This section provides detailed information on Cayman Islands real estate and how to find a home in Cayman. We give an overview of the residential areas and types of property you will find in Grand Cayman. We talk about renting or buying a property in the Cayman Islands and we even give you insider wisdom on what pitfalls to avoid. Finally we list temporary accommodation to tide you over for your first few weeks in Cayman.
Overview Of The Cayman Property Market After a few years of stagnation it appears that 2011 was a much better year in terms of stay over tourists and real estate sales. With various projects in the pipeline like the Narayana Cayman University Medical Centre, Cayman Enterprise City and the various Dart projects, the expansion of the George Town port and the potential expansion of the airport, there is much on the cards for helping move Cayman’s property market out of the doldrums. This will be a very welcome relief for everyone.
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 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 strict rules apply and a lawyer’s advice is 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 have to follow the guidelines of the Builder’s Law. Construction materials have to be imported and are subject to duty on the landed value, usually at 22%. Consequently the cost of building is considerably higher than in places where materials are more readily available. Houses, apartments, condos and townhomes are available for purchase, as are timeshares. Prices will vary depending upon location, size, design and other features, with water and beach-front properties, particularly those on Seven Mile Beach, commanding the highest prices.
The Cayman Islands Real Estate Brokers Association Buying and selling properties in the Cayman Islands in the 1970s and 1980s was quite different from today, as real estate companies were not organised as effectively and efficiently. It is for this reason that in 1987, a group of realtors agreed to form the Cayman Islands Real Estate Brokers Association (CIREBA). CIREBA is a not-for-profit association based on the North American style of relationship between realtors and clients but adapted to work within the UK based legal system of the Cayman Islands. One of the Association’s founding objectives was to “improve and elevate the general knowledge of persons engaged in the real estate business”.
Today, CIREBA is proud to boast that it has more than 29 member companies, making up approximately 80% of all realtors in the Cayman Islands. To be a member of CIREBA, agents and brokers must complete a professional training programme which, amongst many subjects, encompasses business ethics, due diligence requirements and some contract law. A high degree of competence is expected from all CIREBA members and they must adhere to a strict code of ethics established by the Association.
CIREBA members input listing data into the Multiple Listing System (MLS), providing a central data source of information for its members to provide to prospective purchasers. The basic premise of the MLS is that all CIREBA member firms have agreed to share their property listings and work together on any real estate transaction. This means you can view and buy any property through any CIREBA agent, not just the listing broker or agent.
CIREBA monitors the business standards and practices of all of its members, thus ensuring fair, honest and professional dealings in all real estate transactions.
Current Overview of the Property Market (Data From CIREBA) The CIREBA Multiple Listing System, as of June 2011, holds 2037 active listings totalling more than US$1.72 billion in value. This is slightly up from a year ago, when the total value of properties was US$1.67 billion. These listings include 218 three-bedroom condos at an average price of US$1,291,543, 325 two-bedroom condominiums at US$414,858 and 432 parcels of land at US$451,052. From January through June of 2011, 249 listings have been sold, valued at US$184,437,149 and another 134 are under contract. For the same six month period in 2010, 234 properties were sold with a total value of US$116,048,494. Whilst CIREBA sales volumes have increased, the same cannot be said for the market as a whole. Cayman’s Land Registry shows land transfers are down by 55% during the first half of the year when comparing it to the first half of 2010.
Evidence from realtors indicates that there has been a significant price correction and sales prices have fallen between 10% and 20% in certain markets.
The good news is that the economic and social fundamentals of Cayman are strong, and there have probably been few better times to buy Cayman real estate. The reasons are as follows:
We still have no direct taxation, at a time when the rest of the world is increasing the tax burden on its corporations and private citizens.
We have a stable and open legal, economic and governmental system which creates social stability. Where else in the world would you find 106 nationalities living in relative harmony on an island of around 76 square miles?
Cayman is a great place to live, work and play, with a skilled and specialised multinational workforce, good schools, healthcare, great amenities, infrastructure, resources, restaurants and entertainment selections that would be the envy of most large cosmopolitan towns. And of course, don’t forget the white sand beaches, blue seas and watersports!
Moody’s continued AAA rating for the Cayman economy and a recent survey by CNBC which rated Cayman as one of the top ten locations in the world for high net worth investors to live, work and play, alongside places like Hong Kong, Switzerland and Monaco is testament to this.
Quality of construction is high, land title is guaranteed by the Cayman Islands Government and, unlike elsewhere in the world, the banks are still lending and mortgages are available. Anyone can invest in Cayman property. There are no restrictions, and if you and your family want to make Cayman your home, then you can do so by applying for a residency certificate.
For these reasons, CIREBA feels that the coming year will be a positive one for the Cayman Islands, with opportunities to buy at excellent prices and the strong likelihood of good appreciation.
Other Interesting Property & Household Statistics There are 14,908 households in the Cayman Islands, of which 44.7% are owner occupied and 55.3% are rented. Those owning a property without a mortgage total 24.2%, while 21.9% have a mortgage and the balance are renting. Of those properties that are being rented, 49% have only 1 bedroom, 36.6% have two bedrooms and 8.9% have three bedrooms. In those households 28% have only 1 person living in the home, 33% have two people, 16% have 3 people, 13% have four people and finally 11% have between five and six people living in the same house. Therefore the average household size was 2.5 people. In 2008, at least 65% of homes had at least one computer, 98% had a mobile phone, 42% had a land line, 61% had internet service and 71% had cable television.
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. Monthly rental prices in this area range from high to super expensive (CI$1,500-CI$9,000+).
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 Governors 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 quality can vary widely. These are quiet areas, near to restaurants and the beach. There is a very good school in Camana Bay called the Cayman International School, which has recently switched to the International Baccalaureate education system and accepts children from two through 18 years of age.
The commute to town in the mornings is now quite short as you have the option of the bypass or West Bay Road, and many people say the new road 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 access to the Britannia Golf Course, multiple swimming pools, tennis courts, gyms, sunbathing on Grand Cayman Beach Suites’ beach and a quiet, relatively car-free environment great for walking. Apartments have either canal, pool or golf course views and the property is walking distance to Camana Bay and all its great facilities. This is a good option if you have teenage kids.
Camana Bay
The Town Centre of Camana Bay is Grand Cayman’s newest community and is situated on 500 acres that stretches from the sea on Seven Mile Beach to the North Sound on the other side.
The design of Camana Bay is based on New Urbanism which promotes walkable communities with a mix of housing, shops, civic space, schools and parks. Streets and walkways are interconnecting, offering a safe and scenic stroll or bike ride. Numerous parks and courtyards nurture social gatherings and a sense of community. Traffic is minimal, which helps to reduce the impact on the environment. Designed by a team of award-winning architects and planners, Camana Bay has a contemporary style inspired by traditional Caribbean architecture and is landscaped with mature, native plants and trees to give it a distinctly Caymanian character.
With a cinema, notable restaurants, a 24-hour gym, school (Cayman International School), doctor’s office, residential housing and prestigious office space for businesses, Camana Bay has become a very popular place to live simply because it welcomes the return to a traditional style of community – a friendly neighbourhood. Restaurant and dining options include award-winning Michael’s Genuine Food & Drink, Abacus, Black Trumpet Gourmet Delicatessen, Café del Sol, Häagen-Dazs, Ortanique, KARoo, Ginger Lily and Frosted Robin Cupcakes. Clothing and other stores include the upscale NKY and NKY Collections, The Jean Bar, SOLES, a Lilly Pulitzer shop called The Cabana, Books & Books, The Mansion, Bedside Manor, De Sunglass Man, Watch.Me, Sand Angels, Bon Vivant, Le Visage, Island Company, Eclipze Hair Design & Day Spa, Digicel, Mail Boxes, Etc. and Audi. The Discovery Centre at Camana Bay is a place where people can gather to explore the inspiration behind Camana Bay, find out what’s happening in the Town Centre or discover more about a possible home or home away from home with Camana Bay’s residential offerings.
Residential options include The Terraces, apartments for rent with homes being available for sale by the end of 2011/early 2012. The Terraces are located in the heart of Camana Bay’s Town Centre and are a collection of 60 one and two bedroom loft-style apartments, available for long term rental. Monthly rental prices start at US$2,200. The first phase of the ‘for sale’ residential product will offer a mix of courtyard homes, cottages and town homes, canal-front homes and condos to suit a variety of different buyers and price points. Visit the Discovery Centre at Camana Bay to view streetscapes, house plans and interior renderings for this unique community. For more information on residential offerings please contact the sales team on (345) 640 4000. As their slogan says, “Camana Bay is a place to live, work and play. A place where life blossoms.”
Dragon Bay
Dragon Bay in Grand Cayman is a luxury resort community, anchored by The Ritz-Carlton, Grand Cayman and stretching 360 acres from sea to sea between Seven Mile Beach and the North Sound.
In the heart of Seven Mile Beach are The Residences at The Ritz-Carlton, located within Dragon Bay’s 5-star resort, these private residences come completely outfitted with luxurious furniture, top-of-the-line appliances, linens, china and cutlery. You also have access to a fleet of BMWs and Intrepid 36-foot motor yachts while in residence. Living here, the deluxe amenities of the resort are at your fingertips – including fine dining, golf, tennis and spa.
All homes in Dragon Bay come with access to the 9-hole Blue Tip golf course, the Nick Bollettieri tennis courts, the Caribbean’s only 5-Diamond restaurant – Blue by Eric Ripert, the Silver Rain Spa by La Prairie and the full range of Ritz-Carton services.
Golfers can enjoy the 18-hole championship course at The North Sound Club and the resort offers six restaurants including sushi at Taikun, steaks at 7 Prime Cuts & Sunsets, homemade pasta and pizza at Periwinkle, tea at the Silver Palm Lounge and haute cuisine at Blue by Eric Ripert. The resort also offers an environmental programme called Ambassadors of the Environment for children, tennis, art galleries and upscale shops like Tiffany & Co.
Dragon Bay is also the host venue for highly-anticipated annual events – the Cayman Cookout and the Legends Championships Tennis Tournament. The Cayman Cookout, held each January sees The Ritz-Carlton, Grand Cayman and celebrity chef Eric Ripert of Blue and Le Bernadin play host to the world’s top chefs and wine and spirits experts for a gourmet food festival. The Legends Championships held in November, bring the world’s top tennis masters to the Cayman Islands for an entertaining charity event. For more information about their residential opportunities call (345) 815 7777.
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 include executive homes and two and three-bedroom apartments. Two-bedroom apartments across the road from the sea can be rented from about CI$1,500 per month. Apartments on the sea can be found for CI$2,000 and up to CI$4,600 (The Seaview). Apart from Seven Mile Beach, South Sound is one of the most convenient and, therefore, expensive areas in which 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 and the bay is fringed by a reef, so it is great for swimming and snorkelling. Residents also love to jog and walk each evening along the breezy road which follows the seashore. Roads off South Sound Road on which you will find large family homes, most with pools, are Vienna Circle, Mary Reid Crescent and Anne Bonny Crescent. In the middle of South Sound, on a lovely stretch of white sandy beach, is Caribbean Paradise which has a pool, tennis court, numerous three-bedroom apartments and about ten very sought after four-bedroom houses on the beach. 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 CI$1,400 and up per month for a two-bedroom apartment. Some of the newer, more exclusive condominiums can be as high as CI$2,000–$2,500 per month.
There are also a few upscale new developments like the San Sebastian townhomes and The Boulevard, The Lakes and The Venetia, where you buy the land and the developer will build for you.
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 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 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 on their journey, especially as it is so hot in the sun. They are always very grateful.
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 properties in the Seven Mile Beach area can be found in Britannia, Palm Heights Drive, Canal Point Drive and Crystal Harbour. Off the Esterly Tibbetts Bypass are the following canal-front roads: Lime Tree Bay Avenue, Cook Quay, Drake Quay, Nelson Quay, Jellico Quay, Magellan Quay, Prince Charles Quay and Raleigh Quay. These are very popular areas in which to live and have many houses and apartments, all in the high to exclusive price range.
In the Red Bay area, roads on the canal are Prospect Drive, Omega Drive, Whirlwind Drive and Patrick’s Avenue (part of Patrick’s Island). Leeward Drive and Windward Road in North Sound Estates also have 13 canal-front roads off each street.
A very interesting option for 2012, are the canal front homes which are planned in Camana Bay. The first phase offering pre-construction sales.
Prospect & Red Bay
This is the fastest growing area of the Cayman Islands as it is close to George Town, and many new condominiums and homes have recently been built. 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 party supply store, liquor store and a clothing store. There is also a restaurant called The Brick House, a coffee shop called The Brew House and a bar called The Dog House. Cayman’s first skate and surf park, The Black Pearl, is located behind Grand Harbour. Also in the Red Bay area are 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 (10 minutes), but even with the new East-West Arterial Road traffic can get backed up during rush hour. The area is a mix of inland and canal-front properties. Rents for inland 2-bed properties range from CI$1,200 to CI$1,600 per month with canal and ocean front properties averaging CI$2,000 to $2,300 per month.
There are two very exclusive areas in Red Bay. The first is Old Prospect Point Road, 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, called 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, western end 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; the last residential neighbourhood remaining on Seven Mile Beach. Popular West Bay 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 Cayman restaurants, such as Calypso Grill, Ristorante Pappagallo, The Cracked Conch, Osetra Bay and Morgan’s Harbour (all of which serve great seafood), are located in West Bay. Tourist attractions like the Motor Museum and Cayman Turtle Farm are also in West Bay and diving from the Cracked Conch restaurant is very popular. Locals enjoy renting a tank from the dive shop downstairs and diving with the tarpon or hanging out at the mini-wall just three minutes swim from the dock, then rinsing off and having lunch at the restaurant. Once you have tried that spot you can then dive from Lighthouse Point nearby. They have a cafe downstairs called Treats, which serves great, healthy smoothies and a full breakfast all day. DiveTech, the on-site dive shop will help you discover incredible dive sites in the area available as shore dives or by boat, including the ex-USS Kittiwake that was sunk nearby in January 2011. 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. Incidentally, Barkers Beach is always closed to vehicle or pedestrian traffic from sunset to sunrise.
The new bypass means 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. George Town (GT)
George Town is the capital of the Cayman Islands. It is located on the southwest corner of Grand Cayman and is a busy port, with an influx of several cruise ships almost daily and cargo ships unloading most evenings. The main roads in George Town are North and South Church Street, which run through town parallel to the sea. 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 you will avoid the main rush-hour traffic jams (the routes in from West Bay/Seven Mile Beach and the Eastern Districts are slow-moving at peak times). Private prep and high schools in this area include St. Ignatius Catholic School, Cayman Prep and High School, Triple C and Truth for Youth.
One very nice area off Walkers Road where houses occasionally come up for sale (and are quickly snapped up) is the upscale Webster’s Estates. All the homes sit on larger than usual plots, have mature shade trees and are architect designed. No apartment complexes have been allowed to be built in Webster’s Estates so there is a nice community and family-feel to the area.
On the apartment front, there are many lower to mid-priced condominiums for rent (or sale) off Walkers Road starting at CI$650 for a studio, CI$950 for a one-bedroom apartment and CI$1,400–$2,000 for a two-bedroom unit. Some of these apartments 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 variety of offerings, some really nice and some older and cheaper. A few of the nicer options in this area include the townhomes at The Retreats - Sunset, Garden, Coco and Mystic Retreats, and also the L’Ambience complex off Fairbanks Road. The latter has a multitude of mature shade trees, lush landscaping and huge communal grassy areas which are very unusual for the usual apartment complex offerings in Cayman. These are family orientated complexes and pets are allowed.
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. Both areas are 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 it still slows down significantly 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 trees (of which the area has an overwhelming abundance) flower and the sight as you drive through Savannah is breathtaking.Also located in Savannah is the historical site called Pedro’s Castle. It is known as the “Birthplace of Democracy in the Cayman Islands.” Today it is lovely to walk around the Great House’s grounds while slipping back in time to Cayman’s early days.
Countryside Shopping Village, located immediately on the left at the roundabout where the road intersects between Savannah, Pedro and the entrance to Newlands, has improved shopping in the area significantly. This village of shops has several restaurants (Subway, a Chinese restaurant called Dragon Garden and a Pizza Hut), a Foster’s Food Fair supermarket, Cayman National Bank, a 2,000 square foot pharmacy, a LIME store, liquor store, veterinary clinic, a wonderful pet supply store called Animal House, a GNC, Cayman First insurance, Kings Express Gym, A.L. Thompson’s hardware store and many other useful stores, which means residents in the area no longer have to drive to town for everyday essentials.
The usual properties for rent in this area are family homes with reasonably sized gardens. Prices are usually in the low to mid-range.
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 range from high to exclusive.
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 Government’s new high school is being built here and when complete, its new state of the art facilities should be fabulous. Queen Elizabeth II Botanic Park and the Mastic Trail are also located off Frank Sound Road.
The Cottage area, before East End, is an exclusive area of upscale homes and townhomes in the high rental range.
Bodden Town
Those who venture out to Bodden Town love it. It is on the beach, away from the centre of it all and the rents are reasonable. The community still has the feel of a small Caymanian town, with a mixture of locals and expats living alongside one another. The beaches in Bodden Town are rustic, usually littered with driftwood and dried turtle grass and are lovely places 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 to reach George Town 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.
There are plans for the Island’s new waste management facility to be built in Bodden Town.
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 a restaurant called Over the Edge which serves great local seafood cooked with a French influence. Just at the turning to Hutland there is a small grocery store called Chisholms and opposite Morritt’s Tortuga Club in East End there is a mini Foster’s Food Fair supermarket. Ocean Frontiers (also in East End) is a great place for diving. There are two great restaurants in this area: Tukka which is an Australian/Caymanian fusion seafood restaurant and Vivine’s Kitchen which serves very good local food.
This is a beautiful and historical 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).
Rum Point
Rum Point is just northwest of North Side and just before Cayman Kai. It has a beautiful stretch of beach and faces the North Sound (home of Stingray City). It has casuarina trees giving shade, clear waters, exclusive million dollar homes and some more affordable condos. The Rum Point Club can be reached by car, private boat or a ferry (run by Kaibo Bar & Grill). This is a great place to hang out in hammocks, eat lunch at a picnic table and swim or snorkel 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. There is a holiday home feel about the area and life is centred around the beach and barbecuing. There are many luxurious houses and a few upscale apartments on the water. The commute into George Town at rush hour will take at least an hour. Prices in this area are high for large private homes but there are 2-bed condos at the Kaibo Yacht Club which rent for CI$2,000 per month. Some residents treat themselves by renting a house or condo here for the weekend to relax and get away from it all. Call Cayman Villas (Tel: (345) 945 4144) to see what vacation rentals they have available. Great restaurants include the Kaibo Bar & Grill and Upstairs. Fuel for cars and boats can be purchased from Kaibo as well.
CAYMAN BRAC Cayman Brac is about 12 miles in length and about a mile in width, just a bit larger than Little Cayman. The Island has more to offer in terms of natural scenery than the other two Islands and the bird watching is world class. There is a plethora of hidden caves and winding trails to explore, the atmosphere is tranquil and the people are friendly and welcoming. While most of the hotels and resorts are found on the south side of the Island, the majority of long term residents live on the north shore. The Brac (a Gaelic word meaning ‘bluff’) has the highest elevations in the Cayman Islands.
West End
Cayman Brac’s West End is probably the most densely populated area on the Island. You will find the airport, two grocery stores, a gas station and couple of condo complexes in this area. The famous Russian wreck dive, M.V. Capt. Keith Tibbetts lies just offshore
Stake Bay
Stake Bay, which roughly refers to the middle section of the Island, is where the government building, the hospital and the museum are located, and as such constitutes the official town. There is also a decent grocery store here and several private homes.
The Bluff
The Island’s gentle ascent eventually leads to the limestone cliffs which are its namesake. A lighthouse crowns the 150-foot-tall seaside edge of the bluff, providing beautiful ocean views. The birds circling overhead may eventually lead you back inland to the ancient woodlands of the Brac Parrot Reserve. There are now a number of homes and apartments located throughout the Bluff.
Eastern Districts Continue east to Watering Place, Creek and Spot Bay and you’ll find a true Cayman Brac welcome. Mom and Pop stores and small local restaurants showcase authentic souvenirs and traditional Caymanian fare.
LITTLE CAYMAN Little Cayman truly is little. Ten miles in length and one in width, it harbours a permanent population of barely more than 100. Even though it is a mere blip on the radar, the Island is a formidable destination for diving and offers some relaxing pursuits such as beach combing, bird watching, bone fishing and chilling in a hammock with a good book!
The Island does not have a town as such, but the Island’s only grocery store, gas station, bank and clinic are all located in the west of the Island near the airstrip.
South Hole
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, Pirates Point Resort, Little Cayman Beach Resort and The Conch Club. Most of the accommodations are within walking distance of Edward Bodden Airfield, where the landing strip is located. The South Hole is also home to the only RAMSAR site in the Cayman Islands (an internationally recognised important wetland).
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 are no annual property or capital gains taxes. Cayman’s Land Registry office is well run and modern, enabling transfers to be relatively quick and simple. Every piece of property is registered under a unique block and parcel number, which means 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.
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 now valid for five years following the grant of planning permission (recently changed from one year). Building time in Cayman is relatively quick, and most homes up to 3,500 square feet 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. See the Building a Home chapter for more information.
Stamp Duty & Other Charges Stamp Duty is payable on all real estate purchases. A one-time fee of either 6% or 7.5% is paid on the sale price or the fair market value of the property (as determined by the Lands and Survey Department), but NOT on furnishings purchased with the property. This is paid by the buyer and not the seller. 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 the downtown George Town area) is charged at 6%. Caymanians purchasing property falling within the 6% duty rate pay 4%. Caymanians buying within the 7.5% stamp duty bracket still have to pay 7.5%.
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. The cost of building permits is based on the square footage of the property being built.
When transferring, a Transfer of Land form (which costs CI$50) is required to be registered at the Lands and Survey Department. Other forms may be required.
When purchasing with bank financing, the bank will require a report on the ‘Market Value’ of the property. This needs to be prepared by an approved firm of chartered surveyors. The cost is usually in the region of CI$400 and upwards.
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. If you are not entirely sure how to calculate value, then call the Lands and Survey Department on (345) 244 3420 and they will be happy to discuss your specific circumstances.
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 of 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 15-25 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 1-3% above prime, giving the lower percentage rate to those with the greater deposit. Unfortunately, there is no convenient way of finding the best rate other than arranging a meeting with each bank’s mortgage advisors and talking to them. A very small percentage of the banks do charge a pre-payment penalty, so be sure to ask.
Insurance Required for Mortgages Many banks will require a life insurance policy to be collaterally assigned to them for the amount of your mortgage. Your bank loan officer will advise if such a policy is needed for your mortgage purposes. With life insurance, as with any product of this nature, it is definitely worth your while to take a couple of minutes to shop around and check quotes, coverage terms, reputation and customer service strengths of several providers. This ensures that you are comfortably getting the best rate possible, rather than simply settling on your bank’s built-in provider, which often times ends up costing significantly more than alternative options. There are numerous providers who offer life insurance in the Cayman Islands but an independent broker will do the shopping around for you. One well known independent broker is Tony Mosley.
Average House & Apartment Prices The median sale price of an average two- bedroom town house, away from the water, in George Town, is approximately CI$215,000 (US$256,000), down by approximately 5% from the preceding year. On beachfront locations, prices are significantly higher with average prices for two bedroom apartments in older developments being approximately CI$385,000, a slight increase of 2% over the average value in 2009, whilst sale prices for higher-end beach front condos reached as high as CI$2,335,200 (US$2,780,000) in 2010, an increase in average prices for units in the same development by 12% from 2009. In addition to the condominium market, detached single family homes are available in most areas of Grand Cayman with sale prices ranging from an average of CI$220 (US$260) per square foot in one of the mature residential areas along the SMB corridor, to approximately CI$150 (US$179) per square foot further east in Savannah, both areas showing an increase in average value over the previous year. For those buyers looking to build their own homes, the prices for house lots range from the upper-end (canal front developments on the Seven Mile Beach peninsular where prices have remained fairly stable over the last few years at approximately CI$19 (US$22.50) per square foot) to the popular Savannah area where the prices of lots have also remained relatively stable at approximately CI$5.50 (US$6.50) per square foot. Lower prices can still be found further east, with house lots in the Frank Sound area averaging approximately CI$3 (US$3.50) per square foot.
Building insurance is widely available for all properties in Cayman and banks are still lending competitively to home buyers, unlike other jurisdictions. Property prices have typically appreciated over the past quarter century at around 3% per annum, reflecting the stability and resiliency of the Cayman market. The recent recession has led to a drop in prices by 21% since an all time high in 2006, but with an economic rebound expected and prices low, 2012 should be a great time to buy a home or apartment in the Cayman Islands.
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 and responsibility for the land they own and all buildings on it. Strata ownership is less familiar to many people, but very common in Cayman. The following 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 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, along with 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 that 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 maintaining the property.
Examples of monthly strata fees you might expect to pay are: CI$500 for an inland two-bedroom townhouse (CI$300 per month for insurance and CI$200 for maintenance - water and electricity fees for the grounds, garbage collection and garden maintenance); a three-bedroom inland apartment may well be CI$650 per month, and for properties on the water, especially along Seven Mile Beach, you could easily pay between CI$800–$1,200 (CI$400 maintenance, CI$336 insurance and CI$64 sewage charge). If you are interested in a particular property, your realtor should be able to find the exact strata fees for you. A well run strata plan will help a property to hold or increase its value.
Property Valuations When applying for a mortgage it is current bank policy to request that a property valuation be undertaken by a chartered valuation surveyor, or other appropriately qualified valuation professional. It is usually the purchaser, not the seller, who has to undertake this step. A property valuation acceptable to local banks should be prepared to the internationally recognised standards of the Royal Institution of Chartered Surveyors (RICS Valuation Standards). The valuation report 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 provide invaluable background checks on the recent property sales in the area. It should also make particular reference to any encumbrances or leasehold interests on the property and the report should set out the valuation methodology used by the valuer.
In addition to providing the bank with the information that the lender requires for financing purposes, a professionally prepared valuation report should also provide the purchaser with the reassurance that they are paying the fair ‘market value’ for the property and that there are also no obvious defects to the property.
BCQS International Whitehall House, 238 North Church Street Tel: (345) 949 8644 Fax: (345) 949 7184 www.bcqs.com Services include: Project management, claims consulting, quantity surveying, valuations, appraisals, feasibility studies and engineering services.
Blue Point Consultants Tel: (345) 525 0706 Services include: Property valuations, development appraisals and feasibility studies, acquisitions and disposals of commercial real estate, consulting on landlord and tenant issues, lease advice and property searches, reinstatement costs for insurance purposes and loss adjusting.
Charterland 3rd Fl, Fidelity Financial Centre, West Bay Road Tel: (345) 623 2772 Fax: (345) 943 1552 Email: info@charterland.ky Services: Chartered surveying, quantity surveying and cost management, project management, and commercial, residential and strata management.
Property Management Services Numerous companies in the Cayman Islands offer full property management services. For the extensive number of property owners who live overseas and only visit on a periodic basis, this is an invaluable service. You will often find that a well-managed apartment complex has a reputable property management company behind the scenes quietly getting things done. A good property management company will advertise and market your property, screen prospective tenants, draw up a lease, handle all financial matters, produce monthly reports, handle all maintenance matters and be on call 24/7. Many realtors who specialise in rentals also offer property management services.
BCQS Property Management Whitehall House, 238 North Church Street Tel: (345) 949 9300 Fax: (345) 949 7184 www.bcqs.com BCQS specialises in the proactive management of commercial and residential properties including stratas. They also have an extensive range of residential rental properties available. Professional services are tailored to meet a client’s specific property management requirements.
Pitfalls To Avoid There are various pitfalls you will want to avoid when buying a property in Cayman. Many, such as unpaid strata fees by the previous owner, will be caught by a conveyancing lawyer just doing his or her job. However, other pitfalls, less well known but equally easy to avoid, are as follows:
Water Bills: Make sure the final water bill on the property has been paid by the previous owner. Though technically both water companies cannot hold you responsible for any outstanding balance, unpaid bills can, and have 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 (the electricity provider).
Air Conditioner Servicing: Another thing worth checking is whether the property owner has been regularly servicing the a/c units. It costs around CI$125 every quarter to service two a/c units and unfortunately many property owners don’t bother, especially if they are soon going to sell the property. You will want to ask the seller how often the air conditioning units have been serviced, as a lack of regular maintenance will greatly reduce the life expectancy of air conditioning condensers and new a/c equipment can cost thousands of dollars. Also, in the event of an air condenser (which is usually housed in the attic) failure, the first thing you will probably notice is your ceiling caving in! As a condition of the sale, request that the seller have the property’s units serviced and provide a report on their condition.
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 number of ever present pests which are a reality of life 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 severe termite infestation in a wooden house might make the property unsalvageable.
Realtors Who Specialise In Sales When you are ready to buy a property, please work with only one real estate agent (this does not apply to rentals)! Rest assured 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 accessible to all CIREBA agents. In other words, the agent you are comfortable working with will show you all the listings, regardless of who they are listed with. The agents all cooperate with each other, so there is no need for you to call or trek around to 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 small Island and invariably you will end up bumping into the offended agent at various showings and events. Realtors who specialise in sales are listed below:
Starting Your Search It is typical to use a real estate agent specialising 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 2000+ rentals listed on ecayTrade though it is a bit of a mine-field or every Friday’s Caymanian Compass newspaper has ads, but a real estate agent will do all the leg-work for you and drive you around to look at different options. Some have very informative, well laid-out websites while others will email you a list of properties they have on their books prior to your arrival. Try to set up an appointment with a realtor in advance to make sure they are available to show you around upon your arrival.
Styles of Housing There are various types of housing to choose from: one, two, three or four-bedroom family homes, townhomes, condominiums, apartment complexes or rooms/apartments carved out of larger houses. Detached three and four-bedroom houses are less easy to find, as are one-bedroom apartments; however, there are some available. The most common are condominium units in 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. 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 and long 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 already 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 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 located. There are many quality options for housing near the schools in George Town and South Sound, as well as in 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 to set up a home office.
Time-frame? 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 lease. 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 home.
Related Costs When you find the place that is right for you, you will usually need to put down a security deposit and the first month’s rent in advance. Be prepared with cash or have the ability to get it quickly. Cheques from banks outside the Cayman Islands will rarely be accepted. In addition to the rent and deposit, you will have additional start-up costs related to your new 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 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 television/internet is included, especially in condo complexes. Note that insuring 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 also linens, kitchenware and appliances are supplied. A television will often come with a ‘fully furnished’ unit as well, but not always. Some units advertised as ‘furnished’ are really only semi-furnished with the bare minimum: beds, sofa, table and chairs, as well as major appliances. Confirm what is included prior to signing a lease by asking for an inventory showing everything that comes with the unitmay be. For example, usually ‘fully furnished’ means that not only the furniture, but also linens, kitchenware and appliances are supplied. A television will often come with a ‘fully furnished’ unit as well, but not always. Some units advertised as ‘furnished’ are really only semi-furnished with the bare minimum: beds, sofa, table and chairs, as well as major appliances. Confirm what is included prior to signing a lease by asking for an inventory showing everything that comes with the unit.
Other Considerations
Pets: It is much more difficult to find housing where pets are accepted. Most rental units are individually-owned and rented furnished, so 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 CI$500 per pet. Some complexes do not allow pets at all.
Children: Barring children from rentals is far less common now than in the days when landlords could pick and choose who they rented to. Most landlords would now just be very grateful to fill their vacant rentals!
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 additional tenants.
Realtors Who Specialise In Rentals For potential renters, the best approach is to email one of the realtors (see below) who specialise in rentals. They will respond very quickly by emailing you back with 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 several different rental agents have to offer. Floor plans are rarely if ever supplied.
Temporary Accommodation Many companies on Grand Cayman offer new employees two 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 variable, depending on the time of year. It is also worth asking for a special rate if you are staying in the low season or for more than two weeks. Most property owners will be flexible.
Sunshine Suites Resort Tel: (345) 949 3000, US Toll Free: (877) 786 1110 This property is located further along Seven Mile Beach, but is still central to shops and restaurants. It is across the road from Seven Mile Beach and next to the North Sound 18-hole golf course. The resort offers well manicured gardens with hammocks, a freshwater swimming pool, and fully equipped kitchens in all suites: studio, deluxe or one-bedroom. Complimentary continental breakfast is served daily at their award-winning Sunshine Grill restaurant, with an option of a full breakfast for guests only. Other amenities include data-port phones with private voice-mail, complimentary high-speed wireless internet, a business centre, coin-operated laundries in each building and membership to a nearby local gym. The hotel offers short and long-term rates for local companies and residents. www.sunshinesuites.com
Treasure Island Resort 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 service and a coin-operated laundry. In addition, guests have access to the amenities of the Treasure Island Resort, which include three pools, a poolside bar called Billy Bones, a restaurant called the Club House, the TI Market and Coffee House, shops, a hair salon and a spa. Rental units start at CI$1,000 per month.

Copyright 2011 The Resident Magazine 2012. All rights reserved. Acorn Publishing Co, PO Box 31403, Grand Cayman KY1-1206, Cayman Islands, Tel: (345) 946 3200 Fax: (345) 946 2830 Email:info@acorn.ky
