For any sun lover, the thought of building their dream home in the Caribbean is played out numerous times a day (mostly in the winter months). Buying a virgin piece of beach and designing the perfect villa would truly be a slice of paradise that anyone would love. But how easy is it to finance that dream?
Construction Financing Options
That is a great question, and certainly not an easy question to answer. The banks are not all that easy to deal with in the Caribbean, losses accumulated during the recession have taken their toll. However under the right circumstances and the right buyer, these mortgages can and do happen. Large down payment, and strong provable cash flow are a must however if you are going to have any luck with a bank down here.
The other option is of course private financing, which more often then not is the best option. You will have to bring a lot of equity (usually 50%), and show you have the means to complete your project. Not completing is pretty much every lenders worst case scenario. Your idyllic piece of virgin beach will be considered a partially built structure on an over grown lot should the bank ever have to foreclose during construction.
The options we have in each destination will vary, and many islands will have no options at all. So before you buy that oceanfront property, make sure you look into your financing options.
Talk to Carib Capital about our construction financing options in the Caribbean today.
