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Grenada Property Is As Good As Gold
March 15, 2010Article by Ray Withers
There have been several reports in the industry press this week that Caribbean and particularly Grenada property, as well as other similarly high end markets are being purchased by people as a hedge against financial instability and currency devaluation.
Assets like Grenada property have been singled out as an alternative to the traditional asset people buy at times like this, which is gold, because the country — along with several other high end markets in the Caribbean — because it has remained largely outside the global investment markets, and therefore is now insulated to the current financial turmoil.
The other reason of course is that, due to people buying gold en-masse from the outset of the crisis, gold has increased massively in price, and in some ways that boat has now sailed; the price of gold has gotten awfully volatile in recent months.
International property investment consultants Property Frontiers have highlighted the trend of people investing in property to safeguard the value of their savings in many recent commentaries, and they have also singled out Grenada. In a recent news article director of the firm David Cox was quoted as saying:
“For the first time, certainly in my lifetime there is real fear over currency devaluation and inflation hitting us in a double whammy to make our cash savings practically worthless. While it is easy to sit-back and say, modern governments won’t let that happen, but how many people are willing to trust modern governments?
“How many of those would trust them enough to bet their life savings on them? Not many; and that is why so many people are putting their savings into tangible assets like gold, and of course, high end properties. As I said recently, Grenada property and that in other high-end Caribbean islands are among the favourites, because the Caribbean has mostly remained insulated from the international financial merry-go round in the past few years.”
Property Frontiers are currently marketing the Bacolet Bay development, a cluster of luxury cottages, villas and apartments set in 41 acres of tropical beach front gardens, priced from £333,333 for a studio cottage. A 15% deposit will reserve one of the properties, with 70% finance available. Owners get 30 days free usage per and a guaranteed yield of 10% for the first 3 years, which is paid upfront on completion. In subsequent years owners get a 50% share of the net rental income, which is expected to be more than a 10% yield.