Has anyone ever thought about buying a house?

[Just Plain Chad]

I saw on a few websites homes in the Negril area that were AWESOME for around 400k US. I'm talking 6 bedrooms, 6 baths, security gates, up in the hills.

Just makes a guy dream! But to live there, would it be good? Could you rent it out?

Chad

[damswell]

Im sure you could rent it out, Negril is not my thing. Im more North coast and as long as you can provide airport transfers in your rental cost you should be able to. People tend to want to be able to access beach, but if there is a pool thats a bonus.

There are many good sites where you can list your rental yourself, add photos etc.

There are many places you can purchase not as expensive and 2-3 bedrooms that are probably easier to rent.

[ECO]

I've been watching the market over in Negril for a little bit now but don't tell anyone Somewhere on here I posted about a place that was for sale for $500,000 but IMHO the ROI sucks really bad! Here is my current take on investing in Jamaica---I might be wrong

#1. The interest rates suck (almost 20%).

#2. On the beach you have to worry about storm damage.

#3. On the cliffs you don't get the beach traffic.

#4. Building materials and supplies in general are expensive! It's not like you can run out to Walmart and pick up $100 AC units.

#5. You have to compete with mega resorts that have $$$$ to spend to advertise against your property.

#6. Work permits are expensive.

#7. Bribes for public officials are expensive!

I forget where I posted the info on the $500,000 place so I'll make it up:

$500,000 for a 12 unit place on the cliffs (assuming not right on the ocean).

12 units at $40-$60 a night to be competitive out there....lets say $60 a night for a room, if you rent every room for 200 days a year (slow seasons, booking request overlaps............) you get $144,000 a year-----and that's dreaming Out of that $144,000 you will have $100,000 in interest payments leaving $44,000 which doesn't cover operating expenses. Granted you could "sell out" at home, pay off the property in Jamaica and hope for the best.....maybe a better route

There is a 40 room place where the beach and cliffs intersect that has a Chinese & pizza place included in the deal. If they can't operate selling rooms at $40 a night I wonder how I could do better

Chad, don't think I'm all negative about the whole investing down there......if I'm doing my homework it means I'm looking as well The next time you are down there try to chat it up with Sue over at the internet cafe/cottages at the base of the cliffs. Since she foreign she might have a better view of how the whole system works.

Damswell is also a good source for foreign people making it a go in Jamaica.

Ashley might have some insight as well but she only posts in her blog thread here on the forum.