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Opportunity Rocks in Antigua and the Dominican Republic



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By : Jessie Hewitson    99 or more times read
Antigua
It has been a very good year indeed for Antigua. Estate agency Knight Frank’s annual Wealth Report noted that while prices of property for sale around the world rose on average 11 per cent last year, property for sale in Antigua soared by 40 per cent. One reason why the luscious tropical retreat has done so well is partly down to Barbados becoming so expensive, leaving property buyers looking to its neighbours for a more affordable option. Another factor is politically it is more stable these days.

The west coast, around Jolly Harbour, is seeing most property development and is the location for the priciest developments on the island, including Sugar Ridge, Tamarind Hills and Pearns Point. Smaller property developments include Harbour View and Colibri Court. Prices of property for sale generally start at around the £200,000 mark for one bedroom or a plot of land, going up to several million for villas.

Legal fees in Antigua are between one and two per cent and stamp duty is 2.5 per cent of the purchase price. Property buyers will also need a Non-Citizen’s license, which is five per cent of the purchase price and can take up to six months to be granted. Many of the larger developments have negotiated concessions with the government and can pass on savings on the stamp duty tax and Non-Citizens's licences. Other benefits include no capital gains tax or inheritance tax on residents.

Average property rental yields are around the five per cent mark, with Christmas through to May the main time for letting property on the island. Hotels experience 90% occupancy year round and there is a shortage of decent rental properties on the island.

As for capital growth, while it is spectacular, everyone is in agreement it can’t carry on at this pace forever.

Dominican Republic
The Dominican Republic shares the island of Hispaniola with its neighbour Haiti, one of the poorest countries in the world. It is an island that has in the past had an image problem – known for its all-inclusive holiday resorts and for giving visitors stomach bugs. Now, however, it’s going upmarket. New, luxury property developments have sprung up on the island - particularly on the east coast - attracting US celebrities: Jennifer Lopez, Beyonce Knowles and Paris Hilton have all laid their beach towels on the island and Brits are increasingly buying property here.

Popular areas for buying property for sale include Puerto Plata, Sosua and Cabarete on the north coast and, on the east coast, around Punta Cana, where several major luxury resorts are being built, notably Cap Cana, the biggest development in the Caribbean. Covering 14,000 hectares, the resort will see 10,000-holiday properties built over the next ten years along with six golf courses (including three Jack Nicklaus signature courses), five hotels and the biggest marina in the Caribbean. Prices of property for sale in the Dominican Republic start at £230,000 and go up to several million pounds. Next door is Caso de Campo, another luxury development, where Oscar de la Renta has a property. Prices of property for sale in Caso de Campo start at £250,000 for apartments.

It is hard to get hard and fast figures for capital growth experienced in the Dominican Republic, but most people suggest prices of property for sale in the Dominican Republic are going up by ten to 20 per cent a year, and rental yields can be as high as eight to ten per cent in prime locations. There is a one per cent property tax, 25 per cent capital gains tax and a six per cent exchange tax; but, like Antigua, some of the bigger resorts are negotiating lower rates of tax – in Cap Cana, for example, there is a ten-year exemption on property taxes and no capital gains tax when properties are sold.
Jessie Hewitson for Homes Overseas - Property for sale in Antigua, Property for sale in the Dominican Republic, overseas property investment advice and international property news.

International property experts since 1965.


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