The TRUTH about Margarita Island
I, like many of you work hard for my money and look to forums such as this for unbiased and informed advise (which I am going to share) with you about Margarita Island (M.I.)
So I hope the moderator doesnt delete or edit.
I actually lived on MI for 7 yrs FULL TIME and left almost a year ago now.....so I like to think I know what I am talking about.
I owned a property which I purchased some 5 yrs ago (which was the best time to invest by the way.....not now)
My reason for posting this is to pass on my extensive knowledge...thats all.
M.I. Is indeed a charming Island, but it is a country in dire economical straits. Inflation is at 29.3% YTD (officially) but is nearer 40% in reality.
check out www dot veneconomy dot com
The currency is the Boilvar Fuerte or (Bfs), which was adopted on the 1st Jan 2008, replacing the plain old Bolivar. The only difference is they knocked off 3 zeros.
Eg. 1000 Bolivars is now 1 bf
There are 2 currency rates that exist, official and blackmarket.
Official is $1 usd equals 2 bf, blackmarket $1 / 3bf...........this is NOW
The blackmarket rate was almost $1 to 5.8 bf only 6 months ago !
This is when M.I was a cheap destination to live or holiday at..........Imagaine, you could change $1000 and get almost 6000 bf.................more than enough to live on for 2 months like a king on M.I.................now with hyper inflation and blackmarket rate way down, alot of things are now cheaper in Europe (not property) cost of living.
Now property.............what the agents and developers DONT tell you is that when you want to sell (which is hard enough anyway), that the sale has to be done in Bf. This is the law.
The Notarias are much more controlled now, so insist on seeing evidence of the transaction being carried out in Bf.
When you buy a property from the many UK or Irish developers now touting M.I. They accept your sterling or Euro payment..........BECAUSE they can and are not breaking the law, as their accounts are either UK based or Euro based.
But you try and sell and get your money back into sterling or Euros is very very hard........plus you are breaking Venezuelan law (punishable by imprisonment if detected)
The only people who are investing in the many buildings sprouting up everywhere are the locals........why ?
They can get loans from banks at 23% (crazy), but better than the 50% it was and invest it in property as they see this as better than having money in the banks as inflation outstrips intertest !
Claims of Formula One and golfing projetcs are at best “Pie in the sky”. I actually called the Formula One headquaters in Paris (F.I.A) and they knew nothing of it.
As for golf, there are 2 courses at present on M.I. One has been in legal wranglings for 7 yrs and has nevr been played on (oppossite Hilton Hotel), the other is located at the North of the Island and is at best “parched”
Water is a precious commodity on M.I. And it is common place in high season for buildings (especially in Porlamar) to ration water daily. Turning on for an hour in the mornings, afternoons and nights..............so new golf courses being built.......
??
M.I. Is also a “long haul” destination, so rentals are very very hard to sustain long enough to make it a performer in your portfolio.
If after reading this, you are still intent on buying there, ask for documentary eveidence from developers or agents making such claims. At best you be sent a link to a glossy mag or newspaper article.....nothing concrete.
