Cayman Islands Buying Guide CAYMAN ISLANDS …...Cayman Islands Buying Guide Call (345) 634411a...

Cayman Islands Buying Guide CAYMAN ISLANDS

REALTY

Cayman Islands Buying Guide

Call: (345) 623-4411/Fax: (345) 945-4307 | Email: [email protected] | Web: www.caymanislandsrealty.com

CAYMAN ISLANDS REALTY


Contents

Pg.

3. Introduction to the Cayman Islands

6. Overview of the Cayman Real Estate Market

7. Stamp Duty and Other Charges

8. Getting a Mortgage

11. Relocation to Cayman Islands

14. Useful Information

15. Hospitals and Health Centers

16. Schools




Cayman Islands Buying GuideIntroduction to the Cayman Islands

Welcome to the beautiful Cayman Islands, three unique islands like nowhere else on earth with pristine clear waters, stunning sunsets and gorgeous beaches. Whether you are looking for the perfect vacation, wedding, or honeymoon destination, or perhaps a new home, the Cayman Islands will definitely not disappoint.

The Cayman Islands are composed of Grand Cayman, Cayman Brac, and Little Cayman, and they are situated in the western Caribbean, about 150 miles south of Cuba, 480 miles southwest of Miami and 180 miles northwest of Jamaica. The capital of the Cayman Islands is George Town on Grand Cayman, and the islands are an overseas territory of the United Kingdom.





Once known as the “Islands that time forgot” the Cayman Islands have recently been catapulted into the 21st century, at quite an alarming rate, however in the last decade, there has been a determined effort to maintain the delicate balance between preserving the essence and simplicity of the past, while moving resolutely into the future to maintain the country’s status as one of the world’s premier tourism, banking and finance centers. Many Caymanian customs and traditions are linked inextricably to religious holidays. Whether camping by the sea at Easter or hunting for land crabs during the rainy season, these events are social in nature and family-oriented.

Grand Cayman is the largest of the three islands, it includes five of the six districts of the Cayman Islands: Bodden Town, East End, George Town, North Side and West Bay, this island contains 95% of the territory’s entire population. Grand Cayman is home to around 600 banks and trust companies, including 43 of the 50 largest banks in the world, and thanks to this large financial presence on the island, banking investments and insurance drive the economy.

Scuba diving and snorkeling are some of the most popular activities on Grand Cayman because of the beautiful coral reefs, sea walls and wrecks.





Cayman Brac and Little Cayman are both in the remaining district: The Sister islands, they are the smaller of the three islands and the most sparsely populated, the main attractions on these islands are caves, climbing, fishing, diving, and museums.

Although most locals work within tourism and local enterprises, the government is actually the largest employer in Cayman Brac. Despite their size both islands host a number of different cultural events throughout the year, and the community spirit is strong.





Overview of the Cayman Real Estate Market

Finding a slice of paradise to call home need not be such a challenge. In fact, if you are lucky enough to live in the Cayman Islands, finding a home should be one of the more exciting tasks on your to-do-list. There is such a diverse selection of properties available in Cayman, from high-end luxury offerings to those on the more affordable end.

With a stable economy, high standard of living and beautiful environment, the Cayman Islands is also an ideal place for you to own property. With no annual property, income or corporation tax, nor capital gains payable in Cayman, buying a property here is certainly worth considering.

Buying a property in Cayman has many advantages, not least that if you are staying for some time, mortgages tend to work out cheaper than rents over a three to five-year period. There are no restrictions on foreign ownership of real estate if the property is for personal use. If the property is rented out as an investment then no tourist tax is payable if the property is rented to residents. Cayman’s Land Registry office enables transfers to be relatively quick and simple.





Stamp Duty and other Charges

Stamp duty, which is payable on all real estate transfers and purchases (other than those between close family, aka ‘by love and affection’), is 7.5%. However, a first time Caymanian buyer will pay no stamp duty if the property is below CI$300,000 (2% if it is over CI$300k but does not exceed CI$400k) and is going to be owner occupied. Stamp duty on bare land purchases by first time Caymanian buyers are set at 2% for land that is valued above CI$100k but does not exceed CI$150,000.

There are some zoning exceptions. Stamp Duty is paid by the buyer on the purchase price or market value, whichever is higher (as assessed by the Lands and Survey Department), but NOT on chattels purchased with the property. The Duty must be paid within 45 days of a contract being signed.





Getting a Mortgage

Any of the local Class A banks can lend money. It’s sensible to shop around, however, as rates are getting more competitive it means the percentage above prime (from 1%-5%) can be negotiated. The usual term for a mortgage is 20 years, although some banks will offer as much as 35 years. Most home-buyers will be asked to make a down payment of 5-10% or more as a deposit. There is no such thing as an interest- only mortgage in Cayman as there is in other parts of the world. Definitely ask if you can pay bi-weekly (thereby paying less interest) and check if the bank charges a penalty for early repayment. Various factors including profession, salary, employer and credit history are taken into account when determining terms and also whether the applicant is Caymanian or an expat.

Once newer residents have established a good financial track record here however, the banks may be willing to renegotiate terms and give a more competitive rate. When taking out a mortgage, it is also worth factoring in that you will be charged stamp duty on the money you borrow. Mortgages of less than CI$300,000 attract a 1% government stamp duty fee, while for mortgages of CI$300,000 or higher, attract a figure of 1.5%. If you are using an attorney, they typically charge 0.5%, while the bank charges 0.5% on the cost of the mortgage.




Cayman Islands Buying GuideHome Inspections & Site Surveys

If you were to buy property in England, you would have a Chartered Building Survey completed. On the other hand, if you lived in the United States you would have a full home inspection done by a licensed home inspector. There are companies that provide both services in the Cayman Islands and it is highly recommended that you have one done by a seasoned professional when purchasing a home. In fact, it should be a condition of your purchase.

• HomeInspection:

A home inspection conducted by a licensed home inspector will include a full examination which will consist of structural components such as foundations, floors, walls, ceilings, hurricane straps and roof. They will also check all interior components – doors, windows and all appliances, testing the safety and functionality of all items. A licensed home inspector is also qualified to inspect the mechanical, electrical and plumbing systems of the home. An inspection report is be provided, noting all findings, and actions for remediation.




Cayman Islands Buying Guide• SiteInspection

A building condition survey will include an inspection by a civil or structural engineer who will examine the roof, insulation, flooring and the condition of the walls of your home, as well as other structural areas. They will also check whether your appliances are up to code and will recommend whether an MEP (Mechanical, Electrical and Plumbing) report needs to be done by a professional technician.

• Legal Conveyancing

When you are purchasing a property here in the Cayman Islands, it is necessary for you to hire a Law firm to deal with the legal side of your purchase. There are a number of law firms in the Cayman Islands providing conveyancing.

Conveyancing professionals prepare the paperwork for your mortgage and property transfer. They check that there are no encumbrances such as a mortgage lien, outstanding strata payments or old and unpaid water bills. They usually charge 1% of the property value unless a different figure has been negotiated. A typical simple transfer of land takes no more than three to four weeks, with registration of the new proprietor at the Land and Survey Department taking place four to six weeks after that.





Relocation to Cayman Islands

Purchasing a property for the purpose of relocating full time to the Cayman Islands may be one of the most exciting decisions of your life but there are a lot of details to consider and take care of before you arrive on the Island, move into your new home, unpack your belongings, start your job and then finally put your feet in the sand. • CostofSettingUpYourLifeinCayman - It is worth being completely aware of the costs of setting up a home in Cayman. For example, you will have to buy a car and pay for a year’s worth of car insurance; pay deposits on a house or apartment including deposits on getting your electricity, water, telephone and cable TV set up. You will have to take a driving test and pay for a driving license. For a couple without children we estimate this to be just under CI$10,000, but for a couple with children we estimate it to be closer to CI$23,000.





• The Cost of Living - This will invariably depend on your standard of living, but you are advised to work out a possible budget before taking the leap to Cayman. Things to take into consideration are your salary minus 5% pension and less your portion of health insurance. Then factor in accommodation, utility bills (water, electric, phone, TV, internet), running a car (gas, license and insurance), groceries, school fees, entertainment, activities, clothes, flights off the Island, savings etc.

• TheCurrencyofYourSalary - What currency will your salary be paid in? If you will be paid in US dollars, is it at the going rate? For example, you might think US$60,000 is a fair salary for a qualified accountant, but it’s actually only CI$49,200 in Cayman dollars and the cost of living is greater here than in the US. Be aware that you will pay for almost everything in CI dollars, so if you are paid in US dollars you are better off taking the money you need out of the bank in CI dollars.





• HealthInsurance - This is compulsory and it is essential that you ask whether your company will be covering more than 50% of the basic plan required by law. Premium health insurance coverage for an individual will cost at least CI$400-$800 per month, double that for a couple and triple that for a family. Though the law states you only need the basic plan, the premium plan is what you should seriously consider for better coverage. A good employer will pay at least 50% of a premium plan, including half of the insurance cost of your family. However, this will still leave you with a monthly deduction of between CI$600-$1200 per month (if you are on a premium family plan).





Useful Information • Electricity Caribbean Utilities Company Ltd. (CUC) 457 North Sound Road/Caribbean Plaza West Bay Road Tel: (345) 949 5200 • Gas Home Gas Ltd Citrus Grove Bldg., 106 Goring Avenue Tel: (345) 949 7474

• Water Cayman Water Company Limited - Tel: (345) 945 4277 Water Authority Cayman Tel: (345) 949 2837

• Telephone/InternetServices Flow - Main Office: (345) 949 7800 Logic- Tel: (345) 745 5555 C3 - Tel: (345) 333 3333 Digicel – Tel: (345) 623 3444




Cayman Islands Buying GuideHospitals/Health Centers

• Cayman Islands Hospital (CIH) - 95 Hospital Road, George Town - Tel: (345) 949 8600Fax: (345) 949 2998• TheChrissieTomlinsonMemorialHospital - 16 Middle Road, off Walkers Road, George Town - Tel: (345) 949 6066 Fax: (345) 945 1695• FaithHospital,CaymanBrac - 215 Dennis Foster Road, Cayman Brac - Tel: (345) 948 2243 Fax: (345) 948 2460• Health City Cayman Islands - 1283 Sea View Road, East End - Tel: (345) 640 4040/Emergency: (345) 526 2125• LittleCaymanHealthCentre- Spot Bay Road, Little Cayman - Tel: (345) 948 0072/Tel: (345) 916 5395 (outside office hours)




Cayman Islands Buying GuideSchools

Government

Seven of Grand Cayman’s eight government primary schools now have a Kindergarten/Reception year. The academic year for government schools starts at the end of Aug/start of Sept and runs through to the beginning of July. Click here for information on all government schools.

There are three government high schools in the Cayman Islands: two in Grand Cayman (Clifton Hunter High School in Frank Sound and John Gray High School on Academy Way in George Town), and one in Cayman Brac (the Layman E. Scott Snr. High School).

Private

Cayman has a good selection of excellent private schools, each following either the British or American curriculum. In both systems the main student intake is for Kindergarten (British) and Pre-K (US). The most popular schools have very few places available in Year 1, so think carefully if you are offered a place and decide to delay your child’s entry for a year. Students can then remain in their chosen school up to Year 13 (UK system) and Year 12 (US system).

http://www.des.edu.ky




Cayman Islands Buying GuideAbout Us

Established in 1985 Coldwell Banker Cayman Islands Realty has been a market leader since then. Its brokers have been selling real estate in Cayman since 1980 and have assembled a staff of Caymanians, Americans, and British who pride themselves in personal but professional service. Well known for their efficiency and integrity both individually and as an organization, much of our business comes from professional referrals and the far reaching Coldwell Banker network. The firm’s agents speak English, and Spanish, and have wide ranging experience.

Coldwell Banker Cayman Islands Realty has finished #1 for all Coldwell Banker offices worldwide for several years in their office category.

Our main office is an award winning Cayman style building on West Bay Road across from the Avalon. We have a Rental/Property Management section as well as an office in Little Cayman and one in Cayman Brac serving the Sister Islands. We have a client base of approximately 30,000 to which we send market reports twice each year. We are happy to send comprehensive information packages about Cayman and our Real Estate market to potential customers on request.

ViewourCaymanIslandsListings

https://www.caymanislandsrealty.com/search-listings?property_types%5B%5D=&property_types%5B%5D=&state_id=&min_price=0&max_price=100000000&nbed=0&keyword=&option=com_osproperty&task=property_advsearch&show_more_div=0&Itemid=119&list_id=0&adv_type=0&show_advancesearchform=0&sortby=a.price&orderby=desc

https://www.caymanislandsrealty.com/search-listings?property_types%5B%5D=&property_types%5B%5D=&state_id=&min_price=0&max_price=100000000&nbed=0&keyword=&option=com_osproperty&task=property_advsearch&show_more_div=0&Itemid=119&list_id=0&adv_type=0&show_advancesearchform=0&sortby=a.price&orderby=desc

Cayman Islands Buying Guide CAYMAN ISLANDS …...Cayman Islands Buying Guide Call (345) 634411a...

Documents

Transcript of Cayman Islands Buying Guide CAYMAN ISLANDS …...Cayman Islands Buying Guide Call (345) 634411a...