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 called 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). 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 hodge-podge of places, some really nice and some older and cheaper.

 There are also a few 3 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 is scheduled to be completed in Q4 2007 which should make 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, art and a toy store. There are also two restaurants. Cayman’s first skate and surf park, The Black Pearl, is located behind Grand Harbour.

 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 3 and 4 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 and Cobalt Coast (both 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. Safehaven Drive and Lime Tree Bay Avenue lead to 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 Caymanian families as land is still affordable. The commute times are currently a problem in the rush hour, but if you leave early or late enough you can get to work in about 15–20 minutes. Once the new East-West Arterial has been opened in late Q4 2007 this should improve things dramatically. There are many trees and open areas in Savannah. The usual properties for rent in this area are family homes. 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 Village Shopping Centre 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, a branch of Foster’s Food Fair, a branch of Cayman National Bank, a beauty salon, A.L.Thompson’s hardware store and many other really useful stores which means that many people will 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 and 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 ex-pats living amongst one another. The beaches in Bodden Town are rustic, usually littered with driftwood and 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 should make a big difference to the commute. Prices in this area are in the low to mid-range. Even though Hurricane Ivan happened over three years ago, Bodden Town is one of the few areas that is still showing evidence of the storm. A few homes have simply not been rebuilt and others that should be bulldozed have not yet been removed. The National Recovery Fund has been helping to rebuild homes in this area and, with time, it will look as beautiful as the rest of Grand Cayman.

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 Cottage area, well 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 ‘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 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 (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 secondary 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 anywhere in the Cayman Islands on The Bluff – and these cliffs inspired early settlers to give the island its name from the Gaelic word ‘brac’, meaning ‘bluff’.

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 Bluffs

The Island’s gentle ascent eventually leads to the limestone cliffs that are its namesake. A lighthouse crowns the 120-foot tall seaside edge of the bluffs, providing worthy views out onto the empty 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 lounge away the time 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 majority of people come in to the Island.

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 unrelentingly provide eye candy on the way to Point of Sand on the eastern end of the island, where you can gaze across the water at 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. There is no annual property tax, or capital gains tax and there is no tax on rent derived from real estate investments.

 Cayman’s Land Registry office is well run and modern, which means transfers are 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 architects, land surveyors and building contractors are on hand as are attorneys who can arrange purchases.

   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 3,500 sq. 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 price or fair market value of the property, 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 upwards, depending on location, type of property, etc.

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. 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 2 bedroom apartment away from the water and near the schools has risen since Hurricane Ivan to about CI$240,000 (US$300,000). The average cost of a 3 bedroom house in the same type of area is about CI$320,000 (US$400,000). 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 and houses on the water start at about CI$300,000 (US$365,000). Spacious apartments on Seven Mile Beach carry prices of between US$1–4 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.

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 finalizing 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 2 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. 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.

RENTING A PROPERTY

Starting Your Search

It is typical to use a real estate agent when trying to find 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 familiarize 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. 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.

Styles Of Housing

There are various types of housing to choose from: 1, 2, 3 or 4 bedroom family homes, town houses, condominiums, apartment complexes or rooms/apartments carved out of larger houses. Detached 3 and 4 bedroom houses are difficult to find, as are one bedroom apartments, however there are some available. The most common are condominium units for which investors 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:

Price range? Be realistic. Rent in Cayman is not cheap and you may have to forgo that waterfront unit or an extra bedroom in order to stay within budget.

Location? You may want to be close to your work, but you may get better value being further from George Town or Seven Mile Beach. If you have children, you may want to be close to Walkers Road or West Bay depending on where their school is. There are many quality options for housing near the schools in George Town and South Sound as well as The Shores, Spanish Bay, and Northwest Point in West Bay.

Size? How many bedrooms do you need or want? Many people like to have an extra bedroom so that guests will have a place to stay or you can set up an office. Timeframe? 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. Non CI$ cheques will rarely be accepted. In addition to the rent and deposit, you will have additional start-up costs related to your accommodation as follows:

Utilities Deposit: Estimate approximately CI$100 for water, CI$200 for electricity, and CI$100 for telephone if setting up direct debit standing orders. Otherwise, you may be asked for double these amounts.

Maintenance Costs: Make sure that the landlord will take care of maintenance costs associated with garden and pool care, garbage collection, pest control, and servicing of general systems such as A/C. Sometimes cable is included, especially in condo complexes. Note that insurance of personal belongings is the responsibility of the tenant.

Furnishings: Most units come furnished, which makes it easier for those shipping belongings from overseas. There is, however, a range of how “furnished” a unit may be. For example, usually “fully furnished” means that not only the furniture, but linens, kitchenware and appliances are supplied. A television will often come with a “fully furnished” unit as well, but not always. Some complexes advertised as “furnished” are really only semi-furnished with the bare minimum: beds, couch, table, chairs as well as major appliances. Confirm what is included prior to signing a lease by asking for an inventory, which will show everything that comes with the unit.

Pets: It is much more difficult to find housing where pets are accepted. Because most rental units are individually-owned condominiums and rented furnished, owners are wary of renting to someone with a cat or dog. Some complexes do accept pets but will ask for an additional security deposit, which can be as much as $500 per pet. Some complexes do not allow pets at all. There are, however, a few accommodation options which allow pets, which your agent can help you to identify. Children: Barring children from accommodations is allowed in Cayman and there are several complexes and many individual owners who choose not to rent to families with children. However, there are still many quality child-friendly options that your agent can help you to identify.

Non-Smokers: Many landlords will only rent to non-smokers.

No Sharers: Sometimes landlords will require apartments not be shared, i.e. only one family per unit and no sharers.

RESOURCES FOR FINDING A PLACE TO RENT

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

(you can go on-line to see the classified ads.)

Cayman Observer

Tel: (345) 946 6000

(details listed every 3rd Thursday of the month)

Our personal advice would be to email one of the realtors (see below) who specialise in sales or rentals. They will respond very quickly by emailing you back what they have on their books. Please note that it is recommended you pick one realtor and stick with them. They all use the multi-listing system so have access to the same properties. Using the time and resources of one realtor and then jumping to another is definitely frowned upon.

Realtors Who Specialise in Real Estate Sales

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 Fax: (345) 949 9753

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

Email: caymanluxury@candw.ky

www.caymanluxuryproperty.com

Coldwell Banker

Tel: (345) 623 4411 Fax: (345) 623 4307

Email: info@cirealty.ky

www.caymanislandsrealty.com</