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June 7, 2008
Barbados property investment defying credit crunch
According to a report issued by Principal International, an independent company and one of the UKs leading Investment Property Overseas advisors, the much talked about credit crunch continuing to dominate the news is leaving investors to wonder if buying property overseas is still the best option. There is no doubt that the days of 90 per cent mortgages are behind us for now and some banks are indeed cutting back on lending for overseas purchases, but this doesnt deter from the pure capital growth on your investment that we still are seeing in the Caribbean markets.
Barbados is one such country and has remained largely unaffected despite its currency being linked to the USA markets. Barbados is playing a leading role in the Caribbean and is proving to be a valuable investment going forward. The UK based firm highlights that second home ownership in Barbados is proving more and more popular especially among the rich and famous. In fact, the report highlights the intention of five month old DLP administration saying, Indeed there are plans afoot by the local government to further increase foreign ownership to help boost the economy and tourism of the country whilst maintaining the beauty and landscaping of its coastline.
Last week Minister of Foreign Affairs, Foreign Trade and International Business, the Hon. Chris Sinckler expressed the government’s interests in building partnerships with well endowed individuals who have property on the island who are philantrophic in their homeland. The report issued by the property firm also explains, Capital growth of property in Barbados has consistently risen over the last ten years making it one of the few locations in the World where any financial crises seems to bypass it.
Additionally the report suggest that local demand for rental property is often higher than the UK and Europe as there is not the competitive buy to let landlord markets seen elsewhere. Buying property in Barbados to rent seems to be a captive market and because of the restrictions on future building land is at a premium and therefore the opportunities are limited. This in itself makes for a unique market and one which is thriving for those wishing to invest there.