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This section provides detailed information on how to find a home in the Cayman Islands. We give an overview of the residential areas of Grand Cayman. We talk about renting or buying a property in the Cayman Islands and we even give you insider wisdom on what pitalls to avoid. Finally we list temporary accommodation to tide you over for your first few weeks in Cayman.
Overview of the Cayman Property Market
The real estate market in Cayman is simple and straightforward. Apart from a one-time stamp duty, there are no annual property taxes or restrictions on foreign ownership by individuals and title is granted and guaranteed by the Cayman Islands Government. Title to land is recorded in a modern, reliable and centralised land registry, where every plot of land is mapped and given a descriptive title number based on its location. Any encumbrances such as mortgages, rights-of-way and cautions pending contract are recorded on the title register of that parcel of land. Vacant land can be owned and held for future investment potential. To date, Cayman real estate has proved to be an attractive and profitable investment. Most law firms in Cayman have attorneys who are experts in property law and it is recommended you consult one before signing a contract. Fees are negotiable, but usually less than 1% of value. Owning land in the name of a corporation is possible, but there are strict rules to be followed and a lawyer’s advice will be essential.
Buildings are subject to planning regulations and are required to be constructed to high standards. These are monitored by the Cayman Islands’ Building Control Department, which carries out inspections on such things as building sites, plumbing and electrical work. Construction companies now have to follow the guidelines of the recently gazetted Builder’s Law. Construction materials have to be imported and are subject to duty on the landed value, usually at 20%. Consequently, the cost of building is considerably higher than in places where materials are more readily available. Houses, apartments, condos and townhouses are available for purchase, as are time-shares. Prices vary depending upon location, size, design and other features. Water and beach front properties, particularly those on Seven Mile Beach, command high prices.
The Cayman Islands Real Estate Brokers Association
Buying and selling properties in the Cayman Islands in the 1970s and 1980s used to be a bit of an ordeal as all real estate companies kept new listings to themselves; some realtors were better trained than others; some charged higher commissions than others, and not everyone followed the highest standards of business practices. In 1987 a number of realtors agreed to form The Cayman Islands Real Estate Brokers Association (CIREBA) which is based on the North American style of relationship between realtors.
Today the association has over 175 sales associates from about 30 member companies – 80% of all realtors in the Cayman Islands. All CIREBA listings are kept in a central database, known as the Multiple Listing System, or MLS, that can then be accessed by any member agent. The MLS encourages close working relationships between customers and individual realtors – indeed, most realtors say that it is important that customers pick a good realtor that they can work with and then stick with them exclusively, as all members have access to the MLS database.
One of the association’s founding aims was to “improve and elevate the general knowledge of persons engaged in the real estate business”. They have a customised training course that all realtors must pass before they can start working with customers and clients and gain membership of the association. The programme takes into account legislative matters, business ethics and due diligence requirements (which are among the toughest in the world).
Current Overview of the Property Market (Stats From Cireba)
Currently in the Multiple Listing System there are 2,049 active listings totalling US$1.73 billion. There are 125 three bedroom homes on the market at an average price of US$730,922. There are 390 two bedroom condominiums listed Island-wide with an average price of US$528,922. There are 590 residential/agricultural parcels of land for sale Island-wide at an average of US$390,940. To date so far this year (July 2008) 335 listings have been sold, amounting to US$179,986,511. There are 371 properties under contract and scheduled for closing amounting to US$168,845,753. This is mainly from sales that were done last year and pre-construction properties that have not yet been completed. Over the last year CIREBA has seen the average movement in price (usually down in price) from listing price to sales price to be at 6% for the 278 sold condominiums with an average days on market of 379 days. Residential homes have seen an average movement in price from listing price to sales price of 11% for the 89 homes sold, with an average days on market of 372 days. Residential/agricultural parcels of land have seen a 9% movement for the 203 parcels sold and they have been on the market for an average of 428 days.
OVERVIEW OF RESIDENTIAL AREAS IN GRAND CAYMAN
West Bay Road - The Famous ‘Seven Mile Beach’
This area is really divided into two areas: the beach and the other side of the road from the beach. Both are ideal for the young, single crowd and for retirees as you can walk to restaurants, bars, nightclubs, shops and the cinema. The areas near the Grand Cayman Beach Suites and the Ritz-Carlton have numerous restaurants, bars and nightclubs within walking distance. There are many apartment complexes on Seven Mile Beach itself, but most are rented out for short term, daily rentals. Some, however, do long term rentals like George Town Villas, The Grandview, Treasure Island Condos, Laguna del Mar, Seagull Condominiums, Lacovia, The Sovereign and The Pinnacle. Rental prices, per month, in this area range from high to super expensive (CI$2,500 – CI$7,800+).
Areas such as Jennifer Drive, Andrew Drive, Palm Heights Drive, Canal Point Drive, Parkway Drive and Whitehall Estates are all nice places to live and really popular with families, as are Governor’s Harbour and the Cayman Islands Yacht Club, which are a little further north and on the border of the Seven Mile Beach area and West Bay. There are many three bedroom houses in this area as well as upscale two or three bedroom apartments. They are well maintained and professionals tend to rent them. Again, always look around as the quality can vary widely. These are quiet areas, near to restaurants and the beach. There is a very good school in this area called the Cayman International School which has recently switched to the International Baccalaureate education system. CIS takes children from two years to 18 years of age.
The commute to town in the mornings is now quite short because of the new bypass. People say it has halved the old commute time. Apartments at Britannia are popular but expensive. You can usually find good deals and the benefits of being on that property include being able to use the Britannia golf course, multiple swimming pools, tennis courts, gyms and sunbathing on Grand Cayman Beach Suite’s beach. Apartments have either canal, pool or golf course views.
South Sound
This is a lovely, upscale area, close to schools and George Town. The traffic is less of a problem and the sea is never more than a stone’s throw away. Properties available are executive homes and 2–3 bedroom apartments. Two bedroom apartments across the road from the sea can be rented from about CI$2,200 per month. Apartments on the sea can be found for CI$2,500 and up. Apart from Seven Mile Beach, South Sound is one of the most convenient and, therefore, expensive areas to rent or buy on the Island.
South Sound is where you will find the Rugby Club, Tennis Club and Squash Club. There is a dock for launching a boat; the bay is fringed by a reef so it is great for swimming and snorkelling, and people love to jog and walk each evening along the breezy road which follows the sea.
Roads on which you will find large family homes, most with pools, off of South Sound Road are Vienna Circle, Mary Read Crescent and Anne Bonny Crescent. At the far end of South Sound Road (away from George Town) is Old Crewe Road where you will find Sunrise Apartments, Pine Crest Apartments and Elizabeth Villas. Rents in these complexes should be under CI$2,000 per month. Some of the newer, more exclusive condominiums can be as high as CI$2,600–$2,800 per month. Many houses and apartments along South Sound have been renovated and rebuilt to a higher standard following damage caused to them during Hurricane Ivan.
One thing worth taking into consideration is that there is no bus service to or from South Sound so you will need some form of transportation if you choose to live in this area. Also if you hire a helper to clean or look after your children be aware that they will often have to walk most of the way to your house in South Sound unless someone gives them a ride. As a side note, the vast majority of the domestic helpers on the Island cannot afford their own transportation and have to either walk or try and catch a bus to work. If you see someone in need of a ride it is usual custom to try and help them get at least a little further along their journey, especially as it is so hot in the sun. They are always very grateful.
George Town (GT)
George Town is the capital of the Cayman Islands. It is located on the southwest corner of Grand Cayman and has a busy port with working cargo ships and an influx of cruise ships almost daily. The main roads in George Town are North and South Church Street, which run through town and are parallel to the water. Walkers Road has most of the schools on it and also lots of residential properties. Smith Road, Shedden Road and Eastern Avenue cut through town and run down to the waterfront roads off North and South Church Street.
Most of the properties in George Town are mid-range in price. It is a good area to live in if you have kids because the main school area is on Walkers Road, which is literally five minutes from the town centre. Also, with the increasing traffic levels it means that you will avoid the main rush hour traffic jams (the route in from West Bay/Seven Mile Beach and the route in from the Eastern Districts are slow moving at peak times). Private prep and high schools in this area include St. Ignatius Catholic School, Cayman Prep & High School, Triple C and Truth for Youth. There are a lot of lower to mid-priced condominiums for rent off Walkers Road – at about CI$1,200–$1,500 for a 1-bed apartment and CI$1,400–$2,500 for a 2-bedroom per month. Some of these older apartments can look and feel tired, so it is worth looking around and not getting discouraged as there are some gems as well. This area has a hodgepodge of places, some really nice and some older and cheaper.
There are also a few three bedroom houses suitable for families in the George Town area. These are often locally owned and well cared-for with large yards.
Prospect & Red Bay
This is the fastest growing part of the Cayman Islands as it is close to George Town and many new condominiums and homes have recently been built. Also the new East-West Arterial road which opened in late 2007 has made the commute even faster and easier. Grand Harbour shopping complex is at the entrance to Prospect. It has a large supermarket (Hurley’s Marketplace) and various shops including a Blockbuster video store, a liquor store, bookstore, clothing store and a great pottery and art shop called ‘All Fired Up’ where adults and children can easily spend a few entertaining hours decorating a plate, mug or vase and then the store will glaze it for you. There is also a restaurant called The Brickhouse, a coffee shop called The Brewhouse and a bar called The Doghouse. Cayman’s first skate and surf park, The Black Pearl, is located behind Grand Harbour. Also in the Red Bay area is the Cayman Islands Sailing Club, King’s Sports Centre and Powerhouse Gym.
There are lots of residential homes in this area and the commute to town is relatively quick (ten minutes). It is a mix of inland and canal front properties. The rents in this area for apartments are mid-range (CI$1,800 and up) and there is a wide range of quality.
There are two very exclusive areas in Red Bay. The first is Prospect Point Road, which is a quiet community found on a winding road by the water where long-time Cayman residents have built very exclusive million-dollar homes. The second area – Patrick’s Island – is an upscale residential area with canal frontage where land is still available and many desirable three and four bedroom homes have been built.
West Bay
This is a residential area at the top of the Island. It is less expensive than George Town or Seven Mile Beach, and there are some lovely homes and condominiums on or near the sea. The upscale, canal front residential area called ‘The Shores’ commands premium rents, as do properties on Boggy Sand Road, which runs along a beautiful stretch of Seven Mile Beach. Popular condos which do long term rentals include: Coconut Bay, Ocean Side Plantation and Villas Pappagallo. All of these properties are on the water.
Some of the most popular restaurants, such as Calypso Grill and Ristorante Pappagallo, are located in West Bay, as are other restaurants like The Cracked Conch restaurant, Cobalt Coast and Morgan’s Harbour (all of which serve great seafood). Tourist attractions like Boatswain’s Beach (former home of the Turtle Farm) are in West Bay and diving from the Cracked Conch restaurant is very popular. Locals enjoy renting a tank from the dive shop (downstairs from the Cracked Conch) and diving with the tarpon, which like to hang out at the mini-wall just three minutes swim from the dock, then rinsing off and having lunch at the restaurant. You can also go horseback riding along a rugged and little travelled beach in the area called Barkers which spans part of the northern tip of West Bay.
The new bypass means that the drive into town now takes about 30 minutes during rush-hour but the traffic can still back up quite badly at the West Bay four-way stop. West Bay has lots of character. Rental prices to suit any budget are available.
Canal Front Living
There are a number of waterways, which cut inland from the North Sound. If you are planning to buy a boat, you cannot beat the convenience of having a dock right in front of your home or apartment. Some of the locations nearer George Town are Prospect, Red Bay and Snug Harbour. Further from George Town are North Sound Estates, Sunrise Landings, Governor’s Harbour, Canal Point and The Shores. Prices generally are in the mid to upper range.
Canal front roads off Seven Mile Beach are Palm Heights Drive and Canal Point Drive. Off the new Easterly Tibbetts bypass are the following canal front roads: Cook Quay; Drake Quay; Nelson Quay; Jellico Quay; Magellan Quay; Prince Charles Quay and Raleigh Quay. These are very popular areas to live and have houses and apartments all in the high to exclusive price range.
In the Red Bay area, roads on the canal are Omega Drive, Whirlwind Drive and Patrick’s Avenue (part of Patrick’s Island); and Leeward Drive and Windward Road in North Sound Estates have 13 canal front roads off each street.
Savannah, Lower Valley, Newlands & Pedro St. James
This is another area with both inland and canal front properties. Sunrise Landings and North Sound Estates (both canal front areas) fall within Savannah and Lower Valley. It is very popular with young families as land is still affordable. The commute times have improved significantly since the new East-West Arterial road opened but still slow up significantly once you get near George Town and the schools. There are many mature trees and open areas in Savannah. From late May to early July the red flame tree (of which Savannah has an overwhelming abundance) flowers and the sight as you drive through Savannah is breathtaking.
The usual properties for rent in this area are family homes with reasonablysized gardens. Prices in this area are in the low to mid-range.
Located in Savannah is the historical site called Pedro’s Castle. It is known as the “Birthplace of Democracy in the Cayman Islands”. The Government has spent almost US$10 million dollars restoring the site and today it is lovely to walk around the Great House’s grounds and feel yourself slip back into history.
Also in Savannah is the Countryside Shopping Village which is brand new. It is located immediately on the left at the roundabout where the road intersects between Savannah, Pedro and the entrance to Newlands. This village of shops has numerous restaurants (Subway, a Chinese restaurant called Dragon Garden, a Caymanian restaurant called MacDonalds, Haagen-Dazs and a Pizza Hut), a branch of Foster’s Food Fair supermarket, a branch of Cayman National Bank, a beauty salon, medical clinic, a veterinary clinic, A.L. Thompson’s hardware store and many other really useful stores which means that residents in that area no longer have to make the drive to town for everyday essentials.
Beach Bay
Beach Bay is on the right just before you get to Bodden Town. If you drive all the way down Beach Bay Road you get to Sea Spray Drive. Along this coastal road are some fabulous houses and apartments. There is a small beach at one end of Sea Spray Drive and the other end rises into a cliff. The rents here are in the high to exclusive range.
Bodden Town
Those who venture out to Bodden Town love it – you are on the beach, away from the centre of it all and the rents are reasonable. There is still the feel of a small Caymanian town in Bodden Town with a mixture of locals and expats living amongst one another. The beaches in Bodden Town are rustic, usually littered with driftwood and dried turtle grass and are a lovely place for walking dogs.
Although the impression of a long commute may keep the faint of heart away from Bodden Town, it takes just 20–25 minutes if you leave early or late enough (leave before 7am or after 8.30am and come home before 4.30pm or after 7pm). Again, the new arterial road has made a big difference to the commute. Prices in this area are in the low to mid-range.
Frank Sound & Cottage
Frank Sound is an area which crosses the Island as you drive towards Rum Point. This area has affordable rental homes with large properties. The land is very fertile and there are many mature shade trees. The Cottage area, before East End, is an exclusive area of upscale homes and townhouses in the high rental range.
Queen Elizabeth II Botanical Park and the Mastic Trail are off Frank Sound Road.
North Side & East End
This is the other end of the Island! On the way to North Side in the village of Old Man Bay there is the restaurant called Over the Edge which serves great local seafood. There is a small Fosters Food Fair supermarket opposite Morritts Tortuga Club in East End, and Ocean Frontiers (also in East End) is a great place for diving. This is an historical and beautiful part of the Island. The ‘Wreck of the Ten Sails’ is next to Gun Bay and the residents here are said to be the friendliest in Cayman. The coast is dotted with sandy beaches littered with bleached coral and dried turtle grass washed ashore by previous storms.
The commute time from this part of the Island is about 40 minutes to George Town (without traffic). Rental properties are very reasonable even if they are near the water. Prices are low to mid-range.
Rum Point
Rum Point is just northwest of North Side and is just before Cayman Kai. It has a beautiful stretch of beach and faces the North Sound (home of Stingray City). It is dotted with Casuarina trees, clear waters and exclusive homes. The Rum Point Club can now only be reached by car or private boat (a ferry used to operate) and is a great place to hang out in hammocks, eat lunch at a picnic table and swim in the safe and shallow water right in front of the bar and sun-lounger area. With traffic, the commute into George Town will take just over an hour, although another option is to go by boat across the North Sound, leaving a car at either end.
Cayman Kai
Cayman Kai is just beyond Rum Point. It is usually very expensive as most of the houses are luxurious second homes on the water. There is a holiday home feel about this area and life is centred around the beach and barbecuing.
The commute into George Town at rush hour will take at least an hour. Prices in this area are in the high to exclusive range. Some residents treat themselves by renting a house up here for the weekend to relax and get away from it all. There is a great restaurant called the Kaibo Bar and Grill, which serves lunch and dinner every day
Overview of Residential Areas on the Sister Islands
Cayman Brac
Cayman Brac is about 12 miles in length and about a mile in width, just a bit larger than Little Cayman. Although less famous than its sister Island for its diving and snorkelling options, Cayman Brac has more to offer in terms of natural scenery on the Island itself, including world-class bird watching. It also has the highest elevations in the Cayman Islands on The Bluff – the cliffs that inspired early settlers to give the Island its name from the Gaelic word ‘brac’, meaning ‘bluff’.
Cayman Brac has a tranquil atmosphere with a plethora of hidden caves and winding trails to explore.
West End
Cayman Brac’s West End is where you’ll likely find accommodation on the Island. Gerard Smith Airport is nearly at the tip of the Island, and resorts like the Carib Sands and Brac Reef Beach Resort are clustered nearby. The famous Russian wreck dive, M.V. Capt. Keith Tibbetts, lies just off the shore.
Stake Bay
Stake Bay, which roughly refers to the middle section of the Island, offers some good scenery but not much in the way of accommodation or dining. The Cayman Brac Museum lies up West End Road next to the hospital.
The Bluff
The Island’s gentle ascent eventually leads to the limestone cliffs that are its namesake. A lighthouse crowns the 120ft tall seaside edge of the bluff, providing worthy views out onto the vast ocean. The birds circling overhead may eventually lead you back inland to the ancient woodlands of the Brac Parrot Reserve. Accommodation nearby is not too difficult to find, and there are several options like the Cayman Breakers.
Little Cayman
Little Cayman truly is little. Ten miles in length and one in width, it harbours a permanent population barely over 100. Even though it is a mere blip on the radar, the Island is a formidable destination for diving and offers some other ways to relax between trips underwater.
South Town
Almost all the accommodation and services on Little Cayman are in South Town, which is actually better described as the western end of the Island. The Island’s most famous diving destinations, the Bloody Bay Wall and Jackson Wall, are both on the north side of this end, easily accessible to divers staying at any of the resorts or villas in the area. Paradise Villas is the closest, but there are other good options including the Southern Cross Club, Little Cayman Beach Resort and The Conch Club. Most of the accommodation is in walking distance of Edward Bodden Airfield, where the landing strip is located.
East Point
Heading up the road away from South Town, the Island becomes more and more of a deserted paradise. South Hole Sound is at the border of the two areas, and the beautiful South Shore will provide stunning views on the way to Point of Sand at the eastern end of the Island, where you can gaze across the water towards Cayman Brac. Heading back on the northern side you will pass by Crawl Bay and Jackson Point.
BUYING A PROPERTY
Buying a property in the Cayman Islands has many advantages, not least that if you are staying for some time, mortgages tend to work out cheaper than rents over a three to five year period.
There are no restrictions on foreign ownership of real estate if the property is for personal use and there is no annual property tax, or capital gains tax. Cayman’s Land Registry office is well run and modern, which means transfers are relatively quick and simple. Every piece of property is registered under a unique block and parcel number, which means that every owner is registered and the Government guarantees the right of ownership. A potential purchaser may examine the records regarding any piece of property to check whether there are any liens, charges or restrictions on it.
Good realtors, architects, land surveyors and building contractors are on hand as are attorneys who can assist with conveyancing.
An attorney will (amongst other things) negotiate the terms of your contract and check the title to the property in question in order to confirm that there are no adverse entries shown on the title to the land and, if there are any such entries, arrange with the Seller and the Lands and Survey Department to have these removed prior to completion. Similarly, if buying a condominium, your lawyer will review the by-laws of the condominium association in question and report on the same as well as ensuring that all payments due to the association have been met in full. NB: This is really important as some condominium owners are behind on paying their monthly strata and insurance fees and an attorney would catch this and ensure that the outstanding balance is paid off before you own the property. Following completion, your attorney will arrange for title to the property to be transferred to you and registered at the Lands and Survey Department in the Cayman Islands.
Unless stipulated within the Covenants for a particular development there are no time deadlines for foreign investors to build on raw land. Indeed the land can be held, undeveloped, indefinitely. Planning approvals are valid for one year following the grant of planning permission. Building time in Cayman is relatively quick, and most homes up to 3,500sq ft can be built within a six to eight month period from the commencement of construction. Allowing four to six months for your architect to design and obtain planning approvals and prices, you can expect to be able to design and build a home in just over a year.
Stamp Duty & Other Charges
Stamp Duty is payable on all real estate transactions. A one-time fee of either 6% or 7.5% is paid on the higher of the sales price or the fair market value of the property (as determined by the Lands & Survey Department), but NOT on furnishings purchased with the property. Stamp duty along West Bay Road, on the water, and in the downtown George Town area is charged at 7.5%. For exact locations, you should ask a real estate agent to confirm which block and parcel numbers fall within the 7.5% zone. All land outside of this area (for example West Bay and anywhere outside of the downtown George Town area) is charged at 6%. Caymanians purchasing property falling within the 6% duty rate pay 4%.
Other charges associated with purchasing typically include:
> A 1% duty is charged on mortgages of less than CI$300,000 and 1.5% on mortgages of CI$300,000 or higher. You should budget up to 1% for legal and registration fees.
> When building a house, stamp duty is payable only on the land value and not on the building after it has been built.
> When transferring, a Transfer of Land form is required to be registered at the Lands & Survey Department, which costs CI$50. Other forms may be required.
> When purchasing with bank financing, a valuation by an accredited firm is required and costs CI$350 and upwards, depending on location, type of property, etc.
Furnishings Exempt from Stamp Duty
As stated earlier stamp duty is not charged on the furnishings or chattels of a house. Some confusion has surrounded what is and what is not included. For example anything that you can pick up and move from the house is often considered a chattel. However, air conditioning units, fitted carpets and bespoke hurricane shutters are not considered to be chattels, whereas fridge/freezers, dishwashers, cookers, curtains, area rugs and any furniture or accessories are considered to be chattels. When working out the value of these items it must be based on the replacement value. So if it is a five year old fridge/freezer that you are working out the value on, you must estimate the replacement value of another five year old fridge/freezer, not a brand new one. If the appliance would normally be CI$800 brand new then a second hand version would probably be valued at CI$350. This figure is what would be used for the value of the chattel. If you are not entirely sure then call the Lands & Survey Department on (345) 244 3420 and they will be happy to talk through with you your specific circumstance.
Mortgages & Borrowing
A number of banks and financial institutions offer mortgage packages. Interest rates follow New York Prime as quoted by Citibank. Banks usually ask for deposits between 10%–35%. The system (as in the UK) whereby you have an interest-only mortgage does not exist in Cayman. Mortgage lengths are usually 15 to 25 years and can be taken out in CI or US dollars. It is worth comparing what kind of deal the different banks will give you as a variance of 1% or even 0.5% on your interest rate will make an enormous difference. Banks will usually charge between 1% and 3% above prime, giving the lower percentage to those with the greater deposit. Unfortunately, there is no convenient way of finding the best rate other than arranging a meeting with each banks’ mortgage advisors and talking to them. Most banks do not charge pre-payment penalties.
Average House & Apartment Prices
The average cost of an existing two bedroom apartment away from the water and near the schools is approximately CI$220,000 (US$270,000) based on the past 12 months sales prior to June 2008. The average cost of a three bedroom house in the same type of area is about CI$285,000 (US$350,000). The approximate cost to build a home, excluding land, is in the region of CI$160–$200 per square foot depending on the quality of finishes and fixtures and also on the ground conditions existing at the property. Apartments on the water start at about CI$200,000 (US$245,000). Spacious apartments on Seven Mile Beach carry prices of between US$1–$7.5 million. If you are interested in buying on the water it is worth calling one of the insurance companies and asking for an estimate on your annual building insurance. You might also want to ask how the house fared in 2004 when Hurricane Ivan came over Cayman.
Popular places to buy a property are South Sound, Seven Mile Beach and Cayman Kai. These are also the most exclusive. Your realtor can advise on where to live if you have children or if you are on a budget. Properties in the neighbourhood of the preparatory and secondary schools are not easily obtainable.
Strata Titles
Residential property in Cayman is often sold as part of a Strata Plan if it is in a condominium or apartment complex. Most countries have the concept of freehold property, where the owner has ownership of, and responsibility for, looking after the land they own and all buildings on it. Strata ownership is less familiar to many people and very common in Cayman so below is an explanation of how it works:
> If you buy a property which is part of a Strata Plan you will have the freehold title of the house or apartment that is situated within the property in the Strata Plan. You will also own a share and have voting rights in a corporation (the Strata Corporation) which owns all the land in the Strata Plan including estate roads, communal gardens, shared pools and gyms, etc.
> The Strata Corporation has an obligation to insure the Strata Property and maintain it for the benefit of the shareholders and has the right to recover the costs of doing so from them. There will be rules and regulations governing how the Strata Company is run (known as Strata by-laws) and an annually elected committee is authorised to run the corporation. The by-laws will contain any restrictions on activities of strata owners, such as owning pets or keeping a boat at the property, so it is important to understand them before buying. It is also important to know how much you can expect to pay the Strata Corporation for providing the insurance and looking after the Strata Property.
> Examples of monthly strata fees that you might expect to pay include CI$500 for an inland 2-bedroom townhouse. This figure will include CI$300 per month for insurance and CI$200 for maintenance (water and electricity fees for the grounds, garbage collection and garden maintenance). A 3-bedroom in-land apartment may well be CI$650 per month and for properties on the water, especially along Seven Mile Beach you could easily pay between US$1000–US$1500 (US$500 maintenance, US$420 insurance and US$80 sewage charge). If you are interested in a particular property your realtor will often be able to find the exact strata fees for you. A well run Strata will help a property to hold or increase its value.
Property Valuations
When applying for a mortgage it is current bank policy to request a property valuation be undertaken by a qualified valuation professional or chartered surveyor. It is usually the purchaser and not the seller that has to undertake this. A property valuation will give a general description of the property, describe any improvements to the house or the garden, pool, fencing, etc. (and work out their value to the property). It will take into account the location, give formal title details, include maps, photographs and will provide invaluable background checks on the recent property sales in the area. If nothing else it will help you feel reassured that you are paying fair market value for the property (and not being overcharged). For a straightforward valuation on a home, condo or piece of land the process usually takes only a week.
Pitfalls to Avoid
There are various pitfalls which you will want to avoid when buying a property in Cayman. Many of the pitfalls, such as strata fees not being paid by the previous owner, will be caught by a conveyancing lawyer just doing his job. However, other pitfalls which are less well known, but equally easy to avoid are as follows:
> Water Bills: Make sure that the final water bill on that property has been paid by the previous owner. Though technically both water companies cannot hold you responsible for any outstanding balance, it can, and has in the past, caused problems. Do your own due diligence and check with the water provider before finalising the purchase of the property. All it takes is one phone call to the water company. This issue does not arise with CUC (our electricity provider).
> Air Conditioner Servicing: Another thing worth checking is whether the property owner has been regularly servicing their a/c units. It costs around CI$125 every quarter to service two a/c units and many property owners don’t bother, especially if they know they are soon going to sell the property. You will want to ask them how often they service their air conditioning units, as a lack of servicing will greatly reduce the life expectancy of air conditioning condensers, and new air conditioning equipment can cost thousands of dollars. Also in the event of an air condenser (which is usually housed in the roof) failing the first thing you will probably notice is your ceiling caving in! As a condition of the sale, you can request that they have the units serviced and a report on their condition shared with you.
> Pest Control: Lastly, you have to remember that Cayman is a tropical country, so you will need to check if the previous owners have had the property sprayed regularly for ants, roaches and other pests. In this climate, it is recommended that your property be sprayed every quarter, not only to protect your investment, but to keep down the ever present fact that pests are a reality in Cayman. If you do not have your house sprayed regularly, you will quickly find you have an ant problem or, even worse, a roach problem. If you are buying a wooden house, you absolutely must get the house checked for termites by a professional before you buy the property. A termite infestation in a wooden house might not be salvageable.
Realtors Who Specialise in Sales
When you are ready to buy a property please only go to one real estate agent (this does not apply to rentals)! Trust me, you absolutely only need to go to one agent within the Cayman Islands Real Estate Brokers Association (‘CIREBA’) to view any and every property on the Island. If you are from the UK you probably won’t understand this but if you are from the US or Canada you will. This is how it works. A seller will list his property with a specific agent. That agent then enters the property into the MLS (Multiple Listing System) which is then accessible to all the CIREBA agents. In other words the agent you are comfortable working with will show you all the listings regardless of who it is listed with. They all cooperate with each other so there is no need for you to call or trek around different offices. In fact, if you stay loyal to your chosen sales agent they will no doubt return the favour by calling you first when they see a new listing that might suit your needs. They will also help you gather all the information you require, shortlist properties, take you back for second viewings, write up an Offer to Purchase, follow through with all your conditions and attend the closing with you. They generally work on commission only and do not receive a salary, so using the time and resources of one realtor and then jumping to another is definitely frowned upon. Also it is a very small Island and invariably you will end up bumping into them at various showings. Pick one you like and stick with them! Realtors who specialise in sales are listed below:
Azure Realty Limited – Jan Tomkins
Tel: (345) 926 2626 or (345) 946 2987
Email: Jan@azurerealtycayman.com
James Bovell – RE/MAX agent
Tel: (345) 945 1585 Fax: (345) 949 9753
Email: James.Bovell@remax.ky
Amanda Brookman – RE/MAX agent
Tel: (345) 946 8855 Cell: (345) 916 8855
Email: Amanda.Brookman@remax.ky
Cayman Islands Sotheby’s International Realty
Tel: (345) 632 1234 Fax: (345) 632 1235
www.sircaymanislands.com
Cayman Luxury Property Group
Tel: (345) 945 6000 Fax: (345) 945 6001
www.caymanluxuryproperty.com
Coldwell Banker
Tel: (345) 623 4411 Fax: (345) 623 4307
Email: info@cirealty.ky
www.caymanislandsrealty.com
Kass Coleman – RE/MAX agent
Tel: (345) 949 2396 Fax: (345) 949 9753
Email: Kass.Coleman@remax.ky
Crighton Properties
Tel: (345) 949 5250 Fax: (345) 949 2799
Email: info@crightonproperties.com
www.crightonproperties.com
Edna Ebanks – RE/MAX agent
Tel: (345) 949 0681 Fax: (345) 949 9753
Email: Edna.Ebanks@remax.ky
Scott Elliott – RE/MAX agent
Tel: (345) 943 6001 Fax: (345) 949 9753
Email: Scott.Elliott@remax.ky
www.caymanparadiseproperties.com
Michael Joseph – RE/MAX agent
Tel: (345) 949 6170 Cell: (345) 926 6784
Email: Michael.Joseph@remax.ky
Properties of the Caribbean
Tel: (345) 925 3330 Fax: (345) 946 7682
Email: propertiesofthecaribbean@candw.ky
Caroline Thorburn – Regal Realty agent
Tel: (345) 916 4858 (cel) or (345) 943 0077 (office)
Email: caroline@regalrealty.ky or carolcat@candw.ky
Scott Roe – RE/MAX agent
Tel: (345) 945 8000 Fax: (345) 949 9753
Email: Scott.Roe@remax.ky
West Indies Brokers
Tel: (345) 943 9400 Fax: (345) 946 5123
Email: icon@candw.ky
RENTING A PROPERTY
Starting Your Search
It is typical to use a real estate agent that specialises in rentals when trying to find rental accommodation. The service is free to the renter as the owners hire agents to find tenants. You can also look through the Friday classifieds of the Caymanian Compass newspaper, but a real estate agent will do all the leg-work for you and drive you around to look at different options. Some have web pages where you can familiarise yourself with the options prior to your arrival. Others will email you a list of properties they have on their books. Try to set up an appointment with a realtor before you arrive to make sure they are available to show you around.
Styles of Housing
There are various types of housing to choose from: one, two, three or four bedroom family homes, townhouses, condominiums, apartment complexes or rooms/apartments carved out of larger houses. Detached three and four bedroom houses are difficult to find, as are one bedroom apartments, however there are some available. The most common are condominium units for which owners are looking for long-term tenants. Cayman has relatively few large rental apartment complexes, such as you may be used to at home. Those that do exist are comparatively small. The norm is 20–40 units per complex. So be prepared to adjust your thinking, as the convenience of large complexes with management companies dedicated specifically to rentals does not exist. Most places will have a mixture of resident owners, long-term and short-term renters. Real estate agents have relationships with the various owners and strata (condo) corporations and will liaise with them to sort out your housing situation.
Information to Give Your Agent
You should have the following in mind when you call an agent:
When will you arrive in Grand Cayman and when will you need the unit? It is advisable to visit a month before your arrival to look at options and secure a unit. Most tenancies start on the first of the month, but if it is after the first of the month, some landlords will hold the unit for you with a security deposit (often equal to one month’s rent). If this is not possible, enquire whether your employer will provide temporary accommodation to give you a week or so to find a place. Not being rushed will give you an opportunity to find the right place.
Related Costs
When you find the place that is right for you, you will usually need to put down a security deposit and first month’s rent in advance. Be prepared with cash or the ability to get it quickly. Cheques from banks not in the Cayman Islands will rarely be accepted. In addition to the rent and deposit, you will have additional start-up costs related to your accommodation as follows:
Resources for Finding a Place to Rent
Realtors Who Specialise in Rentals & Sales
Our personal advice would be to email one of the realtors (see below) who specialise in rentals. They will respond very quickly by emailing you back what they have on their books. Please note that each agent or company will have their own rental listings, so it is fine to look at the properties that one rental agent has to offer and if you don’t find something that suits you, you can contact another agent. As a reminder, this is not the case with real estate sales agents! Please note that realtors supplying floor plans for a property is rare at best in Cayman, though it is common practice in many other countries.
Coldwell Banker Property Management
Tel: (345) 623 7368
Email: annmarie@cirealty.ky
www.caymanpropertymanagement.com
For Rent.ky
Contact: Amanda Wilson
Tel: (345) 916 0852
Email: info@forrent.ky
www.forrent.ky
Island Rental Services
Tel: (345) 946 7212
Email: properties@candw.ky
REM Services Ltd.
Tel: (345) 946 8664 Fax: (345) 945 1508
Email: rent@remservices.ky
Tessa Hydes Property Management
Tel: (345) 949 5134
Email: thpm@candw.ky
www.thpm.ky
Ritch Realty Ltd.
Tel: (345) 949 9838 Fax: (345) 949 9839
Carolyn Ritch, email: ritchmul@candw.ky
http://www.caymanisland-realestate.com
Amber Yates – Century 21 agent
Tel: (345) 926 0396 or (345) 949 2100
Email: ayates@century21cayman.com
www.century21cayman.com
The Local Newspapers
Every Friday the following newspapers carry dozens of listings for properties either for rent or sale:
Caymanian Compass
Tel: (345) 949 5111
www.caycompass.com
Cayman Net News
Tel: (345) 946 6060
www.caymannetnews.com
(you can view classified ads online)
TEMPORARY ACCOMMODATION
Many companies on Grand Cayman offer new employees one to four weeks of temporary accommodation to assist in the relocation process. Note that the 10% tourist tax will not be added to your hotel bill if you can show you are a resident i.e. your work permit. Most places will add a 10% service charge for housekeeping. Rates are approximate and change, depending on the time of year. It is also worth asking for a special rate if you are staying in the low season and for more than two weeks. Most property owners will be flexible.
Comfort Suites & Resort, Tel: (345) 945 7300
Centrally located on Seven Mile Beach, 150 yards from the beach, and within easy walking distance to shops and plenty of restaurants; an all-suite property with studios and one and two bedroom suites. Suites are large and spacious with cable TV and have fully equipped kitchens; continental breakfast included; pool with bar and restaurant; spa; wireless internet; coin operated laundry services. Cost: US$4,460–$7,200 per month (includes 10% service). Rate valid for permit holders.
Beautifully decorated private house with six double bedrooms all with en-suite bathrooms, located beside a lake in West Bay, elegantly decorated with solid wood beds and luxurious linens; pool, jacuzzi and sun-deck; free wireless internet access and breakfast included. All rooms have cable TV. Low season cost: US$119 to US$169 per night depending on size of room. High season cost: US$139 to US$189 per night. Contact Eileen Davidson for more information, email: info@shangrilabandb.com.
Sunshine Suites Resort, Tel: (345) 949 3000
This property is located further along Seven Mile Beach but still central to shops and restaurants. It is across the road from the beach and next to the North Sound 18-hole golf course. The resort offers a swimming pool, fully equipped kitchens in all their suites; studio, deluxe or one bedroom. Complimentary full breakfast is served daily at their award winning Sunshine Bar & Grill Restaurant. Other amenities include data-port phones with private voice-mail, high speed wireless internet, coin-operated guest laundries in each building and membership to a nearby local gym ensures that guests have everything at their fingertips. Cost: US$2,500 – US$3,600 per month (plus 10% service). Rate valid for local residents and companies and stays must exceed 28 days. For more information: www.sunshinesuites.com.
Tel: (345) 745 7777
Located on Seven Mile Beach and within walking distance of George Town, this accommodation includes a kitchenette, digital cable TV, internet, local telephone and a coin operated laundry service. In addition guests have access to the amenities of the Treasure Island Resort which include three pools, a poolside bar called Billy Bones, a great restaurant called Bed, King’s Express Gym, shops, hair salon and a spa. Cost: CI$1,350 per month. For more information visit www.treasureislandcayman.com.
BUILDING YOUR OWN HOME
There are a number of advantages to building your own home, as opposed to buying a completed property. First, stamp duty is only payable on the land instead of on the entire property. Second, if you construct your own home you will be rewarded for your efforts because as you are the developer, there will be a degree of developer’s profit built into the value of your home. Third, you can choose exactly where and what to build. If you are not experienced in construction you will need to seek professional advice. Cayman is fortunate in having all the relevant construction industry professionals – architects, engineers, quantity surveyors and land surveyors – to assist the home builder.
Once you have selected your parcel of land you would be advised to engage a land surveyor to carry out a boundary survey of the site to check the positions of the boundaries (area of the site), ensure there is no encroachment on your selected parcel by neighbours’ buildings and to advise on issues of setbacks for construction, which could have a significant effect on the size or location of the house you intend to build.
Your architect will be able to put your ideas for your home onto paper and advise you on planning aspects, construction costs, building codes, specification for materials and products you want incorporated within your home. Typically, the architect will recommend that you engage a structural engineer for the structural design of your home. Upon completion of the design the architect will oversee your planning application and prepare construction drawings for submission for your Building Permit and also for pricing by the contractor.
For larger residential projects, a quantity surveyor can give you detailed estimates of the construction cost of your home. It is a good idea to engage your quantity surveyor at the same time as selecting your architect. Together they can assist you with cost advice and staying within your budget.
Typically, your architect will oversee the construction in accordance with the plans and ensure that standards and specifications are met. Your quantity surveyor will monitor and control costs and issue valuations of the work completed to ensure progress payments are in line with the work undertaken.
If you are going to use bank financing, the bank will request that you have your land valued by a quantity surveyor or valuer who will also prepare an independent construction cost estimate of the work before construction. The bank will also request that the report provides them with an anticipated value of your home upon completion.
If all this sounds too much of a headache, you may wish to appoint a project manager to oversee the entire building process and appoint the relevant professionals as necessary. This may be particularly important if your home is being built while you are not living in Cayman.
The following is a list of locally registered and internationally qualified professionals we recommend to help you with building your property. Check out www.planning.gov.ky for more information.
Architects & Project Managers
BDCL Architects
Tel: (345) 947 8654
Burns Conolly Group Ltd.
Tel: (345) 945 2455
Chalmers Gibbs (CGMJ Ltd.)
Tel: (345) 949 2727
DDL Studio Ltd.
Tel: (345) 945 3622
John Doak Architecture
Tel: (345) 946 3625
www.johndoak.com
ICON Architecture
Tel: (345) 943 8001
Kariba Architecture
Tel: (345) 943 1551
OA+D Architects
Tel: (345) 945 2979
OBM International Ltd.
Tel: (345) 949 8115
Rutkowski Baxter Houghton
Tel: (345) 949 4171
Land Surveyors
Bodden Roland & Co Ltd.
Tel: (345) 949 5177
Cayman Survey Associates Ltd.
Tel: (345) 945 9222
Evans & Associates Ltd.
Tel: (345) 949 4842
Patrick Broderick & Co Ltd.
Tel: (345) 949 6868
Quantity Surveyors & Project Managers
BCQS Property & Development Consultants
Tel: (345) 949 8644
Services include: Project Management, Claims Consulting, Quantity Surveying, Valuations/Appraisals, Feasibility Studies, Engineering Services and Property Management.
Bould Consulting Ltd.
Tel: (345) 946 6063
Cayman Surveying and Property Consultants Ltd.
Tel: (345) 945 5589
DDL Studio Ltd.
Tel: (345) 945 3622
Deloitte Property Consulting Ltd.
Tel: (345) 949 5503
JEC Property Consultants Ltd.
(Chartered Quantity Surveyors)
Tel: (345) 945 5930
Services include: Quantity Surveying, Loss Adjusting, Valuations and Appraisals, Building Surveying, Project Management, Development Consultants and Property Management.
Building Codes
The building codes on the Island are similar to those of Dade County in Florida, incorporating hurricane considerations in construction. It is necessary to apply for and obtain a Building Permit for all new buildings in the Cayman Islands before construction can commence.
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