Buyer’s Guide To Buy Properties in Cayman Islands By Ashmore Alexander
Buying real estate in the Cayman Islands is a simple & straightforward process. With no restrictions on foreign ownership of a single property, no annual property taxes and no capital gains taxes to be paid Cayman Island is perfect to buy new properties.
Buying property in the Cayman Islands is an inviting prospect and strongly encouraged by the Cayman Islands Government who guarantee title for all real estate transactions.
Step 1 - Mortgage pre-approval
• As with a property purchase anywhere in the world if a mortgage is required then ascertaining how much the bank will lend you is the first step towards property ownership. • Get the list of requirements that will allow you to speed up the mortgage approval process which can take up to six weeks depending on the bank.
Step 2 - Total cost of purchase
A basic rule of thumb is to budget an additional 10% to 12% of the purchase price for closing costs depending on the area in which you are purchasing & the level of stamp duty it attracts. To buy a property in the Cayman Islands, following are the additional costs:
1. Stamp Duty • Real Estate: The largest additional cost you will face at closing is stamp duty, this is a one time fee payable to the Cayman Islands Government on the real estate value of the purchase which is currently set at 7.5%. • Mortgage: If you require a mortgage when making your real estate purchase in the Cayman Islands you will attract a 1% duty.
2. Valuation • If you are making your real estate purchase with bank financing the banks within the Cayman Islands will require a valuation of the property conducted by an approved chartered surveyor.
3. Life Insurance • If you are buying a property within the Cayman Islands using local bank financing the bank will usually require you to obtain life insurance covering the amount of the mortgage, which will be collaterally assigned to the bank.
4. Legal Fees • When purchasing real estate in the Cayman Islands an attorney should always be appointed to act on your behalf & prepare the necessary legal documentation for closing, you should budget around 1% for legal & registration fees
Step 3. Finding the Perfect Home Once you have established a budget for buying property within the Cayman Islands it is important to talk to real estate advisor, having expert knowledge of the Cayman Islands real estate market, they will be able to make recommendations as to the location that will best suit your lifestyle & budget and the pros & cons of buying a house versus a condo.
Step 4 - Presenting an offer
• Once you have decided your property, then you move into the stage of offer & negotiation. With all the offers you would be allowed to make an offer stipulating the purchase price, deposit, conditions upon which the offer is made subject to & the desired closing date.
Step 5 - Closing
• Once all the conditions to purchase the property in Cayman Islands have been satisfied the offer to purchase becomes unconditional & both parties can move towards closing.
Contact Us • If you are interested to sell or buy your properties in the Cayman Islands you can visit our website http://www.ashmorealexander.com/ today!