It seems would be owners are queuing up to put down their deposits on resort based property on islands like The Dominican Republic, St Lucia and Barbados. These on resort properties are what you might call worry free, they are looked after and let for you by the resort management company.
A few years ago I had a holiday at a similar resort to these and I just assumed that the bungalow I stayed in belonged to the Hotel Group that managed the resort, It wasn’t until recently when I first came across this type of property ownership that I realised it probably belonged to a couple from the UK who had purchased it to provide a bit of a pension.
In the past few weeks we have sold several apartments in The Caribbean which I suppose is not surprising when you take a close look at purchase arrangements the developer has in place, put simply you put down £1000 reservation deposit, release equity or borrow the 30% deposit and the developer pays the interest on this for you until the property is completed. The developer has arranged a guaranteed non status mortgage for you at completion and then pays this for you with a rental guarantee for 2 years after which you share the rental income 50/50 with the Hotel Group managing the resort and this gives you an income in old age I suppose.
To good to be true, well you do have to have sufficient equity and a mortgage company willing to lend you the money and since the resort is not open for business you do have to take in on trust that the 50/50 split on letting income will be as they say it will be, but apart from these 2 aspects I must admit I can’t see much else to worry about which explains why these are selling so fast.
For more information take a look at the following articles
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