House Hunter: 'How much is a starter flat in Barbados?'

Edward Murray writes: "I've been considering buying an investment property overseas.

THE PROBLEM

Edward Murray writes: "I've been considering buying an investment property overseas. I was originally thinking about buying in Florida, so that I could take advantage of the continuing weakness of the US dollar. It's not a place I'm interested in visiting personally, however, so perhaps I'm better off trying to buy somewhere I would enjoy holidaying in the winter months, such as Barbados, and where I can also benefit from the exchange rate? Can you give me advice on the current market there and also some idea about entry-level prices?

"I would like to buy an apartment, ideally somewhere that would rent well, although I would like to be able to stay there myself for holidays. Would I need to buy two or more bedrooms or would it be possible to let a smaller apartment? If so, what sort of income could I expect from a one- or two-bedroom apartment?

"I also need advice about when the rental season is; I suspect the months that rent best are precisely those times I would want to go, such as at Christmas and New Year.

"I've witnessed for myself the growth of new-build on the island and am slightly concerned that the market could perhaps be flooded with new schemes, so I definitely want to avoid any areas that are showing signs of overdevelopment. I've always stayed on the west coast but would like to know more about other parts of the island, such as the south.

"I'm a keen golfer, so proximity to golf courses would be a definite advantage for me and I would also like the property to be as near as possible to the coast, so it appeals to most holiday visitors."

THE ADVICE

"The market here is extremely vibrant. Eighty per cent of our clientele are British buyers, with the rest coming from the US, Canada and Europe. One thing that attracts everyone is our excellent year-round warm weather. We never see the scorching temperatures you get in Europe - it's more constant, usually around 29C in winter and 32C in summer.

"There's now such easy access from the UK by plane; it takes around eight hours and in high season from London there are several BA and Virgin flights a day. We're five hours behind, so if you set off in the morning you're here by the afternoon local time.

"Barbados has so much going on; there are lots of sporting activities, the jazz festival and other events all make the island popular. Increasing numbers of visitors now prefer to stay in private apartments and villas so the rentals market is very good. If you're holidaying with children, this almost always works out cheaper than a hotel-based holiday, plus you have so much more space. You don't need to clean or cook, either, because it's easy to hire a maid and cook. The most popular rentals are two- or three-bedroom apartments so I'd advise Edward against buying a one-bedroom property; it won't rent well.

"Far from being overdeveloped, in fact, it's the other way round. Good beachside apartments on the west coast are now thin on the ground and buyers are competing for them. Most new development is in the hills, which is fine if you intend living here, but not if you want rental income.

"I'd advise Edward to take a look at the south coast, which has a different clientele; it's much younger, and there are some interesting new developments and some very nice beaches. You can buy a beachfront apartment there for $400,000, whereas a similar property on the west coast would cost around $650,000.

"On a property costing $400,000 (£220,000) you could expect to achieve around $200 per night in the summer, $300 in winter and $400 in peak Christmas season, so Edward has to decide between staying here himself or getting an income. But if Edward is going to buy, he should act now. Prices are continually going up and, of course, the favourable exchange rate at the moment helps. Last year they went up by 15 per cent and we forecast 20 per cent this year."

Dietmar Caspar-Richards is the director of the Hamptons International Barbados office (020-7589 8844, www.hamptons-int.com)

THE SOLUTION

Property one: Mango Crescent, Porters, St James.

Price: From $335,000 (£185,000).

Agent's details: Mango Crescent is a secluded, quiet residential development on the west coast of just six one- and two-bedroom apartments on two floors. There is a communal swimming pool, security and one allocated parking space per apartment. Each apartment has a large terrace, satellite television, fully-fitted kitchen, security system and is positioned around the pool. Mango Crescent is opposite Queen's Fort in St James, just three minutes' from the beautiful beaches of Glitter Bay and Royal Pavilion, and a short drive from Holetown with its many amenities, shops and restaurants.

Property two: Villa Del Ray, Sunset Ridge, St James.

Price: $280,000 (£154,000).

Agent's details: Villa del Ray is an attractive, ground-floor, three-bedroom apartment in an exclusive development of just three apartments with a large patio and communal swimming pool. It is in the desirable residential neighbourhood of Sunset Ridge, just above Sunset Crest, which is minutes from Holetown with its shops and restaurants, yet is also within walking distance of the west coast beaches.

Property three: Port St Charles, St Peter.

Price: From $600,000 (£330,000).

Agent's details: This is a prestigious marina development on 22 acres of prime west-coast with 1,300 ft of beach frontage. There's a choice of one- to five-bedroom properties, and facilities include gym, tennis courts, swimming pool, five-star restaurant and private boat berths. A full property management and rental service is available.

THE VERDICT

"I'm pleasantly surprised by these entry-level prices. You can't buy very much anywhere for £150,000, so to get a year-round climate, some of the best beaches in the world, and your own slice of the Caribbean for this amount can't be bad.

"People think that Barbados is full of expensive villas for the rich and famous, but this shows that there is something for all levels of the market and I'm particularly interested in Dieter's recommendation to look on the south coast, as it sounds like this part of the island is set to boom.

"I know Barbados is becoming more developed and golf facilities are really expanding, so I believe it's a place that is definitely going to see continuing growth - which can't be bad in terms of investment.

"Added to this, though, is my own love of the island. Parts of the US may be good for investment but I'd rather spend my winters in Barbados. I have always made it a rule never to buy anywhere that I wouldn't like to spend time in myself."

If you would like House Hunter's help, write to House Hunter, The Independent, 191 Marsh Wall, London E14 9RS, or e-mail with full details: househunter@independent.co.uk