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Life’s A Gas For High Flying Tobago
February 4, 2009Article by Ray Withers
Trinidad and Tobago has been ranked the country with the seventh best economic freedoms in a poll of 29 Latin American and Caribbean countries for 2009 – mainly thanks to huge natural gas reserves. Overall, Trinidad and Tobago comes in at 41 in the world league table of 183 countries, which is an excellent result for a country of only 1.5 million people. The index is based on 10 key economic indicators and is compiled by the Wall Street Journal and the Heritage Foundation.
The economy has grown at an average rate of 10% over the past five years. The oil and gas sector accounts for about 40% of gross domestic product. The government has tried to broaden the economic base, and the country has evolved into a key financial center in the Caribbean region. Trinidad and Tobago is the Western Hemisphere’s largest supplier of liquefied natural gas. The size of the economy has doubled since 2002. A foreign investment boom has increased energy output significantly.
Tourism is a significant part of the economy – the government reports that a shortage of over 700 beds on the island. With hotels currently at 85% occupancies and growing pressure from tour operators and airlines alike to increase capacity, the demand for bed stock in Tobago is at an all time high – making this a perfect time to look at Tobago investment property rates well against other property in the Caribbean.
Typical Tobago property is the Indigo Bay resort with studio, one and two bed roomed apartments from £122,807. Offering hands-Free management with 10% net yields guaranteed for 5 years and two weeks personal use per year. Annual net return on investment is a potential 55%.
Mortgages are available at 65% loan-to-value, which means investor need £36,000 cash plus purchase costs
Indigo Bay is two miles from Little Rockley Bay beach and four miles from airport that is serviced by Virgin Atlantic and British Airways. The islands have won the World Travel Award’s best eco-destination category three times in recent years. Tourism is expected to grow 4% annually for the next few years