Should You Invest?
Grenada has experienced some natural disasters which have badly
effected the country. In 2004 and 2005 two hurricanes destroyed 90%
of the island's buildings, so as a result the island has
not yet reached its tourist potential which means buying
property such as luxury villas in Grenada is a lot cheaper than
other islands in the Caribbean.
- When buying property in Grenada the transaction costs are very
high.
- There is very low rental income tax which is good for a
buy-to-let market.
- Grenada has a neutral law between landlords and tenants.
- The island is witnessing an annual improvement in GDP
growth.
- Grenada is seen as one of the most attractive investment
locations in the Caribbean and is situated just outside the
hurricane zone.
- The government has introduced an Economic Citizen Programme to
develop the country and attract more foreign investors.
- Visitor numbers in the first quarter of 2008 increased by 24%
compared to the same period the previous year reaching
191,276.
- Grenada is more accessible with more international flights and
budget airlines travelling to the island.
Rental Yields
The coastal areas in Grenada are the property hot spots on the
island and rental yields are currently around 4.3%. If an investor
was to buy a 200 sq m property that was leased they could expect an
income of around 4.8% of the property's value. The bigger the
property the lower the yield is going to be. A lot of investors are
buying property in Grenada for vacation rentals, as renting on the
island can often just be seasonal rental yields can vary throughout
the year.
Price History
House prices in Grenada compared to the rest of the Caribbean
are relatively good, the only downfall being the transaction costs
for the buyer. When buying a property in Grenada the prices range
from $375,000 for a 100 sq m house to $1,997,000 for a 500sq m
house. Although the property market in Grenada is picking up rental
yields are still very low and the bigger the property the lower the
rental yield. In Mount Cinnamon a new development is being
constructed, with one hundred one- to three- bedroom apartments and
villas costing from £235,000 up to £2 million. In addition to this
there is a two storey five star hotel with all the luxury
facilities.
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