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Investors Going Prime In Grenada
February 22, 2010Article by Ray Withers
Grenada property is seeing increasing demand from foreigners, but more importantly from a cross-section of buyer profiles — not just lifestyle buyers but investors as well. It seems that private investor have learned what institutional investors have known for a long-time: prime properties present the safest investments.
This coming from international property investment consultancy Property Frontiers, the firm’s director David Cox said:
“Grenada is a new market in the Caribbean, new in terms of the level of development aimed at the foreign market. It is also a sound market, because the government has already shown that it will never let its beautiful island be destroyed by over-development. For that reason Grenada property has an aire of exclusivity that people are willing to pay for.
“Of course I can only speak for the properties that we are marketing, which, it has to be said are pretty spectacular in their own right; luxury apartments and villas set inside 41 acres of tropical gardens all fronted on to a Caribbean beach would be a great buy anywhere, without the strong supply-demand fundamentals that the Grenada property market has going for it.”
The development Cox is referring to is the Bacolet Bay Development, offering studio cottages in the surroundings laid out above from just £333,333. 2 bedroom apartments are also available, as well as 1 and 2 bedroom villas, and all with 70% finance available. The resort is a fully equipped resort, with state of the art leisure and excellent dining facilities. The communal areas enjoy spectacular views over the ocean.
As an investment the Bacolet Bay units are among the finest in the Caribbean: owners get 30 days free usage per year, 3 years guaranteed rental at 10% per year paid up front on completion, and a 50% share of the net rental income thereafter, which is expected to be well in excess of 10%.
Property Frontiers have recently presented a strong case to suggest that Caribbean properties will start to increase in price in the coming months, starting with developers adding some of the extras that have been taken away to reduce prices.
In the case of Bacolet Bay these extras are: mortgage and maintenance fees paid for the first 3 years, free furniture packs, and one must suspect that the payment of rental fees for 3 years upfront is also a sweetener. If buyers act quickly they can still buy with these offers intact.