Investing in the Caribbean:Love the cricket, want to live in the Caribbean? As the Irish team gets ready to play its third world cup match tomorrow, we look at what to buy - and where.
SUN, sea, blue skies and the Irish cricket team on a winning streak . . . the Caribbean is in our news as never before. The worldwide media coverage and estimated 100,000 visitors at the tournament is showcasing the Caribbean's legendary charms on the world stage.
How many visitors who travelled to watch the ICC Cricket World Cup will be tempted to buy a second home there? There are plenty of homes and developments to choose from in the many different islands, famous for their palm-fringed beaches, friendly people and laid-back lifestyle, all with their own distinct personality.
Benefits of buying here include year-round sunshine, good rental potential and ever decreasing air fares from Europe. Strong returns are achievable because of the long tourist season. Cons are few, but include the occasional hurricane in the season from around August until October, which can cause havoc with an ill-constructed holiday home.
The more popular islands have become crowded and finding that Robinson Crusoe beach can be a problem.
This is an exclusive market and prices are not cheap, so making a shopping list of expectations is a wise move. Most of the property for sale is priced in US dollars and, with the current favourable exchange rate, it is possible to find something acceptable for around €500,000.
Where to buy is probably the greatest conundrum. The best beaches are found in Antigua, Martinique, Turks & Caicos, St Barths and the Virgin Islands. Golfers will prefer the Bahamas, Barbados, Dominican Republic, Jamaica, Martinique and Nevis. For water sports, check out St Lucia, the Cayman Islands, Grenada and St Kitts.
Access is a key aspect and a good rule of thumb is to look at islands with direct flights from the UK. After a long trek involving a connecting flight to the UK or mainland Europe and a nine-hour onward journey, even the shortest hop to another island may seem a step too far.
The buying process varies from island to island, each of which has its own government. As always, it is best practice to employ your own solicitor familiar with the area.
Security is another consideration. Islands with stable political situations and a low crime rate are the sensible option. This may mean paying a premium for one of the established locations, but values will stay firm in the long term.
Antigua, Barbados and St Lucia are among the most popular destinations, with thriving tourist businesses and stable governments bent on encouraging inward investment. Tobago is laid-back, even by Caribbean standards and prices are still low, although climbing steadily. Once larger developers arrive, values are likely to soar.
BARBADOS
"The economy is strong, it's safe and the construction law is English-based," says Dubliner Justin McCabe, joint developer in The Falls, a small estate of bungalows and townhouses across the road from exclusive Irish-owned Sandy Lane in Barbados, where Tiger Woods got married in 2004.
The Falls is on the fashionable west coast and a few minutes from the sea.
A member of a long-established auctioneering family, McCabe fell in love with the island when holidaying there and determined to get involved in the thriving Barbados property market.
"We have been spending the last number of Christmases in Barbados and I was amazed at the number of Irish people going out there.
"The fundamentals are good. Lovely people, great restaurants, golf clubs, sailing and polo. The language is English and it's safe - you don't have to worry about being mugged in the street here. It's a lifestyle investment, with a rental period of 25 to 26 weeks."
The bungalows are all sold and a few three-bed townhouses remain for sale at The Falls, priced at €643,000 ($855,000) through Pure International. These can be furnished for an extra €23,000 ($30,000) and come with a guaranteed rental income of about 5 per cent, after maintenance and agency fees.
"Not quite the cachet of Sandy Lane, but you use the same beach and the same facilities, for a third of the price," says McCabe.
ST LUCIA
Lush rain forests, dramatic mountain peaks, long white beaches and French Creole cuisine - St Lucia has all the ingredients for the perfect Caribbean destination.
The majority of the population live in the north-west of the island at Castries and Rodney Bay where some of the island's finest hotels are lined along the beach.
To encourage local employment, the St Lucian government is behind a drive to lure tourists away from neighbouring islands with a list of incentives for investors.
St Lucia has no capital gains tax on property, no Vat and no rental tax for 10 years.
Potential buyers need only apply for a landholding license which takes two months to obtain.
Property prices are affordable for resales, with new five-star golf and spa resorts being the most expensive option for buyers.
ANTIGUA
This is a world yachting centre and a mecca for sailors. With its British background, cricket is also an island passion. It's a fashionable resort, popular with jet-setters and prices are high as a result.
Antiguans boast they have a different beach for every day of the year and these are spectacular, with sugar white sand and coral reefs.
Expect to pay around €1.5 million for a traditional plantation house on a few acres and a bit less for newer properties on a smaller scale.
TOBAGO
It's still possible to snap up a bargain in Tobago, but not for long.
Infrastructure is good, scenery wonderful and there are direct flights from Europe. Developers are beginning to move in, so watch this space.
A three-bedroom house can currently be bought for around €188,000 ($250,000). At the other end of the scale, 10-acre Goat Island, once owned by writer Ian Fleming, is for sale for €6 million ($8 million).
JAMAICA
The Irish will be here in their thousands tomorrow and some could be tempted to browse in real estate windows. Jamaica is larger than most other islands and its architecture is more elegant and varied.
Noel Coward built his house Firefly on a site overlooking the northern shore and James Bond author Ian Fleming built a house on the same shorefront.
Bargains are there to be had but the crime rate is high, so rental potential and equity growth may be uncertain.
Lovely old plantation houses in need of repair would be a labour of love, but newer gated developments are probably the best option for absentee owners.
