Yeah your right oversupply should be a concern, it must be a terrible feeling having bought a really nice property and not being able to raise an income from it.
This goes back to buying in the right areas though, are the tourist and rental markets growing, what similar projects are near by, what type of people will be renting or visiting here. You often find you can negate most of your concerns if you, or the development you are interested has done the right homework.

Economic concerns, i guess will effect us all, but i am sure it will not prevent the rich or super rich americans from taking holidays. Luxuary markets tend to hold up alright, although the rate of increase might slow up a bit there tends to always be a demand if built in the right spots

Actually i know people who are really think there will be a lot of Americans investing in growing Caribbean property now rather than keeping their money in the USA

send me a PM or message if you want to some info.

All the best,
mark

QUOTE=AnotherPropertyGuy;24699]A friend who lives in St Marteen said it is become overdeveloped so oversupply is one concern I would have in the Caribbean. The slowdown in the US may also contribute to lower demand.

Having said that, suggestions of specific places would be very welcome Mark![/quote]

Hi Another property Guy and others.
I just got back from Sri Lanka. Yes Another Property Guy, you are right, the people are pleasant and weather is perfect there so one can't go wrong.
The political situation is not terrible but not stable either. There has been an abolition of a cease fire agreement between Tamil Tiger rebels and SL government and therefore one can expect a bit of disruption over the year. The South coast of SL is relatively spared and tourism is doing well. there has been a crop of new boutique hotels charging $100-$250 a night. In Colombo the prices are ridiculous as ther prices are being artificially and consistently raised by the SL expat buyers. I found a new development in the city but on the coast so overlooking the Indian ocean selling off plan property of 3 beds for $320 000 which on completion should be worth 15% more ( this summer).
I'm thinking hard about it. Have you got any interest in SL?

CS

Not Mark and don't have specific places but I am investing on one Island in the Caribbean.

The Dominican Republic is now the number one destination in the Caribbean passing Puerto Rico last year and starting to get the American Tourist market for the first time.

Most of the tourists are still Europeans and Canadians but the Americans have landed.

I have been buying for about 7 years. Have a few condos I purchased for 40 and 58k that I get 600 a week plus electric now although I started out 4 years ago at about 350 US a week.

I bought and sold a restaurant without operating it in 7 months and doubled my money. Sold a piece to a partner for 150k I had 65k into in 1.5 years. Just sold in October a couple of lots in a gated community which I paid 34k for in total for 333,400 US dollars. I did put about 25k into infrastructure and landscaping.

Last November I purchased a property on the highway for 30 US per m2 and was offered 45 US m2 before the closing from the same broker I was buying it thru and then a year later put it on the market for 80 US m2 and turned down 70 US m2 and raised the price to 90 US m2.

I still believe there are legs left in the market for at least the next 2 years and possibly longer. This place is developing like crazy with Retirees and Vacation home buyers leading the charge. We are getting the Baby Boomers from the states looking for a nice place to live better. I pay 120 US a month for a maid 5.5 days a week and 180 US a month for a gardener 5.5 days a week. I pay 9 dollars a day for day workers/laborers and have 4 working this week and man am I getting a lot done. You can't do this anywhere else I would want to live that I know of

I would be happy to supply additional info or experiences to anyone who is interested.

Here the government is stable although there is a lot of corruption. We have NO rebels and no warfare. Only real problem are Haitians coming into the country for work because things are so bad in Haiti. They are great workers and polite people so it bothers me not at all.

waw.. i think there is seriously interesting stuff said there!
Is there things off plan selling with good prospects? What's the entry point? 100% foreign ownership? What about taxation there?

No to very little real estate tax depending on value. I have never paid tax because it isn't over a certain amount.

I am not European and have no idea what Off Plan is unless you are referring to Pre Construction? There is pre-contruction but unless I know the people well I wouldnt give them a penny of my money so I wouldn't consider that. Donald Trump did a project here and sold it in 4 hours. It was hundreds of millions of dollars worth. Everyone is coming here now. This place is hotter than I have ever seen anywhere.

I presently think the best investment here is Raw land. Developed land limits your market when you want to resell. I buy raw and put in infrastructure and landscape away from the house site and have had luck there.

If anyone would like my 25 cent tour I would be happy to provide it for the price of a lunch and a beer!

100% foreign ownership is what I did. You dont need a local partner and have the same property rights of a local.

Thanks for the report on your findings Creative Source.

I don't have property in Sri Lanka yet but it's on my list of countries I am seriously considering. $320,000 is a lot more than I expected for a new 3 bed house. I'd be surprised if the cost to build such a property is more than $80,000 so that means the land is expensive. How close to Colombo was it, what size was the plot and to what standard will the homes be to your knowledge?

Hi AnotherPropertyGuy(APG) and others.
I just got back from SL after a really nice time. Great food, great weather, great people and great cricket.
There is definitely a lot of potential for tourism in SL and even in its current climate, new boutique hotels are charging $100 to $250 per night.
Property in Colombo is over inflated by the expat SL community buying holiday homes there. In the centre of town a new 2 bed apartment will cost from $230 000 - $340 000!
I really cant understand why the prices are so high given the slightly unstable political and economic situation there.
The government has scraped the cease fire and the Tamil Tiger rebels are expected to cause a lot of disruptions in and out of Colombo.
I am looking closly at buying an off plan there. I found a good project being built by UK Sri Lankan engineers.
APG....are you looking at Sri Lanka seriously for investment?

CS

Yes, I'm looking at Sri Lanka seriously. I'm also considering other countries. Once I've narrowed it down, I'll research specific areas and then go and visit them myself. I've been wanting to go back to Sri Lanka for some time. It'd be good to know someone who already owns property in Sri Lanka and understands the system.

I'm trying to find a great place to invest about £100,000.

Hi APG,

you can definitely invest £100000 in SL and get a lot for your money. The 3 bed $320 000 I was talking about was in amoung the most expensive area in central Colombo. This is an off plan develpment over looking the sea near the British and US embassy and close to all the best restaurants and shops. But outside Colombo you can get much cheaper deals. I am intereted in this because I feel it is easy to rent to good foreign clients who are working in Colombo. I have a friend who only buys and sells land from people who are desparate to sell and he makes amazing profit. Also you can buy beautiful coastal land and build villas overlooking the sea for cheap.

I was wondering, how one can borrow mortgage loans from UK banks for property investments in places like Sri Lanka? Any advice?

CS

I would try for an equity access loan on a property I already owned and take that money and use it for SL.