Cheapest Vacation Spot in the Caribbean

20¢ Beer, $2.00 Rum, 15¢ Gas, & $20 Companions

These are true prices!

It’s like stepping back in time to the 1950’s...but there are still cell phones, color T.V., computers, thong bikinis and jets, you know, all the ‘necessities of life’.

Margarita Island is located just off the northern coast of Venezuela nestled in the South Caribbean on approximate latitude with Trinidad & Tobago.

It’s a 45 minute flight from Caracas, and is the State of Nueva Esparta.

There are actually three islands - Margarita, Coche, and Cubagua, with Margarita being the largest and most populous of the three. Isla Coche is sparsely populated and very popular with sun worshippers because of its beaches and beautiful water. There are a few hotels, B&B’s, and restaurants. Cubagua is almost totally uninhabited and is perfect for exploring, snorkeling and diving.

The island wasn’t “discovered” by foreign tourists until around the 1970’s, but it has long been popular as a resort for wealthy Latinos. It’s still off the beaten path for most American tourists, but the island is a popular destination for bargain-hunting European and Canadian tourists and investors. There are direct flights to the island from Canada and Europe. The island’s relative obscurity has kept prices down and prevented Miami Beach-style development - so far!

The following is a quote from an e-mail I received recently reminiscing about the island as it was in the 1960’s:

"I remember going to the island with my family when I was a little kid, back in the early 60's. There wasn't even a jail in the island. This is way before the "Zonal Libre" was declared in the 70's. Porlamar and the rest of the towns were merely small fishing towns and the only hotel was the Bellavista, built in the 50's by Perez Jimenez.

After finishing High School I lived in Pampatar with some friends in a tent on the beach next to La Caranta for over a year. I was working in Porlamar in the new stores, lots of fun memories from that time.
From time to time we helped the fisherman in Pampatar bring in the sardines in huge nets, hundreds of thousands of them. My job was to jump in with a mask and a spear and get the barracuda out of the net along with some dolphins.

I've taken my wife many times to the island over the years and noticed the changes. It is not the same as it used to be. I remember being in Playa El Agua practically alone during the week days. Only a few "ranchitos" managed by some old ladies selling fried fish and tostones or BBQ chicken on top of a tire rim and of course cold Polarcita beers. Nobody was trying to rent you shade or chairs. No construction in site for miles. Pto. Cruz Beach was our private secret beach along with the far away beaches on the north side of Macanao”.

Then and Now - almost 25 years ago there was a huge building boom resulting in construction of hotels, condos and hi-rise apartment buildings. About 15 years ago, the country went into a recession and many of the partially constructed buildings were never finished. Skeletons of high-rise buildings look like something from a science fiction movie, and would make a developer cry to see the wasted potential. Penthouses that sold for $200K USD back then only bring about half that price now. The economy is recovering rapidly, mostly due to the high price of oil today, but it still may have a couple of years to go to hit the highs of the 1970’s.

Meanwhile, things are at bargain prices, including real estate. In part this is due to the exchange rate - $1.00=2,150 Bolivars. But you can get more ‘bang for your buck’ on the unofficial exchange rate, which varies weekly. The exchange rate Euros to Bolivars is even better and many Europeans are taking advantage of this.

Examples: a studio condo with ocean view from about $40,000 USD,- more with a pool - or similar condo inland for about $30,000. Nice homes start at about $45,000 but sell for more in gated communities with security guards and pool/clubhouse. Townhouses have become popular and the price will depend on the area and proximity to a beach - on the island there is always a beach nearby.

I am not a realtor, but live here full-time and I regularly get questions about real estate and the cost of living from visitors to my website www.retirecaribbean.com

Note to potential home buyers - For the best prices it is better if possible to deal directly with the seller. If you are here on the island and see an area you like, stop and ask people in that neighborhood if there are any houses for sale. Or, in the case of an apartment/condo building, ask the manager or concierge. Many properties that may be available don’t have signs. It’s fun to drive around and try to spot “Se Vende” signs! They are usually small, sun-faded, hand-lettered, and in very inconspicuous places. Also, tell everyone you meet that you are looking. That’s how we found our condo. No ads in the newspaper, no signs, but a restaurant owner I know knows a doctor that had a condo in the building I liked and the doctor was thinking of selling...

Long-term rentals are difficult to find because most apartments and houses are bought as vacation residences by Europeans and Venezuelan Nationals. Few will rent long-term because they want their holiday homes available to family and friends throughout the year.

However, some have opted to use income from long-term rentals to purchase another vacation home, and these rentals are available...if you search!

Many people own multiple apartments here. Actually, real estate investments serve as a substitute for a  bank/savings account. If you own real estate it will always be there, and a bank may fail (no FDIC here). Also condo maintenance fees are low. Fees and taxes on a $100,000 condo would probably be less than $500 a year! Real Estate is booming! 18 to 24 months ago, it was a ‘buyer’s market’, but that is rapidly changing.

Margarita Island is still the least expensive island in the Caribbean (especially considering the good infrastructure and general quality of life.) I’ve done some searches on the net comparing properties with similar characteristics for sale here and what is available on other islands, and so far, what you can buy here would cost two to five times the price on other islands, and those other islands may not offer the cultural diversity that makes Margarita so interesting. I won’t say we have the clearest water or the most beautiful scenery in the Caribbean, although in some cases that may be true. But it’s nice to go to the market and stock up on 20¢ beer and to be able to afford to drive to the market!

If you’re interested in retirement or vacationing in a warm climate with a slower pace, affordable cost of living and health care, and fewer rules and regulations, check my website www.retirecaribbean.com

Contributed by Scott Boswell
http://www.discovermargaritaisland.com/