For individuals seeking an inexpensive vacation, travel clubs present travellers with a fantastic option. Owners of travel clubs enjoy discounted access to a wide range of lodging options, tourist sites, services, and amenities. A travel club is, in a sense, a pre-paid travel business that offers vacation package bargains. Cheap travel insurance is another perk provided by travel clubs.<\/p>\n
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Canadian Real Estate Wealth reached out to Mr. Kelly Sullivan, Managing Director of the beautiful Kokomo Botanical Resort<\/a> on the breathtaking Turks and Caicos Island to speak about what he attributes to the increase in travellers purchasing Caribbean properties. <\/p>\n “In 2019, the year before Covid Turks and Caicos recorded over $450m in real estate sales. In 2021, sales volumes reached just over one billion, while last year was $740 million. What we have all learned from the pandemic is that savvy investors and tourists alike yearn for a private safe haven for their families and their fortunes that is as easy as getting to any warm destination in the States but totally disconnected from human confusion, crime, and commercialism; the great escape. With one of the lowest COVID death counts in the world, as Turks and Caicos was only closed for three months in 2020, Turks and Caicos have proven to be a naturally resilient store of health and wealth. More tourists are coming here now than at any time before the pandemic. Local real estate brokers report that, for 2023, there is already over $437 million on the books led by pre-construction sales.” <\/em><\/p>\n Aside from the replenishment of some much-needed vitamin D, purchasing a property down south makes a lot of sense for Canadians. While they get to enjoy the sun, sand, and sea, fellow Canadians are building equity. Instead of a vacation just being a cost centre, the purchase of a vacation property is an investment with incredible earning potential. <\/p>\n Depending on the ownership model chosen, purchasing a property in the Caribbean<\/a> can also be used as a vacation rental. This, in turn, gives the owner another income stream. In reality, the property is earning in two ways; the land is likely appreciating and when combined with the rental income, you have double the dollars. This model results in an investment resilient to inflation that often generates enough revenue to cover the costs of ownership and management fees, with the freedom and benefit of vacationing in the Caribbean year-round on a low-cost or cost-free basis. <\/p>\n While it’s leveling off now, for the past few years the Canadian real estate market has been hot and led to overpricing. When you purchase dollar for dollar in the Caribbean, your buck stretches further.<\/p>\n A hot topic on everyone’s lips right now is generational wealth. This results from the unfavourable market conditions Canadian buyers have experienced in the last few years. Generational wealth, in a nutshell, is acquiring an asset, in this case, real estate, to pass along to a family member for them to have equity upon which they build.<\/p>\n With increasing popularity, senior couples are purchasing property in the Caribbean and escaping to their Caribbean oasis. By the time they are both retired, most people are celebrating living mortgage free. The trend dictates that they are downsizing and, in turn, selling their Canadian home or handing it over to family members. This allows folks to get full equity at current market prices from their home.<\/p>\n They’re using the equity from that sale, in part, to purchase a small Canadian home like a bungalow or condo or are simply renting a modest Canadian residence. Often, they’re using that equity to help a family member get into the market by offering them some money towards their down payment. Due to the property’s appreciation and being mortgage-free, there is more equity for seniors to work with. This, when combined with a pension, gives senior sellers the freedom to live the life that they wish to and spend as much time snow-free as possible down south.A Great Option For Canadians<\/strong><\/h2>\n
A Great Option For Seniors<\/strong><\/h2>\n
\n We asked Kelly to share his insights on why this solution works for seniors. Here are his thoughts:<\/p>\n
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