General Real Estate Tips
Anyone can own property in The Cayman Islands – you do not need to have Citizenship here, be resident here or have a Cayman-resident partnership. You can even buy property while you are on vacation!!
Prices for building can vary considerably, depending on your level of finishing work. Kass can connect you with reputable contractors and architects to ensure a professional job right from the start.
The vendor pays the commission on a sale. Commission rates are set by CIREBA and vary between 4 and 10% of the purchase price.
About 85% of the properties along Seven Mile Beach (the actual beachside) rent out short term. These rentals are handled by the on-site managers or by a management company. Bookings are done on a rotation basis within the complex and you as the owner block off the times that you will be occupying the unit and the manager books out days around your visit. These bookings bring in good returns and help pay for the monthly condo fees. You don’t have to do short term rentals but if you want to the option is there for most Seven Mile Beach properties.
Long term tenants offer excellent, consistent income as well, but the downside is that you cannot occupy when you would like to, only between tenancies. Long term potential can be achieved at virtually any property on the island.
Stamp Duty (also called Government Tax) is the one-time only fee paid to Government at the time the property is purchased. It is a percentage (between 4 to 7.5%, depending on location) of the value of the property/purchase price at the time of purchase. Coming up with this ‘closing cost’ may seem a bit steep – and it is – but when it’s understood that the entire time you own the property you will not pay another dime to the Government, it isn’t too bad. When you sell the property, the purchasing party would pay Stamp Duty at that time.
Property ownership is a matter of public record in Cayman; anyone can find out who owns a property by visiting the public counter at Government’s Land Registry Department. Government guarantees title and holds all title deeds/registers. If you hold property in a company name, that name appears on the title, with the beneficial owners on private, undisclosed records with the registered office of that company.
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