Earning Returns on Your Investments in the Cayman

Posted by davidr on 19 th in Caribbean Property, Cayman Islands Land, Land Caribbean, Land Investments, Personal Pension, Property Cayman Islands, Property For Sale, Self Invested Personal Pensions on 19th of October 2010

In Why Buy Property in Cayman Islands we looked at the Grand Cayman Island as a profitable location for investment in land. We saw that Grand Cayman is not only a top tourist attraction but is also a top financial center. We concluded that as a favoured destination of wealthy retirees, the island is an elite location to live in.

In this post, we look at a specific property investment opportunity on the island that includes an option to earn an assured return.

The Dubli Golf & Beach Resort is an elite project located in an area known as the Millionaires Row on the north of the island. The project is located on the Rum Point Drive that faces the comparatively quiet Rum Point Beach. In addition to developed land plots with asphalt roads, electric power and water supply, the project features a four-hole golf course, beach club and resort condominium.

Each plot comes with a full suite of architectural and construction drawings for a specific type of residence. The type can be a single level of split level villa or a townhouse and each plot has its own design. The site map shows which plot has been allotted which design. Some investors choose not to proceed to the construction stage and instead wait for land prices to increase before realizing their investment.

One major feature of the project is the guaranteed return on investment offered by the developers. To avail this offer, you execute a buyback agreement with them giving them an option to buy back the property at a price that is 20 percent above the price you paid, during a five year period. In return for the option, the developers will provide you an assured return on your investment.

The rate of return depends on whether you pay the full price, say by using the funds in your Self Invested Personal Pension (SIPP) fund or whether you choose to pay the price in five yearly installments using the interest-free finance offered by the developers. If you pay the full price, you get a 30 percent return over the five year period while paying in installments will yield a 20 percent return during the same period.

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