Average Family Home US$1.8m

[Reality]

Apparently the average family house price in Bermuda is reported today as $1.8 million (sorry, can't post link, I can't access Bermuda Sun today). Does that number sound accurate and what exactly would that buy you in Bermuda? Is it a similar situation for anyone buying houses in other offshore jurisdictions? It just sounds like a frightening amount of money and I don't see how a house can be worth that really - surely there will be a correction to such overvalued properties sometime?

[Prospero]

Wow.  I remember the headline in the RG in 2003 stating the average price for a piece of the rock was $990,000.  Quite the appreciation in 4 years.

[KickinSand]

Apparently the average family house price in Bermuda is reported today as $1.8 million (sorry, can't post link, I can't access Bermuda Sun today). Does that number sound accurate and what exactly would that buy you in Bermuda? Is it a similar situation for anyone buying houses in other offshore jurisdictions? It just sounds like a frightening amount of money and I don't see how a house can be worth that really - surely there will be a correction to such overvalued properties sometime?

Those numbers were inflated quite a bit due to the sale of few higher priced properties, 4-5 @ 3.5Mil. once the yearly stats come in the price will come down... How much is another question, my guess about 1.2Mil.

[Reality]

Here is the link to the article.

Coldwell Banker also says that rents for properties rented through them have risen from an average of $4,555 to $5,300. Admittedly they tend not to handle the lower grade rents but still, that is quite a jump.

[something else]

that's just depressing

[Wookie]

that's just depressing

Amen HRH Bunny.  Makes trying to get a clean start here VERY difficult.  I feel for all those Uni Graduates arriving back, MBA's in hand from 3-4-5 years of independant hard work ......... only to move back in with Moms while they start at the bottom of the ladder.

But Hey, the new Property Ownership law will help solve that, won't it E-Wart?!?!?! 

[Mysty]

What I'd like to know is... exactly who are, or where are, the economists who are supposed to help this half-assed gu'mint function...??!! 

[Rummy]

What I'd like to know is... exactly who are, or where are, the economists who are supposed to help this half-assed gu'mint function...??!! 

ecommunists? Gotta tink about det vun.......

[Betty]

that's just depressing

Amen HRH Bunny.  Makes trying to get a clean start here VERY difficult.  I feel for all those Uni Graduates arriving back, MBA's in hand from 3-4-5 years of independant hard work ......... only to move back in with Moms while they start at the bottom of the ladder.

But Hey, the new Property Ownership law will help solve that, won't it E-Wart?!?!?! 

Oh for sure - all those spouses of Bermudians who had an extra 1.8 mil just laying around waiting to pull the rug out under a potential Bermudian homeowner wont have a ghost of a chance now!

[KickinSand]

What I'd like to know is... exactly who are, or where are, the economists who are supposed to help this half-assed gu'mint function...??!! 

dems is hiding under a tree stump on Rabbit Island!!!!

No economist worth speaking of would touch this G'ment with a 10 foot beam... Even if it was made of cedar. Therein lies the problem, other than the Accountant Generals office.. (nothing against Paula)... there is no economic reasearch done..

[S Brown]

 It is unfortunate that the average home is 1.8 Million.  It's depressing and at times I really wonder if we are going to experience a brain drain among young people if such trends continue.  This will make Bermuda rely on a foreign workforce even more than they do today.

 To me personally I feel that greed fuels most of the problem in regards to our current problem.  The argument about land being scarce and rising real estate markets are valid arguments, but rental units/homes are nowhere near being at full capacity.  Many units are availble but Bermudians just cant afford them. Landlords know that someone will pay an outrageous price for a unit.

What can be done about this? 

Government control is out of the question.  Home owners will be furious, and to an extent I dont blame them.

Build more condos to house guest workers so that house prices on the market will decrease. Is an option.

Start youth home ownership programs, helping people at a young age to get their foot in the door in regards to the property ownership.

[32n64w]

To me personally I feel that greed fuels most of the problem in regards to our current problem

Well ... maybe ... or it could be that little known concept called capitalism which ... for such a small island with limited resources ... gets distilled down to an even more potent version.

As a fellow Bermudian once so famously said ....

The point is, ladies and gentleman, that greed -- for lack of a better word -- is good.  Greed is right.  Greed works.  Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.  Greed, in all of its forms -- greed for life, for money, for love, knowledge -- has marked the upward surge of mankind.  And greed -- you mark my words -- will not only save Teldar Paper, but that other malfunctioning corporation called the USA

[Betty]

HAHA! Great quote and great movie!

[KickinSand]

It is unfortunate that the average home is 1.8 Million.  It's depressing and at times I really wonder if we are going to experience a brain drain among young people if such trends continue.  This will make Bermuda rely on a foreign workforce even more than they do today.

 To me personally I feel that greed fuels most of the problem in regards to our current problem.  The argument about land being scarce and rising real estate markets are valid arguments, but rental units/homes are nowhere near being at full capacity.  Many units are availble but Bermudians just cant afford them. Landlords know that someone will pay an outrageous price for a unit.

What can be done about this? 

Government control is out of the question.  Home owners will be furious, and to an extent I dont blame them.

Build more condos to house guest workers so that house prices on the market will decrease. Is an option.

Start youth home ownership programs, helping people at a young age to get their foot in the door in regards to the property ownership.

Tell you the truth I've always found being a landlord a pain in the butt. I've always rented to Bermudians at reasonable rents, the problem I've had is that no-one treated the place as if it were their own. The last guy I had in there broke a window playing football (inside) and then expected me to pay for it... After that I decided that the damn place can stay empty... Which it was for 2 years until my son moved in...

I like the idea of a youth ownership program. I also think an idea would be for G'ment to build some "reasonable" cost  "investment rental units" for younger Bermudians.  The idea here is that G'ment rents these units on a 5 year lease, G'ment takes the rental monies and invests it.

At the end of the 5 years, if the renter agrees to purchase a home G'ment returns the rent paid + 50% of the investment profit as the down payment on the home.  If the renter is not purchasing a home then G'ment returns 25% of the rent to see the person/family along.

This isn't a "low cost housing project", but is for those Bermudians need a kickstart...

[something else]

hey.. some bermudians are great renters

here in my little flat in the uk since moving in i've completely revamped the garden. (okay.. so it's 2 x 3.. and took all of a day and 20£ but still !!!) i also find the other tenants in the house - putting ads out there myself sometimes. i wanted to repaint some of the rooms and do a bunch of other little things but my boyfriend always moans at me that it's silly to do for nothing in return. he's right... but at the same time whilst i'm there twiddling my thumbs i can't help but want to fix the place up where i can.

so there are some good ones out there. think it all depends on how one is raised personally.

having said that, my landlord still hasn't had a carpenter around to fix our bathroom door (over a year now)

(don't worry wassup.. i'm trying to get this fixed. i might have to tackle it myself but the man insists it's too complicated for a girl ... me