Cayman Islands Real Estate

Franklin D. Roosevelt once said, "Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, .... and managed with reasonable care, it is about the safest investment in the world." This innate security is why savvy investors have historically turned to real estate. Now, as you embark on this journey of investing in property in the Cayman Islands, you can have the reassurance of this stability. What should you consider first? Define Your Investment Goals When considering your real estate objectives, it is crucial to know what your primary goal is. Are you happy with long-term appreciation in property value? Are you planning to invest in a location poised for growth? Such as an up-and-coming area. Or do you prefer cash flow immediately by purchasing a rental condo or home with a consistent monthly income? By embarking on the right strategy, you can maximize your potential returns over time. The wonderful thing is that at Engel & Völkers, our agents can help you find an investment that fits one or more of these goals. Research the Market First, you must understand the local real estate market trends, including property values, rental, and vacancies. Being aware of market fluctuations, emerging neighbourhoods, and changing regulations can significantly enhance your ability to navigate the real estate landscape effectively. In the Cayman Islands, no onerous landlord favours the tenant. Sadly, some landlords take advantage of tenants. There will be minimal issues if the landlord and tenants understand the rental contract and agree to honour it. The professional sales consultants and real estate brokers at Engel & Völkers are here to support you in these areas, always staying current and guiding you toward your goals. They do the legislation by monitoring local market conditions, property demand, and relevant legislative changes that could impact your investments. They know if the rental market is increasing because of demand and lack of available rental properties. They also know the strong rental areas that attract professional tenants. Then, they pass that information on to you, the investor. Set a Budget To effectively assess how much you can afford to invest in a property, start by calculating your overall budget. It is essential to know about additional expenses beyond the purchase price, which can vary significantly by location, maintenance costs, insurance premiums to protect your investment, and potential renovation costs if you plan to make updates or improvements. The remarkable thing is that there is no property tax to eat away at your profits. If you intend to finance your purchase, obtaining a pre-approval mortgage is critical. This process entails submitting your financial information to a lender, including your income, credit history, and outstanding debts. The lender will evaluate this information to determine the maximum loan amount you qualify for and the interest rates applicable to you based on your creditworthiness. For investment property, the Cayman banks are very conservative and will want a 50 to 60% down payment, and they only use half of the rent to go toward your income. Choose the Right Property Type It is equally important to consider the property's location. Aim for neighbourhoods that are not only desirable but also have convenient access to essential amenities, such as grocery stores, parks, and recreational facilities. Finally, evaluate transportation options. The key factor here in Cayman is commute times. Tenants will pay more monthly rent if they do not have to sit in traffic for 2 hours daily. When you have made your choice of property, Engel & Völkers emphasizes the importance of thoroughly inspecting a property before purchasing to safeguard your investment. During the inspection, pay close attention to structural issues, such as a cracked foundation, which could indicate significant underlying problems or potential repairs. Additionally, be vigilant for pest infestations, particularly termite damage, as these can lead to costly remediation efforts and long-term damage. Analyze Rental Potential We can assist you in effectively analyzing both rental income and related expenses. Begin by calculating your potential return on investment (ROI), which helps you evaluate the profitability of your investment. It is essential to ensure that all financial figures are accurate and realistic. Next, you must decide if you want to manage the property, which requires time and effort and is a bit more difficult if you live off the island. You can hire a local Cayman property management company for the rental. Typically, property managers charge between 5 to 10% of the monthly rent on a long-term lease. This will include collecting the rent and paying all the bills for the property; they will sort out maintenance issues with the rental. If there are any significant expenses or repairs, they should ask your permission and provide three quotes so you can make a sound decision to maximize your investment returns. Be Prepared for Risks In any location, real estate investment involves risks like market fluctuations and unexpected repair costs, such as needing a new air conditioning unit. It is essential to be ready for these difficulties and have a bit of savings to cover these surprises. Your property manager can offer valuable insights, advice, and potential investment opportunities. By following these tips, you will be better equipped to make wise choices in your investment property journey in the Cayman Islands. Happy investing! We look forward to hearing from you!

The simple answer is YES! The government is not hostile to expats or foreigners buying property like other islands. 99% of all property in the Grand Cayman is freehold. You can own the property in your personal name, a corporation, a trust, or a foundation for estate planning. Remember, there is no inheritance tax in the Cayman Islands. The idyllic Cayman Islands, with their stunning beaches and vibrant culture, attract many people looking to invest in real estate. With no property taxes and a friendly investment climate, it's no surprise that the islands are an easy choice for buying property. Suppose you've ever wondered whether you can purchase a slice of paradise with steady appreciation and safety. In that case, we can confidently say that foreigners have been buying property in the Cayman Islands since the 1960s. Understanding the Property Buying Process The Cayman Islands has a straightforward approach for foreign buyers interested in real estate. Here are some key points to keep in mind: 1. No Restrictions for Foreign Investors: Property ownership in the Grand Cayman Islands is not restricted. This means anyone, regardless of nationality, can purchase land or real estate without special permits or approvals. 2. Types of Property Available: You can buy various properties, including residential homes, condos, oceanfront land or canal house lots and commercial properties. Whether you're looking for a vacation home, a rental investment, or a permanent residence, there's something for everyone. 3. Investment Requirements: Although there are no restrictions, to qualify for a Residency Certificate through investment (which allows you to reside in the Cayman Islands without working), you must invest at least US$1.2 million in real estate. This requirement is an excellent opportunity for those looking for long-term residency. 4. Engaging Local Professionals: It's essential to engage the services of local real estate agents or Advisors, as we call ourselves at Engel & Volkers. We will also recommend a few legal professionals familiar with the market and the buying process. They can guide you through the nuances of property transactions, including title searches and due diligence. 5. Buying & Closing Costs: When purchasing property in the Cayman Islands, buyers should be aware of additional costs, including a one-time stamp duty of 7.5% on the purchase price. However, you will never have to pay another tax again; there is no property tax! Other potential costs include legal fees, property inspections, and moving costs. Our real estate markets work much like North America's, where we have one MLS that most real estate agents are members of called CIREBA. The vendor pays the commission. https://www.cireba.com/find-cayman-real-estate-company/engel-volkers 6. Financing Options: While many foreign buyers pay in cash, it's also possible to obtain financing from local banks, which often offer mortgage options to non-residents. Several local banks lend, such as Cayman National Bank, FCIBC, Scotiabank, RBC and Butterfield Bank. Make sure to contact a few banks and get the best rate. Beware: The mortgage lenders at the local banks do not work on commission, so they move extremely slowly. Investing in real estate in the Cayman Islands offers fantastic advantages. With a strong rental market, particularly for vacation and short-term rentals, many investors find it a safe option. The lack of property tax further makes it attractive compared to other islands. Owning property in the Grand Cayman can give you access to a welcoming community and a lifestyle that promotes relaxation and adventure. From water sports to fine dining, the islands provide a healthy way of life. In conclusion, if you are considering buying property in the Cayman Islands, rest assured that as a foreigner, you can easily navigate the process with the proper guidance. Whether your goal is to enjoy a second home or invest in rental income, the opportunities here are abundant. It is very important to interview a few Agents and make sure they are full time Agents so they will know the best areas and the best deals. Once you find a local real estate expert they can help you decide where on Grand Cayman or Cayman Brac you want to you settle down. Check out the list of our Advisors on this page and read their bios. We were either born here or moved years ago as gorgeous, and now we are locals who know real estate inside and out!

Retiring to a warm paradise is a dream for many, and the Cayman Islands, with their white sandy beaches, clear waters, and tax-neutral environment, are an attractive choice. However, before leaping, it is crucial to understand how much money you need to retire comfortably in this Caribbean paradise. Cost of Living in the Cayman Islands The Cayman Islands has one of the highest living standards in the world, but this comes at a price. The cost of living is high compared to many other retirement destinations due to the island’s dependence on imports of goods and services. You will need to factor in the expenses for housing, food, healthcare, and entertainment into your budget. Housing Costs Housing is one of the largest expenses you will face in the Grand Cayman. Rental prices vary depending on location and type of property. Here is a rough estimate: A 1-bedroom, 1-bath condo in George Town: $2,500 - $4,000 per month A one-bedroom, one-bath condo outside the city centers, such as West Bay, South Sound or Prospect, costs around $2,000 - $3,500 monthly. Luxury beachfront condo: $5,000+ per month Purchasing a home: $500,000 - $3 million+ depending on size and location Many retirees buy property to build equity and reduce long-term housing costs. Keep in mind that stamp duty fees for property purchases are 7.5%. However, that is a one-time fee; you never have to pay property tax. Daily Expenses Groceries: Due to import costs, groceries are expensive. Expect to spend $800 - $1,500 per month for a couple. Utilities: Depending on consumption, electricity, water, and internet can cost $300 - $600 monthly. Transportation: Owning a car is the best option, as public transportation is limited. Car insurance is very reasonable. Dining & Entertainment: Eating out is pricey, with restaurant meals costing $20 - $100 per person. Monthly dining and entertainment budgets can range from $500 - $2,000+. We have so many great restaurants you will be tempted to eat out every day, but that will cut your budget. We do not have any early bird special here, like Florida. Alcohol is expensive. Healthcare Costs Grand Cayman, the largest and most populated island of the three, has high-quality healthcare facilities, but medical services can be costly. Private health insurance is required for all residents, and monthly premiums typically range from $500 - $1,500 per person, depending on coverage. Emergency medical evacuations to the U.S. or other countries can be an additional expense. Residency & Financial Requirements The Cayman Islands do not offer a formal retirement visa, but retirees can obtain residency through investment. One such visa is called the Residency Certificate. It stands for Persons of Independent means having a minimum investment of US$1.2 million in the local real estate. Additionally, proof of an annual income of at least US$144,000 or a substantial bank balance is required. This type of certificate is initially valid for 25 years and is renewable. Holders can reside in the Cayman Islands but cannot work without work permits. We highly recommend Nick Joseph to assist you in your move. https://residecayman.com/who-we-are/ How Much Do You Need to Retire Comfortably? A comfortable retirement in the Cayman Islands will require at least $5,000 - $10,000 per month, or around $1.5 - $3 million in savings and investments to ensure financial security for 20-30 years. This varies based on lifestyle choices and property ownership. So, Welcome to the Cayman Islands! At Engel & Volkers, we are here to assist you in finding the right property to buy or rent. The Cayman Islands offer an idyllic retirement lifestyle, but proper financial planning is essential. The weather is always warm (even in the winter), and we have sailing and deep-sea fishing, golfing, pickleball and loads of charity events to keep you active. With the proper budget and investment, you can enjoy a stress-free and luxurious retirement in this tropical paradise.