Nearly everyone dreams of owning a vacation property in the Caribbean, what’s not to love about the sand, sun and turquoise blue water? Obviously the costs of owning such a home can be an issue for many people as well as the monthly costs of keeping it up. So are Caribbean properties only an option for the super wealthy?
Absolutely not, your home in the Caribbean can be more than just a drain on your finances, it can be adding to your nest egg! Many of the properties we finance are condos or villas which are run by a management team as hotels. These properties can give you solid returns every year on your investment with no monthly or yearly costs. Your return is obviously affected by the amount of time you use your property for personal use, however for most buyers knowing that their property is paying for itself and they are still getting a return is more than satisfactory.
This type of situation of turning your vacation property into an investment property, fits in much better for most buyers who either don’t have the desire or the ability to carry the costs of a second home. Not to mention, the upkeep that can be required in an environment such as this. Let the hotel do the work, and you can collect your (tax-free) earnings.