A Guide to Caribbean Investment Property
With its sea breezes, evocative turquoise waters, fabulous climate and laid back lifestyle, the Caribbean is a favourite relocation, investment and tourism region. Whilst each of its locations and island destinations are distinctly different in many ways, the region as a whole offers a great deal of promise presently and for the future for those interested in property investment.
With its already large and ever-growing tourism industry, developing real estate market in some destinations, well-established market in others and overall governmental stability, the Caribbean is a region that demands serious attention. Nubricks.com cite the following 10 reasons as forces driving investor interest in Caribbean investment property at the moment : -
1) Caribbean Government Stability Inspires Investor Confidence
The Caribbean includes a collection of islands and continental countries that border along the turquoise waters of the Caribbean Sea. Whilst each country has its own distinct governmental system, this entire region is generally described as stable with regard to government. Many Caribbean destinations are independent democracies, some are members of the British Commonwealth and a few are considered territories of other countries such as the United States. The region’s countries are active on the worldwide front, with some belonging to the United Nations and other regional and international organisations. The stability found within the region is very encouraging for investors and holidaymakers alike.
2) Close Ties With Europe Makes the Caribbean Very Attractive to Real Estate Investors
The Caribbean’s many different islands and countries have long held very close ties with Europe. Some destinations here carry a distinctly British flavour whilst others have been touched by Spanish, Dutch and French influences. Considering the long-standing relations over the past few hundred years with Europe, holidaymakers and investors within the Caribbean find English is spoken fluently in many destinations, and Spanish and French are also common tongues. The European roots found within many Caribbean destinations lends to a sense of familiarity and helps investors feel confident in their purchases, whilst making holidaymakers feel right at home.
3) Economic Stability Among Caribbean Destinations Inspires Property Investor Interest
Whilst the economic stability of each individual country does vary, the region as a whole is quite stable. Many destinations here are experiencing moderate to quite favourable annual GDP growth. The economy within the Caribbean is heavily dependant on tourism, which is sustained and constantly growing. With regard to GDP growth, Belize for example is experiencing a growth rate of about 3.1%, Costa Rica more than 10% and the UK’s Cayman Islands more than 6%. The economy of the overall region is driven not only by tourism but also agricultural products, fishing and some industrial operations in the continental countries. The region’s stability on the economic front is encouraging to property investors here.
4) Investment Hotspots Found Throughout the Caribbean Encourage Property Investor Excitement
From Belize and the Dominican Republic to Barbados, many of the small countries of the Caribbean are of strong interest to investors, holidaymakers and expatriates. Belize, for example is experiencing a major rise in development, tourism and expatriate migration. With home sites in the Hopkins and Sittee Point regions costing less than USD 90,000, Britons are finding this tropical paradise enables their money to spend incredibly well for example. Throughout the entire Caribbean region property investors looking for buy-to-let, second homes or fast resale potential will find the opportunity is high. With its sustained tourism and ever-growing relocation popularity, the Caribbean encourages investor excitement. Many destinations offer a great deal of opportunity for investment growth and returns.
5) Easy Access to the Caribbean Makes Holidaymaking and Investing Easy
Travelling to and from the Caribbean is quite an easy proposition for Europeans and North Americans. Most countries offer very favourable entry requirements, and low-cost flights from some major European cities are making travel to the Caribbean affordable. Americans too enjoy very easy and cheap access to the Caribbean, and what’s more, much of America’s cruise line industry is focused on Caribbean destinations. Low-cost, short flights are also available from America. The combination of European and American access ease bodes very well for investors looking for buy-to-let potential and even resale. Americans, for example, are noted for buying second homes in the Caribbean and many holiday here year in and year out.
6) Many Caribbean Countries Desire and Encourage Foreign Investment, Making Property Markets Attractive
Most Caribbean countries encourage and welcome foreign investment. Belize, for example, has made it quite easy for investors to purchase their own piece of paradise. With favourable property laws, favourable immigration regulations, similar systems of government and organisation and common language found in many destinations throughout the Caribbean, property investors here are typically quite confident in their purchases. Whilst some locations are easier to buy in than others, much of the Caribbean is very investor-friendly.
7) Incredible Climate and Caribbean Sights Encourage Tourism Which Works to Investors’ Advantages
The sights and the climate of the Caribbean are legendary. From the turquoise waters and pristine white sandy beaches to the ancient ruins and historic European naval yards and beyond, the sights found within many Caribbean countries are like none other in the world. Each country offers its own distinct appeal, but rest assured, investors within the Caribbean are virtually guaranteed there are plenty of attractions to pique holidaymaker and resale buyer interest no matter the destination.
8) Strong Tourism Industry in the Caribbean Makes Investors Pleased with the Potential
Tourism figures vary depending on the country or destination in question, but investors in the Caribbean region are assured of a strong, sustained and growing tourism industry. According to the World Travel & Tourism Council, the annual growth rates are quite encouraging. Barbados is expected to see growth of 4.1% per annum through the year 2017; Belize, 3.8%; the Dominican Republic, 3.4%; Jamaica 2.7% and Antigua, 3.8%. Keep in mind that millions of travellers the world over visit the Caribbean each year, so these growth figures are starting from already high levels in most destinations. The strong and continued interest in the Caribbean region by holidaymakers is very encouraging for investors interested in buy-to-let and even resale potential.
9) Diverse Geography and Balmy Climates Makes the Caribbean and its Countries Distinct Destinations with USPs for Property Investors
Whilst most people think of the Caribbean and instantly visualise palm fringed white sandy beaches and the sea with a turquoise tint, there is much more to this region than just beaches. Within the Caribbean the geography also includes lush rainforests, mountains, rivers and waterfalls, volcanic craters, hills, marshland, caves and more. The diversity found within the region appeals to holidaymakers, second-home buyers, expatriates, retirees and investors. The climate throughout the region does vary a bit, but for the most part it is tropical and quite pleasant with warm sea breezes making even the warmest of days a pleasure by European standards.
10) Favourable Exchange Rates Enable European Money to Spend Well on Caribbean Property
The exchange rate with the Euro and British pound does vary from destination to destination, but Britons in particular typically find their money spends incredibly well in the Caribbean region. In places like Belize for example, the rate is roughly four to one. Some countries offer an even more favourable exchange. As the property markets within the Caribbean continue to hold strong and some new investment hotspots come online, European investors are finding the opportunity within the region is quite high and their money goes very far. This bodes incredibly well for investors who want good returns.
The Caribbean is a region of extreme potential for investors interested in buy-to-let yields and realising maximum resale values. As more interest is focused on this part of the world, the sustained tourism industry and natural draws of the Caribbean are combining to make investing here very attractive.
