PropertyWeekly

As the rise in demand for property in Bahrain continues in 2008, GulfWeekly's Asma Salman, right, asks Melanie Bonas, general manager of Star Real Estate, an international property company in Bahrain, to share some of her house-buying expertise with our readers.

Melanie Bonas who has over 12 years of experience with property acquisition, rentals and property management exclusively in Bahrain and 30 years of collective experience with property management in the UK and around the world, warns that the burgeoning property market in Bahrain is a breeding ground for non-registered real estate agents and offers invaluable advice so that buyers can buy with confidence in the kingdom.

Q. What is the right time to arrange for a mortgage?

A. Always arrange a mortgage in principle before viewing properties.

Banks in Bahrain normally take up to one month to arrange a mortgage during which period the property could be snapped up by another buyer. So if a buyer has decided on the price range that he wants to spend and can convey this to the mortgage company or a bank then a mortgage in principle can be arranged which can later be transferred to a specific property.

Q. How important is feedback?

A. Real Estate industry is a listening business and buyer feedback is of prime importance.

We take a full briefing from the buyer and shortlist the properties that will potentially interest them. Then after the first viewing we take our clients comments - maybe they have a pet and a waterfront accommodation would not suit them or for an ageing relative in the house the requirement is a one level villa - and arrange for a second viewing.

Feedback after the buyer has moved in is also beneficial as that will tell us more about the property. We advise buyers on what is available in the market but like them to be well informed also as then they can reach decisions quickly and buy with confidence.

Q. What should we look for when buying property ?

A. Buyers should put their finger on a property that suits their lifestyle and should always inquire about the maintenance costs.

Quality should not be compromised when buying a property and a look into the plumbing, plugs, fixtures and fittings is vital. School and office should be in the vicinity to keep commute time to a minimum.

Buyers should take into account the surroundings and what sorts of facilities - grocery store, laundry services -_are around the property. If it is a standalone villa then the buyer has to see if it is a safe and secure area and whether there is parking available.

But most importantly a buyer should put his money into something that is going to appreciate in value.

Q. What about bogus agents?

A. When buying a property the buyer needs to check that he is buying from a bona fide seller.

If a buyer is doing the deal through a registered real estate firm then they will make sure that the documentation is in order before the buyer embarks on the purchase.

The buyer should also be wary of putting down a huge amount as reservation fee for the property and the reservation fee should never be handed to the seller. Instead it should be held in the form of a cheque to a registered agent or a bank.

We advise our buyers to never put down more than BD2,000 as a reservation fee. Buyers in Bahrain are vulnerable and need to protect themselves against bogus agents and greedy sellers.

Q. Is Bahrain a risky market?

A. The buying climate in Bahrain is unproven and that is what makes it a little risky. But where there is risk the rewards can be bigger too!

But all in all Bahrain is a good risk and the resale market is huge. A large population in Bahrain is under 25 and many are aspiring to live in their own homes.

So there is a demand for property and the prices are soaring. There is a favourable return on rental and capital gain. Buyers should buy a property in its early stages of development (first phase) to reap maximum gain.

Q. What is the forecast for 2008?

A. In Bahrain there was a 25 per cent average increase in property prices in 2007.

There will be a continued, if not more, price rise in 2008. Our sales outlook for this year is extremely promising as we did record sales in November and December 2007.

We even sold properties in Bahrain to buyers in the Middle East over the internet. The Bahraini market doesn't only cater to wealthy buyers but to a wide spectrum of people.