Grand Cayman Real Estate Fees
Are you considering purchasing Grand Cayman real estate? Grand Cayman is one of the world’s most beautiful and desirable places to own property. With its pristine beaches, crystal-clear waters, and warm climate, it’s no wonder so many people are drawn to this tropical paradise.
When investing in Cayman Islands property, you’ll be pleased to know that Grand Cayman real estate can yield significant returns. Cayman Islands Sotheby’s International Realty is your local expert with years of experience, a vast network, and a proven track record of guiding clients through the entire property buying process.
Read on to learn more about the fees and general process of buying Grand Cayman real estate.
The Pre-Approval Process
The first step to shopping for Grand Cayman real estate is to get pre-approval from a lender. Most banks on the island require that buyers have been residents for at least six months before they will approve a mortgage. Rates and terms will differ from one bank to another.
As such, it is essential to meet with a loan officer to obtain pre-approval for a mortgage before beginning your search for the perfect property.
Most banks require 15% down for residential homes, but some will allow 10% down depending on the purchaser’s circumstances, such as job stability, income, position, etc.
For raw land, the minimum is 50% down with 15-year amortisation; for rental properties, the minimum is 35% with a 20-year amortization; and for commercial properties, it is a minimum of 35% down, depending on the property.
If you are purchasing property as a non-resident, you may be required to make a larger deposit of 30%.
Find a Cayman Realtor That’s Right For You
Once you have the pre-approval, you can start working with a realtor to find the right property. Having the right realtor by your side is key to finding the best grand cayman real estate in a competitive market. When you work with a professional who knows the local market’s inner workings, you can navigate any fees or complexities that may arise smoothly.
Making an Offer on Cayman Real Estate
Making an offer on a cayman property is a big step, and you must ensure you understand the process.
An offer must be presented as a standard CIREBA (Cayman Islands Real Estate Brokers Association) offer to purchase document. This document allows the purchaser to include the purchase price, deposit, conditions on which the offer is conditional, and the desired closing date on which the offer is based.
Breakdown of closing fees
- You should generally budget 10-11% of the purchase price for closing costs.
- Stamp duty on the purchase will be 7.5%, while stamp duty on the mortgage will be 1% <=CI$300,000 or US$357,143; when it is more than this amount, it is 1.5%.
- The bank application fee can be up to 1%, and for legal Fees, budget 0.05 – 1%.
- An appraisal or valuation will cost around $1,500 but could be more. This will depend on the property type, size, location, and complexity.
- For property insurance or strata adjustment for insurance, budget 1%.
- In addition, most financial institutions require their mortgage clients to purchase a life insurance policy.
The Closing Process
Once all the conditions of purchase have been met, the offer to purchase becomes unconditional, and both parties can move towards closing.
The land transfer document needs to note the amounts apportioned to the real estate purchase and the chattels separately because real estate stamp duty is only payable on the real estate value.
You’re looking for the perfect piece of paradise, and we’re here to help.
The Cayman Islands Sotheby’s International Realty team has decades of experience and local knowledge that can help you navigate the Grand Cayman real estate market. Our exclusive listings include some excellent properties sure to catch your eye. Get in touch with us today so that we can help you find your piece of paradise.