Finding your dream Caribbean property is the first, and most fun, part. But buying a second home here has traditionally been the preserve of cash buyers, with few attractive financial deals available for those who want or need to take out a loan.
That is changing now, however – much to the delight of the many buyers whose first question, after finding a property they love, concerns the availability of mortgage finance. Developers know that in a competitive market, being able to offer buyers access to mortgage loans with attractive terms – either directly or via a bank lender – can make the difference between sealing the deal and a buyer looking elsewhere.
We take a look at some of the best property investment options with financing available for qualified buyers. Terms vary depending on individual circumstances, but each of these developments is helping to ease the path to Caribbean home-ownership for overseas purchasers.
Custom-Made, Turnkey Villas with Construction Loans and 70% Mortgages
Cabarete, Dominican Republic
Offered at: From US $199,900
On the spectacular northern coast of the Dominican Republic, alongside El Choco national park, 10 minutes from the beaches of Sosua and Cabarete and 15 minutes from Puerto Plata International Airport, there is the opportunity to buy a custom-built home within a beautiful 25-acre residential community.
Buyers choose their preferred lot and villa model, ranging from two to six bedrooms, then wait and watch their fully turnkey home take shape. Residents’ amenities include tennis and basketball courts, concierge services, 24/7 security and a beach club, and all villas come with ocean views.
To secure a lot, you will need to put down a 30% downpayment. A construction loan is available until the villa is built and then qualified investors are eligible for a loan from Scotia Bank, with rates likely to be around 6% over a 15-year term.
Read more: Homes for sale with financing in Cabarete, Dominican Republic
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Fully Operational Global Branded Resort with Mortgage Financing Options
Ambergris Caye, Belize
Offered at: From US $391,900
The first global luxury branded resort in Belize offers a collection of customizable homes and a lively marketplace of shops, restaurants and bars to ensure this new-build village on beautiful Ambergris Caye has an instant buzz and sense of community.
The island has one of the Caribbean’s hottest emerging real estate markets, offering a good value alternative to Cancun or Cabo San Lucas. The resort sits on Belize’s Caribbean coast, just 10 minutes from historic San Pedro – home to the world’s second biggest barrier reef and a town infused with the essence of Belize in its shabby chic downtown, fishermen’s community and palm-fringed beachfront.
The 60-acre resort, whose facilities include a 15,000 square foot Miami-style pool and private beach club, offers exceptional value with its two- and three bedroom townhouses and family homes managed by one of the world’s largest hotel operators.
The resort also offers something new for Ambergris Caye: bank financing options for buyers, opening up its real estate offering to a far wider range of investors. Atlantic International Bank offers home loans to qualified buyers with a 9% interest rate and for up to 60% loan to value, payable over approximately 20 years. No life insurance is required – only building insurance and a credit score of 650. Buyers can secure a loan within four weeks (plus up to three weeks for disbursement).
Read more: Homes for sale with financing in Ambergris Caye, Belize
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Prime Waterfront Living with 85% Finance
Grand Cayman, Cayman Islands
Offered at: From US $2,300,000
Set on a private peninsula near The Cayman Island’s Yacht Club, the three-bedroom homes are just a couple of miles from boutiques, grocery stores, restaurants, sport facilities and the world-famous Seven Mile Beach. It’s a haven for those who like their boats, with a full-service marina on tap in the yacht club. And it’s a location that makes life easy for home-owners, with first class leisure and lifestyle facilities such as a tennis court, fitness studio and BBQ pavilions on the doorstep.
As a further incentive, the developer’s private lender, Butterfield Bank, offers up to 85% financing to qualified buyers, with a maximum 25-year term. The developer has negotiated preferential interest rates, with an attractive prime lending rate during the construction period and a favorable fixed rate for two years after completion.
Mayan Magic with First-Class Facilities and Up to 90% Mortgages
Riviera Maya, Mexico
Offered at: From US $121,500
Tulum is one of the hottest spots on Mexico’s Riviera Maya, but this new development of contemporary, high spec condos, lots and homes in Akumal (a low-key and laidback destination just 20 minutes from Tulum) offers a level of amenities beyond other retreats, including the area’s best golf course, multiple pools, several gyms and residents’ concierge services.
Two- and three-bed condos (starting at US $323,000) set on the lake that runs along the golf course have obvious lifestyle appeal, but they also offer investment sweeteners including access to a property management service and rental program, and various payment options for buyers that all come with developer financing.
For home sites in one particular block (starting at only US $121,500), qualified buyers can make a downpayment as little as a 10%, and the remaining 90% over the next three years with no interest payable. Payment options for condos allow for downpayments of between 20% and 50%, followed by stage payments (generally monthly installments) and in many cases interest free.
A Heavenly Location and a Handful of Willing Lenders
Paradise Island, Bahamas
Offered at: From US $799,000
Waterfront. Tick. Sought-after address with high profile neighbors (One&Only, Atlantis, Ocean Club). Tick. Championship golf course, marinas and one of the most beautiful beaches in the Bahamas all a short walk away. Tick. Panoramic views of Nassau and blindingly blue ocean. Tick. How about luxury features such as private elevator entry, large terraces and top of the range appliances? That too.
This new complex of two- to five-bed harbour-front condos on Paradise Island provides precisely what buyers want in The Bahamas – plus there is an extra draw: Scotia Bank, Royal Bank of Canada and CIBC all offer competitive mortgage options for non-resident buyers.
As a guide, Scotia Bank offers up to 70% LTV, with a maximum 25-year term, for a minimum US $250,000 loan. There are competitive fixed rate options for one, three or five years. Also factor in to the financial equation the additional perks of investing in property in the Bahamas including freedom from almost all taxes including income, inheritance and capital gains taxes in a sophisticated, stable market, and the option of applying for permanent residency.
Read more: Condos for sale with financing in Paradise Island, Bahamas
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Studio Condos in a World-Famous Caribbean Capital, and Finance Deals with a 7.45% Interest Rate
Offered at: From US $145,000
A rare opportunity to purchase new-build, contemporary super studio apartments within a gated development in the Jamaican capital of Kingston, with bank financing available from various local providers.
This pre-construction sale offering of 48 super studio condo units is considered one of the premier developments in Kingston 8. Each unit offers 720 square feet of stylishly designed, open-plan space and private balconies overlooking lush, landscaped gardens. Residents have access to communal facilities including a pool and BBQ area, and the development is a short walk from the Manor Park shopping center.
Jamaica has a well-developed real estate market with high quality homes that can generate good rental income, thanks to a growing local market, surging interest from the Jamaican Diaspora, the huge popularity of Jamaica as a holiday destination, vibrant Airbnb market and excellent air access from Europe, the USA and Canada.
For investors with an eye on this high yield investment, the availability of bank finance via Jamaica-based Lead Mortgage Brokers is an additional enticement. The mortgage brokerage has arranged a special rate of 7.45% for qualified buyers, subject to the applicant satisfying various conditions.
Read more: Condos for sale with financing in Kingston, Jamaica
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A Coastal Resort with Great Neighbors and Up to 95% Finance Deals
Palmas del Mar, Puerto Rico
Offered at: From US $229,000
Within the sprawling green 2,700 acres of Palmas del Mar – a resort in the east coast town of Humacao, Puerto Rico, well-known for its tight-knit community – the condos and penthouses for sale in this 46-acre development are surrounded by lakes and pristine beaches. The capital San Juan and its international airport are just 45 minutes away.
The three-bed condos are generously sized (1,529 to 1,897 square feet), with open-plan interiors, and the community’s residents enjoy use of five pools, a clubhouse, and running and walking paths overlooking the Caribbean Sea. They also have the wider resort’s facilities on tap, including two championship golf courses, an equestrian center, a marina, hotel and casino and various restaurants.
The developer is offering incentives to buyers worth $20,000, including new kitchen appliances and one-year athletic club membership, and the condos are eligible for various tax benefits. Local buyers who intend to live there full-time may qualify for a loan of up to 100% on a first home, under the Rural Loan program. Finance options are also available to qualified second home and investment buyers via local, private banks.
Read more: Condos for sale with financing in Palmas del Mar, Puerto Rico
View similar properties: Puerto Rico real estate
Leveraging Local Lenders
The latest offerings from finance lenders in the Caribbean are changing the landscape for those who long for a home in the region, opening up markets to buyers who couldn’t otherwise make the money side of their purchase stack up.
Having a Caribbean second home will always be an aspirational and luxury purchase – for many, it’s a lifelong dream come true. But it needn’t just be a dream that can be enjoyed by the cash-rich as local lenders come to the fore with competitive deals to attract overseas buyers. Whether it’s an emerging second home market such as Belize or a well-established, luxury location such as Grand Cayman, there are new resorts in prime locations that – thanks to the accessibility of bank finance for qualified buyers – a far wider audience can consider calling home.
Find Out More
This article was originally published in Issue 8 of The Caribbean Property Investor Magazine.
For details on all these properties for sale in the Caribbean and many others with owner financing, developer financing or bank financing, contact 7th Heaven Properties.
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