Buying Real Estate in the Cayman Islands
Commercial
Homes
For Rent
Condominiums
Land
Homes
Commercial
Land
Condo’s - apartments
Registration Of Title
All dealings in real estate in the Cayman Islands are based on a registered land system. All land is identified and numbered; a public records sheet relating to it is kept at the Land Registry. Land titles in this system are thus guaranteed by the government, title insurance is unnecessary and real estate transactions can be carried out quickly and efficiently.
Mortgages (Charges)
Mortgages in the Cayman Islands are called Charges and these are registered in the same manner as other real estate interests. Title becomes free and clear upon payment of all sums due under the mortgage. All types of real estate, including condominiums, may be mortgaged as security for a loan.
Loans
Non-Caymanians can easily obtain loans in the Cayman Islands. A payment of 10% of the value of the property is required as a down payment. Interest rates vary so ask your real estate agent for the latest rates. It is very difficult to get a loan in another country to purchase property in the Cayman Islands since this would leave the lending bank no recourse in the event of default. Homes and condos can be financed up to 30 years with no prepayment penalty.
Insurance
Property and casualty insurance is readily available at a reasonable price.
Taxes And Duties
The Cayman Islands do not have income, sales, property, capital gains, death, estate, inheritance or corporate taxes. There is, however, a tax on tourist accommodations and a departure tax of 5% for airline passengers. Upon purchasing a property on the islands, a one-time payment of 7.5% or 5% on the value of the property is assessed. The assessment is less the value of any furnishings within the property. A 1% stamp duty is also assessed against the mortgage amount. Import duties are applied to most incoming items. This duty is typically 20% of the value including transportation and shipping charges. Cayman Brac currently has a moratorium on duty assessed against all construction materials.
Duty free concession is still on in Cayman Brac where if they purchase raw land and commit to build within two years they do not pay the 5% Stamp Duty and all of their building supplies and materials are duty free.
Rental Income
Many people purchase homes or condominiums and offset the cost of the mortgage with the funds retained from renting. The condominium can be let on a short or long term basis. Contracting with the condominium management company to put the suite in the rental pool takes care of all the hassles associated with renting and taps into the aggressive marketing programs directed at condo rentals.
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Top 10 Property Buying Tips in The Cayman Islands Real Estate In the Cayman Islands - Investing in Real Estate in the Cayman Islands
When looking at properties for sale in the Cayman Islands, beware, do not leave your ‘brain on the plane’ and let your heart rule your head! Just because you are in a foreign country the same rules apply in buying property.
Top Ten Tips for Buying a Property in the Cayman Islands – Real Estate Cayman Islands
1. Be prepared to do some thorough research, checking basic facts and legal issues. Find out who owns the land you want buy . Is there planning permission in place? Does the developer have references and a good track record?
2. Viewing toolkit: take with you a camera, compass, tape measure, pen and paper.
3. Engage a reputable, English-speaking local lawyer who is familiar with property laws and who will be able to give you impartial advice. The less you leave to chance, the less opportunity there is for things to go wrong.
4. Visit the area at different times of the year. A lot of holiday destinations are seasonal and may shut down when the tourists go home.
5. Repairs or additions - Find out what building work has been done to the property in the last 10 years and ensure receipts and guarantees are available – and that any alterations had full planning consent. Also check the utilities - gas, electrics, sewers, air conditioning system, cistern, and septic tank.
6. Try to meet your neighbours, it’s always good to know that there are people around to keep an eye on your property.
7. Make sure you are fully aware of any restrictions on renting out the property and that you understand the financial and legal implications before you sign on the dotted line.
8. Capital growth - Look for areas where demand for property is high and supply is restricted – the need for housing can also increase due to population growth, demographic changes, e.g a new marina being built, or school.
9. Take a step back and try to get an understanding of the overall market. Analyze what makes an area so popular and see if you can predict the next one.
10. Think about what happens if you want to sell your property, would it look inviting to another potential buyer?
