What are the Four Rs to Remember When Buying a Property in the Caribbean?

Reason:
What is the main reason that you are buying a property in the Caribbean? Is it as for rental income, capital growth or holidays? Many people see buying a property in the Caribbean as the ‘ultimate’ investment, where you can have free holidays and make rental money when you are not there, as the place increases in value. The good news is that investment in property in Barbados, St. Vincent, The Dominican Republic and St. Lucia can offer you the opportunity to have exotic holidays in one of the most beautiful locations on the planet; as well as providing high rental income because the long holiday season throughout the year is helped by the glorious annual weather; and property values have been steadily increasing despite the current global credit crunch.

Research:
Look at the reality of your chosen island, the property location and the specific development.
· What are the laws on foreign ownership, inheritance and tax?
· What are the overall development plans for the island?
· What are the overall development plans for your specific development?
· Are there any planning issues yet to be resolved?
· Do they involve a golf course alongside your villa or apartment?
· Is the developer creating amenities that will be enticing to attract people to holiday there?
· Have you read the news about the island, the location and the developer from the internet?
Some recent developments in Barbados, St. Vincent, The Dominican Republic and St. Lucia have been of a very high standard and provide all the holiday facilities and sporting activities either on site or within a short distance.

Rentability:
Using the internet, investigate the rental market of competitive completed developments on the same island and in nearby locations to your proposed purchase. Try to find out what rental prices and utilization rates are being achieved for comparable properties. Holiday rentals help to cover the running costs, but are unlikely to achieve much profit. Because tourism is so well established on Barbados, St. Vincent, The Dominican Republic and St. Lucia, it is easy to find comparable rental figures on property developments.

Resale:
When first assessing a property to decide whether or not to purchase, try to find out how easy will it be to sell in future? The better the market, the more likely it is to show a decent capital return. A property in an area full of new development will face a lot of competition in the market unless it is on a prime development with added amenities such as a top-class golf course and a spa.The property market in the popular destinations of Barbados, St. Vincent, The Dominican Republic and St. Lucia have consistently delivered strong resale prices because of the demand from US and UK buyers.

For help on finding your dream property in the Caribbean, click on http://www.global.w-wideproperty.com/ and register your name for fantastic property deals in Barbados, St. Vincent and the Grenadines, the Dominican Republic and St. Lucia.

Seven Issues When Buying Property in the Caribbean

1 Choosing the wrong location
Some people pick the wrong island in the Caribbean, or even the wrong location on their island of choice. You must do your research to find out if your location has all the facilities and sporting activities that you want. You must also consider current prices, rental potential and future prospects for capital growth. Property purchasers should choose a politically stable country with potential for good capital appreciation and good rental returns.

2 Choosing the wrong sector of the property market
Do not buy an apartment if prices are falling, or buy a property at the luxury end of the market if nobody can then afford to rent it. Examine the historical price trends of properties on the Caribbean island you chose to find out what capital appreciation has occurred in the past.

3 Failure to consider your tax liability in your home country
Some people do not research their tax liability in their home country when purchasing a property in the Caribbean.
· What is the income tax liability on rental profits (revenue less allowable costs)?
· What are the rules on capital gains achieved when selling the property?
· Are there tax treaties between your home country and your choice of Caribbean country to ensure that you do not get taxed twice on the sale of a property?

4 Failure to secure adequate title
Title to land or property is defined differently in various countries in the Caribbean. Again you must do your research and employ reputable lawyers that understand the local land and property laws. It is always best to get local representation.

5 Failure to take exchange rates into account
Exchange rates can significantly influence both the revenue you achieve and the costs you incur (mortgage, management fees, maintenance costs, etc) from your property in the Caribbean. Property purchasers can have their profits reduced or increased by currency fluctuations that occur over time. It is important to decide in which currency you will take out and repay the mortgage because adverse currency fluctuations will lead to an increase in mortgage payments.

6 Failure to research an exit strategy
There must be an active resale market in the location you chose to buy. Otherwise you might have difficulty in selling your property in the Caribbean.

7 Failure to get personally involved
Some people do not visit the various Caribbean locations that interest them before they buy their property and are later unhappy with their choice.

For help on avoiding these issues and finding your dream property in the Caribbean, click on http://www.global.w-wideproperty.com/ and register your name for fantastic property deals in Barbados, St. Vincent and the Grenadines, the Dominican Republic and St. Lucia