Buying in Paradise

So what happens when you get your first glance of Grace Bay Beach, and you just have to own your own little piece of paradise? Well, the Turks and Caicos islands make it easy for you. Almost everything seems to be for sale here; chances are the condo where you're staying is for sale or that there's another just like it on the market. Adding to the temptation is that there is only a onetime stamp-duty tax paid during the transfer of land. Currently Provo charges 9.75%, although half-off tax specials have been known to happen. On the outer islands the tax is even less, from 3% to 5%. After you pay the stamp-duty tax, you never have to pay property taxes again, even if you rent out your unit.

Many people come down on vacation, fall in love with the beach, and buy property before thinking it through. As tempting as it may be, it's also important to be smart. Ask yourself the following: Can I rent this on my own, or do I have to put it in the management pool? What are the costs of maintenance, hurricane insurance, bug spraying, and travel-agent fees? What is the rental split with the management company? Can the resort decide to upgrade or make changes and send me the bill?

The best advice anyone can give is that you should buy a place because you love it, not just for the investment. The investment potential amounts to possible capital gains; in other words, you only make money when you resell your property for a profit. One final piece of advice: remember that you're placing your money in a foreign country, so always hire a local lawyer.