Make an offer of £1,000 for a property in the Caribbean islands of Barbados, Dominican Republic and St Vincent & The Grenadines and you'd be laughed off the island in question. Or so you'd think.

Yet, according to Chris Sawyer, Caribbean property expert at GEM Estates, "some clever financing" makes the scenario not just a property pantomime but a possibility – that's if the property markets in question are as easy to predict as GEM Estates believe. 

"We are able to offer our clients a choice of Caribbean properties for just £1,000. That grand represents the non-refundable reservation fee and thereafter the purchase is 100 per cent finance. In each case, a 30 per cent deposit is required within 45 days of reservation."

Concentrate: Here comes the maths…

Sawyer continues, "If you opt for finance – not compulsory – the developer will cover the loan repayments including interest until completion and simply add on the cost of those payments to the purchase price upon completion. On a property of £200,000 that would mean an additional £7,080 on the purchase price – based on an interest rate of 6 per cent."

"As the off-plan property is priced below market value and capital appreciation is inevitable during the construction process. We anticipate the example purchase price of £200,000 to grow to a valuation in the region of £325,000 at completion. A 70 per cent loan to value guaranteed mortgage is available at this point raising £227,500, ample to cover purchase price and the £7,080 owed to the developer.  Based on interest rates of 8 per cent, your £227,500 is going to cost you £18,200 each year, but every development involved has a 10 per cent rental guarantee in place for the first two years after completion – 50 per cent of the net room rate share thereafter – generating an income of £20,000 each year. Bingo, mortgage payments paid. This really is Caribbean property for a grand plus a profit to boot." 

The Caribbean property options available with this deal include the Merricks Resort Spa & Residence (pictured). This development is perched on a cliff-top overlooking an idyllic half-moon bay on the island of Barbados. The apartments, cabanas and villas have full use of the five-star Merricks Beach Resort including a Spa, gymnasium, swimming pools, tennis courts, bars and restaurants and shopping.  A hotel management company will maintain the resort whilst owners enjoy 30 days use per year. Prices start from £225,000 for a studio apartment and villas from £325,000.

Other property in the Caribbean with this purchase structure are Las Canas Boutique Beach Resort on the northern coastline of the Dominican Republic and Buccament Bay Beach Resort on the island of St Vincent, the location for Pirates of the Caribbean. All are available through GEM Estates.

However, Caribbean property options don't end there. The group of 7,000 islands, islets, reefs and cayes in the middle of the Americas with white powdery beaches, luminous turquoise seas, colourful coral reefs, luxuriant vegetation and bright floral blooms are not short of potential property hot spots. It is, unsuprisingly, popular with celebrities and film stars, and another new development means you could have rockstars as your neighbours.

Property in the Caribbean does not come much more exclusive than the first development to launch on Bequia in the Grenadines. Adams Bay is just seven miles square, with a population of only 6,000, and the most common mode of transport is the bicycle.

Meanwhile, neighbouring island Mustique – valued for its privacy by celebrity visitors – is just 11 miles away. Both offer a barefoot lifestyle, lush tropical vegetation and a scattering of laid-back beach bars.

The Adams Bay Caribbean property development comprises 63 two-, three- and four- bedroom villas designed to blend in with the magnificent tropical setting. Starting prices are from $787,500. Verandas are positioned to take advantage of remarkable views over the Grenadines and the private white sand beach below. Phase one of the development, with 14 beachfront cottages, is due to begin in March 2008. Access to Bequia is via one of the many daily flights into Barbados, from where it's a 25-minute flight. More information can be found on the development's website www.adamsbay.org.

Meanwhile, Caribbean property specialist Inversole has two developments on the Venezeuelan island of Margarita. The island boasts mountains, valleys and deserts, together with 26,429-acre national park and 75 beaches around the coastline.

Bahia de Coche, Coche Island, is a new low-density resort directly connected to a beach. There are 88 fully furnished single suites available from £40,800.

Alternatively, there is Caribbean property available at Guacuco Bay. This beach-front apartment hotel overlooks the Caribbean sea, with 256 double suites and 6 penthouses over six floors. Prices start at £42,000 and information can be found at www.caribbean-real-estate.co.uk.

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Article first published 15 November 2007