Do your research

As with any property purchase, it is imperative that you do your research before embarking on the process of finding and buying a dream home or second home in the Caribbean. It is easy to get carried away on an idyllic holiday in the islands, but a holiday rarely gives you enough time to make an informed decision.

Consider what you will use the property for. Should it be for personal use, you will want to know that the local infrastructure is well developed and will offer you the services you might require. Should it be a rental investment, then proximity to facilities and amenities needs to be taken into account. It is also important to consider how far you, or prospective visitors, are happy to travel. Although there are increased international flights into a number of different islands, not every island in the Caribbean is accessible via a direct flight.  

Work out how you will finance a purchase

One of the first considerations when purchasing a property in the Caribbean should be that of financing. If it is not a cash purchase and you require a mortgage then you would be well advised to seek pre-approval from lenders before you embark on a search. Acquiring mortgage financing from Caribbean institutions is pretty much the same as it is elsewhere and similar documentation and proofs will be required.

The main institutions offering US$ mortgages in the Caribbean are The Royal Bank of Canada, Scotia Bank, and CIBC First Caribbean International Bank. Loans in the Caribbean are available from around $250,000. Banks will lend over a maximum of 20 years and interest rates start from 3.5 per cent per annum, although this varies depending on the LTV, purchase price and island.

Register with an agent for your search

Property regulations and laws vary from island to island. For instance, St Lucia requires an international buyer to apply for an Alien Landholding Licence before purchase, whereas Barbados and other islands do not.

A good agent can also help guide you through what can often be a fairly bureaucratic process. They will be able to introduce you to professional services who can assist with other services required in the purchase process.

Appoint an attorney

Once you have decided on your dream home then it is time to make an offer. Because the Caribbean islands vary in their laws regarding the purchase of properties by foreign nationals it is advisable to have a local attorney in place to assist. An agent will help you find one.

Be aware of the associated costs of buying

With a property purchase there are always further costs outside the cost of the land/property. Make sure you know what these are likely to amount to. Expect to pay attorney fees, valuation and survey fees (should you take these services) and land transfer taxes.

Different islands require different fees from non-nationals before they are free to purchase. In most cases, attorney fees are approximately 1 per cent to 2.5 per cent plus VAT and buyers will be expected to pay a proportionate amount of land tax – taxes are usually on a sliding scale, dependant on the property’s size and condition.

Have a little patience

Though you will doubtless end up with something amazing, purchasing your ideal property in the Caribbean can be a long process. Stay up to date with progress through your estate agent and attorney – and be prepared to be patient.  

Further information

View all properties for sale in the Caribbean