All Forum Posts by: Michelle Scott

Hello, and THANK YOU for very real questions. We appreciate the opportunity to chat through some of our concerns and you both have brought up very valid points to consider as well. Perhaps it would be better to build out a portfolio here first. Thanks again. 

SITUATION: My husband and I have found a unit in Curacao in an up and coming neighborhood in Willemsted, Curacao. The independent developer plans seem to be well thought out and the rejuvenation of the area filled with monuments (historical and protected homes) has already seen improvements. I would say that we are entering at the 1/3 rejuvenated timeline. The property we have found is brand-new, never lived in, has parking (which is a necessity in the area and most properties do not have), but it isn't a bargain. We are getting it at fair market value, but with a tax incentive to not pay transfer taxes of 4%. We can rent it short-term and have found that we will be cash-flow positive at 64% occupancy. The average occupancy for short-term rentals on the island sits at around 65%. 

This area will grow in value and you cannot build more housing in it. So, we think it might have the "San Diego" outcome of low inventory, high-demand. 

BACKGROUND: As a single woman between 2005-2008 I acquired property that bankrupted me. Given, I didn't do enough research, managed the assets poorly and the market collapsed. However, I have been gun-shy since. Also, my husband is very risk-adverseBut, we really want to invest in spite of our fears. 

MORE INFO: This country requires 30% down and will only mortgage for 15 years (due to our age), on a non-fixed interest rate of 5.25%. We are looking at historical changes in the rates and they are conservative changes when they occur. 

ASK: Is this a wise investment? Or should we take that money and invest in a coupe of long-distance investment homes in the USA first?