One of the newest and most popular residential projects we are seeing today all over the Caribbean are micro resorts. These villa developments are much easier to develop than a typical resort, and are filling the void left by the larger developers who are not yet building in most Caribbean destinations.
A typical micro resort would be an ocean front property, subdivided into 3-5 luxury villas. These villas are often gated off, with some common areas. Built to sell and be included in the rental pool, there is a strong demand for high end villa rentals in the Caribbean.
Examples of micro resorts are the Gansevoort Villas and Beach Enclave in the Turks and Caicos. These developments have been very successful, offering a fully managed vacation rental service. These properties would be similar to owning a unit in a hotel resort, but in a villa product.
Generally these projects are seen as commercial developments by mortgage lenders in the Caribbean. Commercial loans can be more difficult to source than residential loans when dealing with banks. In most cases, our non bank mortgage lenders are the path of least resistance, getting your project off the ground sooner.
The terms are not as attractive on non bank mortgage lenders, however the flexibility makes them more appealing. Every day that your project sits waiting to get through bank bureaucracy, costs you money. You need a lending partner who will work with you to get your project off the ground.
These developments have proven to be very good investments for Caribbean developers. For a much smaller initial investment than a typical resort, the villas are often purchased before construction allowing the developer to have the client finance their own build.
If you have been considering making an investment in Caribbean real estate, talk to us today about our financing options. Depending on location, we may also be able to assist you by assembling the local team you need to get your project from paper to reality.