With the economies of the US and Canada struggling, it’s not unexpected for the Caribbean region to be feeling the effects even more so. Most Caribbean countries rely almost entirely on tourism to keep their economies going, so the lack of travel is problematic.
Are People Buying Property?
The short answer is ‘yes’, the real estate market is surprising busy in a number of the locations we operate. The Cayman Islands and Turks and Caicos, are both reporting significant activity, as some buyers look for a safe haven from the virus, while others are hoping to find a deal. Getting out of the city is definitely a possibility, but it doesn’t sound like there are any selloffs in the market quite yet.
The market is likely to pick up further as the US travelers start to become more active, likely this winter once a vaccine gets approved. At this point, we are hearing of US buyers making offers sight unseen, however we are still not seeing big numbers of US travelers.
Is Anyone Lending in the Caribbean?
Again, the answer is yes, but lenders are much more selective and cautious about where they lend, how much they are willing to lend and who they lend to. This makes sense, as the prices still remain high, but there is no definitive time frame for the rental market to kick back into gear. Buyers will be expected to carry their properties until the planes start to fly again, which likely won’t be in 2020.
The banks in a number of markets have reduced or completely shut down their mortgage lending. Even before Covid hit, some of the Canadian banks were cutting back on their home loans to a frustrating degree, leaving private mortgages as the only reliable source of funding.
Is it Safe to Travel in the Caribbean Today?
The affects of Covid has varied quite significantly from island to island. Some islands have been hardly hit thanks to shutting down travel to the island completely, while others have not fared quite so well. It’s best to do your homework about where you want to go and the precautions you need to take when you arrive. Most islands have implemented a 5 day Covid test, which requires travelers to test negative no less than 5 days before coming to the island.
As travel opens up, and people start to venture out, the economies of the Caribbean will bounce back, and there could even be some good deals to be had in real estate market. If you are considering a property in the Caribbean, contact us to discuss your options and how we may be able to get you into your vacation home in the sun sooner!
