With the stock market experiencing increased volatility and more experts warning of an impending “Bear Market”, many people are considering real estate as a
What are the important factors that plays a significant role in real estate investment in the Cayman Islands?
I will get in on this before the Cayman real estate professionals start on their “it’s a GREAT time to invest in the Cayman Islands!!!” schtick…
I think that it depends on what your earnings goals are, and what type of property you are looking at… 3 years ago I bought a rental property, getting a local loan and paying the rest cash. It has more than paid for itself since I have been renting it out, even once I have paid the necessary US taxes. Not only that, but it appears that property values are rising slowly and consistently.
It is a very stable economy, unlike a lot of countries in the Caribbean, crime rates are low. We get a very good mix of rental visitors who are not the partying crowd, so they tend to look after the place. There are no property, income or sales taxes on the island – the only thing we pay are for services (water, internet, power, etc.) and a fee to the condo association (known as a STRATA) for maintenance.
On Grand Cayman you have access to some great hardware stores, so you don’t have to import a lot yourself. The sister islands don’t tend to have that range of availability of stuff, as most of it needs to be shipped in specifically (they don’t maintain as much inventory).
I found that dealing with legal professionals and banks to be very easy, too. Banking rules there are different from the US in terms of evaluating your credit worthiness, so do your research on that one.