Why I Hate Caribbean Real Estate

Summary

The video script advises against investing in Caribbean real estate for citizenship by investment, explaining that it is often a poor deal for most people. The speaker emphasizes the liquidity issues and inflated prices in such markets. He suggests separating lifestyle real estate purchases from citizenship investments, as the former should not be tied to citizenship schemes. Instead, he recommends making direct donations for citizenship and investing elsewhere to avoid the risks of overpriced, illiquid properties. The speaker highlights the importance of understanding all available options before making such investments.

Takeaways

• 💼 Buying real estate in the Caribbean for citizenship by investment is a bad deal for 99% of people.
• 🏠 Lifestyle real estate, where you're buying a property to live in, is a different scenario and not the focus of this discussion.
• ❌ Citizenship by investment and lifestyle investments should be treated separately; combining them isn't always wise.
• 🇹🇷 Turkey's real estate investment for citizenship is more flexible and provides better long-term value compared to Caribbean options.
• 🌴 Liquidity is a major issue in Caribbean real estate markets, making it difficult to resell properties quickly.
• 💰 Many Caribbean real estate projects tied to citizenship are overpriced, with some offering little to no return on investment.
• ⚠️ There are several scams and poorly managed real estate projects in the Caribbean, adding risk to the investment.
• 🛑 Many developers earn large commissions by selling overpriced real estate for citizenship purposes, which often isn't worth the cost.
• 🤔 If you're seeking Caribbean citizenship, it's usually better to make a donation rather than invest in real estate.
• 💡 Instead of tying everything into one investment (citizenship, real estate, lifestyle), diversify your approach for better returns and flexibility.

Q & A

What is the speaker's main argument against buying real estate in the Caribbean for citizenship by investment?

The speaker argues that buying real estate in the Caribbean for citizenship by investment is a bad deal for most people because the market lacks liquidity, the investment is overpriced, and there are high risks of not being able to sell the property at a profitable price.

What is the difference between lifestyle real estate and investment real estate according to the speaker?

Lifestyle real estate is when you buy property to live in, while investment real estate is primarily for financial gain. The speaker advises against mixing the two and suggests keeping them separate, particularly when it comes to Caribbean citizenship by investment.

Why does the speaker criticize real estate developers selling citizenship by investment in the Caribbean?

The speaker criticizes real estate developers for promoting overpriced properties and receiving large commissions from sales. These developers are often motivated by personal profit rather than offering clients sound investments.

What does the speaker suggest as an alternative to buying real estate for citizenship in the Caribbean?

The speaker suggests making a direct donation for citizenship instead of buying real estate. This option limits financial risk and provides more certainty compared to the complexities and potential losses of real estate investments.

Why does the speaker say Turkey is a better option for real estate investment than the Caribbean?

The speaker argues that Turkey offers a more flexible real estate market with greater liquidity. In Turkey, you can buy property and potentially sell it after three years, whereas in the Caribbean, selling property can be much more difficult.

What are the risks involved in buying real estate in Saint Kitts and Nevis for citizenship according to the speaker?

The risks include the lack of market liquidity, potential changes to the citizenship program that could decrease property value, and competition from other nearby Caribbean nations with more attractive tax benefits and lifestyle options.

What is the speaker's opinion on some real estate projects in the Caribbean related to citizenship by investment?

The speaker believes that many real estate projects in the Caribbean are either scams or offer poor returns on investment, with some developers charging inflated prices and offering minimal benefits, such as very low yields.

How does the speaker view the role of commissions in citizenship by investment real estate deals?

The speaker is critical of large commissions in these deals, which can sometimes reach $40,000. They argue that these commissions incentivize agents to push overpriced real estate projects onto buyers, leading to poor investments.

What alternatives does the speaker propose for individuals who want both citizenship and a good investment?

The speaker recommends separating citizenship from real estate investments. For example, an individual could make a donation to gain citizenship and then invest in real estate in a more stable or desirable location, such as Turkey or another country with more liquid markets.

Why does the speaker discourage a 'one-stop-shop' approach to citizenship, real estate investment, and residence?

The speaker argues that trying to combine citizenship, real estate investment, and residence into one decision often leads to overpaying and getting poor returns. It's better to separate these objectives and focus on the best option for each.