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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  • Dell J.
    Member since 2010 · 210 posts · 158 votes
    3y
    Quote from @Rachelle Bisaillon:

    @Dell J. I am in St John and haven't seen any issues with sarcasm. Lived here about 25plus years and can only remember a handful of times that it was any kind of issue at all, if that. What island are you referring to? St Thomas usually runs about the same as St John. Are you referring to St Croix maybe?


     Im in St. Thomas.  I have been here forever.  Sargasm is an issue especially for beaches on the southside. it started to become an issue in the last 3 or 4 years.  I know most of the great beaches on St. John are on the Northside of the island.  Maybe thats why you havent seen it as much.    

    0Reply
  • Rachelle Bisaillon
    Investor · St John, Virgin Islands · Member since 2018 · 43 posts · 10 votes
    3y

    @Dell J. Good to know! Thanks for the heads up.

    0Reply
  • Kingsley Thomas
    Member since 2021 · 34 posts · 29 votes
    3y
    Quote from @Mike Lambert:

    @Kingsley Thomas

    I'm not sure how STRs in the USVI and Puerto Rico could be more profitable than in Mexico. Do you have figures to back that up or are you assuming that because like you say the demand is "on fire"? The reason I'm asking because I'm not sure if you know but Mexico is shattering all records and properties are much less expensive there. I'm not familiar with the USVI and Puerto Rico markets but, based on the figures given by Rachelle Bisaillon, you can get a much higher gross return in many places in Mexico with the same figures. And, the difference would be even starker when you compare net returns, given that the costs are so much lower in Mexico.



    @Mike Lambert

    Regarding demand:

     I own a short term rental in Puerto Rico.  95% Occupancy over the last year.  Average Daily Rate is up over 50% in the last 2 years.  Airdna rental demand score has been pegged at 90+ for a couple years.  70k Gross on a property valued at less than 300k.  I honestly don't know what numbers people are doing in Mexico.  My property is a beachfront studio in the San Juan area.

    0Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    3y

    @Kingsley Thomas

    I guess it's the same as in Puerto Rico in that it depends on what property you buy. Obviously, a beachfront property isn't representative of the average property in the market, whether in Puerto Rico or Mexico for that matter. Therefore, I don't want to generalize too much but yes, you can make more with a beachfront property in Mexico, although not everywhere of course.

    0Reply
  • Kingsley Thomas
    Member since 2021 · 34 posts · 29 votes
    3y

    What do you think is the best location in Mexico for short term rentals right now?  Is it possible to get a loan?  What are rates like?  Access to capital seems like the biggest stumbling block to foreign investment.  Not sure how I would pay a note in pesos.

    0Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    3y

    @Kingsley Thomas

    I think Cabo and Baja California Sur in general and Puerto Vallarta / Riviera Nayarit. This could even make more sense to you given that you already invest in Puerto Rico and therefore might not want to more exposure to sargassum on the Caribbean side.

    You can get a mortgage but the conditions are much less favorable than in the US and rates are in well in the double digits. We'll provide developer/seller financing at much better conditions and some others do as well but it's pretty rare.

    Access to capital is indeed a stumbling block, especially to those who've become addicted to cheap debt, which no longer exists. However, there is a tidal wave of foreign investment going on in Mexico at the moment. Given the higher cost of capital in countries like the US or Canada, you can get a higher return by investing 100% int cash in Mexico than with borrowed money in the US.

    0Reply
  • Travis Lueth
    Member since 2024 · 1 post · 3 votes
    2y

    Hey, 

    We are here in the Caribbean and have a real estate firm in Saint Lucia ( Golden Hour Group ) .  We were living in the US, but moved here in 2022 and have backgrounds in real estate (number of investments and my wife and I were both licensed, though I was never active).  I think the Caribbean is a great investment, especially with the geopolitics at play.   What I find though, is pricing tends to be negotiated more so than the US.  In the US, often, the price stays within reason of asking because of the market liquidity and historical pricing (unless in a bidding war).   On these islands, prices will start quite high, but can be talked down by 40% in cases.   It is poor liquidity too.  Often due to the attractiveness of owning in the Caribbean , the locals have been priced out, so really, buyer demand has to come from proper marketing of a property, otherwise your home can sit on the market for a year or two.   

    The positives, and why we see opportunity here, are that there is definitely opportunity if you are looking to invest and do short term or long term rentals due to the tourism.    Another positive is that if geopolitics continue to go down hill, if you own here, you will see a boom as people look to move.   Also, freedom.  You are much more free here, and it is one of the main reasons we moved here.   I equate it to living back in the 80s.  Kids are adventuring and walking too and from school unattended, people park where they need to, people use common sense to make decisions more than relying solely on the rules, etc.  Also, taxes are minimal from this country (though you may require paying property taxes in your home country for property abroad depending on your citizenship, where are you coming from, etc. 

    Travis Lueth

    3Reply
  • Kathie Russell
    Professional · Raleigh, NC · Member since 2016 · 126 posts · 123 votes
    2y
    I own several properties in Nicaragua.  Happy to connect!
    0Reply
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