Caribbean Investment Property

Caribbean investment property prices have fallen to some extent. Unlike American property values they have not tumbled but they are at an excellent value level right now. The generally desirable locations of Caribbean investment property will ensure they are the first prices to recover from the global slump.

On several islands major golf centered developments are being built and despite the fact that tourist visitor numbers are likely to fall this year this sector of the economy, the luxury end of the Caribbean investment property market, is a much less risky prospect.

It could be seen as a risky investment time as Caribbean tourism ministers forecast a three to five per cent drop in summer 2009 visitors. They do however expect it to be less well off tourists on package vacations and cruises that will fall most and that the well-heeled visitors are less affected by the credit crunch.

So in line with the rest of the World, rental income and capital appreciation on Caribbean investment properties is down but it will be first to recover and is anticipated to rise above pre-credit crash levels. Now is the time to invest as prices have never been more attractive and are not likely to stay that way for long.

In 2008, the Caribbean residential investment property sector maintained positive inflows of money. This showed the confidence of many of the savvy real estate investors. They have confidence in the islands are positioning themselves to take advantage of the coming economic recovery. This will drive local property price inflation once again.

For the tourism sector especially, the strong US dollar has attracted a mini boom in Americans looking for vacation properties to rent as their tourists benefit from foreign exchange fluctuations. While even the relatively weak Euro has not put off so many visitors because of the overall lower travel costs in airfares and the low local cost of living.

There are any number of Caribbean investment properties available in dollar-denominated countries. This is where the US dollar is either the fully accepted island currency or a dual one with the local currency. This essential economic bond has made the inflow of funds to the local real estate market seamless.

Local knowledge and increasingly sophisticated financial expertise makes property purchases in the region significantly easier. Over the last five years many international financial organizations have been offering secure lending facilities for the expatriate property investor.

Caribbean income requirements and legal complexities have also been extensively eased and simplified as domestic lenders seek to attract offshore businesses and part time residents. The newcomers are in a much better position to repay loans and service mortgages and are therefore highly prized as clients for local banks and lenders.

The Caribbean islands remain a holiday and retirement place of choice for both Europeans and Americans with sustaining robust local market conditions. 2009 should see steady but not spectacular growth and healthy returns on income. Much greater growth potential will come about in 2010 because the sun, sand and idyllic local settings remain a constant attraction.