liteweight
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Sorry if this has been discussed before. Anybody got any views on Isla Margarita off the coast of Venezuela? These are leaseback properties and I'm aware that prices in such schemes are usually hiked.
Margarita Island, off the north-eastern coast of Venezuela.
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liteweight
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Re: Venezuela
I have indeed and that's what worries me. A friend of mine wants me to go in on a purchase with her but I'm worried about the above situation. However I'm not that up to date on my South American politics and she tells me that it is no longer a threat, as Isla Margarita has it's own Governor who is actively encouraging tourism and foreign investment?
Apparently there was a exhibition of these properties in the Radisson in October but I was away and anyway I don't usually attend these things as IMO they are full of salesman's hype. Your links make interesting reading.
I have indeed and that's what worries me. A friend of mine wants me to go in on a purchase with her but I'm worried about the above situation. However I'm not that up to date on my South American politics and she tells me that it is no longer a threat, as Isla Margarita has it's own Governor who is actively encouraging tourism and foreign investment?
Apparently there was a exhibition of these properties in the Radisson in October but I was away and anyway I don't usually attend these things as IMO they are full of salesman's hype. Your links make interesting reading.
Re: Venezuela
Political situation scary for investors. It's a pity, because this is a stunningly beautiful country that will have a future for south american tourism sometime, but not for a long time yet.
Too long to wait for me I think. Most commentators would probably agree that the economy and political situation makes this one that is not for the faint hearted, to say the least.
Political situation scary for investors. It's a pity, because this is a stunningly beautiful country that will have a future for south american tourism sometime, but not for a long time yet.
Too long to wait for me I think. Most commentators would probably agree that the economy and political situation makes this one that is not for the faint hearted, to say the least.
liteweight
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Re: Venezuela
Isla Margarita is a small island off the coast of Venezuela and I'm told it's independent. If things hot up on the political front, I doubt it'll be independent for long. I've seen pictures and it is certainly very beautiful but I think I agree Auto that it is not for the faint hearted.
My friend really only has the hype produced by the salesmen so I'm trying to get some further independent information on the place.
Isla Margarita is a small island off the coast of Venezuela and I'm told it's independent. If things hot up on the political front, I doubt it'll be independent for long. I've seen pictures and it is certainly very beautiful but I think I agree Auto that it is not for the faint hearted.
My friend really only has the hype produced by the salesmen so I'm trying to get some further independent information on the place.
Re: Venezuela
Hi All, I went to Venezuela on our honeymoon a few years ago and ended up on Isla Margarita. At that stage it wasn't that developed. We stayed in a magnificent hotel with a golf course (pretty flat and not that interesting). We had a great time. Beaches were great. At the time there were protests about chavez in caracas but not a lot happening on the Island. Would love to go back there some day.
Here's the hotel we stayed in:
[broken link removed]
At the time it was 100 us dollars a night for 2 of us fully inclusive for all food and drink and free golf. There were 5 restaurants and loads of facilities and superb rooms, what a bargain!
Hi All, I went to Venezuela on our honeymoon a few years ago and ended up on Isla Margarita. At that stage it wasn't that developed. We stayed in a magnificent hotel with a golf course (pretty flat and not that interesting). We had a great time. Beaches were great. At the time there were protests about chavez in caracas but not a lot happening on the Island. Would love to go back there some day.
Here's the hotel we stayed in:
[broken link removed]
At the time it was 100 us dollars a night for 2 of us fully inclusive for all food and drink and free golf. There were 5 restaurants and loads of facilities and superb rooms, what a bargain!
liteweight
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Re: Venezuela
Hotel looks great value. I stayed in Hesperia Presidente in Barcelona recently and it was great, excellent value but not as good as yours!
I had read your post on Isla Margarita and thought it sounded wonderful for a honeymoon. Would you consider buying there? Is it definitely independent, or does it just have it's own Governor while still remaining under the control of Venezuela?
Hotel looks great value. I stayed in Hesperia Presidente in Barcelona recently and it was great, excellent value but not as good as yours!
I had read your post on Isla Margarita and thought it sounded wonderful for a honeymoon. Would you consider buying there? Is it definitely independent, or does it just have it's own Governor while still remaining under the control of Venezuela?
T
THAT'S RIGHT
Guest
We have been thinking of investing in a 2-bed apartment on the Caribbean island of Margarita, which is off the north-eastern coast of Venezuela.
The development is a frontline beach resort and is on the northern side of Porlamar City.
The price of this apartment is E100,000 and comes fully furnished.
It also comes with a nett rental guarantee of 7% of the purchase price for 10 years.
There is no annual maintenance costs, no property tax, no VAT, no Wealth Tax and no Income Tax on the island.
The cost of living is cheap, with duty free shopping and also there is good infrastructure.
Sounds good, but we have no idea about this part of the world.
Is Venezuela a stable country? Is it a reasonable investment? Any information and advice on the above would be appreciated!
The development is a frontline beach resort and is on the northern side of Porlamar City.
The price of this apartment is E100,000 and comes fully furnished.
It also comes with a nett rental guarantee of 7% of the purchase price for 10 years.
There is no annual maintenance costs, no property tax, no VAT, no Wealth Tax and no Income Tax on the island.
The cost of living is cheap, with duty free shopping and also there is good infrastructure.
Sounds good, but we have no idea about this part of the world.
Is Venezuela a stable country? Is it a reasonable investment? Any information and advice on the above would be appreciated!
Re: Margarita Island
I went on honeymoon to Venezuela a few years ago. As part of the trip I went to Margarita Island. Went to a fantastic hotel and paid 50 dollars a night each for accomodation, meals, drinks and free golf. The hotel was 5 star plus!
Anyway, not a lot on the Island itself at that stage, it was quite barren and dry with not much scenery...however, there was plenty of sun. Friendly people, nice food etc.
At the time there was a bit of unrest as a lot of studends were protesting against chavez. I'm sure this is still going on but you would more likely see a lot more of this in Caracas but not on the Islands.
I seen Margarita advertisied locally a while back. I'm sure if you're spending 100,000 euro through an agent here you're being ripped off. Don't even consider investing until you've at least gone and seen margarita and sussed out the Island. You might be buying in the worst part in the worst location with the worst developer at the worst price!!
I guarantee that if you spend the money to go to margarita it will save you money. If you don't have time to go then don't invest, you'll just be wasting your money. If you do go you'll either end up buying somewhere else, not buying or buying the place you're looking at. Either way, consider the costs of the flight and accomodation and time off work as part of the cost of the investment..
Here's a link to the hotel we stayed in, bring all the family they'll love it:
[broken link removed]
Good luck!!
I went on honeymoon to Venezuela a few years ago. As part of the trip I went to Margarita Island. Went to a fantastic hotel and paid 50 dollars a night each for accomodation, meals, drinks and free golf. The hotel was 5 star plus!
Anyway, not a lot on the Island itself at that stage, it was quite barren and dry with not much scenery...however, there was plenty of sun. Friendly people, nice food etc.
At the time there was a bit of unrest as a lot of studends were protesting against chavez. I'm sure this is still going on but you would more likely see a lot more of this in Caracas but not on the Islands.
I seen Margarita advertisied locally a while back. I'm sure if you're spending 100,000 euro through an agent here you're being ripped off. Don't even consider investing until you've at least gone and seen margarita and sussed out the Island. You might be buying in the worst part in the worst location with the worst developer at the worst price!!
I guarantee that if you spend the money to go to margarita it will save you money. If you don't have time to go then don't invest, you'll just be wasting your money. If you do go you'll either end up buying somewhere else, not buying or buying the place you're looking at. Either way, consider the costs of the flight and accomodation and time off work as part of the cost of the investment..
Here's a link to the hotel we stayed in, bring all the family they'll love it:
[broken link removed]
Good luck!!
Z
z101
Guest
Re: Margarita Island
At the time there was a bit of unrest as a lot of studends were protesting against chavez. I'm sure this is still going on but you would more likely see a lot more of this in Caracas but not on the Islands.
Good luck!![/quote]
Yeah the Rich ones and those paid for by the Americans
At the time there was a bit of unrest as a lot of studends were protesting against chavez. I'm sure this is still going on but you would more likely see a lot more of this in Caracas but not on the Islands.
Good luck!![/quote]
Yeah the Rich ones and those paid for by the Americans
Re: Margarita Island
Is this primarily a lifestyle or investment purchase? Margarita Islands is an excellent place to invest due to it's tax advantages and booming tourist market (Top foreign holiday destination for Canadians). 100,000 is a big capital outlay for this market. I would suggest better value would be had at half that price for a studio or one bedroom where the guaranteed yields would be the same but the potential for capital appreciation would be significantly better. In a market that is predicated on tourism, smaller units are always a better buy as that is what the tourist market requires.
We will be hearing a lot more in Ireland about Maragrita Islands over the next 12 months.
It is important also to realise that though it technically is a Venezuelan island group, they have a certain amount of autonomy over internal matters
Is this primarily a lifestyle or investment purchase? Margarita Islands is an excellent place to invest due to it's tax advantages and booming tourist market (Top foreign holiday destination for Canadians). 100,000 is a big capital outlay for this market. I would suggest better value would be had at half that price for a studio or one bedroom where the guaranteed yields would be the same but the potential for capital appreciation would be significantly better. In a market that is predicated on tourism, smaller units are always a better buy as that is what the tourist market requires.
We will be hearing a lot more in Ireland about Maragrita Islands over the next 12 months.
It is important also to realise that though it technically is a Venezuelan island group, they have a certain amount of autonomy over internal matters
R
rabbit
Guest
Re: Margarita Island
So perhaps they may declare independence some day from their mainland ( Venezuela out, Peace in ! ) and nationalise the empty foreign owned apartments ( owned by the absentee landlords ) for the good of the people ?
G
GKAP
Guest
It is not very clear if the apartment is off plan or not and I assume it is off plan. The price depends on many factors: location, size of properties, furnished or just grey walls, etc. Few developers are giving guarantees like insurance against the risk of not being able to complete an apartment to reassure foreign buyers who don’t know much about the property market on Margarita Island. There are no bank guarantees available on Margarita Island for the purchase of off plan properties and respectable developers will offer escrow accounts. Normally on the island apartments are sold with inflation clause so that one really doesn’t know what the final price is until completion and depending on the completion time that may well have a significant effect on the price. Foreign developers don’t usually sell with inflation clause. If you are purchasing from a foreign developer as it sounds then you may need to take all these factors into consideration.
Apartments on the island are normally sold without furniture and just with grey walls with buyers then adding all the finishing’s. Finally when purchasing in Margarita one must ensure that all monies are introduced into the country. When his occurs then buyers are given something equivalent to a certificate of foreign investment with which it is relatively straightforward to repatriate funds upon reselling the property. Buyers should really be careful with this last point. Many unscrupulous developers, local and foreign, will not provide this certificate as they will retain funds offshore, usually in a Miami or Panama bank account. This is against the law and the buyer will not be able to resell and repatriate funds in this case. One must ensure that all monies are introduced into the county and declared to the tax authorities.
As for investment opportunities, Margarita has one of the lowest prices per square metre in the Caribbean and amongst the highest rental returns in the world due to the lack of accommodation on the island for the increasing number of tourists. The price rent ratios are fantastic and I think it is an excellent investment opportunity both in the short term and long term. Regarding the price of the particular apartment, the best advice is to take a look at the market there and see if you can get anything cheaper considering all the above mentioned
Regarding stability the country has a democratically elected populist president. One year ago President Chavez had 2/3 of the vote. Chavez tried to push through constitutional reforms last December with a national referendum. Amongst the proposals were his indefinite re-election and taking the county towards a social democratic model of state. The population of Venezuela expressed firm disapproval with the content of the referendum and only 1/3 of the population voted in favour of the constitutional reforms proposed. Since then Chavez has recognised defeat and changed his stance, adopting a more moderate approach. Chavez has announced he will step down from power at the end of his mandate to reassure he is not an authoritarian president and he may well be booted out half way through his mandate with another referendum initiated by the opposition. MargaritaIsland belongs to the NuevaEspartaState, one of the few states governed by the opposition party. There hasn’t been any unrest on the island at all whilst most of the opposition rallies occur in Caracas. The island is a popular tourist destination whose economy is based on tourism with 2.6 million visitors per annum on an island only 33km by 66km! The Venezuelan economy is booming and has one of the highest GDP growth rates together with China and India. Unfortunately most of this growth comes from the oil sector and Venezuela imports most of its products. This has put pressure on inflation and one of the main aims of the government in 2008 is to reduce inflation
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T
THAT'S RIGHT
Guest
Re: Margarita Island
Thank you so much for your comments and advice you guys!
Answer to DOBERDEN: Glad to hear you enjoyed your stay on the island. I would be investing with an Irish agent, whom I know very well and I know he wouldn’t “rip me off”. The builder of this resort is a Spanish company who provide good quality building work in Spain and have a good reputation.
Answer to TRMA: It would be a long-term investment. There are no studios and one beds are E70,000, which is something to think about. Very positive!
Answer to RABBIT: Don’t think so, more unlikely to build up tourism.
Answer to GKAP: Yes the apartments are off plan. This development will be an exclusive 1,244 unit Apart-Hotel complex directly on the beach front and will be beside the Hilton Hotel. Services include Conference Rooms, 3 Restaurants, Health Spa, Duty Free Shops, Eateries, Bars and a Night Club. The location I am told is the best location on the island and is outside the hurricane belt. Size of 2 bed + terrace is 87.5m2. It is fully furnished in the price, including all kitchen equipment, white goods, furniture, curtains, pictures, lamps, etc. Also in the price is wireless broadband and satellite TV and air conditioning. Apartments are totally freehold. Ample parking. Property guaranteed for 10 years after completion. All monies will be paid into an Escrow account, managed by an independent solicitor. Rental of 7% of purchase price will be paid annually by the rental company who will also supply a fidelity bond, which guarantees payments to owners. Capital Gains Tax is 0.05% so if you made a gain of 100,000, tax liability would be E50. Thanks GKAP for the effort you put into this, you’ve been very helpful! I have a good feeling about this investment. Stability in Venezuela is a bit of a concern though, but hey, all investment is a gamble.
Thank you so much for your comments and advice you guys!
Answer to DOBERDEN: Glad to hear you enjoyed your stay on the island. I would be investing with an Irish agent, whom I know very well and I know he wouldn’t “rip me off”. The builder of this resort is a Spanish company who provide good quality building work in Spain and have a good reputation.
Answer to TRMA: It would be a long-term investment. There are no studios and one beds are E70,000, which is something to think about. Very positive!
Answer to RABBIT: Don’t think so, more unlikely to build up tourism.
Answer to GKAP: Yes the apartments are off plan. This development will be an exclusive 1,244 unit Apart-Hotel complex directly on the beach front and will be beside the Hilton Hotel. Services include Conference Rooms, 3 Restaurants, Health Spa, Duty Free Shops, Eateries, Bars and a Night Club. The location I am told is the best location on the island and is outside the hurricane belt. Size of 2 bed + terrace is 87.5m2. It is fully furnished in the price, including all kitchen equipment, white goods, furniture, curtains, pictures, lamps, etc. Also in the price is wireless broadband and satellite TV and air conditioning. Apartments are totally freehold. Ample parking. Property guaranteed for 10 years after completion. All monies will be paid into an Escrow account, managed by an independent solicitor. Rental of 7% of purchase price will be paid annually by the rental company who will also supply a fidelity bond, which guarantees payments to owners. Capital Gains Tax is 0.05% so if you made a gain of 100,000, tax liability would be E50. Thanks GKAP for the effort you put into this, you’ve been very helpful! I have a good feeling about this investment. Stability in Venezuela is a bit of a concern though, but hey, all investment is a gamble.
Chopper1971
Registered User
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Re: Margarita Island
Hi,
I was looking at this development and I have been to the Island on a previous trip.
Few things struck me....There are a few resorts on the island for tourists, outside of that you wouldn't really be strolling around the main square in polymar late at night. From the advertising you get the feel of a tranquil carribean island, however the island is very windy on the cost. Thats why its such a good windsurfing destination, its not really your calm beach and snorkelling on coral destination. However the photos in the brochure make it out to be like that. If you have a white sand jamaican picture in your head, remove it.
The position beside the Hilton is a good location, and its a busy hotel. The guaranteed return on the investment 7% for 10 years nett seems very good, almost too good.
If I was in your shoes, I would book a flight via Amsterdam and go over there, and stay in that Margaita Island resort that was mentioned on the previous mail....note, though it is a but tacky with the late night style entertainment for families and extended familes, but fine for a few days. The resort is inland with pools, but about 10-15 minutes for a windy beach.
Seems an ok punt, but do your own dd. The questions you want to ask are. Who in the future is going to buy the apartment from you ?The locals wont, their broke.
Hi,
I was looking at this development and I have been to the Island on a previous trip.
Few things struck me....There are a few resorts on the island for tourists, outside of that you wouldn't really be strolling around the main square in polymar late at night. From the advertising you get the feel of a tranquil carribean island, however the island is very windy on the cost. Thats why its such a good windsurfing destination, its not really your calm beach and snorkelling on coral destination. However the photos in the brochure make it out to be like that. If you have a white sand jamaican picture in your head, remove it.
The position beside the Hilton is a good location, and its a busy hotel. The guaranteed return on the investment 7% for 10 years nett seems very good, almost too good.
If I was in your shoes, I would book a flight via Amsterdam and go over there, and stay in that Margaita Island resort that was mentioned on the previous mail....note, though it is a but tacky with the late night style entertainment for families and extended familes, but fine for a few days. The resort is inland with pools, but about 10-15 minutes for a windy beach.
Seems an ok punt, but do your own dd. The questions you want to ask are. Who in the future is going to buy the apartment from you ?The locals wont, their broke.
Chopper1971
Registered User
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Re: Margarita Island
oh, if you stay in the resort, ask them if you pay by cash, will you get a discount. They should knock 10-15% off your price.
oh, if you stay in the resort, ask them if you pay by cash, will you get a discount. They should knock 10-15% off your price.
T
THAT'S RIGHT
Guest
Re: Margarita Island
Seems an ok punt, but do your own dd. The questions you want to ask are. Who in the future is going to buy the apartment from you ?The locals wont, their broke.[/QUOTE]
Seems an ok punt, but do your own dd. The questions you want to ask are. Who in the future is going to buy the apartment from you ?The locals wont, their broke.[/QUOTE]
T
THAT'S RIGHT
Guest
As in any investment abroad, or anywhere else you would’nt be targeting just the “locals” This development seems ideal for investors. I think it’s a no-brainer, with a guaranteed rent of 7% of purchase price for 10 years!! and I believe 9% for a further 10 years!! I think I’ll invest!
G
Guest119
Guest
As with any scheme like this, what guarantees do you have that the rental will be paid ?. Effectively - none !. Imagine if you were the developer what a gamble this would be. Developers just want to sell & move on, and they & their agents will say whatever is necessary to get a sale. If a project ticks all the right boxes it doesn't need a gimmick. A current project in Dubai is offering 'free cars' and a raffle to win a private jet & a desert island !. Now, just who do you think is paying for that ?.
T
THAT'S RIGHT
Guest
Re: Margarita Island
As I said, rental of 7% of purchase price will be paid annually by the rental company who will also supply a fidelity bond, which guarantees payments to owners. All details of this development can be had from the agent Shane Henderson at www.paragonireland.com
As I said, rental of 7% of purchase price will be paid annually by the rental company who will also supply a fidelity bond, which guarantees payments to owners. All details of this development can be had from the agent Shane Henderson at www.paragonireland.com