American Property Investors Eye Up Caribbean Real Estate
The Dominican Republic and Panama are the places to be for American real estate investors, according to data released from WIRE Consulting. The Dominican Republic leads the pack as property prices have rocketed by an average of 7% every year for the past six years. Meanwhile, Panama is hot on its heels due to a 2017’s average property price rising by 9%. Even smaller Caribbean locations, such as the Cayman Islands, where luxury property is in abundance, is becoming increasingly attractive to U.S investors.
Getting more for your money
Property in the Dominican Republic typically costs around $87 per square foot. However, it’s the glowing exchange rate to USD of +20% in the past five years which is encouraging American property investors to head overseas. Meanwhile, a cut in property taxes and a thriving GDP per capita, which has grown by 50% in the past 10 years, is helping Panama to gain momentum. Property prices in Panama average $197 per square foot. And what’s even better for American investors is that they can release equity from their existing property via a reverse mortgage and utilize it in their Caribbean home. As a result of refinancing, they’ll get their hands on extra cash to help improve the value of their home and therefore will improve its value.
Take your pick of multiple developments
Housing projects are plentiful across the Caribbean right now, meaning overseas investors have got ample choice when it comes to choosing the perfect property. Various luxury developments are underway across the region, including the Eleven Parc project on the Cayman islands and Andicuri, a waterfront development in Aruba, which promises terraces, balconies, an open floor plan on top of being the perfect one-bedroom holiday or retirement home. With the creation of sizeable condos complete with stylish kitchens and terraces, as well as the benefit of numerous on-site facilities such as pools, spas, and restaurants, it makes sense for America investors to snap up these properties for themselves and for rental purposes.
Potential to thrive financially
The likes of Panama and the Cayman Islands have no corporate or income taxes. Additionally, the Cayman Islands also have no estate or inheritance tax, no gift tax, and no capital gains tax. Therefore, property investors get to keep hold of more of their cash, making them highly appealing locations.
American property investors are eyeing up property throughout the Caribbean. The Dominican Republic and Panama are particularly favorable due to the abundance of high-end developments available in these areas. Furthermore, investors will gain from a pleasing exchange rate and minimal tax rates when bidding on properties here.