Excellent Return on investment
Let's use St Lucia as an example. It is an established and more and more frequent holiday destination that is likewise one of the most accessible - three major airlines from the UK provide a direct service to St. Lucia (8 hours), and a direct service is available from the following US airports - New York (5 hours), Miami (3 hours), Charlotte (4 hours), Philadelphia (5 hours) and Atlanta (4.5 hours).
St Lucia has a stable economic and political environs with a high chance of price appreciation over the next ten years. St Lucia has galore of the same vantages as Barbados but property prices are presently 60% lower.
The World Bank has not so long ago placed St Lucia in the top 30 countries in the world to invest, making St Lucia the only Caricom country to make the top 30, in front of Barbados and Antigua.
The ordinary crime rate in St Lucia is one of the lowest in the Caribbean, making it a safe haven for tourists and for living. What’s more the island gains from a stable government and economy, and there are very favourable tax concessions for property buyers from overseas: No Rental Income Tax, No Capital Gains Tax, No Inheritance Tax, No Repatriation Tax.
The island is still unspoilt and undeveloped, even though various new developments have not long back been started. The government sees elaboration of tourism as a key goal to be attained and the growing popularity of the island for holidays mean that there is magnificent rental potential for properties.
The real estate sector in St Lucia is booming. St Lucia is still one of the most somewhat priced islands in the Caribbean for property acquisition with prices 60% lower than on Barbados. Property prices have increased by around 40% per annum for the last 2 years, and are projected to carry on to rise for the next 5 years.
This all points to a fast maturing property market in St. Lucia with increasing prices, making an early commitment to a home a sound investment in lifestyle and real estate.
Rental Comparison
The table under shows typical room rates for 5 Star accommodation in St Lucia with prices cited in sterling:
Accommodation Current Price per night** Hotel Studio £130 1 Bed Apartment £180 2 Bed Apartment £250
- Based on a studio apartment priced at £95,000 with a 10% Rental Guarantee you would receive £9,500 per year for the introductory 2 years
- Thereafter, a 50:50 split of the net room rate shared with the hotel.
- Lets's assume a conservative room rate of £130 per studio per night
If we also assume a conservative occupancy rate of 65%* the rent receivable would be as follows:
£130 x 365 x 65% = £30,800
£30,800 split 50:50 with the hotel provides a gross income for the capitalist of:
£15,400 per annum
If you were to do the same calculation for a 1 bedroom and a 2 bedroom apartment the figures would be as follows:
Rent per annum Gross Yield per annum*** Hotel Studio purchased at £95,000 £15,400 16.21% 1 bed apartment buy price £125,000 £21,300 17.04% 2 bed apartment buy price £150,000 £29,650 19.77%
With gross yields from buy to let investments in the UK averaging around 5% per annum the conservative figures above actually do make interesting reading!
* The intermediate occupancy rate for similar developments in St Lucia is believed to be 80 to 85%.
** Figures cited at current room rates, which we entirely suppose to increase over the development period.
*** Note: the gross yield figures do not concede for the rolled up interest on the stage payments and deposit (if chosen).
---------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch has lately published the World Wealth Report 2008
Looking To The Caribbean As A Whole
It reports on the wealth of the world, and in peculiar how the respective property markets are doing.
In summary:
a) There is more cash available globally than before
b) There are more millionaires than before
c) This wealth is being developed from emergent markets – and the Caribbean is named as a HOTSPOT!
d) The ultra wealthy look to invest in places with global communications, sports facilities and a green policy – all of which we have!
Therefore there is still wealth to be invested, and there is still wealth spending cash on tourism!!
Interesting quotes from the report:
Source: Robert McCann Vice Chairman and President Global Wealth Management Merrill Lynch & Co. Inc.
Merrill Lynch Global Wealth Report 2008
"The US economic slowdown weighed to a great extent on key mature regions. However strong performances in emergent markets boost high net worth people gains around the globe....world growth was strong in 2007 and drove sold increments in both HNWI populations and overall wealth"
"Growth in international HNWI wealth of 9.4 from the former year"
"Emerging markets (showed) the greatest...gains"
"50% more cash available in Russia"
"still strong...emerging markets are likely to sustain high levels of growth"
"globally direct mercantile real estate investments rose 8.4%"
"as signs of financial market recover appear, we project that high net work persons will likely return to their pursuit of high returns, specially in emergent frontier markets - such as the Caribbean"
"despite rising cost and financial market turmoil, high net worth persons did not give up pricey purchases" IE Luxury purchases including property and travel.
--------------------------------------------------------------------------------
Quotes and Information on the Caribbean
Liam Bailey, Head of Residential Research Knight Frank
"global property prices rose by 11% for the duration of 2007"
"highest price growth achieved by prime residential properties was in Antigua (40%)"
"the firmest growth was being demonstrated in the emergent economies...with a second streak of strong growth in second home hot spots in…the Caribbean"
Financial Times, 21 April 2007
‘Demand from buyers has been strong… and property prices rose 40 per cent last year as a result.’
Ft.com, June 1st 2007
“What we are seeing in the Caribbean is a lot of new development going on and it appeals beyond the US: it appeals to the Europeans who are attracted to the Caribbean.”
Ft.com, June 1st 2007
“People are spending from $4m to $10m on the houses in the region. Certainly prices in the Caribbean are higher than in the past. It’s not difficult to spend $15-$20m or even $40m for in truth top of the line estates”
Ft.com, June 1st 2007
Mr Ryan recounts how the project began, 10 years ago. “In 1997, Ritz-Carlton invited me to do a project here. They are a management company, and saw that the market was underserved. They saw potential here. They tried to get the project done on their own and, when it did not happen, they decisive to reach out to a developer. ‘If you make it happen, we will give you a brand and manage it,’ they told me.”
Ft.com, June 1st 2007
“The intermediate appreciation is 12 per cent a year for the past 17 years. Bear in mind that this return is not taxed by the local authorities.”
www.Propertyweek.com, 4th April 2008
In 2007 the little overseas property fund outperformed the UK real estate by around 50%.
Peter De Savory, cited on www.Propertyweek.com, 4th April 2008
“You may buy introductory class new land for $700 to $1,200/sq ft. In Barbados it’s around $2,500.”
“It’s not as if all the rich people have died,’ he says with a wry grin. ‘Leisure is rather a protected sector. There will always be persons who need a holiday in the sun, and not everyone in the world wants Dubai or the south of France.
‘Provided you are creating value in the mind of the client then the price is not the issue. It’s not whether it is pricey or cheap. We’re not supplying humans with necessities we are supplying them with an indulgence. ‘Value is intangible. It’s regarding an aroma of attractiveness. There is no logic to it…
Figures from World Tourism Organisation, “Tourism highlights 2007”
Globally, international arrivals have grown by 400 Million persons since 1990, a growth rate of 94%, averaging 3.6% per year since 2000. Within the Caribbean, international arrivals have increased by 8 million persons in the same period, an increase of 41.2%, with an intermediate of 2.2% since 2000.
Ft.com, October 3rd 2004 and March 28th 2003
The tourism industry brings the Caribbean’s engaged in a struggle economies regarding $20bn (£13bn) a year, and accounts for 30 per cent of gross domestic product and provides one of each four jobs.
The $20bn tourism industry is the ‘economic mainstay’ for a great deal of of the Caribbean's island states. For example, ‘the gross domestic product for the Bahamas was $5.3bn last year. Seventy per cent of that was generated from tourism-related business.’
--------------------------------------------------------------------------------
Quotes and Information Specific to St Vincent & The Grenadines
Tourism
www.svgtourism.com
Caribbean tourism organisation, “St. Vincent and The Grenadines 2006”
In 2006 the breakdown of international visitors to St. Vincent and The Grenadines breaks down as follows:
US 28,598 (29.4%)
UK 14,837 (15.2%)
T&T 11,002 (11.3%)
Canada 6,542 (6.7%)
Other Caribbean 27,217 (27.9%)
Other Europe 7,214 (7.3%)
Rest of World 2,112 (2.2%)
The number of UK visitors to St. Vincent and The Grenadines in 2006 was 14,837, 15.2% of the total number of visitors to the island (94,432). The total number of arrivals has increased by 25.5% since 2002 at an intermediate rate of 5.93% per year for the duration of this period.
In 2006 Total Expenditure by tourists was $95.6 million.
The Tourism Budget was $3.474 million.
In 2007 total visitors increased by 16.5%. The UK (21.4%), Canada (8%) and USA (2.7%) all saw substantial growth.
Economic Growth
Eastern Caribbean Central Bank
Between 2003 and 2007, the economy in St. Lucia has grown on intermediate at 6.03%
Tax Incentives
National Investment Promotions Inc
In line with the governments aim to give hope or courage to growth in Tourism concessionary rates of tax are payable on property.
For tourism related development where the occupancy tax is applicable and the annual rental value surpasses $20,000 the tax charged is 1.5% rather than the usual 5%.
Investment Promotions Inc
Hotels with more than 35 rooms are granted 15years income tax exemption from date of opening of the resort.
An approved construction order grants concessions for construction materials for excise duties and consumption tax
Resorts accommodating more than 100 persons are immune from import duties on feed and beverages.
--------------------------------------------------------------------------------
Quotes and Information Specific to Barbados
Tourism
Figures from Caribbean tourism organisation, “Barbados 2006”
In 2006 the breakdown of global visitors to Barbados breaks down as follows:
2006 visitors UK 211,523 (37.6%)
US 130,767 (23.2%)
Other Caribbean 82,989 (14.8%)
Canada 49,198 (8.7%)
T&T 34,480 (6.1%)
Other Europe 29,400 (5.2%)
Rest of World 24,201 (4.3%)
The number of UK visitors to Barbados in 2006 was 211,523, 37.6% of the total number of visitors to the island (562,558). The total number of arrivals has increased by 13% since 2002 at an intermediate rate of 3.13% per year for the duration of this period.
In 2006 the total Expenditure by tourists was $ 763.2 Million. This averaged out to $127.48 per day for each tourist in Barbados.
Economic Growth
St. Lucian Budget Address for Financial year 2008/2009
Economic growth for Barbados in 2007 was 4.3%.
Ft.com, January 23 2004
When taking into account the welcoming nature of the locals to resolving tourists it is worth giving careful consideration to the Bajan Governments policies. Described as “far-sighted,” All it is beaches are available for use by the whole population as they are national property. This inspires integration amongst visitors and Bajans.
Tax Incentives
Barbados Tourism Investment Inc, “Legislation and Incentives”
One of the main tax incentives offered by the Bajan government is the Tourism Development Act. This was designed to offer incentives to exaggerate the tourism and hospitality sector by providing incentives and corporation, Import Duty and other tax concessions.
These incentives also include provision for “investors in tourism projects to gain from write off of capital expenditure and 150% of interest. There is likewise exemption from import duty, value added tax and environmental levy in respect of furniture, fixtures and instrumentation as well as building materials, furnishes and equity financing.”
Concessions beneath this act include:
Duty-free importation (including waivers of Value Added Tax (VAT) and Environmental Levy) of building materials and instrumentation for the duration of construction and rehabilitation;
Duty-free importation (including waivers of Value Added Tax (VAT) and Environmental Levy) of furnishes for refurbishment of hotels, restaurants, villas and sports and recreation facilities for tourism purposes;
Extended tax holidays/write-off of capital expenditure and sped up write-off of interest;
Training of empoyees;
Marketing
PriceWaterHouseCoopers, Tax, Facts and Figures: Barbados 2006
Barbados likewise offers other tax concessions. Land tax is calculated and payable on only 50% of the bettered value of the property for hotel developments.
--------------------------------------------------------------------------------
Quotes and Information Specific to the Dominican Republic
Dominican Republic: Tourism and Economy Statistics and Government Incentives
Tourism
Figures from Caribbean tourism organisation, “Dominican Republic 2006”
In 2006 the breakdown of global visitors to the Dominican Republic breaks down as follows:
USA 1,092,317 (27.5%)
Other Europe 812,511 (20.5%)
Canada 509,323 (12.8%)
UK 242,559 (6.1%)
Germany 226,737 (5.7%)
Italy 144,115 (3.6%)
Other 937,493 (23.6%)
The number of UK visitors to the Dominican Republic in 2006 was 242,559, 6.1% of the total number of visitors to the island (3,965,055). The total number of arrivals has increased by 43% since 2002 at an intermediate rate of 9.62% per year for the duration of this period. The Dominican Republic had the greatest number of visitors of any Caribbean Island, making up 2.9% of the all visitors to the Americas region.
In 2006 the total expenditure by visitors was $3180.4 Million.
World Tourism Organisation, “Tourism highlights 2007”
The Dominican Republic had the 2nd greatest increase in visitors allround the whole Caribbean in 2007: 7%
Economic Growth
Caribbean update, May 2008
In 2007 Foreign Direct Investment (FDI) increased in the Dominican Republic by 16.3% to US$723.3 million. FDI for Real Estate increased by 120% and in tourism by 58.1%.
Tourism Development Law - Guzman Ariza Law Attorneys
This is a good example of Dominican incentives to increase pace and routine of development in the tourist industry.
Qualifiers for the incentives include: Hotel facilities, resorts and/or hotel complexes; Construction and/or operation of tourist infrastructures, such as aquariums, restaurants, golf courses, sports facilities, and any other that may qualify as a tourist activity.
The Incentives for Businesses domiciled in the country include one hundred percent (100%) exemption from paying the taxes listed below:
1. Income tax
2. National and municipal taxes levied on the use and issuance of construction permits, including land buy documents.
3. Import duties and other taxes, such as tariffs, fees, late charges, including the Tax on Transfer of Industrial Goods and Services (ITBIS) that are applicable to the equipments, materials and furnishings necessitated for initially equipping and putting into operation the tourist resort concerned.
--------------------------------------------------------------------------------
Quotes and Information Specific to St Lucia
Tourism
Caribbean tourism organisation, “St. Lucia 2006”
In 2006 the breakdown of global visitors to St. Lucia breaks down as follows:
USA 117,450 (39.8%)
UK 73,312 (24.2%)
Canada 17,491 (5.8%)
Caribbean 78,464 (25.9%)
Other Europe 9,648 (3.2%)
Rest of World 3,450 (1.2%)
The number of UK visitors to St. Lucia in 2006 was 73,312, 24.2% of the total number of visitors to the island (302,510). The total number of arrivals has increased by 19.4% since 2002 at an intermediate rate of 4.68% per year for the duration of this amount of time
In 2007 the total expenditure by visitors was $808.3 Million
The tourism budget was $6.918 Million.
In 2007 Visitors from UK rose 8% and Cruise ship arrivals rose 69.7%.
St. Lucian Government, “Tourism by numbers” Budget Address 2008-9
The St. Lucian Government has allocated an extra 148% funding to the tourism industry from 2004 – 2008, with an intermediate increase of 27.7% per year. The percentage for the tourism sector in 2008 – 2009 was $53.6 Million.
Occupancy rates increased on little properties 10.7% and an intermediate of 6% over 2 years to 70.3%. The whole island had an occupancy rate of 67.8% up at an intermediate of 4.5% over 2 years. In 2007 the Hotel occupancy was 69.7%.
In 2007 the number of UK stay-overs increased by 8%.
Economic Growth
Eastern Caribbean Central Bank, Annual Economic and Financial Review 2007
Economic Growth in the St. Lucia has been on intermediate 3.45% amid 2003 and 2007.
Budget Address 2008-9
In 2007 the real estate sector grew by 7.6%.
St Lucia the new tourist destination
Ft.com, 10 May 2008
“…now there’s another Caribbean emplacement for those wanting a home combining sun and the simple life in the shabby-chic style of the old Barbados. Welcome to St Lucia.”
Financial Times, 21 April 2007
“In an effort to protect it is natural inheritance from overdevelopment, the Caribbean island's government now has an environmental division in it is ministry of planning and almost 30 laws setting out limitations on new construction. But Dolby, whose company, DCG Properties, is building the £400m Le Paradis next to the sleepy village of Praslin on St Lucia's east coast, says he welcomes the safeguards.”
"Spoil a place like this," he says, sweeping his arm all over a 550-acre vista, "and you spoil your biggest asset.”
“St Lucia is as progressive in it is property systems as it is in environmental protection, with a growing number of resorts where developers, hoteliers and owners part both danger and profit.”
Ft.com, 10 May 2008
“Recent changes to limit development include a compulsory environmental affect survey to measure the effect of a scheme on land, local humans and wildlife. There is also a ban on building new homes within 100 metres of the coast.”
The local authorities are acutely conscious of the high density building on numerous of the other Caribbean islands,” says Charlotte Wilson of Savills, the London-based estate agency that sells property on the island. “They’re working with conservationists and introducing limitations to see to it St Lucia doesn’t go the same way.”
Here are some news links for data in regards to the Caribbean region. It makes a great deal of interesting reading as it is clear even with the "credit crunch" the region is booming.
Global credit markets may be downhearted but the investment banking community proceeds to show strong interest in doing business in the Caribbean.
There is strong interest in the Caribbean from the investment community that is looking at the future and the vacation market proceeds to be healthy.
St Lucia & St Vincent offer splendid overseas investment prospects to escape the UK property crash
World Wide Resource "your place in the sun with income" ™
World Wide Resource UK - © 2002 World Wide Resource UK - © 2002 World Wide Resource Online Advertising-
World Wide Resource UK - Worldwide Investment Property - T: +44(0)208 450 8741 - email: info@worldwideresource.co.uk - World Wide Resource UK - for your place in the sun with income
Religious Collectibles purchased at up to 75% off within the last 2 hours on our website:
Vintage Catholic Holy Card ~ ST. ROSE OF LIMA Dominican, ST.ROSE DOMINICAN HOSPITAL VOLUNTEER,C.H.W. PATCH,
War of the Roses questions???!!!?
I in truth need a good deal of aid on the War of the Roses for homework. And please don't tell me to go read my lesson like the moron on my last question said. My history teacher didn't give us lessons for these questions. So if you anything in regards to the War of the Roses, help me out please. It'll be an easy ten points!
1.What flower represented the House of York in England?
2.What flower represented the House of Lancaster in England?
3.What's the nickname for a royal English bodyguard?
4.Who is remembered as the Father of Italy?
5. Who was the rich family of bankers in Florence, Italy?
6.Who's name means "Angelic Brother" and painted for the glory of God?
7.Who was the prince of Aragon and became the king of Spain?
8.Who was the princess of Castile and became the queen of Spain?
9.Who was a Dominican friar hired to oversee the Spanish Inquisition?
http://oce.catholic.com/index.php?title=Nicolas_Eymeric
for number 9
Some mixed-up answers. Unscramble.
white
ferdinand
Michaelangelo
isabella
Medici
red
Nicolas Eymeric
|
