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‘Forget fancy cars! Invest in property!’ – Richard C. de Castro

- said banks set up to lure people to make purchases that depreciate rather than appreciate in value
Television talk show host Richard Courtney de Castro believes that the commercial banks in the territory seem to be more concerned about lending money for the purchase of motor vehicles rather than for property. Photo: VINO/File
“We need to encourage our young people to start a home. It’s easier to buy a car which depreciates as you buy it. It is a little bit more difficult to own a home but it is a solid, sound investment and I would like to encourage every young person out there to think about it. Think about planning to own a home rather than going the easy way or the way that is set up for you right now,” de Castro advised. Photo: VINO/File
“We need to encourage our young people to start a home. It’s easier to buy a car which depreciates as you buy it. It is a little bit more difficult to own a home but it is a solid, sound investment and I would like to encourage every young person out there to think about it. Think about planning to own a home rather than going the easy way or the way that is set up for you right now,” de Castro advised. Photo: VINO/File
ROAD TOWN, Tortola, VI – Television talk show host Richard Courtney de Castro believes that the commercial banks in the territory seem to be more concerned about lending money for the purchase of motor vehicles rather than for property.

He raised this concern after a caller made mention of it during the Saturday August 22, 2015 edition of Speak Your Mind on JTV Live Channel 55.

“This is a topic that I have spoken about a couple of times and I am glad to see that there are other people in the community who feel the same way,” he said.

“We need to encourage our young people to start a home. It’s easier to buy a car which depreciates as you buy it. It is a little bit more difficult to own a home but it is a solid, sound investment and I would like to encourage every young person out there to think about it. Think about planning to own a home rather than going the easy way or the way that is set up for you right now,” he advised.

He said that there are systems working “against us” in the community and he noted that the banking system is one such system.

“Yes the banking system is making money, they have their programmes that they have designed for themselves. Those programmes might not be the best for you and for me. So look at those programmes carefully and choose the ones that are going to position you in a better position tomorrow, rather than the ones that are going to put you in a less advantageous position,” he said.

He reasoned that rather than buying an expensive car and having a loan payment every month and they end up with an item that is less valuable, “Look at the alternative of probably saving a bit longer, getting some property and building and paying the bank for that property rather than paying rent to somebody else,” he said.

“It is a solid investment for a young person…but do your homework, make a spreadsheet and put all of your lending institutions on that spreadsheet and go down the list…interest rate, the amount, the payments. Analyse it and see which one is giving you the best bang for your money. Make sure you get the best deal for you, not the best deal for them,” he advised.

During the show a person sent a text message to say that it is hard to buy property because of the high prices. But the host of the show said that from his experience, if someone really wants to own property they can.

24 Responses to “‘Forget fancy cars! Invest in property!’ – Richard C. de Castro”

  • qc (25/08/2015, 09:23) Like (1) Dislike (10) Reply
    Hope he took his own advise
  • paradise vision (25/08/2015, 09:57) Like (11) Dislike (0) Reply
    true ,buy back your land
  • hairy banker (25/08/2015, 10:03) Like (9) Dislike (1) Reply
    Nice fatherly advice
  • Vi girl (25/08/2015, 10:03) Like (18) Dislike (0) Reply
    I am all for that. Only thing the paycheck dont allow me too and the banks are tougher on mortgage than in personal/auto loans
  • vg boy (25/08/2015, 10:26) Like (30) Dislike (2) Reply
    TELL GOV STOP HAVING DA PRICE OF LAND SO HIGH DAT U CANT BUILD ON IT TILL UR TOO OLD TO
  • Joc (25/08/2015, 11:12) Like (10) Dislike (0) Reply
    This is so true. It is soooo easy to get a loan for a car but when it comes to land and mortgage they give people hell!!! I wish this can change. Help us NDP!!
  • just built (25/08/2015, 12:59) Like (9) Dislike (0) Reply
    Some people want a house in 6 months. You just have to make sacrifices and take your time and build. The money spent on latest clothes, phones and going to every jam. Goes along way when you start to save and invest in a house of your own. If not do it for your children if you have, so they can have something.
  • Online Now (25/08/2015, 14:29) Like (2) Dislike (1) Reply
    good point richard
  • resident (25/08/2015, 16:11) Like (5) Dislike (0) Reply
    Check how much the bank asking for a downpayment to start then get back to me
  • Financial Adviser (25/08/2015, 16:58) Like (3) Dislike (17) Reply
    Is Mr de Castro licensed to give financial advice?
    Maybe the FSC should be interviewing him, where he is regulated.
  • Tax Payor (25/08/2015, 22:12) Like (6) Dislike (0) Reply
    Mr. De Castro's are so true. The average home in the BVI cost between $450,000 to $500,000 to construct and the banks are looking 20% down payment before they consider talking with you. The cost of land and homes in the BVI are way too expensive for the average man. It has to be a better way.
    • family (26/08/2015, 09:23) Like (3) Dislike (1) Reply
      good thing I inherited land from my parents. Honour them, people! life will just be a bit easier.
      • Tax Payor (28/08/2015, 07:42) Like (0) Dislike (0) Reply
        Everyone is not as fortunate as you. Some of us have to actually work and save to purchase land. You're very lucky .
  • 100% financing (26/08/2015, 08:37) Like (8) Dislike (0) Reply
    If the banks really wanted to they would give 100% or 90% financing. They could do 80% as a regular 30 yr loan and the rest would be a smaller loan for a shorter time than 30 yrs with a slightly higher interest rate.

    The key is to reduce the 'cost of construction'
    1. A 10 x 10 bedroom for a child is not too small
    2. Your walk in closet is bigger than an average bedroom. You closet organizers and use a smaller closet space more effeciently
    3. A big kitchen does not mean a more functional kitchen.
    4. After you have made the house as smaller as acceptable CHALLENGE the bank appraisal. Houses can be built for less than $175 that I'd being pushed by the bank appraisers.
    5. You do not need 3 apartments they are the worst and slowest investments on the dollar. Maybe you put in 1 but 2, 3, 4 apartments don't make sense unless you are a contractor and can build them for less than market rate. Use your money more wizely
  • Des (26/08/2015, 09:15) Like (1) Dislike (0) Reply
    What has the govt done the past years to help young ppl attain land? Was there any program in place?
    • Telafagus (26/08/2015, 10:52) Like (2) Dislike (0) Reply
      FYI
      McNamara - Government Land Program
      Horse Path - Government Land Program
      Spooners Estate - Government Land Program
      Nibbs Estate - Private/Government land program
      North Sound VG - Government Land program
      Purcell Estate - Private land program
  • ?? (26/08/2015, 12:15) Like (0) Dislike (0) Reply
    What did they provide for?
  • 100% financing (26/08/2015, 17:13) Like (4) Dislike (0) Reply
    The banks (through their appraisers) are insisting that your house has to cost $175 per square foot regardless of the design, regardless of how many walls, door or windows you have. Do the math and you will swe alot of times it magically comes up to $175 per square foot.

    In actuality you CAN build a house for less than 140


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