Carribbean hot spots within the next few years

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Carribbean hot spots within the next few years

Andrew James
Lubbock, TX · Member since 2017 · 4 posts · 5 votes

Hello, I am fairly new to bigger pockets and this is my first forum question. I was wondering if anyone has experience with traveling to the Caribbean or buying properties in the Caribbean. 

I am wanting to purchase a vacation home, and also rent it out when we are not there. I have been to the Cayman Islands plenty of times, and love it, but I want to find somewhere else - a hidden gem maybe... that has yet to explode as a tourist destination, but close enough to a major town that airlines can fly into as I need to make it somewhat affordable and accessible to people who would like to rent it out. Of course we all want the best of both worlds; that is a hidden gem on a secluded/private beach, but close enough to a town to find good eats, drinks, and shopping. Not to mention interaction with the locals is awesome. 

I am open to any and all suggestions! However, I would like to avoid Puerto Rico, Dominican Republic, and Mexico, but that doesn’t mean if presented with a fantastic opportunity, I wouldn’t look into it. 

Thank you everyone! 

Respectfully,

Andrew James

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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
8y
Buy houses that make money here and they’ll pay for your vacations :)
Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
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  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    8y

    @Nancy P. That's a 500,000 bpd refinery, pretty big.  I'm guessing it's 2 square miles in area.  The refinery in my town is 115,000 bpd.  A real estate investor could make a lot of money with STRs to contractors working at the refinery.  I would speculate and say that about 2000 people will be employed there for the next 2 years for the startup.

    1Reply
  • Francisco Cimon
    Canada · Member since 2017 · 49 posts · 5 votes
    8y

    Jay Gill from Brampton, Ontario

    Hello Jay,

    Just curious: Have you invested in STR in st-Kitts? What is your RE experience on the island?

    0Reply
  • Jay Gill
    Brampton, Ontario · Member since 2017 · 47 posts · 10 votes
    8y
    Originally posted by @Francisco Cimon:

    Jay Gill from Brampton, Ontario

    Hello Jay,

    Just curious: Have you invested in STR in st-Kitts? What is your RE experience on the island?

     No experience with short term rentals or dealing with tourists. My experience is dealing with all the American and Canadian students at the health care related schools there. The properties in Frigate Bay were mostly investor owned and had a lot of students. Golfview and Christophers club in particular at that time, but I think there has been a lot of new development there.

    Birdrock had a lot of students as well, but I don't think the properties there appreciated as much because it was more of a mix of students and locals.

    0Reply
  • Roger S.
    Investor · TX · Member since 2015 · 393 posts · 290 votes
    8y

    @Chad Lamb,  2 years ago we almost bought a couple of little houses on Roatan.  Unfortunately, there is no way to get a mortgage from a US bank in most places outside the US.  We had a seller willing to owner finance with 50% down.  Ultimately, the numbers didn't work.   My wife is still mad at me.  :)

    2Reply
  • German Guerrero
    Member since 2018 · 4 posts · 1 vote
    8y

    hidden gem... look up bocas del toro Panama. Thats a hidden gem.

    1Reply
  • Nancy P.
    Naperville, IL · Member since 2018 · 330 posts · 357 votes
    8y
    Originally posted by @Paul Sandhu:

    @Nancy P. That's a 500,000 bpd refinery, pretty big.  I'm guessing it's 2 square miles in area.  The refinery in my town is 115,000 bpd.  A real estate investor could make a lot of money with STRs to contractors working at the refinery.  I would speculate and say that about 2000 people will be employed there for the next 2 years for the startup.

    Paul,  it's the #1 or #2 refinery in the world in terms of size.  Interestingly enough,  prices seem to be the same for the two developments we were considering 16 months ago.  Really really interesting.  Husband says full employment there (when it's running)  is about 3000.  It's going to be at least a billion dollars to get it going again.  Salt air not so great for machinery.   The population of the three USVI is only about 150K people.  St Croix,  50K.  So it's significant.  Still probably won't pull the trigger---hurricanes can really kill your cash flow for very long periods...but will think about it.  You could invest in housing near the refinery or buy a home you'd like to retire to...housing will tighten up in both sectors.  Thanks for the tip!

    0Reply
  • Andrew James
    OP
    Lubbock, TX · Member since 2017 · 4 posts · 5 votes
    8y

    Thank you to EVERYONE for your informative replies. @Jami Kloet, thank you so much for taking time to write about your experiences and your next adventures. @Richard Ibeh, I apologize for not explaining better. Yes, this will primarily be a vacation home for my family and closest friends. That will be the main purpose; however, I also will try to rent it out to other vacationers. I am not looking to make profits on this, but I’m not going to complain about making any extra money while I’m not there. From my own research and listening to others, it’s sounds like I will take a deeper dive into the DR (because it’s a great buy in regards to real estate), St Kitts, and Belize. I have briefly  spoken with a realtor who has been into the international realty business for 18 years. Although I feel as if we have to warm up to each other, after that much experience I know he has a lot of valuable info in regards to how the buying/financing process works in a lot of places, which could actually really narrow down my search. Sometimes the headaches of other governments and their policies is not worth it. More to come on that after I speak with the realtor some more. I will always continue to research, however. 

    Thank you again to everyone for their replies! 

    2Reply
  • George Griffith
    Lender · Miami, FL · Member since 2018 · 28 posts · 14 votes
    8y

    Andrew, you asked about areas in the Caribbean that are not overcrowded; Take a look at St. Lucia.  St. Croix is good too.  St. Thomas is too overcrowded and "touristy", but St. Lucia is perfect!  Do some quick research on the internet and you will see what I mean.  As to the other question about getting financing outside of the US with a US based lender, it IS possible if the loan amount is $2 million up.  (I can't say "yes" or "no" below that because I don't know).  Lastly, regarding Nicaragua and Honduras (in Central America, not the Caribbean), I love the people, but there is political socialistic unrest in Nicaragua and I'd hate the government to seize my property (I've seen it happen in Venezuela).  If you consider Central America, Costa Rica has general political stability and beautify country.  Great topic!

    1Reply
  • Mark Wilder
    Las Vegas, NV · Member since 2017 · 150 posts · 10 votes
    8y

     I would recommend Puerto Rico , From a business standpoint it’s a good real estate investment for Buying multi family properties you’re getting properties for 20 $30,000 at cap rates 20-30.  And this USA 

    Laws

    1Reply
  • Maggie W.
    Rental Property Investor · Los Angeles, CA · Member since 2015 · 29 posts · 19 votes
    8y

    I'm in Puerto Rico now and would be happy to report on what I see, if anyone's interested. I see a lot of AirBnB places booked for months in the Old San Juan area.

    4Reply
  • Nancy P.
    Naperville, IL · Member since 2018 · 330 posts · 357 votes
    8y
    Originally posted by @Maggie W.:

    I'm in Puerto Rico now and would be happy to report on what I see, if anyone's interested. I see a lot of AirBnB places booked for months in the Old San Juan area.

     Yes,  please!  

    0Reply
  • Matt Castle
    Realtor · Gatlinburg, TN · Member since 2018 · 261 posts · 155 votes
    8y

    Unless you're an investor with serious capital, have previously lived there or perhaps vacationed in the Caribbean extensively, I wouldn't recommend it for risk management reasons. Property management failures, hurricane/flooding risk, etc., etc. 

    Much of real estate investing is being able to sleep at night and I imagine that's very difficult to do if you're worrying about if your $X00,000 beach house still has a roof the day after a Cat 5 blew threw and a Cat 3 pending the following week.   

    That said, if you had plenty of time, I would look at Puerto Rico if/when the economy improves. With the recent troubles, it could be a buy on the dip opportunity, American courts, several tax breaks if you do X number of things, etc., etc. Depopulation and municipal services are major issues though (PREPA, politics, etc). 

    2Reply
  • Mike V.
    Rental Property Investor · Campbell, CA · Member since 2017 · 419 posts · 499 votes
    8y

    I would go USVI for the following reasons:

    1.  American laws apply = safer / less complicated

    2.  Doesn’t require a passport

    3. Just as popular as the others.  

    Personally I’d go for St. John.  Small, quiet, tourists are all in the same area of the island. High occupancy rates.

    2Reply
  • Julie McCoy
    Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @German Guerrero:

    hidden gem... look up bocas del toro Panama. Thats a hidden gem.

     I looked into Bocas a year or so ago.  It's gorgeous, but LOTS of logistical things to consider.

    - Titled land/property in desirable areas is not cheap, and you better know what you're doing if you're buying Right of Possession land.  

    - Virtually all travel in the area requires boating, which makes even the simplest supply runs complicated - and expensive.  Also something to consider if you want to build something.

    - Anything outside the immediate settled areas will be off-grid, so you'll need to maintain solar panels, water purification systems, septic, etc. and forget about internet

    It's a very popular destination and will probably grow in popularity as Panama works on its tourism outreach, but there are too many obstacles for me to see it as a viable investment.

    3Reply
  • Travis Koolick
    Flipper/Rehabber · Wichita, KS · Member since 2018 · 43 posts · 13 votes
    8y

    I have a relative who retired to the Bahamas, and they enjoy it profusely. However,they have suffered damages more than once from bad weather, and it's not a very convenient location for non-retirees. Perhaps shoot for the Retiree market for overseas investors. Timeshare, even?

    0Reply
  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    8y

    @Nancy P. Had a guy come in for a drug screen today.  He asked me if I'd prescribe him some Xanax.  Said he was taking a 6 hour flight to the USVI next week for a 16 month job and was nervous about flying.  I told him I'm not a doctor, just a little peon in the clinic.  Told him he shouldn't be nervous about flying.  He should be nervous about crashing.

    He said it's already producing 200k bpd right now.  When it's done it'll produce 700k bpd.  That will bring the price of gas down on the east coast.

    0Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    8y
    Originally posted by @Mark Wilder:

     I would recommend Puerto Rico , From a business standpoint it’s a good real estate investment for Buying multi family properties you’re getting properties for 20 $30,000 at cap rates 20-30.  

    And this USA Laws

    I've looked at PR for investments like this and have not found much.  I've been told multis are uncommon, though I find that difficult to believe.

    Yeah, its part of the USA.  But the treatment after Maria make it clear its going to treated as a last-class part of the US.  Can you imagine the response if people in TX or FL were still without power six weeks after the hurricanes there?  Let alone six months.  What a mess.

    2Reply
  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    8y

    Like others, I would suggest St Kitts.  I have been to many islands in the Carribean and Bahamas and there are many fantastic island to include Anguilla, the Abacos as St Kitts

    The bonus to St Kitts is qualified ownership can also come with the ability to obtain a 2nd Passport.

    Saying that, I am not a big fan of owning outside the US as the ability of a foreign government to turn on non-citizens will always be there

    0Reply
  • Jeffrey Allen
    Real Estate Investor · Southern, IN · Member since 2015 · 34 posts · 8 votes
    8y
    Originally posted by @Julie McCoy:

    A good friend is from Nicaragua.  A couple of weeks ago he went down for his grandmother's funeral, and came back with the rest of his family because it's about to descend into civil war.  The U.S. has sent away all its "nonessential" diplomatic personnel and issued travel advisories.  According to my friend, the US media is giving almost no coverage, and very watered-down coverage, to the situation there.

    If the natives are leaving because of unrest, pretty certain you don't want to be investing there right now.  Though you can probably get a good price if you want to risk it getting burned down in a riot :p 

    This is exactly true, and the lack of media coverage is a bit surprising.  I have extended-extended family there, so I've been trying to follow the situation.  A link to an Atlantic article is below.  It's obviously not a real estate article, but probably contains enough information to realize that you don't want to be investing from afar right now. 

    That said, if a new government is formed that is pro-personal property rights and freedom of individuals and businesses, it might be worth a look in a few years.

    https://www.theatlantic.com/international/archive/2018/06/nicaragua-ortega-protests/562094/

    0Reply
  • JP P.
    Signal Engineer · Houston, TX · Member since 2015 · 42 posts · 13 votes
    7y

    @Paul Sandhu; What does STR stand for? I've seen that in a few threads in researching ''purchasing a multifamily on St. Thomas". If you have any advice or leads, I'm open to start a dialog.

    0Reply
  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    7y

    @JP 

    @JP P.  Short Term Rental.  Imagine your own house.  Take out your personal belongings.  Rent it out by the week with all bill paid and furnished.

    0Reply
  • JP P.
    Signal Engineer · Houston, TX · Member since 2015 · 42 posts · 13 votes
    7y

    @Paul Sandhu;  Thanks!! Catching up on this lingo!!  
    How did you start into owning property in the USVI?

    0Reply
  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    7y

    I don't own property there.  Following the oil and gas industry is part of what I do with the STRs.  The largest refinery in this hemisphere will be starting production in the USVI.  It'll take about 2 years and about 1000 people.

    I rented a place here to some boilermakers last month that came back from there.  They stayed in a man camp.  Said it was like a prison with all the rules.

    0Reply
  • Patrick Sullivan
    Rental Property Investor · Member since 2019 · 12 posts · 8 votes
    7y

    Playa del Carmen and Tulum, Mexico are incredible destinations with all the warmth and beauty of the Caribbean and access to the huge cultural mainland of Mexico.  Despite the headlines, these areas of Mexico are incredibly safe and highly protected by the government to ensure a steady flow of tourists. 

    0Reply
  • Zack Giarrizzo
    Real Estate Consultant · Americas/Europe · Member since 2019 · 23 posts · 32 votes
    7y

    Hey Andrew,

    Was curious about why you are staying away from Puerto Rico?  From what we've seen, some of the best investment opportunities are currently in Puerto Rico.   A couple reasons for this include:

    US Territory:
    As a U.S. territory, Puerto Rico enjoys unique benefits not shared by its fellow Caribbean islands.  Though U.S. recovery efforts after Hurricane Maria were slower and stingier than the response to hurricanes in Florida and Texas, Puerto Rico has access to relatively extensive American disaster resources.  Because Puerto Rico is a territory, the U.S. has vested interest in helping the island recover. Power and water systems, bridges, and roads will be constructed to U.S. standards.  Puerto Rico has been part of the U.S. for more than 100 years, and the government has the same responsibility to the country as any other U.S. state.  U.S. citizens can travel to and from Puerto Rico without a visa or even a passport. In terms of travel freedom, Americans can visit Puerto Rico as easily as they could any other state.  And because Puerto Rico uses the U.S. dollar, there is minimal currency risk.

    Tax incentives:

    In 2012, Puerto Rico introduced a series of tax loopholes to lure investors and businesses. These tax incentives make living and working in Puerto Rico an enticing prospect for businesses and investors.   For more info on the tax incentives, read about Act 20 and Act 22.

    Additionally, the IRS recently designated almost the entire territory of Puerto Rico as an Opportunity Zone.  Opportunity Zones allow investors to defer and minimize capital gains taxes.  

    Real estate prices:

    The real estate prices are much lower than other Caribbean islands.  

    Minimal Airbnb Rental Competition:

    Hotel prices in Puerto Rico remain relatively expensive and Airbnb style rentals are scarce.  For investors, this represents a major untapped market with high returns.  

    Hope this helps!

    0Reply
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