If you want a vacation home and you've picked Cayman Island as your location, there are a lot of great benefits, but you want to buy smart. You want to make sure that you can afford to utilize your vacation home as much as possible by knowing all of the costs in advance.
The price tag on the home isn't the only expense you'll have to worry about, and you want to know exactly what you can spend in advance. Here are a few things to talk with your lender and your real estate agent about.
Preapproval
First go to your mortgage lender and find out what you can get preapproved for. If you are worried about getting approved in United States, or the currency conversion, you may want to look into Cayman banks as well. Once you have the preapproval you can more accurately determine what your budget is, after you factor in taxes and insurance.
Taxes
Not only are you going to have to pay taxes on the property, but the taxes are going to be high because you aren't a permanent resident of the area. If you want to be directly on the water, expect to pay even more. Get a tax estimate from your real estate agent, or talk with a real estate agency in the area, so you can factor this into your monthly expenses.
Work with your real estate agent to get lower tax rate areas if you aren't set on a particular location, or if you are willing to look around in a variety of places.
Insurance
The amount of insurance you pay is going to be affected by how close you are to the water and the type of hurricane precautions the property has. The average cost to insure the type of house you want should be included in your monthly payment, so you know what you are going to be every month.
Buying a vacation home is a great investment if you spend your money wisely and if you can get the property that you want without having to strain your finances. Talk with the financial professionals you use now for mortgages, and also with a Cayman real estate agent, like those at IRG International Realty Group Ltd, to see what type of house you can afford in that area. Once you have a number, you can start touring the area and looking at homes, and you'll be prepared to make an offer.
Share7 August 2015
Apartment living can be a trial sometimes. Even the best apartment complexes can have problems, such as noisy neighbors. I experienced this firsthand with my newest neighbors. Between their partying and trashy existence, I was ready to go crazy. Late one night when they were being particularly noisy, I started researching my rights as a tenant. I found out I did not have to live with their inconsiderate behavior. As a public service, I decided to help others through this blog with their neighbor problems. Whether you are dealing with a landlord that will not do any repairs or bad neighbors, I can help.