5 Mistakes to Avoid When Purchasing Buy-to-Let Property in Antigua
Buying property in Antigua is one of the government-approved routes to becoming a citizen of Antigua. In addition to being a legal property owner, through the Antigua Citizenship by Investment Program, you will also get a second passport.
Whether you will be purchasing buy-to-let property in Antigua or Barbuda or in any other country, the whole process can be tricky. It can sometimes leave even experienced property investors hard-pressed for the right information and confused. And with all the challenges they will go through, they may end up buying property that doesn’t meet their expectations.
Avoiding common investment mistakes will enable you to prevent hassles, reduce the stress of real estate buying and ensure your investment is going exactly where you want it to, whatever your personal or business goals may be.
Below are the top five mistakes you have to avoid when investing in buy-to-let property in Antigua:
Investing blindly in real estate
Whether you are new to the world of buy-to-let real estate investment or already a pro, the biggest mistake you have to avoid is buying a property without studying the market.
When you invest without studying Antigua’s real estate market, there is a high chance you won’t get a fair price for the property. You may even end up owning property that may not generate the income you envisioned. It may also lose its value quickly and when this happens, you will fail to recoup your investment or get an acceptable amount if you resell it in the future.
As such, before purchasing any property in Antigua, take the time to learn about the local market. Find out which areas are considered popular and safe. Research about the typical property values in various locations as well.
Lastly, if the property is a buy-to-let villa, it’s a good idea to ensure the property is included in the list of CIP-approved real estate projects so that you will qualify for an Antigua and Barbuda passport, or the person that buys the property from you in the future can do the same
Choosing the wrong location
Location is one of the most important factors you should consider when investing in commercial real estate.
However, it is a factor that you can easily disregard if you don’t have a large budget for this endeavor. This will also likely happen if you are easily swayed by glitzy fit-outs and impressive improvements – features that can sometimes disguise poor capital growth in inferior locations.
Although a well-located property can sometimes provide lower revenue, especially at the start, it will often have greater potential for future capital growth. And if you are investing in commercial real estate for rental return, a higher yield should be a more important consideration in your investment strategy.
Additionally, keep in mind that when it comes to property investment, it is often the land that appreciates in value which is why the real estate adage “location, location, location” still applies.
Allowing your emotions to sway your decision
Sometimes, listening to your gut can be useful when buying a property. However, you shouldn’t be easily swayed by your emotions and opinions when purchasing one. This is because they can be occasionally misleading and most of the time, they don’t reflect the needs of your possible tenants.
Investing in the right property should be based on its location, historical performance, and profitability. And to be sure you will get higher property investment returns, make sure the one you will purchase meets your long-term goals as well.
Focusing solely on the price
Although your budget plays an important role in your choice of property, it shouldn’t be the main deciding factor. If you do, it is highly likely you will end up owning a lackluster and disappointing property.
Instead of focusing only on the price, you have to be aware of what you will be getting for the cost in terms of amenities, square footage and potential annual rental income. In addition, you have to consider those expenses that you will have to pay for in case you need to modify the space and ensure that it is ready for occupancy.
Doing everything yourself
Lastly, many investors opt to look for properties and negotiate with the owners or landlords on their own. As a result, they end up buying overpriced properties or ones that do not fully meet their needs and expectations.
Whether you will start the property purchasing process inside or outside of Antigua, get help from a reputable local property advisor. By doing so, you will be certain you will get a fair price. The property advisor will also help you find the right commercial space that meets your specific requirements.
Whether you want to buy a property in Antigua to start your own business or as an additional source of income, avoid the mistakes above to be certain you will end up with a property that will satisfy your requirements.
Kal Kennard is a Partner at Citizens International, a white-glove specialist firm offering private client services necessary for citizenship investment into the Caribbean, Canada and Europe. Based in the Caribbean for the past 15 years, she is an experienced consultant who works directly with many professional partners and advises clients worldwide.