Buying a House in the Cayman Islands – The Ultimate Guide
We put together this guide for investors considering buying a house in the Cayman Islands.
Whether you are thinking of purchasing a home in the Cayman Islands as a full-time residence, a place to spend vacations home or an investment offering the potential to deliver a solid Return on Investment, this guide is designed to cover all aspects of acquiring a home from finding homes for sale in the Cayman Islands through to the details of the purchase process.
The ultimate guide to buying a house in the Cayman Islands
Contents
Is Buying a House in the Cayman Islands a Good Idea?
How Much Does it Cost to Buy a House in the Cayman Islands?
Can Foreigners Own Houses in the Cayman Islands?
Where are the Best Places to Buy a House in the Cayman Islands?
How Do you Buy a House in the Cayman Islands?
Getting a Mortgage in the Cayman Islands
Investment Opportunities – Explore House for Sale in the Cayman Islands
Is Buying a House in the Cayman Islands a Good Idea?
Investing in a house in the Cayman Islands offers buyers the opportunity to own property in a highly sought-after destination with a fast-moving, rapidly growing real estate market.
For buyers looking for a house for personal use, the Cayman Islands offers many advantages. First and foremost, the archipelago offers a fantastic lifestyle. Residents enjoy year-round warmth and sunshine, some of the world’s best beaches, crystal clear waters ideal for diving, snorkeling and watersports and high quality infrastructure that is practically unmatched in the region.
Thinking of moving to the Cayman Islands? Investing in real estate in the archipelago can provide a pathway to residency which provides additional benefits including freedom from direct taxation with no inheritance tax, income tax, property tax or capital gains tax.
For investors looking to buy a house with a view to generating a Return on Investment, few destinations in the Caribbean offer such high income-generating potential. As a leading luxury tourism destination, houses in the Cayman Islands can command very high average daily rates which can translate in to high yield levels for owners.
The fast-moving, dynamic nature of the archipelago’s real estate market also offers tremendous potential for capital appreciation over the medium term as property prices continue to rise.
How Much Does it Cost to Buy a House in the Cayman Islands?
The cost of houses in the Cayman Islands varies according to various factors such as location, size and perceived value.
Prices range from approximately US £400,000 to $500,000 for a smaller house or townhouse in the capital George Town at the more affordable end of the market up to US $5 to $10 million dollars for luxury homes for sale in Grand Cayman in highly desirable areas such as Rum Point and South Sound.
Prices can reach as high as US $40,000,000 for lavish beachfront estates at the very top end of the market.
Can Foreigners Own a House in the Cayman Islands?
Yes, foreign nationals can buy houses in the Cayman Islands and the Government of the Cayman Islands welcomes foreign investment.
There are no restrictions on foreign buyers owning a house in the Cayman Islands and foreign buyers enjoy the same rights as Caymanian buyers, including the right to buy beachfront and waterfront property.
Unlike in many other destinations in the Caribbean and Central America, foreign buyers are not required to obtain any kind of license or permit (such as an alien land holding license) in order to purchase property in the Cayman Islands.
Where are the Best Places to Buy a House in the Cayman Islands?
That depends very much on your personal preferences and objectives.
For buyers looking for a base close to George Town, there are several areas along the southern coast to take a look at, including South Sound, Prospect and Spotts Bay.
For those looking for easy access to Seven Mile Beach, the golf courses or the waterways, the Seven Mile Beach Corridor and West Bay are very popular.
Searching for a quieter destination to get away from it all, look no further than Rum Point, North Side and East End.
How Do you Buy a House in the Cayman Islands?
Buying a house in the Cayman Islands is a relatively straight-forward process. Below we have outlined the typical purchase process.
The first step is for the buyer to make an offer.
Offers are often presented in a standard format created and regulated by the Cayman Islands Real Estate Brokers Association (“CIREBA”). The CIREBA standard agreement sets out the terms and conditions of the transaction including details such as the proposed purchase price, deposit, conditions upon which the offer is made subject to and the closing date.
Once both buyer and seller have agreed the details, the agreement is executed and becomes legally binding.
Once all the conditions have been satisfied, the offer to purchase becomes unconditional and the parties can move towards closing.
Closing is a relatively quick and straight forward process which takes place once all conditions of the agreement have been satisfied and payment of all fees (including legal fees, stamp duty and government fees) has been made.
To complete the transaction both parties will execute a Transfer of Land Form RL1 to transfer title from the seller to the buyer and register the transaction with HM Land Registry.
For more details on the purchase process, please see our guide to buying property in the Cayman Islands.
Getting a Mortgage in the Cayman Islands?
It is possible to buy a house in the Cayman Islands with cash or a mortgage. If you are planning on purchasing a property with a mortgage, we would recommend that you secure your funding before you begin your property search. Obtaining pre-approval for a mortgage will help you determine your budget and may facilitate negotiations with sellers.
Several reputable local financial institutions offer mortgages to residents and foreign buyers. Lenders may require a down payment of 5% to 40%.
As you would expect at home, upon receipt of your application the financial institution will conduct typical checks to assess your suitability for a mortgage.
Should your application be approved, you should expect interest rates in the region of 1% to 3%. Mortgage terms tend to be in the region of 10 to 15 years, although in some cases may be up to 30 years.
Investment Opportunities – Explore Houses for Sale in the Cayman Islands
Ready to begin your search for houses for sale in the Cayman Islands?
To find investment opportunities from across this trio of islands from magnificent Seven Mile Beach to the quiet Sister Islands, explore real estate in the Cayman Islands on our website.
Please note that our website only showcases a sample of the townhouses, villas and houses available.
Contact 7th Heaven Properties, the Luxury Caribbean Property Specialist, to explore the full range of investment opportunities in the Cayman Islands.