Owning a property in the Caribbean is, for many of us, the ultimate dream. The mere idea of being able to walk from your home to the palm-fringed, white sand beaches lapped gently by the waves of the clear blue sea is one that brings to mind ultra luxury. Equally, this is an image that most of us think will never be economically within our grasp, but with recent market changes, the dream could come true.

The most important development in the past six months has been the weakening of the US Dollar against Sterling, which has made property across the US much more affordable for UK buyers. While most of the Caribbean islands have their own currencies, or have a shared currency between groups of islands, they are intrinsically linked to the US Dollar, and therefore to the fortunes of the US economy.
 
Given that the exchange rate is still roughly two Dollars to the Pound, the opportunities for property investors in the Caribbean islands are extensive. The current weakness of the US currency makes your money go further than it did this time last year, bringing properties into financial reach that would previously have been too expensive.
 
With the deals that are available from the specialist currency exchange companies in the market, it is possible to freeze the current exchange rate for up to two years into the future. Even if the Dollar regains its original strength before you come to pay the final installment on your new-build property, you will be protected from the fluctuations of the money markets and have the advantage of knowing exactly how much the property will cost you. Moreover, should the US currency and economy pick up significantly in the next couple of years; you will have made a capital gain from prices rising even before you have set foot in the property.
 
The second factor making property in the Caribbean much more affordable for more UK property buyers is that the range and types of development that are now available on the islands is far greater. Bermuda is still the most expensive place to buy in the Caribbean, followed by Grand Bahama and Barbados, where plots of land are sold for more than posh family homes in other parts of the world. This is where the sumptuous luxury of most Caribbean dreams is to be found.
 
However, looking elsewhere in the Caribbean, property can be found on other islands for much less than you might expect. With more developments of apartments and smaller properties available in these locations, and offers for off-plan purchases to encourage investors, there are great opportunities. The Dominican Republic, Jamaica and Aruba are among the least expensive islands, and with the major part of the US investment market quiet in its time of economic shrinkage, there are deals to be done with agents and developers.
 
Possibly the one caveat to the optimism of the Caribbean property market is the rising cost of flying to destinations that are further afield than mainland Europe as fuel costs spiral. This is something that needs to be taken into account in your budget calculations for buying property in the Caribbean, but if you are looking to spend significant amounts of time there, or even retire there in the future, the opportunities are well worth considering as an alternative to the more traditional expat destinations.

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