Cayman attractive for a new set of investors

Read the article in the Cayman Financial Review Magazine 

There is an underlying disdain currently being expressed globally, especially within North America and Europe, with regard to the way they are being taxed, with rising taxes choking investment choices and stifling growth. Such pressures have encouraged investors to look for better ways to seek investment returns.

While the high net worth individual has generally had more flexibility in their investment choices and many have already incorporated Cayman real estate in their wealth management portfolio, the middle income American & European is just waking to the possibilities that this jurisdiction offers them in terms of growing their wealth. 

High net worth individuals have long since appreciated the benefits that investing in Cayman Islands real estate has had to offer. Cayman’s tax neutral status (no annual property taxes, capital gains or inheritance taxes) along with its safe and secure environment, professional work force and glorious climate, not to mention one of the world’s top beaches, have all been major attractions for some of the World’s most wealthy people, enjoying all the benefits our island has to offer while watching their investment grow.

While the US real estate market is clawing its way back after hitting rock bottom in the past couple years, Cayman’s property prices have remained fairly stable, sound investment for an investor looking for stability. While we have seen a decline in the total number of sales along Seven Mile Beach, it is interesting to note that prices of larger homes and condominiums, both along Seven Mile Beach and other areas in Cayman have been increasing in the past couple years, indicating a large wave of high net worth investors that have already purchased their piece of paradise here in Cayman, with more investment taking place in the US$2 million plus property market in the last six to 12 months than over the last five years prior to that period, since the sales of the last new ultra-high end development – WatersEdge.

This push to purchase in Cayman’s high end market serves to demonstrate that wealthy people have made the decision to invest in Cayman in a big way, happy to place their trust in a stable and secure environment that offers a higher class of product that is more in tune and therefore more acceptable to North American and European requirements. The fact that The Ritz-Carlton has recently withdrawn from Jamaica’s Rose Hall resort says a good deal about the importance of ensuring the right location for investment of any kind, high end or not.
 

Seven Mile Beach, Condo’s Sold (Figure 1) 

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New possibilities for middle income Americans

Happily, the US economy seems to be on an upward trajectory right now, which means that another sector of the investment market now seeing their financial position improve is finally in a position to eye attractive investment propositions such as property in the Cayman Islands.

Those individuals looking to invest in the US$500,000 to US$1.5 million who previously were hit by property devaluation in the US, reduction in their 401k savings plans, job tightening and banks refusing to lend are now able to appreciate what high net worth individuals have known for a while – that the Cayman Islands is an excellent location in which they can share their investment with their family and friends and get true benefit from their wealth.

Assets are now appreciating as the stock markets surge ahead, the American housing market is turning around and showing real signs of promise and fewer people are now underwater in the property market, a continuing trend. As a result, we are already seeing an increase in interest in property in this price range and I only see interest in this segment of the market increasing.

In particular, Cayman’s ocean and water front condominium market is set to see significant improvement in the coming months, as more and more Americans begin to seek out their own slice of heaven here in the Cayman Islands. With planned inventory for this sector coming on the market within the next two to three years, this sector is ripe for investment.

 

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James Bovell

James has been a part of the real estate industry in the Cayman Islands
since 1991. Born in the Caribbean and educated in the UK, he has
achieved great success in listing and selling many of Cayman’s choice
homes, waterfront condominiums
and developments, land parcels and investment opportunities.  James has
received many of RE/MAX International’s awards including The Circle of
Legends, (the highest career achievement within the RE/MAX international
network with fewer than 200 inductees to
date).

James Bovell
Broker/OwnerRE/ MAX Cayman Islands
PO Box 30189 Grand Cayman
KY1-1201 Cayman Islands
T: +1 (345) 945 4000 E: james@bovell.ky W: www.bovell.ky 

RE/MAX

RE/MAX, which stands for 'real estate maximums', was founded in the 1970's by Dave & Gail Liniger in the United States of America. They developed a unique franchise system that allows real estate agents to maximise their potential by having the security of a franchise and at the same time having the individual freedom to run their own business. Today the RE/MAX network comprises over 6,000 offices with around 90,000 associates in 85 countries.

RE/MAX Cayman Islands is such an independently owned and operated office within the real estate network of RE/MAX International and RE/MAX Caribbean/Central America. The office at 7 Mile Shops on West Bay Road unites 21 real estate professionals and 9 administrative staff under one roof. All our associates and administrative staff are highly experienced and constantly expand their knowledge with ongoing training. Within the office, our associates use the synergy potential. Not only synergies within the office are important but we also work closely with RE/MAX offices all over the world as part of our international referral system.

Locally and internationally we are dedicated to maintain a high degree of visibility which will benefit our highly valued customers and clients as well as our Sales Associates. A comprehensive marketing strategy across all media including print and internet ensure our consistent exposure.

We are well established in the Cayman Islands real estate market as a strong office, capable of producing outstanding results. Referrals from satisfied buyers and sellers are a proof of it as well as the many awards the office has received. 

Physical address:
Seven Mile Shops
215B West Bay Road
Grand Cayman

Mailing address:
PO Box 30189
Grand Cayman KY1-1201
Cayman Islands

www.dreamfinders.com