Is Now a Good Time to Invest in Cayman?
Submitted by Anonymous on Mon, 06/25/2012 - 12:18
Hi there, we are considering buying a small property on Grand Cayman that we can use several months out of the year to escape the cold Northern Winters, and also use as a rental property (not high luxury) the rest of the year. I've been seeing all of the governmental and financial items posted both in the news and on the forums, and I am growing concerned that now may not be the best time to make such an investment, especially since it is more than just a rental property, but a part time home-away-from-home as well.
I'm looking for opinions and insights from locals and/or ex-pats that might shed some light on the subject. Thanks!
Email this pageLatest Classifieds
- Condo for rent
- George Town Landfill to close early
- Grand Court Juror Report Date Changed
- Government Schools Begin Registration
- Church Street Closed to All Vehicular Traffic
- On Sales : Samsung Galaxy SIV / Apple iPhone 5 64GB
- Sales On: Apple iPhone 5 32GB, Samsung I9300 Galaxy S III / Galaxy S4 Buy 2 get 1 free
- Affordable South Side Home for Sale
- house for rent
- car for sale
Comment Policy
The comments posted do not necessarily reflect the views of CNS or any individual staff member. All comments are posted subject to approval by CNS. Read more
Recent Comments
- Yes thank you Bodden Town but
1 min 17 sec ago - Glad you left keep on going
2 min 27 sec ago - What? Really? Here come the
3 min 7 sec ago - UDP just accept your defeat,
3 min 48 sec ago - We vote the same party in and
6 min 54 sec ago - Just as long as its not a UDP
7 min 8 sec ago - I am happy that God has made
8 min 9 sec ago - Hope Elio takes good notes.
9 min 40 sec ago - Please not Buzzard. He is
9 min 45 sec ago - If the ppm had any sense they
9 min 59 sec ago
Search
Follow CNS via ...
Facebook Twitter RSS
Comments
I live in the Cayman Islands.
I live in the Cayman Islands. But no one could ever pay me enough to live on Grand Cayman, not even part of the year. If you want a safe island to live, try looking into buying home or land on either Cayman Brac, or Little Cayman. These two little islands are 1000 times safer than Grand Cayman. Grand Cayman was once a safe place, but not anylonger. I leave my doors unlocked 24 hours a day, 7 days week, 365 days a year. I love the privacy that the Brac offers me. The Brac or Little Cayman is where it's at. But take your pick. Hope you find what you are looking for... Good luck. Hope I can say to you one day, Welcome to the Brac.
Never Been a Better Time To
Never Been a Better Time To BUY!
Going to Pass
We just got back from a week in Grand Cayman, and loved our trip. We did notice that since March of last year, things seemed "different," somehow dirtier, more like St. Thomas or Jamaica than what we remember. Still an absolutely wonderful place, but just not quite the same.
We actually looked at 6 properties, and man, for $210k US, it's amazing what a bunch of dumps there are, we were definitely shocked. One of the properties actually had a partially drained and GREEN pool. After looking, it seems we're about 50% short as far as realistic budget for not buying total crap, so we'll be looking in other areas (Orlando) and hope to piggy back that into either more long-term renting (likely) or possible future purchase, if something changes.
I was amazed again to see how many properties are for sale, and the relative oversupplies' lack of effect on prices. In Cayman Kai, it's got to be 50% or more of the homes are for sale (it seems, with all of the for sale signs.) Yet, everything is drastically overpriced. Evidently, the law of supply and demand isn't doing it's thing since most owners are not in a "have to sell" situation.
We still love the island, and hope to come back yearly, but as vacationers, not owners. Thanks for all that commented!
The answer is NO!
The answer is NO!
Cayman is a wonderful place
Cayman is a wonderful place to spend time. I spent 9 happy years there.
Rent, don't buy. The condo market is over built and you will get good rental deals if you rent for 4 or 5 weeks at a time.
Put your capital in a safer venu.
You are suggesting moving
You are suggesting moving apartment every 4 or 5 weeks, and you spent 9 years here? That would amount to over 45 moves.
I find your advice suspect, and most likely mischievous.
The original poster was
The original poster was looking for a holiday retreat, not a full time residence.
When I was on-island, I moved only a couple of times to get nearer the water (worked out well except for the time after Ivan, DOH!).
Right now, long term or short term, I still recommend putting capital in other countries and renting in Cayman. Keeps your capital safer and helps out your Caymanian landlord. Win-win.
No one should buy a beach
No one should buy a beach house as an investment anywhere. If you make some money on it, fine. If you don't, you have a BEACH HOUSE for god's sake. Just like Charlie Harper.
Thanks for the clarification.
Thanks for the clarification. The negative inference is withdrawn.
Investment
I see plently of money being pumped into the ground to as a way to make dirty money clean.
Wow...leave for a few days...
Look at all of the comments, that's great, I really appreciate the candor and honesty. I don't know how much is heresay and how much is fact, but it has given me cause for concern.
We have begun to seriously consider other locations in terms of ownership, primarily Orlando. Housing is dirt cheap (I can get a 5bedroom stand alone house for the same price as a small condo.) Of course, it's Orlando. We're focusing on areas around Disneyworld, which is a family favorite, and without at least 80% of the international-ownership rental hassles. We can actually have higher ROI due to the increased demand, and way less cost of ownership.
Another nice thing is that we can then hop a flight and spend some time in The Cayman Islands since we really do love the area so much.
Looking forward to reading more comments!
Cayman is a lovely place to
Cayman is a lovely place to come to, visit or stay. Like any other place in the world we do have our concerns too, however saying that , I still sleep with my windows open. I still wave at the oncoming traffic which is a caymanian way of saying hello even if I dont know you.
purchasing in the eastern districts is a far better deal, as people want to be in an area thats not over populated, so come on down and mingle with the locals, there is still a lot of people who love and care about cayman, other than the nay sayers.
Maybe someday I can say, welcome to our island.
I would recommend buying in
I would recommend buying in Cayman Brac. With the right home, marketing, and the perfect host/manager, you will get a good return on your money. I know a lot of the homes rent quite well. Cayman Brac is quiet and have a very loyal return visitor base.
Or you could just take a pile
Or you could just take a pile of money into your back yard and burn it.
The buyer does probably want
The buyer does probably want somewhere with a modicum of civilisation and services.
That is a much wiser
That is a much wiser investment plan. Investing here would be very very risky - even the long term residents don't buy unless they need points to get to extend their residence riights.
Speak for yourself! I am a
Speak for yourself!
I am a long-term resident and have made five real estate investments over the last 25 years; I do not regret a single one of them. None of them were made to get / extend residency rights. I decided to invest the bulk of my income in the country I have chosen to make my home, rather than in an extravagant lifestyle.
Past performance is not an
Past performance is not an indicator of current conditions. After a period of rampant property inflation, to which the poster alludes, poor zoning, overdevelopment, a fall off in offshore workers and rising crime and corruption all mean that Cayman is a terrible investment risk today.
You are correct about what
You are correct about what you say about Grand Cayman. BUT however, Cayman Brac and Little Cayman are by far the safest islands in the Caribbean. There's land I think what I read was 110ft X 110ft on the bluff that was as low as 19 thousand C.I. I also read about 200 ft of sea front property X I think it was 300ft deep' that I know for a fact that can be bought for well under 150 thousand C.I.. I saw this sign in the window of Century21 just the other day. So they have them listed. The Brac and Little Cayman are not overdeveloped like Grand Cayman, and there isn't any zoning laws here at all. You can run a bussiness out of your home here if you like, on any part of the island. Little Cayman is the same way.
Good luck to the buyer. :)
Definition of a Con Artist:
Definition of a Con Artist: Someone who makes wealthy, intelligent people feel stupid. Leave these nice people alone.
I am not sure if you are
I am not sure if you are calling me a Con Artist, but I have spoken the truth about my personal experience. Furthermore, I have not (thusfar) provided advice to the original poster, nor do I have any property for sale. I have simply responded to a post that makes a sweeping statement about "long term residents" that does not apply to me.
To the original poster, tread carefully, but be aware that many of the negative comments are (in my opinion) over the top. In your position I probably would look into (resale) timeshare. I doubt I would want the year round liability of owning a property.
Truthseeker.
P.S. It would be easier to maintain intelligent discourse with posters if almost everyone was not simply "Anonymous". Why not create a site pseudonym or "handle" if you wish to discuss matters without revealing your identity?
You can call me Kevin Bacon.
You can call me Kevin Bacon. The above shouldn't have been directed at you if you truly believe that today is a good time to invest. I think that Cayman is hoping for a miracle; someone with Katie Holmes-esque stones to run a blitzkrieg on the bad guys. I live on TCI now.
Kevin Bacon
Thanks for the reply,
I was entirely responding to comments rather than the OP question.
No, I don't "truly believe" today is a good time to invest, so I guess that makes me a "Con Artist" after all. Nor do I "believe" it is a bad time. If confidence is down, so likely are prices.
Actually, I don't put much faith in "beliefs" at all. My focus is long term, and I have no more information about the long term prospects of the Cayman real estate market than I do about the impending collapse of the US financial system and Stock Market (persuasively argued by some).
I put some hope in the fact that there have been many downturns (and rebounds) in the last 25 years, and despite the fact that I don't agree with all the recent real estate developments, their principals (Dart etc.) are putting a lot of money where their mouths are.
Good luck in the TCI. I was there (Provo) many years ago and thought it was like Little Cayman today with wonderful, unspoiled beaches. But a vision of making a real estate killing there required development that in my opinion would have destroyed the place.
I also thought Grand Cayman had a better handle on responsible development, with the infrastructure to cope. Maybe I was wrong.
P.S. I had to Google who is Katie Holmes! Moral of the story, maybe don't take investment advice from a recluse?
Truthseeker AKA ConMan
Sounds like a excellent plan
Sounds like a excellent plan since clearly you are looking into your future. The state of the government in Cayman is such that you try to plan for the next day but it is truly impossible to predict what will happen or have any means of affecting it.
The government of Cayman has
The government of Cayman has been run by either Mac or Kurt for the past two decades, and the economy has ticked on nicely despite them.
Has anyone mentioned the
Has anyone mentioned the $1000 a month electricity bills yet? Tourists do like their AC way up high.
My wife and I looked for
My wife and I looked for awhile at Grand and passed on it. We also looked at St. Thomas and decided against that. We now own a condo on the Brac and love it there. We got a much better deal and do not have to hassle with life on Grand. The pace on the Brac is much more laid back and considerably safer. The Brackers are much more friendly than those encountered on Grand. And last, but far from least, the diving in the Sisters is incredible.
There are great deals to be found all over the Brac whether it be a house or a condo. Just my two cents. Good luck.
I'm building a beach house
I'm building a beach house right now. Land prices are about as low as you will ever see but the listings are mostly far above actual market.. Many listings are not really serious, they're just hoping for a Russian oligarch to show up. Just make an offer and don't believe the agent when he/she says that there is suddenly another "interested" buyer. The market is thin but resale is not a problem if you price it at a realistic level. Spend a year looking before you buy. My total acquisition and construction cost will be about 1/2 the current listing prices for comparables so I'm nearly positive I could bail out pretty quickly if I had to. If you buy a condo buy in the aftermarket only, not from the developer, and you'll be fine.
If you are looking at a long
If you are looking at a long term investment, it may be worthwhile, but essentailly the facts are:
1) Stampduty is the only property tax and you pay it up front on purchase and can be anything from 5% to 7.5% of the purchase price (less fixtures). You can find out the stmap duty at landsurvey.ky, but it is essentially high if on the water
2) when you sell, if you use a realtor they are expensive at anything from 5-7.5%
3) the market is fairly stagnant as the moment especially with 2 bed condos in land as so many have been built
4) 10% tax on rental income from tourists
5) If you are living in the US or UK, if you do make a profit it will be taxable in your country even id cayman has no capital gains taxes
6) Stay over tourism is increasing, but we and our tourism sphere countries are still in recession.
7) House insurance is very high, look into this, this is due to GC being hit directly by Ivan in 2004 and KY being in a busy hurricane corrider
8) while there are currently crime and political shaningans, on the ground it is not that noticable, but the island is less safe than 8 years ago, but still safer then other countries and the people Caymanians and expats all are very friendly to our tourists
Personally if you are looking for a holiday home, a time share may be a better option for you
Some answers for you:
Some answers for you: Property insurance is typically in the 1.8% replacement value range. Large properties inland can be insured for closer to 1.5%. Anyone who runs up a CUC bill of $1,000 per month obviously doesn't know what a thermostat is or what an off-switch is for. I have a 3,000 sq ft house, new construction, and depending on the season my bills run from 125 to 400 per month, and I make no sacrifices, I just use my head.
Expat, that was a pretty
Expat, that was a pretty objective assessment. A far cry from one of the earlier hysterical posts. Thank you.
Be sure to check with the
Be sure to check with the Department of Tourism regarding rentals. Renting a property less than 6 months is considered short term rental and you will be breaking laws if you rent without a license. Many people buy a property and live a few months of the year and the other months rent to tourists. At least it will help pay those big insurance rates.
I cannot support the ill
I cannot support the ill information based on emotion and little but anger as the generator of this poor suggestion. I trust that you have better insight than that to follow such shallowness.
Truth is Cayman is still far better of then the US and UK. No property taxes to mention, except the first buy and 10% on the home rental when renting to tourists. Of course you have to add maintenance cost and possible hurricane damage.
Cayman has been working on the gun/crime issue (and doing a great job) and sure as hell beats Brooklyn (my old home town) and Maimi (my other home town). Cayman, espceially Cayman Brac and Little Cayman has a diff feel than Grand Cayman. However Grand Cayman (my new home town) is just fine. I still sleep with my windows open and never had a problem thus far.
Most of the issues that I've seen here lies much between the "poorer" out of work migrants and the disgruntled white or blue color "know it all migrants"...sorry the best that I can come up with.
Do a cost -benefit analysis and make your own decision on this. I think it is still worth it.
KN
Oh, gee- your comps on guns
Oh, gee- your comps on guns and crime are Brooklyn and Miami. And you leave your windows open on the island. Tell me; Is the customary greeting at your local hospital ER, "Shot or stabbed?"
This comment is also over the
This comment is also over the top, but in the oppositie direction.
Property taxes are inevitable
Property taxes are inevitable as the government is opposed to any form of tax on income and new long term revenue is a necessity. In all likelihood such a tax will work to shift a higher burden on non-resident owners.
Cayman is now faced with
Cayman is now faced with escalating gun crime, is riddled with corruption and the offshore workers are leaving in droves. Prices are only going to go in one direction and that is south. Anyway Cayman is an awful investment - one has to pay discriminatory stamp duties and exorbitant realtors fees so for every $100 invested effectively $15-16 is lost immediately on entrance and exit costs. Add to that the high risk of future property taxes to avoid locals having to pay income or sales tax and the risk again of non-locals paying higher rates of that tax and it all makes for a real messy idea. The only reason expats buy a house here is if they want to qualify to stay more than seven years because property ownership scores points on the application. There is no other reason for a non-local to buy.
A lot of bitterness out
A lot of bitterness out there. Do you still live in Cayman? If so, why? You obviously detest the place.
Always a paid politico on
Always a paid politico on every Cayman forum. Show me an owner who says that they wouldn't dump their little place in the sun here in a heatbeat if they could and I'll show you a liar. Shall we talk about the CUC monopoly for starters? Or how about those strata fees which are as up and up as the Cayman budget? I'm not the previous poster but yes, I do despise the place.
I'm with you. I bought in
I'm with you. I bought in Cayman and have regretted it ever since. There is zero chance of me getting my money out, ever. Crime is to the point where I don't vacation there anymore, and last I visited half my favorite restaurants had closed down along with a lot of other businesses. With the corruption running so wild they don't even try to hide it anymore, and the economy remains in full decent from having fallen off the cliff about 4 years ago, if I could sell my property AT ALL I'd be luck to cover the mortgage I'm paying on it. Worst decision I ever made. Be afraid people, be afraid.
1/2 your favourite
1/2 your favourite restaurants? I can't think of any that have closed down in the last year or two. Please do tell which of your favourite establishments have had to close their doors?
Hmmm- the last time I was on
Hmmm- the last time I was on island Rum Point Restaurant was closed for the season and Kaibo closed at 8:00...
Ate at Kaibo Yacht Club
Ate at Kaibo Yacht Club Friday. It was great. Rum Point Restaurant has been open as well with lots of activity. The ferry is running too. You must be coming in August.
Driftwood and Portofino.
Driftwood and Portofino.
Portofino
Portofino reopened as Tucks or Tucker an Aussie type deal. No truth in the story of restaurants closing.
It's Tukkas, as in "tukka
It's Tukkas, as in "tukka bag" from Waltzing Matilda. Food's pretty good although I confess I liked it better as Portofino.
Driftwood? a beach bar not a
Driftwood? a beach bar not a restaurant, property sold raised the rent too high for a sleepy area. Portofino, closed, again, property sold, raised the lease and management moved on, a new restaurant moved in, so if its scare mongering you are trying to scrape up you should actually get the facts.
After reading some of these post I do beleive that the majority of them are just being plain down dirty . Cayman is still a great place to live and invest, a lot of places in the U.S , G,Britian or Canada are as bad or worse. So please be honest and not just trying to tarnish as most of you are doing. I moved here 20 years ago and I'm still loving it.
You need to know the previous
You need to know the previous owners of The Driftwood as well as the patrons. They were attempting to keep the 'real Cayman' alive. You're just another paid politico.
It was a crappy joint and the
It was a crappy joint and the neighborhood is better off without it.
I have a beachhouse in Cayman
I have a beachhouse in Cayman Kai and am happy the Driftwood is closed. It was an eyesore and a negative for property values. A year ago there were 6 lots for sale on Rum Point Drive in the Kai and today there is one. Count the new houses that have gone up in the last two years, There are at least a dozen.
Post new comment