At this time of year, it seems like every celebrity on the planet has decamped to the Caribbean, but look beyond the islands to discover more than A-list trendiness. Words Isobel Palmer
There’s many an overseas hotspot that shouts about its natural beauty long after developers have built on most of it. But if it's tropical vegetation, crystal clear waters and exotic animals and birds you seek, the countries along the Caribbean coast take some beating. And these days, with eco credentials becoming a serious sales tool, the future looks a lot greener.
With its spectacular high-rises, Panama is already established as a hot property investment area; but for smaller, emerging markets, consider Belize and Costa Rica - arguably the outdoor capitals of this region.
Belize, the former British colony of British Honduras, is a tiny country located on the southern border of Mexico. It may only have a population of 300,000, but it certainly has much to offer the UK investor. That colonial history means a British legal system that extends to property; plus, the ease of conducting business in English - indeed, this is the only English-speaking democracy in Central America.
Happily, the tax system is differently organised. Property taxes are minimal and there are neither capital gains nor inheritance taxes. For example, annual property taxes for two homes on a 130-acre site in the Cayo district are around $300.
Belize is known for its fertile land, and organic fruit, herbs and vegetables grow abundantly in the gentle climate. The laidback lifestyle centres on the outdoors, but alongside river-rafting, caving and diving, there are the gentler pursuits of exploring ancient Mayan ruins or learning about natural medicines.
The largest estate agent is RE/MAX, where the owner, Looey Tremblay, a Canadian, and his staff cover the whole country, from the coastline to the lesser known inland Cayo area, and attractive and growing towns such as San Ignacio.
Global recession has not affected the market, he explains, in fact it’s been beneficial. “US buyers seeking to invest outside their country have kept up the demand and prices here. But it’s best if you are a cash buyer because mortgages are not easily obtained and they are expensive.”
Looey, 47, recommends avoiding the capital, Belize City, in any property search, and concentrating on the following: Corozal, in the North; the coastal town of Hopkins; Placencia with its beautiful beaches, the inland Cayo district; and the Southern and least developed district of Toledo with its main town, Punta Gorda. There are also two islands to consider: Ambergris Caye - the oldest tourist area and the site of the world’s second largest Barrier Reef - and Caye Caulker, which is less developed.
He says: “Belize offers a high calibre of living; outdoor freedom and financial freedom because the living costs are so low. You live life outdoors and it is beautiful. Developers these days are much more eco-sensitive and are conserving that nature, rather than cutting down trees.”
Properties vary from condos to villas; large pieces of land to small lots; in the rainforest or right on the coast. For an example of prices, $100,000 buys you a good rental condo in prime location on Ambergris Caye; $99,000 could secure four acres on the coast at Punta Gorda.
Further south but just north of Panama lies Costa Rica, a larger country with a population of around four and a half million, and with both Caribbean and Pacific Ocean coastlines. Already established as a diving haven and a destination for “snowbirds” - retired North Americans fleeing the winter chill - it is more developed but still offers outstanding natural beauty and rich flora and fauna - in fact 6% of the world's animal and insect life are found here, in just 51,100 square metres.
It has taken a hit in the recession, with prices plummeting up to 30%, and agents say there are bargains to be had in the middle market where houses of around $120-180,000 are now selling for under $100,000.
The culture here is Spanish, but it has become more and more cosmopolitan with English, Italian and French being spoken in response to a growth in European holidaymakers and residents.
Estate agent Serguei Galkine, of Tropical Felgate Corp Ltd, has offices in London as well as 40 agents on the ground in Costa Rica. Originally from Russia, he set up business at the peak of the construction boom in 2004 and is a mine of information and advice about property.
He recommends areas such as Papagoyo, Hermosa, Playas de Coco and Tamaringo, all on the North Pacific coast, because they are away from the worst storms and have good access - half an hour’s drive - to the airport. Choose from apartments, condos or small villas - there are even studios available from £25,000. With construction pretty much frozen, property is mostly resale.
“Because it is Spanish, Costa Rica has a really different culture compared to the rest of the Caribbean. It is much, much safer; the people are very nice; and the air is fresh and free from pollution. You feel healthier there, full of energy. You really want to live,” he says.
“Property transactions are based on the Spanish system and the paperwork is pretty straightforward. I would advise caution when buying land - make sure you check the ownership and do your due diligence.”
There is good rental income to made, so much so that Serguei has built his own holiday rental units. He advises buying small - maximum two-beds - and says you can expect around a 12% return on a £30,000 investment.
“You can sum up life there in the phrase Pura Viva - it means pure life and is used as a greeting for just about everything - hello, good-bye, how are you...Iife is laid back, nobody ever rushes - so you have to get used to that. If you’re planning to retire in the next eight to 12 years, I think it’s one of the best places to buy. Although it’s not as attractive an investment as a couple of years ago, you can still expect appreciation of 25-30% in two years. Why? Because there’s no construction going on so prices will rise gradually - in fact it has already started.”
And a final tip if you want to visit? “Check out the charter airlines the last three days before you want to fly. You can get flights for as little as £380.”
It’s high season, and the weather is perfect - what are you waiting for?
Looey Tremblay, RE/MAX, www.BelizePropertyCenter.com;
001 877 362 756/ 011 501 824 0550
Serguei Galikine,
Tropical Felgate Corp Ltd,
www.1costarica.net;
0845 612 4427
