Should You Invest?
St Kitts has recently been described as the most attractive
property investment market in the Caribbean. The island used to
rely on sugar cane production and sales to receive a regular
income, but when this industry collapsed attention turned to
attracting foreign investment. This meant an opportunity to create
a property market geared towards attracting foreigners to the
islands who would bring with them the lucrative tourist dollar.
Property prices are currently low but in the near future
prices will increase so investors could make big returns.
- With plans to increase the number of flights to the islands
this could be one of the most popular holiday destination in the
Caribbean.
- There is currently a pro-landlord rental market
- The rental market continues to have moderate yields.
- There is minimal taxation when owning a property in St. Kitts
although transaction costs are high when buying and selling
property on the islands.
Rental Yields
Rental yields in St.Kitts and Nevis are moderate with property
generating yields of 4% to 7% on St. Kitts and 6% to
7.2% on the island of St Nevis. Rents on the island are seasonal
and can vary on a frequent basis. St. Kitts recently hosted the
2007 Cricket World Cup which for a short time increased property
rental incomes. If tourism continues to increase in the near future
the rental market will subsequently boom and rental yields will
improve.
Price History
With a relatively young real estate market there is not so much
history to go on. Real estate prices have been increasing steadily
for a decade but currently there are not as many sellers as demand
requires due to owners waiting for prices to rise before they
sell.
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