Buy Land Abroad

Buying land abroad can be an excellent investment option. However, just like any other investment, land investment also needs to be done with due diligence. Let us first look at why investment in land is such a good idea.Land is limited in availability. In practical terms, land is not something that you can create. As demand for land goes up, it will have to be met with existing availability and this means that prices will go up.The issue before land investors is to select property in areas where demand is likely to go up fast. Not all land will meet this criteria. For example, in areas where population is declining, demand for land is not likely to go up much. Similar is the case for areas where significant economic development is not likely to take place.Once you have identified an ideal location for land investment you have to start the due diligence process. Key issues to consider are:

• Does local government laws and regulations allow foreign citizens to get freehold title to land property?
• Are local land records maintenance system foolproof enough to identify each piece of property uniquely?
• Does the records maintenance system ensure that ownership and other charges such as mortgages can be clearly identified without dispute?
• Are there any prior charges on the piece of land you are planning to buy?
• How will you arrange to manage the property overseas till it can be sold at a profit?
• If you plan to add value to the property, how will you manage this exercise in a cost-effective manner?

Land Abroad

In a separate post on Buying Property Overseas we look at the desirability of investing in land in overseas countries. We said there that if the location is selected considering its growth potential and a proper due diligence exercise is carried out, investment in land abroad can produce excellent returns.In this post we look at one such land investment opportunity, viz. investment in the Caribbean island of Cayman. Caribbean islands are popular tourist destinations with superb beaches on the deep blue waters of the Caribbean Sea. A villa near the beaches that blends beautifully into the Caribbean environs  is a dream not only for the tourists but also for permanent residents seeking to spend their retired lives in a more enjoyable location.That is just what an investment in a land plot in the Cayman Islands could provide you. The Cayman is a British Overseas Territory in the Caribbean, governed under British Common Law. It has a governor appointed by the British Monarch and a democratic parliament elected by local citizens. The Cayman is not only a top tourist destination but also the fifth largest financial center in the world with nearly a thousand bank offices in its capital, George Town.The Cayman government allows freehold foreign ownership of land and the island also has an excellent system for maintaining land records. Each piece of land is identified by a unique Block and Parcel number allotted by the Lands & Survey Department. There is a planning department that keeps track of land use and ensures that quality of life is maintained through proper zoning of residential and commercial areas.The Cayman consists of three main islands, each of them with its own unique ambiance. Grand Cayman is a developed place with all modern conveniences, including hotels & restaurants, extensive shopping and an international airport with regular flights to U.S. and Europe. Cayman Brac has lush forests with walking trails, and a world-class rock climbing facility. Little Cayman is indeed a quaint little place, just one mile wide but with the world's top wall-diving facility.Developed land plots are available in all the three islands for investors seeking to invest in land abroad.