Re/Max Elite likes to bring you good news from the Turks and Caicos Islands.  Recent global events have not always been positive but the Turks and Caicos recently received a host of well deserved plaudits. Following a recent press release from Trip Advisor’s 2010 Traveler’s Choice Awards it became known that Providenciales has won 1st Place as the Best Beach and Sun Destination in the World and 8th Place as the Best Relaxation and Spa Destination in the World. In addition to this, for the Mexico and Caribbean region, the TCI also won 3rd Place as the Best Family Destination and 3rd Place as the Best Romance Destination.

The Turks and Caicos Islands are a fantastic destination to visit or live in. Please be sure to contact us when you next visit.

A Beautiful place

We are half way through May and effectively at the end of the high season at Re/Max Elite, in the Turks and Caicos Islands, and after a disappointing 20 months in the global real estate market, we have lots to look forward to. In the TCI, we have recently seen a reduction in stamp duty and you can see my recent blog on the list of reductions for each price bracket.

The new hospital has opened in April and we are blessed with state of the art medical facilities that are better than anything I have personally attended in the UK. You can view more information on the Hospital here.

The new airport expansion was announced last year and the construction contract was recently awarded, after a lengthy bidding process. The contractor hopes to start work as early as June. The newly completed airport will allow access to larger aircrafts, which will open up the islands ability to attract other carriers and open up new flight destinations. I am keeping a close eye on what evolves in this regard, but I believe we may possibly see additional flights to Europe, which would hopefully have a positive impact on bringing the fares down that British Airways charge for its direct Sunday afternoon flight. I actually do like the BA flight from Provo to London, but if we can bring in competition and make the trip a little more cost effective, we will surely then see progressively more Europeans coming to the islands.

In speaking with all my friends who operate hotels on the island, they have all commented on what a significantly improved year it has been for their occupancies during this high season, albeit they have all had to offer better rack rates to compete with each other. I have frequently been informed by a number of operators that they have frequently seen 100% occupancy and I can’t recall anyone saying this in 2009!

The underlying strength and characteristics of the Turks and Caicos Islands remain intact and the light is bursting through the tunnel in terms of infrastructural advances that will take this island forward in to our next real estate cycle.

Simon Padgett, Broker, RE/MAX ELITE, Turks and Caicos.

Given the recently strong exchange rate in favour of the Canadian Dollar versus the US Dollar long side an increased number of flights, we have seen a noticeable increase in the number of Canadians that are enquiring about property in the Turks and Caicos Islands. This is not the only reason.

It is interesting to note that just three years ago, we had a predominant number of Americans who were investing in the Turks and Caicos Islands and then after the collapse of Lehman Brothers and the inevitable commencement of the recession, we witnessed a gradual decline in the number of American buyers and a gradual increase in the number of Canadian buyers. I am British, as it happens and I am from Bradford in the north of England where it is fair to say, caution is exercised before spending any amount of money. However, with any recession, it brings opportunity and in the case of the TCI real estate industry, which has seen significant price reductions, we have a significant number of Canadian buyers that bring welcome cash.

As we find a great majority of American and British people in debt, due to the irresponsible lending institutions that had spent over a decade promoting high loan to value mortgages, we fall upon Canadians whose banks were more rigid in their lending practices and whose same customers now set to benefit from the bargains that lay before them. As we have ofter heard, more Millionaires are created in a recession than any other period and whilst it is only a personal opinion, I would estimate that within this crowd, we will see a good number of Canadians.

Simon Padgett, Broker, RE/MAX ELITE, Turks and Caicos

It is very evident that we are seeing more real estate traffic in the Turks and Caicos and this is an encouraging sign that buyers have recognized that property prices have actually stabilized over the last two to three months, after a fall of approximately 30-35% across the sector.

We are interestingly seeing more developers looking at commercial land and sales of residential land in the TCI, in general are doing slightly better compared to this time last year.

On the condominium front, we see a steady absorption of current stock (not frantic by any means) at reduced prices, compared to say 2007 prices. This is a healthy process, given the level of stock that we had in 2008 and 2009. As this inventory depletes, we shall look for new projects as the typical real estate cycle kicks in to touch once again.

The future of Turks and Caicos Islands Real Estate brings developments such as the Third Turtle Club, a branded Beach and Marina experience in Turtle Cove Marina and the Shore Club in Long Bay Hills.

As we start to progress through 2010, we already see some positive signs of optimism for the real estate industry, which will transcend through to other industries including the construction industry and hospitality.

For Turks and Caicos Real Estate advice, please contact a member of our team at RE/MAX ELITE

Simon Padgett, Broker

Chart for Caribbean Growth Vs. US and Europe

The Turks and Caicos and Caribbean Markets are prime for real estate investment. Recent research shows that the TCI and the Caribbean are ahead of the curve against other regions when it comes to people visiting the islands. Not surprisingly 2009 has seen hotel performance suffer, however, long-term trends have moved in relative sync with their larger feeder markets, the US and Europe. This combined with a move into peak season has seen the first growth rates in occupancy since April 2008. Small revenue increases on this period are also apparent.

Moving forward, analysts are predicting further growth in this final quarter and into 2010 as European, Canadian and Us economies gain momentum.  Most encouragingly these growth rates currently outperform their feeder markets, which is promising news for the region.

More detailed analysis can be found at HotelNewsNow.

So, start looking for your next second home!

RE/MAX Elite is pleased to report good news for the Turks and Caicos Islands, coming in a press release from Grand Turk’s Government Information Service. Despite a tough economic climate around the world, the Turks and Caicos islands remain one of the most desirable Caribbean destinations. According to statistics, long-stay visitor arrivals are down slightly (2%) for the year 2009, so far. However, arrivals to the island this year remain better than expected in the climate that we have faced.

Turks and Caicos: Turtle Tail property

For the first ten months of 2009, long-stay visitors are reported to total 222,835. This is compared to 227,288 visitors for the same period in 2008. Statistics from the Turks and Caicos Government’s information service show that in 2008 cruise passengers to the Grand Turk Terminal came to 237,113. At the end of 2009 it is expected  that this figure will have increased by 45%.

Here at RE/MAX Elite we are happy to continue to pass on the good news about our islands. Please contact us if we can supply you with any more real estate information or assist you in any queries.

Here in the beautiful Turks and Caicos islands, like in much of the Caribbean, we find our fortunes tied to that of the American Market. So its pleasing to see yet more positive news coming out of the financial site www.bloomberg.com today. Have a look at some more reasons to invest in our real estate market:

Housing starts in the US rose 1.5% to an annual rate of 598,000 last month, taking it to a 9 month high. At the same time, the Federal Reserve Bank of Philadelphia said its general economic index rose from 4.2 to 14.1 in August.

Federal Chairman Ben Bernake has stated his belief that the worst economic depression in seven decades is probably now over, and an unexpected decline in jobless claim is seen as support.

Josep La Vorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York,  went on to offer:  “There is a recovery and it’s going to be sustainable, we just don’t know how fast it is.”

Non-profit groups and households saw their Net worth rise from $51.1 to $53.1 Trillion last quarter. This jump represents the biggest climb in stock prices since 1998. This gain was the first since the third quarter of 2007.

In construction there is also promising signs for our markets here in the Turks and Caicos:

Permits for future construction climbed to a 579,000 annual rate in august. Which is a 2.7% increase. Furthermore, work on multifamily units jumped a massive 25% to a 199,000 rate!

Chief executive of Toll Brothers LTD, Robert Toll, commented: ‘In the last six months, we see a pretty significant change in some markets.” …. People are now concerned with missing the market.”

Please contact out team here at RE/MAX Elite if we can help you with any real estate enquires as we continue to witness slow but steady growth.

It is amazing when you look back at previous recessions and the length of their existence. At 34 years old and for anyone else in their thirty’s or less, I am not sure any of us have experienced a recession as long as this or even as bad as this. In speaking with some of my clients recently who are in their mid 50’s, even they are unable to remember a recession like this. In reality, most people are affected, except some are worse than others, so in essence, you will always get a differing view of one persons last memories of a recession, compared to another.

However, one consistently mentioned aspect, from virtually everyone I have spoken to is that for every loser, there is a winner in a recession and that apparently five times more millionaires are created as a result.

Turning to the real estate sector, it is amongst the majority of savvy investors I have chatted with, that there has never been a better time to buy property, than in the final third part of the term of a recession. The reason being is that there are limited number of people with cash and ‘Cash is King’ as they say. Additionally at this stage, you find the most motivated of sellers and you are in the best position possible to negotiate the very best deal.

As an interesting observation, I have  hardly had anyone call me about large commercial parcels of land in the last eighteen months, however in the last eight weeks, I have had a number of enquiries from established developers. Do they know something that we do not?

There are no guarantees in life with anything except death and taxes (although I may add we have no income , capital gains or annual property taxes in the Turks and Caicos Islands) but the best investors take calculated but sensible risks when investing and it’s all about timing!

Simon Padgett, Broker. RE/MAX ELITE, Providenciales simon@remax-tci.com