Real estate is one of the most profitable investment options available. Even millionaires agree that it still is the best form of investment you could choose today.
Some say it’s because of the year-round income that real estate investment can provide. For others, it’s the fact that properties continue to appreciate through the years.
Of course, there’s still a question of where and how. The fact is that property investment can still become even more lucrative, especially when you choose something as well-known as the Caribbean real estate market.
Are you considering a Caribbean property for your real estate investment? Use this six-step guide to help you with the process:
Table of Contents
Step #1: Determine your goals.
Caribbean properties are good for several things: a passive income, a vacation home, and, sometimes, second citizenship.
That said, you must first determine your goals before getting into any permanent arrangement. Ask yourself this: “What’s my priority?”
You see, the best rental properties aren’t always the best residential options, and vice versa. And then there’s the matter of government-sanctioned real estate for securing citizenship by investment.
Besides the type of property, your goals also affect the best location to buy into.
For example, if you’re looking to use the place as a rental, you’ll want to choose a Caribbean country that sees a lot of tourists yearly. Alternatively, a second home should provide you with the privacy and serenity unique to the Caribbean, which means somewhere more secluded and less visited might be the best choice.
If you’re unsure what your own goals are, you can also look into why most people choose to invest in Caribbean properties. Among the most common reasons include:
- Beautiful landscapes
- Laid-back lifestyle
- Political and economic stability
- Residency and citizenship programs (for retirement or second home)
- Second passport travel benefits
- Tax environment
- High profit potential
- Location and accessibility
Step #2: Choose a Caribbean country according to your goals.
Once you have a goal (or several goals) in mind, the next thing you need to do is pick a country to invest in. If you can’t choose just one at this point, shortlist at least two or three countries that offer the best possible options based on your purpose for the investment.
Whether or not you plan on applying for Caribbean citizenship by investment programs, you must make sure that you’re well-informed of the prime real estate spots in the region.
For example, if you’re looking for second citizenship for your family in the Caribbean, Antigua and Barbuda is your best bet among the region’s CBI countries. Their University of the West Indies Fund (UWIF) option grants citizenship to six or more family members of an applicant for just US$150,000 investment.
Antigua is also a good choice for those who want to put their money on properties that will serve as vacation rentals, as the island has a running average of over 148,000 visitors annually.
On the other hand, you’ll want to choose a less-visited country if you’re looking to use your real estate property as a second home. In this case, Grenada’s average of nearly 80,000 visitors in a year is a good example.
Step #3: Research the country.
Once you finalize your shortlist, do some research on the specifics of the real estate investment market in the country.
While it’s perfectly fine to invest in just the property, you might want to consider putting your money into the country through citizenship by investment programs (CIP). Most countries that offer citizenship also have a real estate investment option, allowing you to get more from your money.
Besides Grenada and Antigua and Barbuda, Dominica, St. Kitts and Nevis, and St. Lucia also have excellent citizenship programs for real estate investors.
Most (if not all) of these countries also grant economic investors with the following perks:
- Visa-free or visa-on-arrival access to more than 100 countries
- Tax benefits
- Citizenship for applicants and their direct dependents
Step #4: Dig deep into the neighborhood.
Now that you’ve covered the investment side of things, it’s time to dig deeper into the neighborhood. This is an important step, whether you choose to live in the Caribbean or just use the property you purchase as a source of income.
Learn more about the community: Is the country ready for tourism? Are locals friendly to foreigners visiting the place?
Don’t forget about the costs of utilities and transportation. Basic amenities and access to essential establishments like supermarkets, medical facilities, and schools also matter.
If you can, go on a discovery trip to the island or country you’re buying a property in to get first-hand information on these things.
Step #5: Check your eligibility.
Ready to invest in Caribbean real estate? Check if you’re eligible first.
Qualifications for real estate purchase or investment vary from one nation to another, even if they are in the same region.
For example, the buyer needs to appear during the signing of conveyance documents for property purchase in St. Lucia. Meanwhile, Jamaica requires property buyers to apply for a unique taxpayer registration number with the country’s Tax Administration Department.
Even with the real estate investment option for economic citizenship, you must still make sure you have all the qualifications for the country you choose. And don’t forget to select government-sanctioned properties if you are planning to invest to get Caribbean citizenship.
Step #6: Get professional help.
It’s almost impossible to buy a Caribbean property without expert help – even more so if your investment comes with a citizenship application.
Because of this, the next step you must take would be to look for and hire the following professionals:
Real Estate Agent
Real estate agents help you look for a Caribbean property based on your unique preferences and needs. They are also usually well-versed in the local real estate market, laws, and regulations, which makes them helpful consultants in making sound decisions on the matter.
Surveyor
Besides tax obligations, you must submit a survey report and valuation for your property purchase. This is where you’ll need the help of a surveyor.
A survey report presents all legal boundaries of the new property. It also helps determine any encroachments you must consider during the purchase.
On the other hand, valuation gives you more information that could help you decide whether to buy the property or not. One example is the property’s true marketing value.
Attorney
An attorney can provide legal advice on costs, taxes, and other laws concerning your property. They also help you with legal requirements for property purchase and asset protection in case of marital status change or death.
Citizenship by Investment Agent
While some lawyers are also registered as citizenship by investment agents, not all of them are. And all citizenship by investment programs in the Caribbean must go through licensed agents.
Look for the list of approved or certified agents on the official CIP website of your chosen country for real estate investment.
Invest Wisely
Real estate investment is the best long-standing investment option available in the Caribbean. Given its beauty, appeal, and overall stability, the region has attracted plenty of real estate investors for one reason or another. Invest your money wisely and use this article as a guide.
