Purchasing a new home, a vacation or investment property is always daunting, whether it’s your first time or not. Many thousands of dollars could be saved – or lost – depending on the decisions you make along the way.
So before you buy that Cayman property for sale, here are some tips and info that will guide you in your search for your vacation home or investment property.
Know the Cayman Islands property market
Knowing the market can help you have a realistic expectation of what is and is not affordable. It will give you the confidence to make offers, whether you are underbidding or overbidding. Simply said, you’ll be able to tell when to go all out for a property and when to back off.
When conducting research, keep the location’s future in mind. Is there any new road construction or development in the area? What about the school or the conveniences? You may want to check this website for road projects in the Cayman Islands
Know that there are additional costs
A common mistake made by house buyers is to concentrate solely on the contract price. All real estate acquisitions come with additional charges.
If you’re a first-time buyer in the Cayman Islands, you’re eligible for a stamp duty exemption. However, know that there is a property Stamp Duty for succeeding purchases.
The rate of stamp duty is fixed at 7.5 percent. This rate is applied to the larger purchase price or the property valuation provided by the surveyor.
The stamp duty fee on your mortgage is another item that is frequently overlooked. That implies you’ll need funds to meet the Stamp Duty charge on your loan amount in addition to the 7.5 percent property Stamp Duty payment.
For loans of less than CI $300,000, the government charges 1%, while for loans of more than CI $300,000, the government charges 1.5 percent.
There are also legal fees to consider when purchasing a home. You should set aside 0.5 percent to 1% of the total home buying price for this.
When financing your purchase, the bank will want at least a 10% to 15% down payment for the loan.
So other expenses, aside from the cost of the property itself, that you have to provide upfront include property Stamp Duty, mortgage Stamp Duty, deposit, and legal expenses.
How much does a house in Cayman cost?
According to the Cayman Islands Real Estate Brokers Association or more popularly CIREBA, the average price of a home sold in the Cayman Islands in 2020 is just over CI$700,000. This could go up or down depending on the exact location of the property.
When you’re ready to buy, it’s best to meet with a local bank and receive a mortgage pre-approval first.
Pre-approval has numerous advantages. It makes sure you’re looking for a home in the proper price range, which saves you time.
Pre-approval also makes you more appealing to sellers because sellers will most likely choose the buyer who has pre-approval over the one who does not.
Get a real estate agent
A real estate company will save you time and money. With their expert knowledge of the local market, they can help you with your search and come up with the best option for your situation.
Check out Crighton Properties. They have been helping people like you looking for Cayman property for sale get the best deal in the market. Contact them today.