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Caribbean Property Yielding Better Results
December 9, 2009Article by Ray Withers
Among the current offerings of Caribbean property there are some excellent buy to let investment opportunities, according to international property investment consultancy Property Frontiers.
“The Caribbean is known for having among the biggest tourism industries in the world, but before now high prices had kept yields low. Now that prices have fallen, and developers are cutting back on luxuries to provide lower prices, yields are higher than ever before,” said Ben Jeffries, a sourcing manager with the firm.
“Previously if you wanted a yield of more that 5% on a Caribbean property you didn’t have a lot of choice about where you could buy, Dominican Republic or Margarita was about your lot. In the current marketplace we are seeing properties in prime Caribbean locations offering rental yields of 8%,” he added.
Property Frontiers are currently marketing several world class properties for sale in the Caribbean.
The firm’s premier property has to be Bacolet Bay. A five star resort set in 41 acres of tropical gardens, Bacolet Bay offers studio cottages with 70% finance from £333,333 — just 15% to reserve. Tying in with the theme, Bacolet Bay properties come with a 10% guaranteed rental yield for the first 3 years. What do you expect from properties set on a Caribbean beach at that price.
What’s more the yield increases; from year four owners receive a 50% of the net rental income, which is expected to be more than a 10% yield as well as 30 days usage of the property. 2 bedroom apartments are also available, as well as 1 and 2 bedroom villas.
The firm is also responsible for the UK marketing of what is surely some of the most luxurious property in the Caribbean. The Renaissance development on Trinidad and Tobago. Located on the Ocean front each remarkably spacious residence will have panoramic views of the ocean and mountains. Each residence will offer the highest standards of fixtures and fittings, large terrace areas and luxurious en-suite bathrooms.
Renaissance is already 75% sold and with 85% of these buyers intending to be owner-occupiers. Those few residences that are placed in the rental market will be highly desirable.
The developer is anticipating a 6% yield in the 1st year, with rentals increasing around 5-8% annually – equating to a gross income upwards from £60,000 per year!
Property Frontiers also have some excellent half acre land plots in a nature reserve set inside a Belizean rainforest at the incredible price of just £20,000. What’s more the plots have villas waiting to be built at cost price, and with free rental management.