Buying Off Plan Property in the Caribbean

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Property in the Caribbean – Buying Guide

The properties in the Caribbean are as varied as the different islands, but they all have several things in common -  the wonderful climate, the warm waters, great fishing and water sports, marinas and friendly people. As far as a buying guide goes for the Caribbean, it is very difficult if not impossible to present just one guide, due to the fact that each islands works under different laws, legislations and business infrastructures.

Some islands work on the basis of English law. Others French, others Dutch , so on and so forth - some of the islands welcome foreign citizenship and investment whilst others guard its indigenous population zealously.

Similarly there are an abundance of ways in which to finance a property purchase, with many islands only lending to locals and or specified overseas countries. In order to apply for a mortgage in a Caribbean destination that will permit mortgages for overseas buyers you will normally asked for a full credit report and proof of earnings and tax returns if you are self employed.

Prices are continuing to grow on most of the Caribbean Islands and finding affordable property is getting harder. New developments on established islands are selling fast to the wealthy and new off plan developments in less established markets such as Isla Margarita, Dominican Republic, Turks and Caicos are quickly being bought whilst prices remain relatively inexpensive

Basic mortgage terms for the Caribbean are:

• Max LTV (Loan To Value) of 60%-70% depending on the island
• Max term is 20 years
• Mortgages are available in US Dollars and Sterling.
• Dollar mortgages are the most popular especially at the moment given the weak dollar
• The Dollar interest rate is based on Libor and will be approx. 8% depending on the island
• The first five years interest only loans are also available on some islands.

Mortgage interest rates are generally on the decline for those qualified buyers that can afford to pay a 30% deposit, as the risk to loan value is cut considerably for the lenders. New innovative mortgage products are continuously entering the market as financial institutions compete aggressively for qualified clients.

With the new Open Skies agreement now under starters orders from the US and international carriers, there is sure to be a positive movement to lower flight prices to the Caribbean from many European countries. This in turn will no doubt bring with it an increased number of European tourists to a larger variety of the Caribbean islands.

Beach front properties are destined to continue to command the highest prices and land prices are also expected to increase as international developers invest in swathes of land in order to construct the very much in demand lifestyle developments fro the growing number of retirees and early retirees that the Americans call the baby boomers.

That said in Europe we also have our share of the retirement market and as the world gets smaller and travel less complicated there will no doubt be many European families that will make the move to the Caribbean.

Many of the Caribbean islands either use the US dollar as their trading currency or their local currency is tied to it. Because of this ad the fact that the dollar has been so weak recently and with little prospect of it recovering, now is an ideal time to invest in your little piece of paradise in the Caribbean

Property for sale in the Caribbean

Off Plan Property for sale in the Caribbean including holiday homes, retirement property, investment property, in Barbados, Bermuda, Cayman Islands, Dominica, Dominican Republic, Grenada, Guadeloupe, Jamaica, Margarita Island, Isla Magarita, Martinique, Montserrat, Netherlands Antilles, Dutch Antilles, Puerto Rico, Saint Kitts and Nevis, Saint Lucia, San Andres & Providence Isles, Trinidad & Tobago, Turks and Caicos Islands, Virgin Islands, Virgin Islands.