Property Investment Case Study: Saint Lucia (TPI-ST-001)
Introduction:
Visitors to St. Lucia, known as THE HELEN OF THE WEST, (as it changed hands 14 times between the British and the French), will almost immediately be greeted with the fact that how exotically green it is. Our Island is 238 square miles and is dotted by protected parklands that preserve its lush foliage which serves as home to parrots, wild birds and a range of four-legged critters that usually avoid human contact.
Inspite of the influx of tourism and the commercialization of most Caribbean Islands, St. Lucia has managed to remain unspoilt and boasts the best hospitality as far as its inhabitants. Traditionally, they are the friendliest West Indian People. "Service with a smile", but don't mistake their sometimes old fashioned reserved nature for lack of enthusiasm.
Location:
Saint Lucia is a volcanic and mountainous island with some broad, fertile valleys. It is located in the Caribbean, between the Caribbean Sea and the North Atlantic Ocean, north of Trinidad and Tobago, Grenada and Saint Vincent and the Grenadines and south of Martinique and Dominica;
Topographically speaking, St. Lucia is mountainous and has a volcanic appearance. In fact, its two most widely known landmarks are Les Piton, twin mountain peaks that drop dramatically to the water's edge near Anse Des Pitons on the Island's West Coast. This site is beautiful and alluring. (check our website for Property called Maison d'Etoille for sale located at the base of the Gros Piton).
Economy:
Changes in the EU import preference regime and the increased competition from Latin American bananas have made economic diversification increasingly important in Saint Lucia. The island nation has been able to attract foreign business and investment, especially in its offshore banking and tourism industries. The manufacturing sector is the most diverse in the Eastern Caribbean area, and the government is trying to revitalize the banana industry.
Economic fundamentals remain solid. The inflation rate for 2001 was estimated at 3%. The unemployment rate has reached 25% in 2004. Saint Lucia’s mains industries are agriculture (bananas, coconuts, vegetables, citrus, root crops, cocoa) and clothing, assembly of electronic components, beverages, corrugated cardboard boxes, tourism, lime processing, coconut processing. Saint Lucia mainly exports bananas (41%), clothing, cocoa, vegetables, fruits, coconut oil.
The main export partners are the UK (48%), US (24%), Antigua and Barbuda (6%), Dominica (6%), Grenada (4%) (2003 estimate). The main imports are food (23%), manufactured goods (21%), machinery and transportation equipment (19%), chemicals, fuels; and come from the following import partners: Brazil (47%), US (19.2%), Trinidad and Tobago (10.4%) (2003 estimate).
Property Market:
The range of the properties available on the market are Marina-front Town Houses from US$185,000 - $400,000 and Better Private Homes with Pool from US$495,000 to $1,900,000.
Examples:
Attractions:
One of the Island's main attraction and located in the South of the Island near a town called Soufriere is the Sulphur Springs Volcano, where visitors can get up close to bubbling pools of lava and steaming sulfurous spouts. Another popular site around the same area is the Diamond Waterfall and Mineral Baths, where visitors can splash in the sulphur-infused waters, where legend has it that a bath in the Springs can cure anything that ails you. Nearly all types of water sports is offered by major hotels in the North and South i.e water skiing, snorkeling, and windsurfing.
The North however, consists of Castries which is the Capital and Gros Islet located in the Extreme North. There you will find some of the best beaches, night clubs with nightly activities, restaurants and hotels.
Major events on the social scene, facilities for music, sports, marinas etc. are the Jazz Festival in May, Carnival in July, a newly built International Standard Cricket Ground in the North of the Island and a Football Stadium in the South. St. Lucia also boasts an 18 hole Championship Golf Course at Cap Estate and a 250 Berth full service Marina & Haul in Rodney Bay.
Transport Infrastructure:
Our transportation links are served by our two Airports, the largest in the South Hewannora and George F.L. Charles in the North. The Major Airline Links are British Airways, Virgin Atlantic and BWIA from the UK, Air Jamaica, American Eagle, BWIA and Delta from the USA and Air Canada from Canada.
The duty free allowance into St. Lucia is 200 cigarettes or 250 grams of tobacco or 50 cigars, one litre of spirit or wine. Duty free shopping is available at Pointe Seraphine, La Place Carenage and at the departure lounge of Hewanorra Airport. Luxury items include Jewelry, Batiks, Giftware, Local Crafts, Liquor, Cigarettes and Cigars.
Entry Requirements Visitors must carry valid passports, except USA and Canadian citizens who possess valid return tickets and I.D., staying for less than 6 months. Visas are not required where the visitor is a citizen of the USA or a Commonwealth country, or where there is agreement for exemption between the home country and St. Lucia.
Departure Tax Departure Taxes for all passengers over 12 years old leaving the island by air cost EC $54 or US $22, and EC $30 or US $12 leaving by boat. Airports: Saint Lucia has two airports: The George F.L. Charles Airport in Castries (located to the northwest of the island, also called the Vigie Airport); it welcomes international flights from the Caribbean region.
The Hewanorra International Airport in Vieux Fort (southeastern tip of the island) welcomes long haul international flights from the US, and the UK and some Caribbean destinations. Saint Lucia has many roads, and four main roads called highways, going across and along the island. Most of the roads are paved, but beware of the potholes and potential damage caused by the weather.
Castries and Vieux Fort are the main commercial marine ports. Saint Lucia has several marinas and harbors for yachts and ferryboats from Martinique: Marigot Bay is a breathtaking bay with a small marina, this is the anchor point for some chartered boats and catamarans; Ganter’s Bay is Castries’ marina for yachts and sailboats; the Castries port has a recently renovated pier for the large ferryboats that come in regularly from Martinique.
Rodney Bay Marina is the largest yacht and sailboat marina of the island; it is the international host for the annual ARC (Atlantic Rally for Cruisers) rally that departs from Las Palmas in the Canary Islands in late November and arrives in Saint Lucia in early December.
Local Mortgage:
No data available
Inflation:
No data available
Economic Growth:
No data available
Sunshine Days:
No data available
Annual Rainfall:
No data available
Temperatures:
Winter: No data available
Summer: No data available
Property Price Inflation:
No data available
Local Currency:
The East Caribbean dollar (XCD) is Saint Lucia’s national currency, and 1 dollar is divided into 100 cents. The exchange rate for the US dollar is fixed at EC$ 2.67 for US$1.00. The rates for other currencies fluctuate, as shown below: GBP £1.00 = EC$ 5.00 EUR €1.00 = EC$ 3.50 CAD $1.00 = EC$ 2.25
Cost of Living Index:
No data available
Income Tax:
A brief overview of financial situation, tax rates and incentives are that both Personal and Corporate tax rates have been steadily reduced over the years to their current levels of 30% & 33.33% respectively. Tax incentives are available for specific Investments/Developments notably in the light Industrial and Tourism Sectors. New off-shore Financial Services were just recently introduced.
Property Tax:
No data available
Capital Gains Tax:
No data available
Buying and Selling Costs:
Closing costs for purchasers/vendors/Aliens Landholding license are as follows. For Vendors, there is no capital gains tax, rather a set 10% sales of Vendors tax. On purchase, non nationals pay an Aliens Licence fee depending on the cost and amount of property purchased ý e.g. up to 1 acre of land EC$5,000; 1-10 acres EC$10,000 and 10-20 acres $20,000. Legal fees and Stamp duty total a further, approximately 4%.
Rental Yields:
No data available
Report Compiled By:
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Report ref: TPI-ST-001
Date created: 12-01-2006