The year 2015 was a very busy year for the Turks and Caicos real estate industry, as it witnessed a 25 percent increase in the number of coastal properties purchased on the island of Providenciales for beachfront, oceanfront, and waterfront properties, both developed and undeveloped. As with 2014, the activity was predominately in the luxury sector of the market. The question we have to start with is: Why? The answer is simple.
The Turks and Caicos Islands (TCI) was named "Best Island in the World" by TripAdvisor in 2015, and with good reason. It offers the world’s best beach Grace Bay Beach, located in "Provo"––what locals call the island where the action is––Providenciales, as well as world-class watersports, shopping, and dining. It is a fantastic vacation destination, and its ever-burgeoning tourist numbers qualify that statement. Provo is the tourist hot spots, but it is not the only Island in the chain worth exploring. I would be remiss if I did not encourage visitors to our shores to venture out and explore the historical buildings, diving and whale watching opportunities of our capital island Grand Turk, or the bat caves of Middle Caicos, for instance.
Real estate investment options are limitless, from the conservative investor looking to plunk down $100,000 for a land lot with ocean views now and maybe develop in a few years, to the aggressive investor who knows what he wants and can afford to purchase a $10 million managed luxury beachfront villa as a second or third home or just a business opportunity. TCI offers a number of advantages over other islands from an investment perspective. For one, getting to the TCI is easier than ever. Located 575 miles southeast of Miami, it is accessible by dozens of direct flights from the U.S., Canada, and the U.K. For those interested in visiting the sister islands, TCI offers a domestic airport terminal with two carriers that will take visitors to their preferred destination.
Another advantage is that residents of the islands speak English as a first language, and the native currency is the U.S. Dollar. There is no property tax––homeowners pay a one-time stamp duty at a percentage based on a value not exceeding 10 percent when purchasing a property. We have not one, but two state-of-the-art hospitals that are open 24/7. Residents are friendly and quick to share a rum, or three! Boasting the lowest per capita crime rate of any major tourist destination, TCI is the safest Island in the Caribbean. The climate averages annual temperatures of 28 degrees Celsius (82.4 degrees Farenheight), and rainfall is sparse with less than 30 inches of precipitation annually.
So in short, I want to bring you to paradise, and I want you to make it your home. In today’s market, the managed villa concept is ideal for those who want to own their own vacation villa but want to defray some of the maintenance costs by renting it out when they're not using it. I have clients right now who are exceeding ROI at five percent and as high as 10 percent annually. This trend is driving new development in the TCI, and it is seeing an increase in the micro-resort model as a result. This is beneficial on many levels as it keeps the island eco-friendly. TCI's slogan is "beautiful by nature" after all, and prevents us from becoming like "Miami in the middle of the ocean." As TCI's notoriety spreads, it attracts premiere luxury brands; an example being the recent announcement of the development of a 12-story Ritz-Carlton in the heart of Grace Bay. This will certainly change the landscape, but only adds to our reputation as a premiere luxury destination. We are already the home of many of the world’s most exclusive resorts in Amanyara, Parrot Cay COMO, Grace Bay Club, The Regent Palms, and Gansevoort to name a few. These properties and many others set the standard for luxury vacation accommodation in TCI, and people come back year after year as a result for its stunning turquoise waters, cooling trade winds, and powder sand white beaches.
You just need my help choosing which villa or condo to buy!
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