Hot investment opportunity in Barbados

Chris Sawyer, the Caribbean expert for property specialists GEM Estates (Global Emerging Markets), explains why The Merricks Beach Resort & Residence in Barbados is proving popular with investors...

While property markets can rise, peak and plateau; a perennial favourite tourist destination can flourish adinfinitum. This is why an investment in The Merricks Beach Resort & Residence on the iconic island of Barbados, ranks among the most sensible because you are largely investing in the business of tourism.

The studios; one and two bedroom apartments; cliff-top cabanas and villas, all on offer at The Merricks Beach Resort & Residence, are available for freehold purchase. Owners routinely hand them back to the hotel management team which toils tirelessly to maintain high standards; high occupancy rates; and therefore, high rental incomes on your behalf.

The developer has implemented a 10% rental guarantee for the first two years after completion, and 50% of the net room rate share thereafter, so on even the most affordable £225,000 studio, that’s a massive £22,500 rental income each year.

"We ask our clients to see a purchase within The Merricks Beach Resort & Residence as a business decision rather than a dream-filled fantasy holiday home," explains Mr. Sawyer.

"Barbados is, of course, a paradisiacal island, where your 30 days free personal use per year will be filled with fond memories, however, the foremost thought should be that you have, in effect, a part share in a five-star resort and the dividends are yours to reap. Should you decide to sell, your unit will always be a saleable commodity, regardless of the property market. As an investor looking at the occupancy rates and rental incomes achieved, you will be able to see the financial viability of the asset."

International tourism started on the Caribbean island in the 1960s and has flourished ever since. Latest figures from the Caribbean Tourism Organisation state that long-stay visitors were up 2.1% from January to September 2007 on the previous year, and cruise ship passengers up 14.4% for the same period.

Most celebrities, from Simon Cowell to Hugh Grant, stay at the famous Sandy Lane Hotel which is undoubtedly the place to see and be seen, but incredibly, for an island 21 miles long by 14 miles across, there are only three five-star hotels on the island, making The Merricks Beach Resort & Residence a welcome and much needed addition. In fact, it will be the first five-star resort to be developed on the island for 20 years, with some of the highest specification facilities ever seen.

The Merricks Resort Spa & Residence overlooks an idyllic half-moon bay on the southeast coast of the island of Barbados. The luxurious apartments, cabanas and villas have full use of the five-star Merricks Beach Resort including a spa sanctuary, gymnasium, five swimming pools, tennis courts with academy, football academy, dive centre, bars and restaurants, boutique shops, a conference centre and a lift down to the beach. A five-star hotel management company will maintain the resort impeccably.

Prices are from £225,000 for a studio apartment, and from £325,000 for a villa. All properties come fully furnished.

The Merricks Resort Spa & Residence is available for just £1,000 representing the non-refundable reservation fee, and thereafter the purchase is 100% finance. A 30% deposit is required within 45 days of reservation and if you opt for finance, non-compulsory, the developer will cover the loan repayments including interest until completion, and simply add on the cost of those payments to the purchase price upon completion; a cost that will undoubtedly be swallowed up in capital appreciation when the property is bank valued at completion which is scheduled for 2010.

There are many direct flights from the UK to Barbados through Virgin, British Airways and BMI to name but a few. Flying time is around eight hours.

Click here to read more about The Merricks Resort Spa & Residence.

Information provided by Purple Cake Factory SL and GEM Estates.

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Last Updated: 30 January 2008