Buying a home in the sun has always been a dream held by many people, and now it is more possible than ever.
But as with any real estate transaction, basic common sense applies and a few key points should be taken into account before signing on the dotted line.
1. Choose your location. You probably will have fallen in love witha particular island, so finding your dream home should be relatively easy. Don’t be seduced into buying on speculation. It is far more sensible to buy a property on an island you know and love rather than in a location some one predicts is the Next Big Thing. There are never any hard and fast guarantees with investment of any kind, and real estate is no different.
2. There are homes on the Caribbean islands ranging from multimillion dollar mansions featuring a custom built cinema and private beaches to simple apartments with one or two bedrooms. Deciding on budget is the next step. Are you buying a holiday home or a villa for rental? Sound advice is vital either way
3. Find a reputable real estate agent. Professional advice and guidance is crucial if your purchase is to go smoothly and most agents in this category can help not only with putting together a portfolio of suitable properties to view but also with finding suitable attorneys and making sure the entire transaction goes through as smoothly as possible.
4. Be aware that regulations and local requirements will vary from island to island, depending on the country. For example, The British Virgin Islands are a British Overseas Territory and the legal system is based on English common Law and locally enacted legislation. Find out more about the island in which you are interested as this will affect your choice of attorney, tax situation, financing the project and many other issues which you will need to address. See our A-Z of the islands for pen nail sketches and visit our map.
5. Often, non residents will have to get permission to buy from local banks or financial institutions. Again, this is an area where a reputable real estate agent can advise when you make your initial enquiry; Purchasers are strongly advised to ensure that all arrangements with respect to financing are in place before entering into binding agreement. If you are buying for tax purposes, check with your financial advisor first. Often, you'll get a tax advantage when you purchase in the islands. The US Government, for example, offers a number of tax advantages to purchasers of second homes out of the US boundaries.
6. Property transfer fees, stamp duty legal, fees etc. will vary from country to country and this is something to establish with the attorney before making a final decision.
7. Be aware of import duty on possessions and furnishings.
8. If you are planning on building your own home, First class architects and contractors are available on the Caribbean islands with good standards of local labour and materials. Contact the relevant High Comission for details of costs and any restrictions.
9. Purchases fall into three general types:
- A home in a developer’s planned "community."
- A villa.
- A time-share or condominium.
Contact relevant High Commission not Embassy or Consulate - (see Directory section)
10. Several Caribbean islands now have planned developments for you to investigate. These communities offer many amenities and the convenience of a planned setup. They’re often quite luxurious and offer prestigious items such as big-name golf courses.
11. Affordable villa properties are available on many Caribbean isles. Of course, the sky’s the limit here - you can spend as much as you want to! But the fact is that you don’t have to. The home could also be used as rental property for one or more weeks a year, when you’re offsite, and make money to help pay off the cost. Always be careful to choose a well-established agency to assist you if you decide to offer your home for rent. Understand local ways of doing business and local property conventions.
12. There are a number of timeshare properties on the islands.. If you just want a place for a couple of weeks a year, this is a great way to avoid the maintenance and upkeep of a property, and still enjoy "ownership" of a place. Many of these timeshare condominiums or villas have wonderful amenities to offer along with the convenience of being ready for
occupancy when you arrive. Happy House Hunting!
