Isla Margarita, the stunning Caribbean island retreat off the coast of Venezuela and off the scale in terms of its outstanding appeal and affordability, is becoming something of a real estate investment hotspot. With accessibility to the island increasing and improving all the time and the numbers of tourists arriving annually increasing as a result, buyers are very well aware that now is a great time to buy in to this ground floor investment opportunity and enjoy the longest period of potential price appreciation.
If you’ve been looking for a genuine emerging market of real estate opportunity, you need look no further than Isla Margarita. Buying in needn’t be difficult either, the purchase process is straightforward, and thanks to tax incentives now is a great time to buy a home, a holiday home, a second home or a pure property investment asset in Isla Margarita.
Here are the ten top tips for investing in this Caribbean island paradise: -
1) Accept that whilst this is a ground floor investment opportunity, not every property you see will make a good investment! The usual three important criteria apply when looking for a good property – namely location, location, location! Because a great deal of real estate stock is coming to the market offering great choice, you need to ensure the property you purchase will be of maximum appeal – therefore it should be front line – i.e., on the beach.
2) Front line is still not a good enough reason to invest in a property in Isla Margarita. The more choice there is the more discerning you need to be because your potential tenants certainly will be if you’re buying to let to the growing tourism market. So ensure your property is within a resort where there are a fantastic array of amenities and facilities for your tenants, or even your own family to enjoy.
3) If you are buying an investment property, because the market is so competitive at the moment some developments and resorts that are well positioned and which come with good amenities are able to offer exceptionally attractive guaranteed rental deals. Hunt these out and ensure that the guaranteed income is the minimum you will receive, so that if your property proves even more popular you will profit even more.
4) Any guaranteed rental returns need to be backed up by more than just promises from the developer! Don’t be naďve when doing business abroad, the best developers on Isla Margarita will have some form of fidelity bond backing up their promises of rental income.
5) Look for freehold title – you do not want to be leasing a property on Isla Margarita when the forward thinking government has gone to great efforts to ensure that inward investment is encouraged by allowing foreign buyers the right to own freehold title to property. Whether you buy an individual villa or an apartment or penthouse within a resort development, insist on freehold title because when you come to re-sell to realise your capital appreciation, you can guarantee any would-be buyers will be after freehold too.
6) Any deposits you make should be held in escrow by your developer/agent or lawyer. As stated, don’t be naďve when buying abroad and don’t think that things have to be done differently. You wouldn’t blithely give away your deposit for a home in the UK or US, so why would you do so in Isla Margarita?
7) Buy the best that your money can afford – if you’re following this guide you’re already buying in the best location, so you now need to buy within the best quality resort or development that you can find in that locality! The best you can afford today should, in theory, go up proportionally in value as values of real estate are likely to rise across the island.
Look for developers with a proven track record who stand up well against their peers. You need to ensure you really are buying the best for your money so look closely at who is developing your property and ensure that within their class they rank well, are respected and produce quality real estate stock.
9) If you are investing in property in Isla Margarita with a view to turning a profit from rental, unless you’re going to be living on the island too you need to ensure you have the services of a world-class management and rental agency on hand to manage your property. The best developments available for sale in Isla Margarita offer this option within the resort…it’s a service that can truly pay for itself because of the levels of occupancy it will achieve for you and the stresses it will save you.
10) And finally, Isla Margarita is already a tax friendly island having been tax and VAT efficient and a duty free zone since the 1960s, but certain developments on the island are being specifically offered to investors rather than lifestyle home seekers. A small number of these high-end developments have extra tax incentives in place particularly to appeal to investors. One, the Caracola Beach and Spa Resort, enables buyers to purchase through a Wyoming Limited Liability Company (LLC) for maximum tax efficiency.
As Isla Margarita is so rapidly gaining in appeal and international awareness of the fact is increasing, the investment opportunities on the island are heating up in terms of their attraction and in terms of competition amongst buyers to get in quick and enjoy the longest and strongest wave of potential capital appreciation. If you want to take advantage of this window of opportunity, the above 10 top tips for investing in Isla Margarita should ensure you buy the right property at the right price in the right location for maximum rental income and capital returns.
By Rhiannon Davies for Emerging Earth. Emerging Earth is committed to offering a limited number of financially robust property investments, where the market opportunity, the challenges, the risks and the rewards are all identified. They have a brand new property opportunity on Isla Margarita [http://www.emergingearth.com/Caracola/Caracola-OV.html] that is causing great excitement…
Fecha de la Noticia:
06 de Abril de 2012
real estate lawyer