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Grenada Offers More Value For Money Than A Granada
December 16, 2009Article by Ray Withers
Demand is increasing for Grenada property as buyers realise that it is currently offering among the best value for money in global real estate.
Many of the top end properties in the Caribbean have held their value relatively well, despite the estimated 50% drop in transaction volumes. That said: like almost everywhere in the world property in the Caribbean is currently being sold in neat little packages.
“Developers are having to go the extra mile to show that their properties are offering excellent value for money, and a bargain at their sale price or people are just walking away. Even the people who can afford to buy multi-million pound mansions are still prolonging their search in order that they get the biggest bargain for their cash,” said Ben Jeffries of UK based international property investment consultancy Property Frontiers.
The sourcing manager for the firm, which sells Grenada property for £333k continued:
“Take our Bacolet Bay development for instance: 15% to reserve, mortgage and maintenance fees paid for first three years, guaranteed 10% rental yield for the first 3 years, and a furniture pack included in the price of £333k for a studio cottage. 3 years ago that would have been going for £500k and without half the incentives,” he said, adding: “2 bedroom apartments are also available as well as 1 and 2 bedroom villas — none of them over £700k, incredible.”
Now is surely a great time to buy a property in the Caribbean. The developments from Property Frontiers are coming with 70% LTV finance available for foreigners, and the developers are going to great lengths to minimise the initial outlay and make Caribbean property affordable to the masses.
The fact that prices are lower is also opening up Grenada property to a whole new class of buyer. According to Property Frontiers, Caribbean and Grenada rental yields are now impressive enough to make the island an excellent destination for buy to let investment.
“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 Jeffries in a recent news report.
The Bacolet Bay development is well worth considering for the casual investor, who wants a holiday home that earns its keep. The 10% guaranteed rental yield for the first 3 years becomes 50% of net rental income from year 4. This will easily beat 10% according to the developer. Owners also get 30 days free usage of their little piece of paradise.