Buying Property in Caribbean

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Buying Property in the Caribbean

Buying property in Aruba, Barbados, Bermuda, The Bahamas, Belize, Bonaire, the British Virgin Islands, the Cayman Islands, Cuba, Curacao, Jamaica, St Barts, St Martin, St Maarten, the US Virgin Islands, Isla de Margarita and many other exciting property hot spots in the Caribbean.

Property in the Caribbean – Buying Guide

As every Caribbean island operates its business infrastructure in a slightly different way to its neighbours, it’s difficult to list here a formal property buying procedure: 

With plenty of new developments being built on many of the Caribbean islands and clear evidence of property values rising, buyers are eager to invest in Caribbean real estate while prices on many of the up-and-coming islands are still relatively affordable.

Some islands run along English law standards as part of the Commonwealth, while others follow US, French or Dutch laws; some islands welcome foreign citizenship while others fiercely protect their indigenous population. 

Mortgages & Home Finance in Caribbean

Similarly, there is no one set way in which to finance a property purchase; however, you can take out a mortgage either with a local Caribbean bank (except in the Dominican Republic where only Canadian or US nationals can obtain local mortgages) or with one in your home country. 

In order to apply for a mortgage in the Caribbean you will need a full credit report and self employed people will need proof of earnings and tax returns. 

Basic mortgage terms for the Caribbean are:

• Max LTV (Loan To Value) of 60%-70% depending on the island
• Max term is 20 years
• Mortgages are available in US Dollars and Sterling. Dollar mortgages are the most popular
• The Dollar interest rate is based on Libor and will be approx. 8% depending on the island
• The first five years interest only loans are also available

Mortgage interest rates are on the decline and, as more innovative products come onto the market from rival lenders, competition for mortgage business is fierce on some of the islands, such as Barbados, allowing buyers a greater amount of flexibility. 

The Caribbean: 'A Diverse Property Market'

It is important not to generalize on market trends and past performance in such a diverse market as the Caribbean islands, where so many variables come into play. 

However, overseas buyers from Europe seem likely to continue to boost the Caribbean property market and beach front properties will continue to command the highest prices. 

Land values are expected to increase as product is snapped up and lifestyle developments that arise from a more opulent, modern society bring with them the luxury Caribbean tourism product which will continue to stimulate the property sales and rental industry for the foreseeable future.

The weak US dollar has taken a battering from the euro and sterling, attracting an increased number of buyers from Europe.  This market swing has enticed many real estate developers to move in quickly to capitalize on their increased buying power. 

See also: Property Investment in the Caribbean

Estate Agents Caribbean

Property for sale in the Caribbean including holiday homes, retirement property, investment property, land for sale, land for development in Barbados, Bermuda, Cayman Islands, Dominica, Dominican Republic, Grenada, Guadeloupe, Jamaica, Margarita Island, Isla Magarita, Martinique, Montserrat, Netherlands Antilles, Dutch Antilles, Puerto Rico, Saint Kitts and Nevis, Saint Lucia, San Andres & Providence Isles, Trinidad & Tobago, Turks and Caicos Islands, Virgin Islands, Virgin Islands