Barbados Real Estate | Considering Buying A Home in Barbados? Read This First

Investing With Insight

Barbados Villas - Invest for Success

Barbados Real Estate - A Sound Investment Decision

Barbados Real Estate Has Been A Good Investment

Real estate has traditionally been a terrific inflation hedge to protect against a loss in purchasing power of the dollar. Additionally, the equity component (and typical price appreciation), along with potential rental income, are attractive features that appeal to many investors. Real estate is local. If you buy in an economically strong region, you will be more insulated from the national and global economy.

Many individuals invest in this tangible asset as part of an overall portfolio diversification strategy. Yields on emerging-market bonds and high-yield bonds remain historically low and the stock market continues to stretch valuations to elevated levels. For example, the current trailing twelve month P/E ratio for the S&P 500 is a bit over 19. That compares to an historical average of 15.5. This seems to suggest that the US stock market is overvalued. Other global markets appear similarly overpriced. Slowing sales / revenue numbers and a changing US interest rate policy all add to investor nervousness, as evidenced by the higher volatility in stocks thus far in 2015.

Real estate plays a critical role in building wealth and as a store of value, has performed better than many other asset classes, such as gold. For many, owning a home in Barbados is a personal lifestyle choice, a source of pride and happiness. Some buy with the intention of having the property remain in the family or gifted to a child (legacy purchases). For all these reasons, Barbados is an attractive investment option. Barbados is a low-tax regime. There are no capital gains or inheritance taxes. The government has also adjusted residency rules to allow high net worth individuals to gain an indefinite special residency permit.

Barbados enjoys a high standard of living. It offers many tax advantages and has a British system of law. Although the pace of economic activity declined following the market crash of 2008, Barbados has since seen a resurgence in the number and value of real estate deals transacted annually. Infrastructure development continues at a brisk pace and Barbados property values have been rising. Rental yields also remain strong. Moreover, property is available without restriction to foreign buyers. It’s easy to see why Barbados is one of the world’s most desired destinations for owning a home.