Opening of ties With Cuba is Going to Open Investment Opportunity

I live in Miami area, the area that is slated to benefit most once US starts doing business with Cuba. Our local economy is gearing up for the windfall. Everyone from porter to shipping lines, including local tour guides are upbeat. Let’s talk about the opportunities in real estate that the ties will open. Whether in residential properties or commercial big-ticket investment, there are tremendous potential in Cuba. Tourism from US alone could touch Multi-Billion dollars within first couple of years.

There are many options for investing in Real Estate both nationally and internationally.  Many Real Estate investors are free to choose which international Real Estate ventures are best for them. However, due to various international laws and restrictions, some countries may limit Real Estate investments by investors who are citizens of the United States.

Below is more detailed information about the laws and other areas US investors should know if you wants to buy a property in Cuba. Cuban laws restricts United States citizen as to how they can invest in Real Estate transactions in Cuba.

Investors in all parts of the world are free to travel to Cuba without any restrictions.  However, investors who happened to be US citizens are restricted. It is not the traveling that is restricted for US citizens, but according to recent studies, unless an investor has a specific license or a general license from the United States Treasury Office of Foreign Asset Control, US citizens have restrictions on spending money in Cuba, which is also illegal without these licenses.

Real Estate Agency Prestige International is understood to be amongst the first agencies applying to obtain the licenses. Those who are interested in taking advantage of Cuba’s investment opportunities may travel with state governors or any other and agricultural trade delegate.

When President Barack Obama announced that Cuba and the United States will restore its diplomatic relationships, many opportunities may become available for those interested in investing in Cuba, particularly within the real estate industry.

Jose Gabilondo, a professor at the Florida International University College of Law is an expert in Finance in Cuba and has indicated that United States based businesses should consider this announcement as the beginning of the end, with respect to the United States embargo in Cuba.

Gabilondo has added that Cuba has a great need for real estate investments, particularly due to its valuable seashore,  and its rural and urban areas, which according to Gabilondo are areas that need investment the most.

Investing in Cuba real estate also has additional limitations due to the lack of internal reforms of Cuba’s real estate system, as well as its real estate title system and its financial laws. The implementation of such reforms will likely attract more foreign investors.

Investing in Cuba real estate also has limitations with respect to foreign investors concerning the foreign ownership rights of Cuban real property.  Additionally Cuba does not have an adequate real estate contract system and it also needs to enforce issues concerning judicial property rights

When making decisions about Investing in Cuba real estate, investors need to be aware of a variety of issues and restrictions to be successful investors. Including having the ability to attract buyers – either local or international buyers, as well as becoming abreast of all of the international laws between Cuba and the United States with respect to Investing in Cuba real estate.

Additionally US real estate investors who have an interest in investing in Cuban real estate should be concerned about safety issues when investing abroad. Investors traveling to and from Cuba to manage their investment properties, also need to be concerned about the safety and security of the property in their absence.

When properties have little activity they appear abandoned, which could result in vandalism and squatting by the homeless. It is best to work with Cuban officials to find out about Cuban laws concerning working with property management companies during the investor’s absence.

Investors also need to become aware of the Cuban laws concerning areas such as renting and leasing property as well as insurance issues among other things.  Investing in real estate in Cuba can be very rewarding, but it has its challenges as well.

[Source:onecentatatime.com]Sourse: Thefinancebucks.com