Though last ten years have seen a big expansion in US real estate markets, recent signs suggest that the air is starting to leak out of the domestic property bubble. Home mortgage rates are rising and the average time to sell a home is increasing. With the US market slowing, it might be a good time for real estate investors to look outside the United States for opportunities. One such real estate opportunity is in the Caribbean. Investment in island vacation homes can be a shelter from an unstable US real estate market. But buying real estate in a foreign country can be tricky. Before investing in an overseas property, you should consider a number of factors that influence property values and the ease with which you can buy land. In most cases these issues are minor and can be solved with the help of a local realtor, but you should be aware of them all the same. Local Property Laws
First, you should know the local laws regarding the purchase of land by n increasing foreigners. In some countries you cannot purchase property without forming a local corporation. Other countries have more lenient regulations. In Honduras, for example, you can purchase up to of an acre of land in your own name without forming a corporation. If you do need to form a local corporation to buy your property, make sure you use a realtor who can help you with this process. Visa Requirements
If you plan to use the property for short vacations, visa requirements are not a significant issue. But if you plan to take long vacations, you need to know the local visa requirements. For many countries in the Caribbean US citizens can stay for up to 30 days without a visa. After that period you need a visa extension that will allow you to stay for several months. After that you may have to leave the country before reentering. Travel Time
If you plan to turn your property into a vacation rental, then ease of access is an important factor to consider. Is airline service available to the area? Do any airlines fly directly from US cities? Medical Services
Anumber of Americans are looking to retire outside the United States, seeking warm weather and a lower cost of living. This influx of retirees can boost property values. Medical services are a critical factor for these retirees. If your tropical paradise has good medical care and inexpensive prescription drugs, this can boost demand and property values. Caribbean Opportunities
For many people the term Caribbean applies only to the string of islands running from Puerto Rico to Trinidad. But you can also find excellent real estate investments along Central Americas Caribbean coast or in the Western Caribbean. Costa Rica and Honduras are popular with eco-travelers and US retirees. Belize and the Honduras Bay Islands draw scuba divers lured by their large barrier reef system. Central Americas Caribbean coast also offers significantly better investment opportunities than other parts of the Caribbean. For example, on St. Thomas in the US Virgin Islands homes have an average sales price of $400,000. In many attractive parts of Costa Rica the same home would start at about $60,000. Property values are increasing, so a relatively small investment can yield good returns. Smart investors should explore opportunities throughout the Caribbean. |
