Caribbean: Caribbean popularity - Camilla Mabbott, Aylesford International

Caribbean popularity

Camilla Mabbott looks at why the Caribbean as an appealing destination for British buyers.

“Golf, like the measles, should be caught young, for, if postponed to riper years, the results may be serious…” P.G. Wodehouse, 1922. Our love of golf takes us beyond a mere past-time or a long weekend in Scotland, but determines where we holiday and even where we buy property. However, 40% of those who purchase property on a golf development don’t even play, but enjoy the lifestyle benefits and sheer space that accompany such an environment.

The Caribbean is a perfect example of a destination that draws not only the British golf-loving crowd, but those in need of a retreat from our poor grey little island. Not only can we enjoy most of the year in blissful warmth, it is great place to own property for a plethora of other reasons. The rental market is strong with demand particularly in Barbados, St Kitts and the Bahamas. Infrastructure is very practical from the UK and this is a crucial factor in deciding where to buy property abroad generally. There is also the emerging issue of re-locating to tax-friendly environments, which makes the alluring lifestyle even more appealing if you aren’t paying any major taxes.

During the global economic meltdown and subsequent obliteration of the value of the pound, the international property market has taken a severe blow. The recovery is beginning to blossom and we are seeing British buyers returning to the table, but interestingly they are gravitating towards core areas: South of France, Ibiza, Tuscany and the Caribbean. With the Euro appreciating in value relative to the pound by an average of 30% in the last year, dollar-based destinations aren’t quite as painful. Risk seems to be a factor when considering a destination and the once intrepid Brit, is perhaps re-evaluating where they will invest – we’ve certainly noticed a reduction in demand for the mid-level price points as those who would have once spend €3m with a partial mortgage, are perhaps now spending €1-2m, but without the need for lending. The high end of the market is more resilient and Albany in the Bahamas actually sold $60m worth of sales to just 15 people last year despite sagely forecasting a fat ‘zero’. A development of this calibre (prices start from $2.8m for a marina apartment, $4m for a beach club villa and lots for customs homes ranging between $1.5m to $10.5m) is rare in that it is well funded by the Tavistock Group (owned by British businessman Joe Lewis) and has significant investment partners in the form of Ernie Els and Tiger Woods. Almost 80% of developments in the Caribbean have failed to get off the ground in the last two years, so supply of something that is robust, well located, offers serious amenities all year round and is in a tax-efficient environment is creating quite a stir. Our advice when buying a second home is always to consider comparable residual values, a local re-sale market, ensure that you can get to the place any time of year to facilitate sufficient usage/rental appeal, and most importantly, buy somewhere that will give you plenty to do. There’s a big difference between spending two weeks in a hotel on a desert island versus owning the property on that paradise: don’t get caught out, think infrastructure.

With weather that is warm and sunny all year, plenty of things to do and largely stable economies, The Caribbean is still a hot ticket for those wanting to invest in a home in the sun to indulge their passions, after all as William Wordsworth once said, “Golf is a day spent in a round of strenuous idleness” and the Caribbean is the place to indulge in some seriously action packed idleness.

Camilla Mabbott

Camilla set up C&M Consultants, a boutique marketing resource business which focuses on the high-end property and interiors market, in May 2005. Since 2007 she has enjoyed her role as Group Marketing Director for Aylesford International, but continues to run C&M Consultants. Aylesford International specialises in the top end of the property market in locations across the world, and Camilla oversees all marketing and international sales for the group.