Investing to create a second income source has become extremely important. One should never depend on a single income! If you have money, investing it in the right place, at the right time is the key! What are we talking about? We are talking about investing in your dream home! Quit waiting for retirement, because NOW is the right time to invest in a property in the Cayman Islands.
It could be a Cayman luxury property or a beachfront villa! If you are a first-time homebuyer in the Cayman Islands, staying aware about the legal benefits and procedure to buy a property at the island is essential.
Here is a quick guide on the benefits of investing in real estate in the Cayman Islands.
The Benefits of Investing in a real estate in the Cayman Islands
- The investor does not have to pay property tax.
- There is only one-time stamp duty of 7.5% of the total cost of the property.
- Foreign investors can buy property without any restrictions.
- The investor can purchase and develop land whenever he wishes, as there is no timeframe or restriction.
- Many tourists and business tycoons visit the Cayman Islands for a long or short duration. You can rent your property to tourists or business tycoons. By hiring a property management company, you can relax and give them the responsibility to handle on your behalf. They will find and screen tenants, collect the rent, and attend to the upkeep of the property.
The Steps of Buying a Property in the Cayman Islands
You can invest in either apartments or beachfront condos or villas in the Cayman Islands. However, you would need to fulfil other requirements before looking for the ideal property.
#1 Unless you are making a Cash Purchase, you would need to obtain mortgage pre approval. If you have lived in Cayman Islands for more than six months on a work permit, you can apply for a mortgage from one of the local banks. Find the ideal loan officer in order to gain some knowledge about mortgage pre-approval and information and documentation needed. An experienced Real Estate Agent would also be able to apprise you. If you are not from the Cayman Islands, the bank may require additional documentation and a larger deposit.
#2 You do not need to pay property tax, but there is a onetime stamp duty of 7.5% of the total cost of the property, payable by a Buyer to the Government, within 45 days of the completion date of the purchase.
#3 The next step is to find the perfect home for you based on your requirements of location, size and budget! As you may be aware, there are lots of property for sale in the Caribbean. It is prudent to work with an experienced real estate agent who will guide you through the process from start to the end.
If you are a cash buyer, it is advisable that you retain an Attorney to represent your interests in the transaction. If you are financing the purchase by mortgage, the local mortgage Bank will utilize their own Attorney to protect their interests and you may choose to rely on them, or additionally opt to also have your own Attorney involved.
The biggest advantage of investing in property in the Cayman Islands is that you do not pay any property tax. The investor does not have to pay annual real estate tax, which saves you money! There are many investment and rental properties available for sale on the market. You could also purchase a home in the Cayman Islands to live in, rent, or resell. It is a highly lucrative business!