Rainbow Tukan

Investing the Caribbean

Where in the world should we invest in property? Given the problems of over development in Spain, the collapse of house prices in Florida and the high prices attractive properties in the UK still fetch, our choices begin to seem restricted. We want somewhere affordable, with a good climate, reasonable infrastructure, a safe economy. We want somewhere not too difficult to get to, with a decent airport. One area which fits all these criteria which has been rather overlooked until recently is the Caribbean.

Caribbean islands vary greatly in terms of advantages and disadvantages for investors. However, overall in the region, there is limited beachfront land available and suitable for development, ensuring that property demand generally exceeds supply. Because of the climate, there is strong year round demand for holidays in the Caribbean, making a holiday property a sound investment for letting, enabling owners to gain income from their investment as well as enjoying holidays.

Research shows that Caribbean 4 and 5 star resorts can average 85% year-round occupancy rate. High quality resorts offer many sporting and business facilities to encourage a wide range of visitors. Some islands are beginning to be a victim of their own success. Many commentators tend to feel that Barbados for example, is now overdeveloped and congested. So what about the other islands?

On Antigua there is also an established tourist industry, with associated infrastructure. Its tax laws were changed in 1995 to attract high net worth individuals making it easier for foreigners to claim residency and so pay no income tax. Although the island attracts celebrities, property is still affordable. The island has its own airport and flight-time direct from the UK is eight hours.

One of the most attractive prospects in the Caribbean is St Kitts, which as yet has little tourist infrastructure. It does however have an airport with two direct BA flights per week and it is also served by indirect flights via Antigua. Land prices on St Kitts have more than doubled over the last five years or so, but a two bed condo can be bought for about £140,000. Observers forecast that this island, currently hugely focused on attracting foreign investment is potentially a real property hotspot.

For those who really want to get in at the bottom of the market, St Vincent has to be considered. Work on the $178 million international airport has started. The government promises that it will open on time in 2011. Alongside this come calls for a regional airline given fears that cuts by major US carriers may affect visitor numbers. Because of all this, real estate agents are describing it as an emerging investment market. The island used to be known for its banana plantations but has experienced dramatic change as investors find remarkable value for money in prime development land only 30 minutes flying time from Barbados and only 20 minutes from St Lucia. The island is offering investors tax incentives, has no capital gains tax and profits from property will be free of income tax for 20 years from 2008

If you are interested in the investment potential of these lovely islands, or simply want to take a holiday there, you will easily find further details of the many flights available to the region.