Buying a Condo in the Cayman Islands – The Ultimate Guide
We put together this guide for investors considering buying a condo in the spectacular Cayman Islands.
Whether you have been toying around with the idea of buying a condo to relocate, for retirement, as a vacation home or as an investment offering high income-generating potential, this guide is designed to cover all aspects of buying an apartment from finding condos for sale in the Cayman Islands through to the various steps involved in the purchase process.
Is Buying a Condo in the Cayman Islands a Good Idea?
How Much Does it Cost to Buy a Condo in the Cayman Islands?
Can Foreigners Own Condos in the Cayman Islands?
Where are the Best Places to Buy a Condo in the Cayman Islands?
How Do you Buy a Condo in the Cayman Islands?
Getting a Mortgage in the Cayman Islands
Investment Opportunities – Explore Condos for Sale in the Cayman Islands
Buying a condo in the Cayman Islands offers investors the opportunity to own property in one of the Caribbean’s most dynamic real estate markets and a dream destination for beach and diving lovers.
For buyers looking for a high quality of life in postcard-perfect Caribbean surroundings, the Cayman Islands is the perfect choice. This trio of islands is famed for its world-class white sand beaches, such as Seven Mile Beach, and views of turquoise waters and reefs which are ideal for diving, snorkeling and other water sports. Idyllic Caribbean vistas are complemented by amenities, infrastructure and entertainment destinations of the highest quality such as a fabulous culinary scene, lively nightlife and duty-free luxury shopping. All this and more has made the Cayman Islands a fast growing tourism destination which welcomed a record half a million air arrivals in 2019. So whether you want to move to the Cayman Islands or just spend vacations here, it is a great place to live and one of the hottest places in the region to invest in property.
For buyers looking for investment properties in the Cayman Islands offering the potential to generate a strong Return on Investment, this breathtaking archipelago also makes a lot of sense. As one of the world’s leading offshore financial centers, the Cayman Islands has a thriving economy and a strong local market for rental properties. Each year a stream of visitors adds to the demand for accommodation. In 2019, for example, the number of air arrivals rose by 8.6%. The demand for high quality rental accommodation from both local residents and international visitors provides the ideal opportunity for investors to earn significant income via the property rental market.
Whether you are considering buying a condominium for personal use or as an investment, the Cayman Islands real estate market is currently booming. With supply constrained and demand ever increasing, prices are expected to continue to rise and investors are set to benefit from tremendous capital appreciation over the medium term.
Read more: Why invest in the Cayman Islands?
The cost of condos in the Cayman Islands varies according to several factors such as location, size and perceived value.
Prices range from approximately US £250,000 to US £300,000 for a hotel suite-style unit or a smaller 1 bedroom unit in areas with lower average prices such as East End up to US $1.5 million to US $7 million for ultra-luxury beachfront condos for sale in Grand Cayman set directly on the most desirable stretches of Seven Mile Beach.
Yes, foreign nationals can buy condos in the Cayman Islands and the Government of the country welcomes foreign investment.
There are no restrictions on foreign buyers acquiring real estate in the Cayman Islands and, unlike in other destinations in the Caribbean and Central America, foreign buyers do not need to apply for any kind of license or permit to purchase property.
There is no annual property tax and no capital gains tax on the sale of a property.
Property can be purchased in the name of an individual or corporation which can be more tax efficient and allow for a speedy resale.
That depends very much on your personal preferences and objectives.
As the most developed and populous island in the archipelago, Grand Cayman is far and away the most popular destination for property buyers investing in the Cayman Islands.
Condos for sale in Seven Mile Beach overlooking the beach and the sea are particularly sought after, as are condos in the West Bay area.
For those in search of somewhere quieter, Rum Point offers a tranquil alternative, while for buyers on a more modest budget, be sure to take a look at East End.
Buying a condo in the Cayman Islands is a relatively straight-forward process. Below we have outlined the typical process for a new construction condominium unit.
Firstly, once a preferred unit has been selected, the buyer will typically need to sign a purchase and sales agreement and pay a deposit (e.g. 10%) which will be held in an escrow account.
The buyer will then need to make a series of stage payments (e.g. several payments of 10% to 15% each) upon completion of each phase of construction (such as completion of the ceiling/exterior walls).
The balance of the purchase price (e.g. the final 20%) should be transferred upon completion of construction and ownership of the unit will be transferred to the buyer.
For more detail on the purchase process, please see our guide to buying property in the Cayman Islands.
It is possible to buy a condo in the Cayman Islands with cash or a mortgage.
Both local and international institutions offer financing options to residents and foreign buyers alike for the purchase of residential property.
In the case of non-residents, up to 70% financing is typically available, which would therefore require a minimum down payment of 30%.
As you would expect at home, upon receipt of your application the financial institution will conduct typical checks to assess your suitability for a mortgage.
Should your application be approved, you should expect interest rates to be a little higher than in the USA, Canada or Europe. Mortgage terms tend to be in the region of up to 15 to 20 years.
Ready to begin your search for condos for sale in the Cayman Islands?
To find investment opportunities from across the islands from luxurious residences on prestigious Seven Mile Beach to condos in serene East End, explore condos for sale in the Cayman Islands on our website.
Please note that our site only showcases a sample of the condos and apartments available.
Contact 7th Heaven Properties, the Luxury Caribbean Property Specialist, to explore the full range of investment opportunities in the Cayman Islands.