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Caribbean Property Just Sells
March 19, 2010Article by Ray Withers
It is now a proven fact that Caribbean property still sells during an international financial crisis. There have been reports of increasing sales of Caribbean property for several months now, but recently these reports and even the sales within them have started to intensify.
Several weeks ago came a report that Cardea property consultants, who had just taken over the marketing of the Jalousie Plantation in St Lucia, had sold some seven million US dollars worth of properties in the space of 1 month.
This has been followed by reports of an 80% increase in enquiries on properties in the ever-popular Barbados. But it is not just Barbados or St Lucia seeing more action, it is a trend that is emerging in the Caribbean property market as a whole, whereby wealthy foreigners are back out there and buying their dream homes in their favourite destinations, say Property Frontiers.
“We have seen a significant increase in enquiries for our Caribbean property, of which we have always focussed on the higher end of the scale. In fact the luxury villas we were marketing in Trinidad and Tobago at prices over £1million sold out recently. Our Grenada properties — which are also high end properties in the £400k-£700k price-range — have also seen increasing leads in the last 6 months,” said David Cox, director of the international property investment consultancy.
Property Frontiers are currently marketing the Bacolet Bay development in Grenada. The resort development won the CNBC best development award in 2007, when it was in its initial planning stages. No doubt its incredible location was a big part of this; Bacolet Bay is set in 41 acres of lush tropical gardens, frontline to a glorious Grenada beach. The properties at the front of the resort have views of the beach and sea, and the properties at the back have views over a glorious rainforest valley.
As an investment, the properties are expected to bring in rental yields of between 11%-14% on top of the 30 days free usage granted to owners. There is a guaranteed rental income of 10% per year for the first 3 years, which is paid in advance on completion. Most buyers are currently paying in cash, but 70% mortgages are also available on the Bacolet Bay development, with only a 15% deposit payable to reserve. The development consists of studio cottages, 2 bedroom apartments, and 1 and 2 bedroom villas, at prices starting from £333,333.