We often talk about financial independence in terms of buying back our time. Instead of trading time for money, money can be used as a tool to buy back our time.
It’s what sets the ultra-wealthy apart from everyone else. They control their own time. They don’t have to work if they don’t want to and can do with their time as they please. Financial independence is a worthy goal for any investor.
The rich were largely insulated from the economic effects of the COVID-19 pandemic – insulated from the job loss and job reductions experienced by many workers in the early days of lockdowns and social distancing. The rich were in this position because they had bought back their time before this once-in-a-lifetime event.
However, what often goes unnoticed but came to the spotlight during the pandemic is that the rich – having bought back their time – were not only free of financial constraints and challenges during this time, but they were also able to buy another valuable commodity elusive to everyone else – privacy.
While everyone else was grounded during the pandemic, the rich continued to travel – choosing isolated destinations to insulate themselves from the pandemic. So while everyone else was biding time at home, the rich were seeking solace in remote locales. Some of them liked the privacy so much that they bought their private islands in the Caribbean to escape it. Jamie Smyth, “Wealthy Buyers Snap Up ‘Safe Haven’ Private Islands to Flee Pandemic.” The Financial Times (July 23, 2020).
The wealthy’s appetite for travel won’t be waning any time soon. Despite concerns about inflation and the economy, this year’s big travel trend is to “go big, spend big.” Monica Buchanan Pitrelli, “The Biggest Travel Trend of 2022: Go Big, Spend Big.” cnbc.com (Jan. 21, 2022).
A long-standing and reliable tenet of investing has always been to follow demand. Investing in goods or services that are always in demand is a sound investment strategy built to withstand recessions, inflation, and unforeseen economic adversity.
Now, as we enter uncharted economic territory with runaway inflation, recession, and high-interest rates running amok, the need for bulletproof portfolios is more vital than ever.
As discussed, the wealthy value their time as well as their privacy. Despite the widespread economic concern, luxury resort development is booming in the Caribbean, particularly in Belize.
Rob Das, managing director for Newmark Knight Frank, a real estate advisory firm in Miami, summed up the appeal of Belize to visitors and investors alike:
“All destinations are not created equal, and there are different demand drivers for each set of travelers. Belize is an ideal destination for the experiential traveler due to its world-class diving, archaeology, wildlife, and service aspects. The country is primarily English speaking, all transactions are pegged to the U.S. dollar, and the legal jurisdiction is familiar for most investors.”
And with acres and acres of protected land and ecosystems, Belize offers the type of isolation and privacy that the wealthy traveler craves. Staff, “Why Belize is Ripe for Hotel Investment,” caribjournal.com (May 12, 2020)
The ideal asset to hedge against inflation and recession will have consistent and reliable demand in any economy to take a page out of the ultra-wealthy investing playbook. Luxury vacation resorts offering privacy and isolation and catering to the wealthy – as the pandemic proved – are one of those assets that will always have demand.
This is perhaps why the Caribbean is experiencing a residential resort boom to cater to travelers seeking utterly private living quarters. Staff, “Could Residential Resorts in the Caribbean be the next Real Estate Boom?” caribbeanlifestyle.com.
Here at Belize Asset Management, we were already at the forefront of the residential resort trend in Belize. Along with our partners, we have organized CRDG, LLC (i.e., Cayo Resort Development Group) to develop a residential resort at a one-of-a-kind location off the coast of Ambergris Caye, Belize.
The land has already been acquired, and work has begun on developing the resort, which will be comprised of two completely separate, unique areas:
Cayo Rosario (CR) – is an idyllic 10-acre island west (1.7 miles) of the popular tourist destination of Ambergris Caye in Belize, Central America. The island will be comprised of 40 overwater bungalows, five on-island bungalows, and nine luxury residences. CR is located in the heart of the Hol Chan Marine Reserve, a UNESCO world heritage site.
Secret Beach Residences (SBR) – Secret Beach is a pristine 20-acre property with 700 feet of beachfront located on the west coast of Ambergris Caye, quickly becoming the hottest destination in Belize. This property will be used in concert with the island to provide 20 residences, additional resort amenities, and the back of the house.
With 40 bungalows and residences spread over 10 acres on Cayo Rosario and 20 acres spread out over 20 acres on Secret Beach, the proposed residential resort offers the wealthy traveler all the amenities, beauty, and hospitality of Belize with the privacy they covet.
We see no slowdown in demand for luxury travel – inflation or not.
Contact one of our knowledgeable professionals today to learn more about getting in on this exciting opportunity to invest in a recession and inflation-resistant asset on the ground floor.