In most regions of the Caribbean, investment properties will not be cheap. There are a lot of different properties for a wide range of budgets, and each one will have benefits in terms of what they can return. Spending more, or buying larger does not always guarantee you a better return. It is important to decide early on whether you are looking for a vacation property or investment property because they may or may not be the same thing.
Vacation Property Versus Investment Property
Most people looking for an investment property are also looking for a vacation property for personal use. You think about the size of your family, convenience, long term plans etc when buying a vacation property. Investment properties on the other hand, your primary concern is return on your investment; hopefully the two motivations match up on a similar property.
Don’t feel bad about letting your emotions get in the way. This should be your dream home in the sun. If you need rental income to service any debt on the property, these are questions you will need to ask. If it doesn’t have a history of rental income, how quickly can you start making money with your property?
Should you be Happy With Breaking Even?
For most buyers, having their property pay for itself is enough. They get to use their vacation property when they can, and not worry about it when they are not using it. This is usually where vacation property buyers in the Caribbean draw the line.
For investment property buyers however, a return above and beyond covering their expenses is key. This is where some due diligence on behalf the buyer is going to be needed. By speaking with top realtors in the area, they usually have a very good idea of where to buy.
If you are looking to purchase an investment property in the Caribbean, talk to us today about your financing options.
