that does to the cost of living there. Whoa, doggies. It is expensive. Take cars, for instance. In this land of 20.75 square miles, there are about 30,000 homes (up from 16,000 30 years ago). Each household is allowed one car, and a new car will cost about twice what it does in the U.S. Of course, if you buy a car in the U.S. you’ll be out of luck … they drive on the other side of the street.
The only souvenirs I got were a pair of lime green Bermuda shorts (with my white legs I looked like I was riding an ostrich) and a small jar of hand cream scented with Bermudiana, a native flower. Bermuda shorts are ubiquitous. The men wear them as business attire with long socks and Oxfords. But they don’t team them with printed shirts. Instead, they don the traditional button-down shirt, tie and jacket.
So what about real estate? On the ride from the airport to the conference center, I busily jotted down numbers of all the condominium projects we passed. Boy, oh, boy. With its lush greenery and pink coral beaches and turquoise waters I had visions of sugarplums dancing in my head. Forget living out my years in California. I was envisioning retirement in this region of no graffiti, no crime, and full employment. Yessiree, Bob. Is that another one? Did you get the number?
Hunkered down in my hotel room, I quickly connected to the Internet and began my research into my new adventure. Five minutes later, the dream was dead.
It appears I’m not the first one to have discovered the area. Seems others have tread where I dreamed to go. In 2005 the Bermuda Government decided Bermudians were losing control of their country. Now the housing laws state non-Bermudians can still buy homes with annual rental values (ARVs) above $153,000 – but only from non-Bermudians. Condominiums can also be bought by non-Bermudians but only from other non-Bermudians. Under no circumstances may properties be sold by Bermudians to non-Bermudians. The Bermuda Government placed a five-year ban on Bermudians selling top end homes to foreigners. In 2005 only four properties, owned by non-Bermudians, were sold to other non-Bermudians. This law has been challenged in court but somehow I think my odds are not good to buy one.
And did you catch the bit about the ARV? Imagine what a house would have to be like for you to be willing to pay $153,000 a year ($12,750 per month) in rent. NOW imagine what the sales price would be on that house. My odds grow slimmer.
When you purchase a home in Bermuda, you apply for a license to buy and own. That alone will run you over $1000. Then you pay a tax of 22 percent of the cost of the home. (WHAT?) Then you get a mortgage at 9 percent. And you have hefty yearly tax bills. That pretty much decides it, folks. But I can still visit there. It’s beautiful and clean, the people are polite and helpful, and it’s less than a two-hour flight from the East Coast.
The moral of the story is Bermuda is a location viewed as desirable by many people. So is California. So what do you do? In both San Benito County and south Santa Clara County there have been battles and discussions and arguments and fisticuffs all over the subject of living in the location other people dream about. If you open it up to all comers, you risk ruining the quality of life for those here. But just because you were born here or came here a long time ago, does that make it your birthright forever?
I don’t know the answer, I just ask the questions! I do know, however, that there are 437 homes available in south Santa Clara and 297 in San Benito County. Santa Clara has the least expensive single family dwelling at $325,000 and San Benito checks in with $348,000. There are beautiful homes at all price points available these days. The selection is outstanding and you’re sure to find a home to match your needs.
If you’re currently renting, you should talk to a Realtor who can help you start planning for future home ownership. Even if you’re years away from it, he or she will help you figure out a methodology for achieving your goal.
Of course, home ownership isn’t for everyone. If you’re only planning on living in an area for a short period time, it makes sense to rent. Many websites have a “Rent vs. Buy Calculator” which can help you make an informed decision for yourself. You can go to www.google.com and type that phrase in and come up with a great selection of them.
Until next week, be kind to your Realtor.
