How many people have thought about selling it all and moving to the Caribbean? Without any data to back this up, I am going to guess conservatively and say ‘everyone’! Okay this might be a bit of an exaggeration, but it’s a lot. The problem for most however is also a common one, how would I support myself without a decent paying job. Well, if you don’t think you can make a living selling trinkets on the beach, there are other ways to make money while living in the Caribbean. Here are just a few ideas on how to make money, on your money, if you want to live the dream.
Buying and Renting Your own Vacation Villa
Like buying a business, a vacation villa can be a great way to make good money while living in the Islands. You will need to do your research on where you can get the best bang for your buck in terms of rental income, however the Caribbean has plenty of great options. In locations like the Turks and Caicos and Cayman Islands for example, living off of your rental income would not be an issue at all, however keep in mind that the price of vacation villas is also not cheap. The more you need to finance, the less you have to live every month.
The great thing about villa ownership, is you can determine the amount of work you want to put into the job. Pretty much any or every part of the job can be contracted out to property managers. Again, this affects your bottom line, but you are likely not moving to the Caribbean to work 60 hours a week.
Another great alternative in the real estate sector, are condo hotels. These units are fully managed properties which just kick out a return every month on your investment. You give up a lot of unit income to the hotel, however it is a completely hands off investment.
Mortgage Investments and Mortgage Funds
Mortgage investments are a common form of income for many clients who live or keep their money offshore. Again, there are varying degrees of hands on work involved depending on the vehicle you choose. Mortgage placement is where a company matches borrowers and loans with investors. As the investor you will approve, dictate the terms and hold the entire mortgage for the borrower. There is a bit more risk with this type of investment, however you control every aspect of the deal, and you benefit by not paying out large fund management fees.
Mortgage funds on the other hand, are the hands off alternative. You don’t control any aspect of the transaction, and receive a return based on how the over all fund is doing. Bad loans in the fund, will affect all the borrowers, however this also spreads the risk.
Mortgage investments (including funds), are a low risk, decent return vehicle for your Caribbean investments.
Stocks and Bonds
Chances are if you buy on a more developed island, you will have local brokers who can invest your money into stocks and bonds. These investments risk and return will depend on you, and your risk tolerance. If you are interested in discussing your options with someone in your desired location, let us know and we may be able to help you out.
Buying a Business in the Caribbean
This option can be a great one, and really get you involved in the local community and culture. Businesses in the Caribbean generally do not sell for the same multiple as they do in North America or Europe. This can be a plus for those buying however, it also means that the figures being used to determine value may not be as reliable as a businesses at home.
Dealing with a business broker can help you mitigate some of the risks involved with buying a Caribbean business. Talking to locals is also another great way to get info on a business, they may not be able to give you specifics, but they can likely fill you in on some of the history (there are no secrets on a small island).
The dream of moving to a tropical island does not have to be a dream, but it certainly helps if you have money before you go. Talk to us today if you are interested in buying a villa, a business or would like to discuss mortgage investments in the Caribbean.
