August 23, 2017
The value of Cayman real estate property is rapidly increasing despite the experience of challenging years. For example, in 2016’s first seven months, the freehold property transfer average value rose by 6.7% from 2015. The growth comes along Seven Mile Beach and coral-sand beach on the west of Grand Cayman. To purchase property in such areas and other similar places on the Cayman Islands follows a simple process and the good news is that there are no restrictions on real estate investment in the island. So, how can you go about the process of acquiring a place to call your own at the prestigious island?
The process of acquiring property
First, it’s important to be aware of the varying property prices. For example, prices are relatively lower on the sister islands and higher on Grand Cayman. A five-bedroom would cost you around $ 2.8 million on canals near Ritz-Carlton Blue Tip golf course. As you go beyond circular cobblestone driveway, a similar villa on a 0.48-acre land and without furnishings would still go for around $2.8 million. Grand Cayman is the largest among three-island Archipelago and is considered to be the liveliest. Along Seven-Mile Beach, the prices can start at around $300,000. According to an owner and developer of Century 21, Kel Thompson, the market continues to favor buyers since 2008. The time to buy is definitely now!
Having the varying prices in mind, you may approach your bank to see how much they can lend you in terms of the mortgage. The rates will differ between banks and if you are on Cayman Island on a work permit, then you will have to wait until six months are over so you get a mortgage from a bank at the place. As a foreigner, you can also get a mortgage at the island after following the procedures agreed with the bank you choose.
After that, take into the consideration additional costs you may have to incur to acquire your property which may be up to 10-12% of the total cost. Examples of these costs are:
- Stamp Duty
- Stamp Duty for your mortgage
- Valuation by a chartered surveyor
- Life Insurance
- Legal fees
Last but not least, go ahead and find your perfect home which can be done through an expert. Present an offer in writing to the seller of the property to initiate a contract then proceed to close it once all the conditions to purchase are fulfilled.