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Because of the high standard of living and low crime rate of the sun-drenched islands of Cayman, throngs of visitors each year seek the help of a real estate buying guide to own homes in this beach paradise. Owning a piece of land in an exotic destination such as the Cayman Islands is a dream come true for anyone seeking out a special vacation or retirement home. For investors, owning property in the Cayman Islands is also a smart decision because there are no capital gains, income, property or inheritance taxes. Also, investors are assured of political and economic stability because of the Cayman Islands’ British ties.
Why Buy Property in the Cayman Islands?
One of the biggest mistakes people usually commit when buying real estate is to scrimp on it. While real estate in the Cayman Islands can be pricey, investing in the Cayman Islands will bring you more advantages than you can imagine. The Cayman Islands has the highest per capita income in the Caribbean and it has one of the most competitive offshore financial industries. Various airline services make transportation convenient, and communication is easy with English as the common language. The US dollar is also readily exchanged with the local Cayman dollar. All of these benefits guarantee that investors will reap the advantages of continual tourist traffic and potential rental income. Foreign ownership of land for business is made possible through a licensing process.
Things to Consider When Purchasing Real Estate
Location - The Cayman Islands is blessed with numerous ideal home locations, so the first challenge is to narrow down your choices. If you want to wake up to the pristine waters of the Caribbean, buy a property on Seven Mile Beach or any of Grank Cayman's other white sand beaches. On the other hand, George Town is the choice of those who want to live in the heart of the island. You have many locations to choose from, like Prospect and Red Bay, South Sound, Savannah, Frank Sound, Rum Point, Cayman Kai, and East End. Whatever area you choose, remember that your selection should match your needs and preferences with what the area has to offer.
Search and Stay
– Doing background checks for ownership and titling is a must, but the Cayman Islands’ land registry system takes care of that for you. A “Search and Stay” form must be filed with the Department of Lands and Surveys to ensure that priority over the preferred parcel is maintained until title transfer is made official.
Downpayments and Loans
-- What’s good about the local banking industry is that they grant loans of up to 50–75% of the property value even to foreigners. Normally, a 10% downpayment is to be settled with the seller a week after contract signing.
No Paper, No Property
- A property sale requires the buyer to present official documents as proof of identity and source of funds.
Stamp Duty
- Although there are no property taxes in the Cayman Islands, a property purchase requires the buyer to pay a stamp duty, which is approximately 7.5 – 9% of the sale amount. This is normally remitted to the government within 45 days of closing.
Real Estate Attorney
- There are good law firms which provide assistance, especially for major property investments, to ensure that all local laws are complied with. Normally, expenses related to legal fees amount to 1–3% of the property price. Searching for the best available parcel is also easier if you go through real estate brokerages, especially since commissions are normally shouldered by the selling party. Here are some of the more established agents, to name a few:
Better Properties
Cayman Luxury Property Group
Cambridge Real Estate Corporation
Century 21 – of the Caribbean
Coastal Realty Ltd.
Crighton Properties Ltd.
Era Kirkconnell Realty Ltd.
Regal Realty
Buying real estate property in the tax-free Cayman Islands is a wise decision and an excellent investment. With its high standard of living that many nations envy and its modern infrastructure all situated along the Caribbean’s best beaches, you can rest comfortably in your new home knowing you've made a wise purchase.
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George Town
Cayman Real Estate