Investing in Sun, Sand, and Clear Blue Water
Sophisticated with a dash of free spirit, Ron Shaw explains how The Turks and Caicos Islands offer opportunities for investing in year round perfection.
By: Kathryn Fox | September 2014
Most of us have dreamed of the perfect island getaway; secluded white sand beaches, turquoise sea, and only the sounds of gentle waves and the music of palm fronds played by the breeze. We settle for a week or two at a resort and return to our daily lives, appeased but never quite satisfied.
That’s because most of us don’t realize exactly how achievable this can be on a more permanent basis. The key is finding a way to turn your dream into an investment and income generating reality. And like everything in real estate, the key is location.
Take the islands of the Turks and Caicos, for example. These islands are ideal for investing in a short-term rental property that doubles as your own personal getaway. This paradise is made up of 40 islands and cays, eight of which are inhabited on a year round basis. The average daily temperature is a perfect 82 degrees and the islands boast around 344 sunny days per year. There’s a modern healthcare facility, well-developed infrastructure, friendly English speaking local population, restaurants, entertainment, nightlife, and shopping. There are also no income, property, or estate taxes. There are no restrictions on foreign ownership of property, and it’s possible to qualify for a permanent residency status upon investing in real estate in the islands.
Additionally, these islands are a British protectorate in the West Indies and began as the exclusive territory of the rich and famous. In recent years the islands have become more and more popular, and now play host to increasing tourism numbers every year from all around the globe. The rental market in the Turks and Caicos Islands is at its peak from November to April, however the rest of the year can still see very high rental rates; many villas are already booking into 2017.
From entry-level condominiums running a couple hundred thousand to boutique resorts in the tens of millions, there’s a home to suit every budget and taste. With the help of firms like RA Shaw Designs, a Turks and Caicos based architectural design firm, it’s also possible to design and build a custom home to suit your needs and to attract guests and keep them coming back, year after year.
RA Shaw Designs founder, Ron Shaw, began the firm in the Turks and Caicos Islands and has built a portfolio of homes and boutique-style resorts from 3,000 to 30,000 square feet. “I consider myself incredibly fortunate to have been able to establish a successful architecture practice here in the Turks and Caicos Islands,” he says. “It’s truly a paradise and to live and work here is something I never take for granted. However, as with any small island, there are logistical matters that need to be navigated when undertaking large projects.” Thankfully for his clients, Ron Shaw has been working in these islands long enough to have developed the ability to foresee and surmount potential challenges. “I discovered maintaining a level of quality construction that meets our very high standards is difficult in the Turks and Caicos. I created Design Build Associates Ltd., a general contracting firm that builds most of the projects we design. Aside from the benefits of continuity, this instills tremendous pride and dedication from the staff as they take total responsibility from concept to completion.”
Whether you choose to buy an existing rental property or build new, the Turks and Caicos Islands offers many exciting investment opportunities. If you’re interested in high end, exclusive luxury, a golf retreat, or simply fun on the beautiful beaches, the Islands will welcome you.
Although there are no taxes generated from property income and no capital gains taxes on property transfers, there are some costs to bear in mind. When buying property, a one-time duty stamp is paid to the TCI government on the purchase price at a rate based on location. Compared to your potential return however, these costs are nominal.
Consider the following properties in the Turks and Caicos:
The first is a two-bedroom luxury beach villa located in the highly sought-after Turtle Cove area of Grace Bay Beach. Rental rates start at $5200 US per week, and with an estimated initial owner investment of $1.5 million, that’s an annual ROI of 18%.
The second is a 7-bedroom beachfront luxury villa currently listed for $9 million US. With its rentals starting at $5250 per night, the ROI is an estimated 21% before expenses.
RA Shaw Designs
Contact: Project House, Leeward Highway, Providenciales, Turks & Caicos Islands, B.W.I. Telephone: 1-649-941-4394 Mobile: 1-649-232-3456 US: 1-786-866-9479 Email: firstname.lastname@example.org