The following is an article posted by Jim Walberg of Caribbean Islands Realty.
What criteria are Caribbean resort/fractional developers considering when buying Caribbean real estate?
With the Boomers from the U.S., the Brits and the Europeans, the Canadians, and the buyers from South America flocking to buy up Caribbean properties, developers are getting much more picky with the islands and the properties they are considering for their resort developments. It doesn’t matter if it is full ownership properties or fractional ownerships, at some level the price point becomes out of reach for their target market buyers within the above geographic groups.
One of the invaluable resources we have discovered to assist with evaluating Caribbean property development is Tom McPeak, Ph.D., out of Florida. Dr. McPeak is a “land economist” whose focus is on the responsible development of the Caribbean islands. Dr. McPeak has created a list of sixteen criteria he uses with his developer-clients when they are considering what island and property they are going to purchase and develop next. Below are his critieria;
- Naturally beautiful, and where the beauty is protected.
- No standing army (consequently, no junta).
- A stable and progressive government.
- Very low crime rates.
- Low government social costs (not a welfare state).
- A favorable tax environment.
- Direct flights from major U.S. airports – primarily from Dallas eastward
- Small local population relative to the land mass of the island/country.
- Economy based primarily on tourism, banking and insurance.
- Good wireless telecommunication coverage and high-speed internet services.
- The currency is tied to the U.S. dollar.
- The primary language is English.
- A warm and friendly population.
- A traditional values-based culture.
- Primarily a resort experience rather than a cultural experience.
- A feeling of privacy, safety, and exclusivity.
Some of the destination/islands that currently fit these criteria, from Dr. McPeak’s perspective, are; Belize; Turks & Caicos, St. Kitts, Barbados, St. Vincent & The Grenadines, and St. Lucia. Please contact Dr. McPeak if you would like to further discuss his views on profitable Caribbean development criteria. You may remember from some of my past blog postings that I would also consider Dominica, The Dominican Republic and Aruba.
Post authored by Jim Walberg of Caribbean Islands Realty.