yes, sorry you are correct, to buy a $ then was probably near 5,000 bs. My mistake. I wont change my mind though on Vz in general......not a safe investment

Carcola is a really well researched project that offers everything a forward thinking overseas property investor should be looking for.

People are talking about exchange rates etc etc getting money out.

Buy it in a company.
Any good lawyer will set uo a straight forward system.

Margarita Island is nice and has a whole lists of reasons why ot should increase in value.
Speak to a sensiable agent and then do some research of your own. Most of all get out there. I have not been, but heard nothing but good about it, Kite sailing, good weather, cheap goods, fine Rum and lots of tourist planning for the future.....

"Carcola is a really well researched project that offers everything a forward thinking overseas property investor should be looking for."

Except an exit strategy....
I like Margarita too and believe there are some excellent investments there. But I dont think Caracola is one of them - mainly due to there being 1200 units planned.
There aren´t going to be any resales for a very long time and once there are resales, surely oversupply of the same types of apartment in the same complex is going to dilute the prices as everyone tries to cash out?

There are two exit straegies to my mind,
Flipping a good located unit, as it has a long build time.
Sit on it for a mid term investment and either sell or refinance it after several years.

The market there is growing both in prices, demand and finance products.
1200 units there might look a lot now, but this is a really fast growing market and has all the indicators, with demand for property, stable and growing economy, tourist plans to be a very good market in years to come. Buying now you have the potential to make real profit in years to come.

Yeah if you want to sell right after it has been built and there are still off plan apartments left, then it is a consideration, but.....

There are lots of "yeah buts..." out there: If you can afford one, my advice is that this is a good one


QUOTE=andyintheworld;62859]"Carcola is a really well researched project that offers everything a forward thinking overseas property investor should be looking for."

Except an exit strategy....
I like Margarita too and believe there are some excellent investments there. But I dont think Caracola is one of them - mainly due to there being 1200 units planned.
There aren´t going to be any resales for a very long time and once there are resales, surely oversupply of the same types of apartment in the same complex is going to dilute the prices as everyone tries to cash out?[/quote]

How can you refinance these?? There are - as far as I am aware - no financing options available to expatriates anywhere in Venezuela. But if you know of any - Im all ears!!! - As long as its not "developers finance".

Also, will people really pay a premium on the developers price for a well-placed unit before the project is complete? I´m not sure "flipping" is going to work in this instance - BECAUSE of the long build time and high quantity of units.

Last Winds resort looks like its going to have similar problems for investors.

1) developements over the course of the build out have price increases.
Therefore buying now will be less than buying in 18 months.
the difference between these two figures is profit, if sucessfully flipped

2) there are several banks making moves in this area for exactly the reason of offering mortgage finance to overseas owners, like they did in Dubai, like they did in Dominican Republic, and like they always do in markets with growing residential tourism- They like to see it happen before they start offering alsorts of products, but they will

3) going in early, you have to satisfy yourself with SOME of the questions you are asking, however offer the better returns

The price increases make sense to flipping then - as long as - as you say - you can sell on.
I have lots of experience in Mortgages both in the UK and overseas and know the products available in Duabi, the Dom Rep and the rest of the Caribbean. But - the Venezuelan banking system is vastly different and this is something I dont see happening for a long, long time - if ever.
Id love to be proved wrong on this - I really hope I will be - but I cant even see how they can offer mortgages to expatriates.

Local currency is "locked" and pegged against the dollar.
Mortgage rates for residents start at about 10% interest and go to 70% Loan to value, but are only available if you have lived and worked in the country for at least two years.

There are a couple of agents kicking about on the forum who live in Margarita - perhaps they can elaborate on the future possibility of expatriate mortgages?

Margarita is a great place to buy right now. however you should until october for when the black market exchange rate goes up, like it does every year. you should purchase land. If you need more info let me know.

DO NOT PURCHASE AT CARACOLA, flats are not a good investment. If you want to purchase in margarita , purchase land or villas. I know the venezuela market very well, if you want to see a good return on your money listen to me.

Adrian

Whats wrong with Caracola? and back up what you´re saying with figures please not just sweeping statements.........

Caracola is SIPP compliant, tax efficient, carries a minimum 7% guaranteed rental for 10 years backed by fidelity bond (increasing to 8.25% after 5 years if occupancy stays constant) and has a 70% LTV mortgage available...............with entry as low as just US$41,000 or 20,500 GBP, its probably one of the soundest and secure investments around at the moment!

Back up your sweeping statements with facts please!

OPH