Hot Property in Isla Margarita

The Caribbean island of Margarita is the property investment opportunity of the century. Tourism has increased by 40% in the past two years, bringing visitor numbers up to 2 million per year. Yet only 15% of the island is developed, creating a massive under-supply of rental accommodation for the burgeoning tourist masses. This makes it an excellent opportunity for buy-to-let and holiday home investors.

It's no wonder tourism to Margarita is growing so rapidly; it has absolutely everything going for it!

-The only Caribbean island outside the hurricane belt
-Low cost of living (and holidaying)
-Tax & duty free zone
-It has warm and sunny climate all year round with very little rain
-Gorgeous sandy beaches, warm turquoise waters
-Wide variety of activities including snorkelling among tropical marine life
-Breathtaking mountainous forest landscapes
-15% development, the rest is the beauty of nature in a tropical environment
-Direct flights from the UK

Tourism will be boosted yet more when the new Formula One track, approved in March this year becomes a reality. Holiday home investors are attracted by all the above of course, but also the aforementioned under-supply, and the fact that Margarita property is up to 50% cheaper than any other Caribbean island - though that is, I'm sure, an attraction to everyone, as is the growth potential of Margarita property, as head of international research for David Stanley Redfern explained:

"While Margarita continues on its present path to becoming one of the foremost tourism destinations in the world, property values will increase massively, for instance: a property could be worth anywhere up to 50% more on the resale market that it was bought for off-plan, almost immediately after building work ceases. Annual capital appreciation will not fall below 30% for at least the next 5-7 years, and could even frequent the 40-50% p.a. zone over the next 1-3 years.

"Rental yields are currently quite high at around the 10% mark," he continued, "because of the under-supply and the low property prices, and could actually fall as capital appreciation races, and the under-supply becomes less severe. Of course yields won't fall on off-plan properties, because prices tend not to grow as quickly for off-plan properties, but people selling on the resale market will likely be doing so with the promise of rental yields of 6-8% -- until the market levels out at any rate, at which point yields on resale properties may rise slightly."

One of the biggest benefits of Margarita for property investors is its taxation regime, total round-trip transaction costs are a mere 2.5%, as you only need to pay for the solicitor, and there is no Capital Gains Tax when you sell either - it's actually a struggle to find reasons not to invest in Margarita.

Find out more about Margarita property.

About David Stanley Redfern

David Stanley Redfern is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed. Experienced, professional staff and membership to the overseas property market's regulatory body, as well as their stringent due diligence procedures gives buyers the confidence that any purchase with David Stanley Redfern is a safe one.

Media enquiries should be directed to media@davidstanleyredfern.com

Margarita is an incredible short-term investment for property investors; property prices have risen by an average of 32 percent annually during the last two years. It is also one of the few Caribbean islands not on the hurricane belt so investors can be safe in the knowledge that their property will remain safe in their absence.

Yet it is not just the high capital appreciation that is attracting investors. The island's dramatic mountainous terrain rises up to over 1000 metres above sea level, lined with lush vegetation, flora and fauna and framed by 72 golden white sandy beaches. With 8 or more hours of sunshine a day and temperatures ranging from 23-32C it is the perfect place to holiday in and to make substantial rental income from; Margarita property easily achieves rental yields of 8-12 percent.

Getting there is easy too. Direct flights operate from Gatwick and Manchester, and an additional 18 indirect flights from other UK airports, mostly going via Caracas in Venezuela.

David Stanley Redfern currently has four properties in Margarita, and as all their properties are Condominiums they will be exempt from any laws imposed by the Venezuelan government on Venezuelan and Margarita property.

The Apartment Margarita Plaza is available for just £55,000 and is located in Porlamar - the largest commercial centre on the island filled with restaurants, bars and cafes all within easy walking distance of the beach. The 2 double bedroom, 2 bathroom apartment with fully fitted kitchen, breakfast bar and separate dining room is just 30 seconds walk from the beach, but owners don't have to walk that far if they want to use the swimming pool or Jacuzzi.

Then there's the Caracola Beach and Spa Resort overlooking the stunning Caracola beach. Each apartment will have a fully fitted kitchen (including white goods), climate control air systems and furniture. All bathrooms will be fitted with Roca or equivalent sanitary ware, and the development has plenty of semi-covered parking. The building is an eco-sensitive design with a thermally efficient environment and has a 10 year guarantee. Apartments range in size from 58.3m2 to 125.8m2 and prices start from £63,000.

Buying those or any of DSR's Margarita properties is straight forward and cheap as Margarita has been a tax, VAT and duty free zone since the sixties. The purchaser of property doesn't pay any tax on the purchase, only a normal 0.5 percent sales tax, one percent for land registry and $100 for the notary. There is no need for residency to live on the island and the annual property tax is around $100.

Where else could you get a beach-front Caribbean property for these prices?

Find out more about Margarita property

About David Stanley Redfern

David Stanley Redfern is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed. Experienced, professional staff and membership to the overseas property market's regulatory body, as well as their stringent due diligence procedures gives buyers the confidence that any purchase with David Stanley Redfern is a safe one.

Media enquiries should be directed to: media@davidstanleyredfern.com

Margarita is the latest location to be added to the David Stanley Redfern portfolio of international property. There are so many good things to say about the Caribbean island of Margarita, it is hard to know where to start.

Margarita is one of the few Caribbean islands outside the hurricane belt, and property on Margarita is less expensive than any other Caribbean island. The Dominican Republic has become big in the investment world, as the cheapest place to buy a Caribbean beach house, but that hot-spot is now inhabited firmly by the Isla Margarita.
Margarita is one of the few truly early-bird investment opportunities on the global market, and people who get in now will be able to sell in 4 years for twice what they paid, maybe even do so in just under 4 years. That was David Stanley Redfern's market forecast for Margarita. The head of international research went on to explain his basis for such a strong prediction:
"A property near a Caribbean beach at these low prices, properly marketed, possibly by a holiday lettings firm, lets you charge less than competing properties elsewhere in the Caribbean, while still getting at least an 8% yield, possibly even as much as 12% or more. Visitor numbers to margarita have been increasing by 300,000 - 500,000 per year since 2004. On the back of the increasing tourism, Margarita's average GDP growth has been 11.4% per year over the same period."

"As Margarita emerges as the next hot holiday destination," he continued, "the developing tourism industry will continue to spread affluence throughout the island, living costs will rise including building materials, wages will rise including builders and labourers, and house prices will be driven up rapidly. Given the low starting point, rapidly means by at least 30% per year, based on similar locations in recent years, making doubling your money in 4 years, actually, quite a conservative estimate."

As Liam mentioned, Margarita is the most affordable place to buy a property in the Caribbean. David Stanley Redfern, are currently marketing a development of 2 bedroom fully serviced apartments, priced from just £44,000 in the Bahia De Coche Development.

The one thing people could consider a downside of Margarita, is the fact that the island belongs to Venezuela, what with Hugo Chavez talking about expropriating property, or regulating secondary house prices etc. All the developments David Stanley Redfern currently have in Margarita, are either Condominiums or Hotel apartment complexes, making them exempt to any ludicrous law Chavez imposes.

Find out more about Margarita property.

About David Stanley Redfern

David Stanley Redfern is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed. Experienced, professional staff and membership to the overseas property market's regulatory body, as well as their stringent due diligence procedures gives buyers the confidence that any purchase with David Stanley Redfern is a safe one.

Media enquiries should be directed to: media@davidstanleyredfern.com