Property investors are constantly searching the globe for the next property investment hotspot to emerge somewhere in the world. Many investors are beginning to return to the Caribbean as a safe place in which to place their hard-earned cash, having had their fingers burned investing in other areas around the world.
The Caribbean has always been an attractive place to visit for a holiday, with its all-year-round, tropical climate including sunshine, sandy beaches and warm, turquoise seas. The fact that the area attracts tourists year-round in their millions makes it doubly attractive to property investors, of course. As large numbers of tourists visit the Caribbean then it follows that there will be no shortage of interest in renting your investment property.
Since the advent of popular commercial air travel in the 1960s and 70s, the Caribbean has become a regularly-visited tourist haven, which has made it the attractive investment area it is currently.
So, it has become a year round tourist centre because of its climate. It is, without doubt, a beautiful part of the world with many islands, resorts, facilities and beaches regularly being voted in the top twenty in world rankings in their specific categories.
The close proximity to the North American landmass means that visitors from the USA and Canada provide a constant supply of holidaymakers to the Caribbean. This leads to high occupancy rates in hotels and resorts. Often, during the high season between November and May, there are insufficient rooms available to meet demand.
As an investor this news is the stuff of dreams, particularly if they are investing for cash flow and capital growth rather than making a lifestyle investment purely for their own use. More visitors than rooms available drive up the rates that can be charged for rooms. Because it is the Caribbean there are many people who are prepared to pay those very high room rates.
High room rates and a year-round season promises high occupancy and excellent rental returns for investors. The Caribbean also has an established tourist infrastructure, particularly in the more popular islands such as Barbados, Dominican Republic, St Lucia, Antigua, Grenada and Jamaica. They are used to receiving tourists and providing them with the facilities to enjoy the holiday they desire and to draw them back year after year.
There is easy access to the Caribbean with regular flights into major tourist islands from Europe and North America. Some of the smaller islands, lacking international airports, are more difficult to reach but those who undertake the long journey find it exceptionally worthwhile.
There is also a long history of stability and capital growth in the Caribbean with recession having less effect there than in most leading economies around the world. Capital growth in property across the Caribbean is steady and there are no boom and bust events in the property market there. In Barbados, for example, there has been no recorded fall in property prices in over sixty years.
And, although there is demand for more accommodation to meet the growing number of visitors, the planning regulations are strictly applied. Of course, being small islands in the main, the opportunity for expansion of the property supply is limited. There are also many protected areas, such as national parks and rainforests, which cannot be developed.
For the investor, the great news is that this environment will prevent the dramatic and foolhardy over-development which has occurred in other parts of the world and has reduced the value of many investors’ property purchases. The rate of property development in the Caribbean is sustainable with new resorts meeting existing demand and individual developments often being for lifestyle investors only.
The food, people and culture of the Caribbean also make it a wonderful place to visit, with its completely laid-back lifestyle which appeals to so many visitors who want only to enjoy the outdoor activities, or often the lack of any activity.
All these attractions enticing visitors to the Caribbean all add up to a unanimous thumbs up for the property investor looking for high rental returns as a result of high room rate charges and high occupancy levels throughout the year.
Probably the two main benefits from property sought by investors in that asset class are
Excellent rental yields and
Consistent high capital growth.
The Caribbean offers opportunities to achieve both of these benefits.
Consequently, the conclusion is: Yes, there are numerous reasons to choose the Caribbean as an eminently suitable area for sound property investment!
For your FREE Copy of “The 7 Biggest Mistakes Made By Overseas Property Purchasers” – go here: http://www.invest5star.co.uk