I have always had the dream of owning some oceanfront property in the Caribbean or the Tropics. Ideally, a property management company would be in charge of renting out the place while I am not there. This way, it would actually generate some income. I have heard many warnings about investing in Mexico, Guatemala, etc. Obviously, corruption can be a problem. Is there anybody out there who owns income-generating property in the Caribbean? Do you have any contacts you would recommend? I would love to hear from you.
Income properties in the Caribbean
- Thread starter mknoefel
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QUOTE (mknoefel @ Mar 7 2009, 09:14 PM) I have always had the dream of owning some oceanfront property in the Caribbean or the Tropics. Ideally, a property management company would be in charge of renting out the place while I am not there. This way, it would actually generate some income. I have heard many warnings about investing in Mexico, Guatemala, etc. Obviously, corruption can be a problem. Is there anybody out there who owns income-generating property in the Caribbean? Do you have any contacts you would recommend? I would love to hear from you.
You should investigate a year long subscription to International Living Magazine. At the very least, sign on for their "postcards" a daily email that gives you some insight into owning properties overseas. Keep in mind the whole"what`s behind the curtain" because a lot of their products are intended to sell you on books and/or conferences etc. Overall though, there is a lot of information in there about retiring abroad or owning foreign properties. It will defiately help you daydream and choose your belize.
I`ve read a few books on the concept and generally, they all mention that you should not buy a property overseas unless you have spent a few months living in that country, near where you want to buy. This will let you get a feel for the communities, the problems, the opportunities. That beach that you visit in a Canadian winter might be quite miserable in the summer. A few of the books are very much against the idea of owning overseas, that you should keep your real estate portfolio in your home country and just rent an apartment each time you want to go somewhere.
I love to travel and like the idea of a mini-retirement(holidays of 3-4 weeks) in different places. I`ve just done a 2.5 week stay in Buenos Aires Argentina, a country I have been dreaming about for years. In those 3 weeks I had a great time and discovered that the city was all it was said to be. I`d also dicovered though that although I`d love to visit again, I wouldn`t want to live there. If I visited, I would stay in a different part of town. Instead of getting a hotel room, I rented an apartment for the time I was there. It is a lot cheaper and much more comfortable. Until I find the place I REALLY want to stay in for a long time, I`d rather have the option of visiting a different place each time. This year was Argentina and the Dominican Republic, next ear it`s Brazil. Why limit yourself to one country and add the risk of ownership at distance and the nightmares of trusting foreign property managers.
I`ll admit, it would be nice to be able to say "I`m going to visit my house in Rio". MAybe one day, but for me, for now it`s a few weeks here and there. Singapore, Rio, Quito, Puerto Vallarta etc etc, here I come
RF
You should investigate a year long subscription to International Living Magazine. At the very least, sign on for their "postcards" a daily email that gives you some insight into owning properties overseas. Keep in mind the whole"what`s behind the curtain" because a lot of their products are intended to sell you on books and/or conferences etc. Overall though, there is a lot of information in there about retiring abroad or owning foreign properties. It will defiately help you daydream and choose your belize.
I`ve read a few books on the concept and generally, they all mention that you should not buy a property overseas unless you have spent a few months living in that country, near where you want to buy. This will let you get a feel for the communities, the problems, the opportunities. That beach that you visit in a Canadian winter might be quite miserable in the summer. A few of the books are very much against the idea of owning overseas, that you should keep your real estate portfolio in your home country and just rent an apartment each time you want to go somewhere.
I love to travel and like the idea of a mini-retirement(holidays of 3-4 weeks) in different places. I`ve just done a 2.5 week stay in Buenos Aires Argentina, a country I have been dreaming about for years. In those 3 weeks I had a great time and discovered that the city was all it was said to be. I`d also dicovered though that although I`d love to visit again, I wouldn`t want to live there. If I visited, I would stay in a different part of town. Instead of getting a hotel room, I rented an apartment for the time I was there. It is a lot cheaper and much more comfortable. Until I find the place I REALLY want to stay in for a long time, I`d rather have the option of visiting a different place each time. This year was Argentina and the Dominican Republic, next ear it`s Brazil. Why limit yourself to one country and add the risk of ownership at distance and the nightmares of trusting foreign property managers.
I`ll admit, it would be nice to be able to say "I`m going to visit my house in Rio". MAybe one day, but for me, for now it`s a few weeks here and there. Singapore, Rio, Quito, Puerto Vallarta etc etc, here I come
RF
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QUOTE (mknoefel @ Mar 7 2009, 09:14 PM) I have always had the dream of owning some oceanfront property in the Caribbean or the Tropics. Ideally, a property management company would be in charge of renting out the place while I am not there. This way, it would actually generate some income. I have heard many warnings about investing in Mexico, Guatemala, etc. Obviously, corruption can be a problem. Is there anybody out there who owns income-generating property in the Caribbean? Do you have any contacts you would recommend? I would love to hear from you.
Do you know the tax implications ?
Can you get a mortgage ?
Do you know the difference between short-term and long-term rental ?
Do you know the vacancy on a yearly basis ? (likely 60% +) .. can you cash-flow on that even with no mortgage, after all management fees, upkeep, property taxes ... ??
Do you know low season and high season differences ?
What about hurricane potential ?
consider renting .. and only after you personally understand the locale you wish to invest in REALLY REALLY well (say after the 14th visit), the mortgage situation, the local laws, the taxes, the culture or the landlord-tenant "act" / situation .. then maybe do it with facts at hand .. otherwise it is a recipe for DESASTER !
Do you know the tax implications ?
Can you get a mortgage ?
Do you know the difference between short-term and long-term rental ?
Do you know the vacancy on a yearly basis ? (likely 60% +) .. can you cash-flow on that even with no mortgage, after all management fees, upkeep, property taxes ... ??
Do you know low season and high season differences ?
What about hurricane potential ?
consider renting .. and only after you personally understand the locale you wish to invest in REALLY REALLY well (say after the 14th visit), the mortgage situation, the local laws, the taxes, the culture or the landlord-tenant "act" / situation .. then maybe do it with facts at hand .. otherwise it is a recipe for DESASTER !
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To add to what Thomas mentioned, is the fact that many of those countries don`t have mortgages. You buy the place when you can afford it. A lot of people build as they go, adding a few more bricks every paycheck.
Places that cater to outside investors sometimes allow 50% down and the rest is financed, usually at rates hovering around 10%.
Rent it when you want to be there. When something happens to their political system, or economy, choose a different country, no hassles. Once you become very familiar with one place, then consider buying, but only once you want to live there full time.
RF
Places that cater to outside investors sometimes allow 50% down and the rest is financed, usually at rates hovering around 10%.
Rent it when you want to be there. When something happens to their political system, or economy, choose a different country, no hassles. Once you become very familiar with one place, then consider buying, but only once you want to live there full time.
RF
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- May 31, 2008
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I`ll have to agree with everyone here. I`ve had a strong interest in Panama for some time for many reason but none I will get in to here.
I too have been a reader of International Living and find they have a lot of good information on how to research potential properties and traps to avoid. One thing that I`ve learned from International Living is that there is often a different price for locals vs outsiders. Also, make sure you THOROUGHLY learn the local laws. For example, in Panama all documentation has to be in Spanish or it`s not binding!
I too suggest renting. buying ties you to that 1 location where as renting will give you the freedom of trying different places. You may get bored with that spot after a few years.
I realize too that your property may earn you income but what if it`s rented for when you want to go down? Do you take the income and rent somewhere or use the place for yourself, thus costing you lost revenue? Don`t forget, most of your property income will be during the tourist season which is most likely when you will want to go too.
I too have been a reader of International Living and find they have a lot of good information on how to research potential properties and traps to avoid. One thing that I`ve learned from International Living is that there is often a different price for locals vs outsiders. Also, make sure you THOROUGHLY learn the local laws. For example, in Panama all documentation has to be in Spanish or it`s not binding!
I too suggest renting. buying ties you to that 1 location where as renting will give you the freedom of trying different places. You may get bored with that spot after a few years.
I realize too that your property may earn you income but what if it`s rented for when you want to go down? Do you take the income and rent somewhere or use the place for yourself, thus costing you lost revenue? Don`t forget, most of your property income will be during the tourist season which is most likely when you will want to go too.
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QUOTE (mknoefel @ Mar 8 2009, 10:38 PM) ... obviously a lot of homework ...
and a lot of local LEGwork, too !!!!!
and a lot of local LEGwork, too !!!!!