Buy Property Overseas

The post on Why Buy Property in Cayman Islands examined why land investment in the Cayman is an attractive proposition. In this post we look at the issue of guaranteed returns offered by developers on some specific property investments. The return guarantees are available on the following properties which consist of land plots in approved layouts:

• The Dubli Golf & Beach Resort in Grand Cayman,
• The Little Dolphin Estate in Cayman Brac, and
• The Lakeside Estate and the Little Cayman Estate in the Little Cayman.

All the plots come with infrastructure like asphalt road fronts and access to electric power, and also with a full suite of architectural and construction drawings for pre-approved villa designs. There is no obligation, however, to proceed to the construction stage. Many investors prefer to just invest in the land and wait for land value appreciation to get a return on their investment.

Investors can also get assured returns in another way, as outlined below.

All the above investments are SIPP approved investments, meaning that you can invest in these properties under your Self Invested Personal Pension plans. On investing, you have the option of entering into a buyback agreement with the developer. The agreement gives the developer an option to buy the property back during a period of five years at a price that is 20 percent above the price you paid for the property.

In return for this option, the developers guarantee to provide you with an assured return of 6 percent per annum on your investment for five years. You will thus obtain a guaranteed 30 percent return on your investment over the five year period. Even if the developer exercises the option before the expiry of five years, you will get your five year assured return with a final compounded payment representing the return amounts for the remaining period.

Comments are closed.