Isla de Margarita is a paradise island in the sun. With breathtaking beaches, increasing tourism and affordable apartments, this idyllic isle is fast becoming a desired destination for property aficionados. Currently Margarita is 40% cheaper than other Caribbean islands.

Where is it?

Isla Margarita (Margarita Island) is a mountainous, tropical, Caribbean island situated off the north shore of Venezuela
The largest island of the Nueva Esparta State, which also contains two smaller islands: Cubagua and Coche.

The island is split into two segments, slightly linked by 24km sand spit, which separates the sea from the Restinga Lagoon National Park.

What’s the Appeal?

Margarita’s weather is hot and dry with temperatures rising close to 40°C, while the rainfall throughout the year is minimal. Athough situated within the Caribbean, Margarita it is not in the hurricane belt, unlike most other islands in the vicinity.

Fondly referred to as the “Pearl of the Caribbean,” Isla Margarita is blessed with some wonderful beaches, the biggest and busiest being Playa El Agua, which has soft white sand, clear blue waters and is bejewelled with coconut palms.

Access to Margarita Island is by ferry or by airplane, with an international airport based 25 kilometers from the popular city of Porlamar.

The island has been a tax, VAT and duty free zone since the Sixties. The buyer of a property doesn’t pay any tax on the purchase, only a normal 0.5 per cent sales tax, one percent for land registry and 0 for the notary. There is an annual property tax of about 0.

Mortgages are not available in Margarita for foreign nationals, and in any case interest rates are extremely high, close to 30%. But anyone can buy property and the purchasing process is fairly straightforward.

The property market in Porlamar is very active due to the city being the hub of commerce, entertainment and social life on Margarita Island. Most of the islands 300,000 inhabitants live and work in Porlamar and the area has a wide choice of shops, restaurants, bars, nightclubs and discothèques.

A development on the eastern fringes of Porlamar soon to be completed is the Caracola Beach & Spa Resort, which comprises of 1244 apartments & duplexes spread over 15 floors.

The resort will have a multitude of services & facilities, including: restaurants, bars, spa, gymnasium, beauty salon, retail shops, swimming pools as well as hammocks, sun beds and chill-out areas strategically located throughout the beautifully landscaped grounds.

Who’s Moving In?

Margarita is fast becoming a firm favourite with those looking to retire somewhere sunny, serene and affordable.

A number of foreigners have bought in Isla de Margarita, including British, Spanish and American investors, but the main interest has been from Venezuelans.

The most beautiful of Venezuela’s 22 islands, Margarita is hurricane free, has year round sunshine, lovely beaches, tranquil waters, a tax free status and property prices that compare favourably with other Caribbean islands. Is there any wonder that this island is so sought after?

What’s on Offer?

The Marina Caribe Resort is a superb apart-hotel development comprising of 184 units made up of studios and one and two bedroom apartments.

With the beach, the marina and a selection of wonderful bars and restaurants nearby, this complex is in a fantastic location.

All apartments come fully furnished and there are no legal fees, as well as a 10 year rental scheme, with the first two years offering 8% guaranteed return. Prices start from £52,000.

Coche Island Hotel, Villas & Spa is an exclusive off-plan luxury Boutique style Hotel with a Gym, restaurants and amenities situated off main land Margarita Island. Phase one of the complex consists of just 28 Villas built on stilts. Each property has its own outside Jacuzzi.

The high spec villas are priced at only £100,000, which allows for huge growth potential on capital and recent hotel consultants confirmed that Coche island properties are expected to give owners up to 14% rental income based on occupancy levels and room rates.

Oceano Resort Residences (From £86,080, guaranteed 8% rental income for 10 years)

Dan Johnson, Managing Director, comments “The rental potential in Margarita is six to eight per cent per annum and current figures show capital growth of 32 per cent. Prices on the island are very affordable compared to other Caribbean destinations.”

News submitted by Jon Moore, TheMoveChannel.com

As the air seeps out of many global property markets investors face the ever-toughening challenge of seeking out a safe yet lucrative investment opportunity. GEM Estates first highlighted the Venezuelan island of Isla Margarita as a one-to-watch back in December 2006, attracted by its undeveloped nature, amenable climate, tax-free status, low cost of living and stability offered from a wealthy oil-producing nation. Yet, it has taken some time for truly inspirational, well-planned property to hit the market. Newly released Caracola Beach and Spa Resort in the Island’s main town of Porlamar certainly fits the bill.

Younger investors have time as an ally and are able to watch a low-entry level investment flourish over the years, are best-placed to reap the rewards of long-term guaranteed rental returns and can also plan well-ahead for a comfortable future by contributing to a SIPP (Self Invested Personal Pension). Caracola Beach and Spa Resort has every base covered. 79,000 euros will secure a one bedroom apartment based on 30-70 payment terms with the final 70% payable on completion at the end of 2010, plenty of time to get finances in order. An impressive 7% net rental guarantee is in place for ten years, rising to 8.25% for the latter five years if 75% occupancy is achieved in year five. Backed by an insurance bond this rental is truly ‘guaranteed’. And, according to Fidelity Funds, with a quarter of a million 25-34 year olds making serious monthly pension contributions, the fact that Caracola Beach and Spa Resort is SIPPS compliant is a real bonus. You’d be hard-pushed to find anything more investor-friendly.

The Resort itself adopts an American-style layout arranged over 15-storeys in three distinct buildings, appealing to the local market and across the border into North America. Flanking the sandy Caracola Beach to the east of Porlamar, the freehold units come in four different layouts ranging from 58.5m² to 125.8m² most with sea-facing terraces. With fully equipped kitchens, climate control air-conditioning and comprehensive furnishings if entering into the lucrative rental pool, there is also a ten-year construction guarantee plus plenty of covered parking. In respect to the environment, cavity wall insulation and double glazing ensure energy efficiency. This is the benchmark for other resorts to follow.

Caracola Beach and Spa Resort is high on facilities including the essential Spa, restaurants, bars, gymnasium, boutiques, beauty salon, swimming pools and hammocks, sunloungers and chill-out areas distributed throughout the lovingly landscaped grounds. The beach is also on the doorstep.

To complete the scenario for an optimum overseas property purchase, capital growth is currently in the region of 30% per annum and with no VAT or Capital Gains Tax plus the significant rental income managed by a world-class company, there is very little reason not to invest in Caracola Beach and Spa Resort.

Prices start from 79,000 euros for a one bedroom and 103,000 euros for two bedrooms two bathrooms based on the 30-70 payment plan but discounts are available for alternative schedules. If the first 30% is passed over within 28 days, 2% is knocked off the price and by switching to 50-50, with the first payment within 28 days, a 7% discount comes into play reducing prices to 73,470 euros and 95,790 euros respectively. Stage payments are held in Escrow.

News submitted by Sarah Drane, GEM Estates

The Caracola Beach & Spa Resort – Porlamar, comprises of apartments & duplexes spread over 15 floors, overlooking the stunning Caracola Beach, on the eastern fringes of the island’s main town, Porlamar. With four different floor layouts to choose from, populated across three blocks, the apartments vary in size from 58.5m2 to 125.8m2, nearly all with their own sea facing terrace. Caracola Beach & Spa Resort provides you with an incredible opportunity to earn on your investment through capital growth as well as rental return from your property. If you combine this with the very attractive tax benefits of Isla Margarita and tax efficient ownership, you have the optimum overseas property purchase.

• 10 Year Guaranteed Rental
• Beach Front Development
• Caracola is SIPP compliant (subject to terms and conditions)
• Guaranteed minimum 7% pa net rental return for 10 years
• Rental return backed by fidelity bond
• All Apartments come with air conditioning and all furniture
• 30% deposit held in ESCROW
• 1 Bed 1 Bath starting from €73,470
• 2 Bed 2 Bath starting from €95,790

For more information on The Caracola Beach & Spa Resort

Call GEM Estates on (UK) 0800 036 0068 (EIRE) 1800 211 462 (Intl) +34 952 799 286

With property prices 50% cheaper than other Caribbean Islands and Brazil overseas property investors are setting their sights on Margarita Island, Venezuela.

Christopher Columbus discovered Margarita Island in 1498, the largest island of the Nueva Esparta state in Venezuela, which also comprises the islands of Coche and Cubagua. It is 78 km long and its widest side measures roughly 20 km. The climate is very sunny and dry with temperatures from 24 to 37°C.

According to Michael Johns, CEO of The Right Move Abroad; “With the UK investor increasingly looking to rental based property transactions due to the decreasing yields in the indigenous market, destinations such as the Margarita Islands offer an emerging tourist destination with excellent rental yields due to the urgent requirement for quality accommodation to cater for the surging tourist visitor numbers. With its climate, duty free status and fantastic tourism opportunities, the Margarita Islands will grow in stature in international tourism with El Agua Garden Suites central to its provision of luxury holiday property.”
Playa El Agua is the most popular beach on Margarita Island with 3km of fine sand, an abundance of palm trees, restaurants and bars with the local market even selling a dozen fresh oysters for a dollar! Isla Margarita, also known as “the Pearl of the Caribbean”, has been a significant tourist destination since the 1960s when it was declared a duty free area. Today more than 2 million tourists visit the island every year.

KEY INVESTMENT FEATURES OF MARGARITA ISLAND

• Property is up to 50% cheaper than other Caribbean Islands and Brazil
• Only 15% of Magarita island is developed, yet tourism figures have increased by 40% over the last 2 years
• Booming property market due to a combination of excess domestic demand, strong economic growth and mass tourism which attracts foreign buyers
• Guaranteed Rental Returns due to the booming tourist industry and lack of quality accommodation
• Duty free Island with only 0.5% sales tax and only 2.5% buying taxes in total
• Isla Margarita is the only Caribbean island outside the hurricane belt
• A very low cost of living and excellent quality of life
• Manchester, Birmingham, Gatwick and Heathrow all have direct flights to the island
• Margarita has the best beach in the world for Kite Surfing and hosts the international championships annually. Agreements have been reached to build a Formula 1 circuit on the island which will increase tourism
• Numerous leisure activities popular on Isla Margarita include cruises, deep sea fishing, diving and surfing
• Direct flights are available to Angel Falls (the world’s highest waterfall), the Amazon jungle and other Caribbean islands as well as to the American continent

News submitted by Nick Cowling The Right Move Abroad.

It is no surprise Columbus believed he had happened upon paradise as Margarita presently boasts no less than 50 beaches spread along 106 miles of pristine coastline but yet whose pristine setting remains a secret Caribbean island hardly known about – except for bar a handful of Venezuelans and Columbian tourists. However, according to Corportur, the state of Nueva Esparta tourist agency, tourism was up 12% in 2006, recieving some 250,000 more tourists than in 2005. Now this Caribbean secret is out…

Together with Coche and Cubagua, Margarita is the third largest island which comprises the
state of Nueva Esparta and lies just 25 miles off the North East Caribbean coast of Venezuela, roughly halfway between Trinidad and Bonaire. Arrival is usually by sea or air given the island’s landing strip is a mere 30-minute hop from Caracas into Margarita’s Santiago Marino International Airport whose remodelling project is just about complete. These days Isla Margarita is anything but an undeveloped, back-of-beyond backwater, with steady resort growth over the past twenty years have come casinos, major five-star hotel brands and UK tour operators, a championship golf course, and a disco-rich nightlife in the Costa Azul suburb in the commercial city centre of Porlamar. Porlamar’s main port area, centres around the Puerto de la Mar pier which opened in 2002 for cruise ship passengers, tourists and a veritable United Nations of cruising sailboats, to disembark in downtown Porlamar in readiness for a day of waterfront duty-free shopping long since a standby here for Venezuelans, who favour the imported cheeses, perfumes, and liquors whilst foreign visitors tend to search out buys in handicrafts such as hammocks and pottery. It is estimated the new port will bring in 600,000 new tourists per year providing the incentive for the urban and economic revitalization of Porlamar. Tourists will soon enjoy cafes, restaurants, designer stores and cultural entertainment, among other things day trips to explore the attractions in the islands.

Venezuela has put itself on the map as a wealthy country with its own natural oil reserves, having reaped over $50 Billion USD in oil sales in 2006, most notably a recent oil for advice tie-up with the mayor of London. A recent issue of “The Economist”, makes Venezuela the fastest growing country in the world, putting its main tourist centre of Isla Margarita in a prime position to benefit from this growth thanks to a triple identity as an Andean, Amazonian and Caribbean country. This growth is already underway with approval back in April 2006 for The Simon Bolivar International F1 Grand Prix Racing Circuit, by the State Government of Nueva Esparta and the National Sports of Venezula (IND). The F1 circuit is expected to cost 350 million dollars and will include a racing academy, originally planned for the Shanghai International circuit but never came to fruition. Under the direction of Formula 1, FIA chiefs and accompanied by German project architect Hermann Tilke, it is envisaged the racing complex will be located in Punta de Piedras in Margarita’s southern Tubores municipality and should complete in October 2007. The magnitude of a project of this size is set to have a major impact on the Island of Margarita, instantly catapulting it into one of the Caribbean’s most appealing destinations and boosting the fortunes of not only the islands tourism revenues but those of its 373,742 Margaritenos through the numerous jobs it will create.

Isla Magarita principal asset is its idyllic setting, a sandy paradise washed by the glittering green and turquoise Caribbean waters. An island rich in culture, heritage and nature offers buyers a host of leisure options. Surrounded by a ragged crop of outlying coral islets, 200 reefs and sandbars, chartering a boat is a perfect way to take in this amazing desert island collection and offers some of world best diving opportunities as well as bird-watching and excellent deep fishing. Alternatively saddle up and take a horse ride along on one of those majestic beaches or catch the waves on Margarita’s El Yaque beach whose Atlantic waters are a haven for windsurfing fans. La Restinga National Park consists of 25,000 acres of wetlands and is Margarita’s most visited attraction, here you can experience jungle trekking and wildlife watching at its very best. Finally there is Playa El Agua, arguably the most popular beach on Margarita Island, and with good reason. Apart from the beautiful people who flock there, the three-mile-long beach is lined with palm trees, bars and cafes. Most visitors tend to be European and South American. Out of the hurricane path Margarita enjoys a perfect climate with 320 days of sunshine each year.

With increased tourism demand comes new buildings and condominiums and just 900 metres from Playa El Agua, the Residential Complex Viento y Agua (Wind and Water) is a private secured complex formed by two ‘towers’ of 51 apartments each. Each tower enjoys independent recreational areas with swimming pool, sports and play grounds set within landscaped gardens with walkways.

The developments architecture has been designed to create attractive accommodation, with the aim of satisfying the demanding requirements of the rental market on Margarita Island which currently suffers from a deficit of over 5,000 holiday rentals. Completion is estimated for October 2007. All maintenance, repair services, security, cleaning, gardening, common areas, and rentals will be managed for owners. All freehold property is priced in euros to avoid any currency fluctuations with the local Bolívar although U.S. dollars are widely accepted. Prices start at

Residential Complex Viento y Agua is situated 30 minutes from the airport of Porlamar which offers direct flights available from London Heathrow and Manchester Airports. Scheduled 40 minute flights are also available with a number of airlines via Caracas Airport in Venezuela whilst the express ferry service connects the mainland, Caracas (La Guaira) to the island and costs around $80 round-trip.

Known for its reputation as an island getaway, Margarita Island offers the same amenities as its Caribbean neighbours:, excellent white sand beaches, watersports, natural parks, golf courses, but all at a fraction of the price. Property on Margarita Island is generally far less expensive than similar Caribbean luxury property and real estate on Margarita Island has really started to gather pace with figures showing that capital growth is around 35% and the reason why new off-plan property developments on the increase.

A low cost of living and with oil being its main export, fuel is ridiculously cheap with a full 4×4 tank costing a driver somewhere around £1.50 in total. Margarita Island is tax free and duty free so any property gains are liability to local capital gains tax.

Whether you fly into Margarita and stay for its shopping, beaches and mountains or travel by boat to some of the more remote islands for spectacular diving and fishing, Venezuela’s offshore islands have something for everyone. Here it is still possible to own a piece of paradise at a very affordable price. They are the best of the Caribbean.

Viento y Agua apartment prices start from €55,000 rising to 169000 for a three bedroom property. Investors have the option to enter into a two year guaranteed rental income contract offering 8% of the purchase price per year with 1 month of private usage included. Viento y Agua will be managed for owners and rented out for at least 150 days of the year with approximate rental rates of $60 to $100 per night.

The properties come with fitted kitchens, fitted bathrooms and tiled floors. Furniture packages are available for owners and start from approximately €5,000 depending on the size of the property.

On the market with Imoinvest International, for more details on the Viento y Agua Apartments on Margarita Island, Venezuela click here.