Expert Realtor Shares Crucial Advice for First-time Buyers

Considering continued performance of the local housing market, where property prices, limited housing stock, and fierce competition have made the dream of homeownership feel out of reach for many, a leading realtor in the luxury market is urging potential buyers to rethink their approach to securing their first home.

Speaking to women actively on the hunt for homes at the JN Group’s Accelerate Action to Homeownership for Her workshop on International Women’s Day, March 8, Kameika Swaby, realtor at Keller Williams Jamaica Realty, told the more than 20 women, including some JN employees, that aiming for the ‘dream home’ at the outset is the wrong place to start.

Start Small and Build Equity

Ms Swaby emphasised that while owning the perfect home is a common goal, it often comes with a hefty price tag that may not align with the financial realities of first-time buyers. Instead, she is encouraging those actively searching to consider more affordable options as a starting point, such as smaller homes and fixer-uppers, which could help them build equity and eventually work their way towards their dream home.

“We are taking the wrong approach to owning real estate and when young people watch the news reports [about Jamaica’s housing situation], they really feel like they cannot own a house and that’s not true,” she said.  

Sharing her own experience, Ms Swaby, who was a nail technician at the time, said she acquired her first property for $14 million, which she later sold for $22 million. She now owns a home valued at $90 million.

“You can start very low and banks like JN will help you to go on. When you get that first property, you can work on it, sell it for $5 million more, move on and buy another property that has a little more value and you grow.”

Turning Real Estate into an Investment

Ms Swaby highlighted that the first property a buyer purchases doesn’t necessarily have to be their primary residence. She advised that investing in a property to rent or resell later can be a smart way to build wealth.

“Your first home can be an income earner. Let it pay for itself and give you a little money on the side,” she said. “There are ways to make it work, but sometimes we just need to have the right conversations, seek professional advice, and figure out a strategy. Your first property doesn’t have to be where you live,” she said.

She also warned that delaying the decision to buy a home could lead to greater challenges in the future, as market conditions are dynamic. Noting that, “sometimes you have to make yourself a little uncomfortable to eventually become comfortable,” she added that making that first real estate investment can ensure that the next generation will also not have to struggle to afford homes of their own.

“A couple years from now, house prices are just going to get worse, and our kids will just have to work and have nowhere to live because they can’t afford it, so it’s important that we leave that legacy behind.”

The Importance of Financial Transparency

She also advised people seeking financial support to be upfront with their bankers and loan officers, noting that withholding key information could lead to missed opportunities or complications down the line.

“They can only guide you if they know the truth,” she said, reflecting on her own experience of getting her first loan.

Driving home the point, Karon Lewis, client relationship officer at JN Bank, noted that the relationship with a bank doesn’t have to start with getting a mortgage.

“It could be a case where homeownership is just not a possibility now, but we can start you on a path to homeownership,” he said. “You just need to come let us have a discussion and look at what you have now. For arguments sake, let’s say you’re paying out $150,000 in loans at another institution. We can put mechanisms in place to do a debt consolidation at JN that could take you down to $90,000, and you’d save $60,000 right there on your pay check that can go towards your homeownership goals,” he explained.

Adjusting Expectations for Success

Reflecting on her own journey as a first time buyer, JN employee, Kristen Clarke, who was one of the workshop participants and is on the hunt for a second property, admitted that turning her dream into reality required some adjustments. Although she never imagined living in St Catherine, she recalled how, at age 27, she ended up purchasing a home in a ‘beautiful community’ in Old Harbour after realising she would not be able to afford a $40 million home in the city.

“You have to try to find solutions to the problems and adjust,” she said. “I think the issue is people have their minds set on the high-rise and penthouse apartments [in Kingston]. They’re not thinking they can get there eventually and that for now they just need that roof over their head that nobody will kick them out of,” she added.

Empowering Women on the Path to Homeownership

The JN Group’s Accelerate Action to Homeownership for Her workshop was organised and carefully aligned with the global theme, “Accelerate Action” towards gender equality worldwide. The session provided women of different backgrounds with practical tools, mortgage education, and success stories to inspire their individual journey to homeownership.

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