Because real estate generally has a low correlation with bond and equity markets, it is a useful diversification asset in any well-balanced investment portfolio.

Tropical real estate is interesting within this context, for in most cases markets are not yet mature, and so they offer lower entry-costs and higher capital upside.

Furthermore, the relentless increase in the price of five-star resort accommodation, has led to an explosion in the private villa market as an alternative, more exclusive place to vacation.  For villa owners, this means high-income yields at well-managed properties, as both rental rates and occupancy levels have hardened noticeably in the last two years.

It is perfectly reasonable to expect a well priced, professionally managed villa or apartment to recover capital over a five to seven year timeframe.   And, of course, freehold and long-leasehold properties will have seen capital appreciation during this period as well.

So, owning a private piece of paradise really can be considered in the context of prudent wealth planning.  Which means that the pleasure of ownership; a place on the beach to call your own; a place to leave your holiday gear so you travel light; a place to share with family and friends for years, can all be enjoyed in addition to the financial rewards.

This is the business of mc2 … assisting owners to maximise both their financial returns and ownership pleasure.