Latin America: Venezuela - Worth a Gamble?
Posted by Jude Buttle on Tuesday, September 16, 2008
In part three of our series looking at the property potential in Latin America and whether it is too much of a risk, we turn our attentions to Venezuela - a country that although beautiful, has a history of conflict.
Country Overview
Venezuela has had a reputation for coups and corruption and even now, the political situation has many feeling on edge.
Last year, Hugo Chávez was sworn in for another six-year term as President of Venezuela.
The leftist Chávez has now turned his eye to the housing crisis he himself created. The drop in the number of new houses constructed has been accompanied by threats of expropriation and warnings that price control on house re-sales may be imposed.
The lack of new supply caused by Chavez' policies has made Venezuelan property rise by 35%, according to the President of Metropolitan Real Estate Chamber of Commerce. The claim is largely rhetorical, because the uncertain situation is a threat to property values.
Venezuela does have an open market policy to foreigners. Any non-resident can buy property in Venezuela with just a valid passport, a tourist visa and a Registro de Informacion Fiscal (RIF).
Because of the acute shortage of quality housing, yields for apartments in Caracas are around 10% to 14%. Houses can fetch higher yields, up to 15.2% for a 350 sq. m. property.
The most expensive area is Isla Margarita, a Caribbean island that is owned by Venezuela. With its striking scenery and sensational coastline, this island in the sun manages to lure the most seasoned and wealthy investor to its shores. But house prices don't come cheap here and a 100 sq. m. property would cost around £188,010 while a similar sized house in Caracas would only cost £51,031.
With the exception of Isla Margarita, mainland Venezuela is a country of continuous conflict and severe uncertainty and potential property buyers are advised to proceed with caution.
Property Info
Entry level - A fantastic opportunity to get on the property ladder is this one bedroom flat on the lovely Caribbean island of Isla Margarita. The San Marino Complex apartments are premier, new apartments, designed with a luxury finish. Purchase price £29,500.
Mainstream - A one bedroom apartment located in Playa Guacuco (Guacuco Beach), one of the top three beaches in Isla Margarita, situated between Playa el Agua and Pampatar. By car, it is 15 minutes from Porlamar, where the largest shopping centre on the island is located. Purchase price £51,990.
Top of the range - An amazing two bedroom, two bathroom penthouse on Playa El Agua Beach, Isla Margarita's most popular destination. This spacious apartment is ideal for luxury living and has great rental potential. Purchase price £220,330.
Search For Property In Venezuela
If you are looking for property for sale in Venezuela such as villas, apartments or other types of real estate, why not check out TheMoveChannel.comVenezuela, which has a large number of listings from Venezuelan estate agents and developers selling properties in the area: http://venezuela.themovechannel.com/
Photo by Steve Conover
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