UK & Irish Estate Agents Selling Property in Jamaica

Jamaica is a privileged Caribbean vacation spot since it is unlike any other Caribbean island in terms of both personality and culture. Due to its rapid economic development, Jamaica currently offers excellent home investment options. Never has there been a better time to buy or sell your property in Jamaica.

Is purchasing real estate in Jamaica something you’re considering? If so, you may want some advice on where exactly would be the greatest spots to do so. Do you want advice on how to purchase real estate in Jamaica from a foreign country? Do you want some straightforward advice about how to go about making a purchase and how much tax money you should expect to pay?

This manual will help you figure out the answers to those questions and more. Have fun learning the ins and outs of purchasing real estate on Jamaica.

 

INTRODUCTION TO THE PROPERTY MARKET IN JAMAICA

Jamaica is stunningly gorgeous, from the pristine white beaches of Negril’s seven-mile coastline to the verdant green of the Blue Mountains. Likewise, the terrain is as diverse as the people that inhabit it. Jamaica’s national slogan, “Out of Many, One People,” celebrates the country’s many different indigenous groups. Several different ethnic groups have made Jamaica their permanent home, including the Chinese, the Africans, the Lebanese, and the Indians.

Jamaica has become the most sought-after Caribbean destination for weddings, honeymoons, and family holidays due to its abundance of pristine beaches, crystal clear waters, gushing waterfalls, and forested mountain ranges. Jamaica, which situated between the Dominican Republic and the Cayman Islands, saw a record-breaking 4 million tourists in 2019.

There is plenty for everyone to enjoy on Jamaica’s several championship golf courses, which have elevated layouts and gorgeous panoramic vistas, as well as the island’s world-class restaurants and spas.

The real estate market has matured, and savvy buyers now have several attractive choices from which to choose. All over the island, in places like Montego Bay, Runaway Bay, Negril, St. Ann’s Bay, Treasure Beach, and Portland, you can find exclusive gated communities with multimillion-dollar beachfront mansions or hotel-condo resorts where you can take advantage of first-rate hotel services and generate rental income.

 

TO WHAT EXTENT DO FOREIGNERS HAVE ACCESS TO THE REAL ESTATE MARKET IN JAMAICA?

Definitely! Jamaican real estate is available to foreign purchasers. To put it simply, foreigners are free to buy property in Jamaica. To accomplish this, however, you will need to register for a Taxpayers Registration Number (TRN), provide confirmation of identification, and verify the source of funds in accordance with anti-money-laundering legislation. Buying property in Jamaica gives you all the rights of a Jamaican citizen and is a popular way for foreigners to invest in the country’s thriving economy.

 

How a Purchase Is Made

Buying a home or investing in real estate in Jamaica is a simple procedure that entails the following steps:

  • Use a Jamaican real estate agent to help you find the perfect home, or browse our extensive list of available properties in Jamaica.
  • An offer can be made after viewing your property.
  • Hire a lawyer in your area to help you with the transaction. When our customers want help purchasing property in Jamaica, we put them in touch with our local team of Attorneys at Law. On average, legal fees amount to 3% of the total price.
  • If your offer is accepted, the next step is to perform a title search and land survey to ensure there is clear title to the property.
  • The legal representative of the sellers will now draught a Purchase and Sale Agreement (which you may know as a Sales Agreement or Contract).
  • It is customary to put down 10% of the purchase amount upon signing the Agreement for Sale, with the remaining 90% due upon closing.
  • All applicable taxes and fees are your responsibility.
  • Costs incurred by the purchaser including government levies and other charges

OBLIGATION TO STAMP

As part of its 2019 tax changes, the government of Jamaica lowered stamp duty, bringing it down to JMD100 for transactions under JMD500,000 and JMD$5,000 for transactions beyond JMD500,000. It is agreed that the seller and the purchaser would each pay half of the stamp duty (JMD 2,500).

The seller must additionally pay a transfer tax equal to 2% of the purchase price, although the buyer is exempt from this fee.

COST OF REGISTRATION

The Registrar of Titles requires a registration fee of 0.5% of the purchase price.

You, the buyer, will pay 0.25 percent, while the seller will pay the same amount

COSTS INVOLVED WITH THE LAW

Typically, legal fees amount to 2-3% of the total transaction price, plus 15% GCT (General Consumption Tax). We recommend consulting a local attorney and can refer you to the members of our local attorney panel.

 

PROPERTY TAX

The valuation of the land without any improvements is used to calculate the property tax.

To begin, Forbes ranked Jamaica as the best place in the Caribbean for business and investment. Investment has poured into nearly every facet of the Jamaican economy, with beneficial results across the board. There is now a solid economy that is growing in Jamaica.

Second, the rock is so desirable that everyone wants their own piece. The luxury real estate industry in Jamaica is dominated by overseas buyers. With little if any barriers to entry, many expats are taking advantage of Jamaica’s affordable housing market by buying a property on the island. The result is a thriving expat community that has diversified its financial holdings in Jamaica beyond the real estate market.

Third, property investing and income generation may be quite fruitful. The Bank of Jamaica’s national consumer price index shows that rent increased by 0.5% per month in 2016. Short-term rentals, like those offered by Airbnb, are becoming increasingly popular and can provide additional income or appreciation to your home in addition to longer-term rentals. It’s worth noting that Jamaica topped all other Caribbean territories on TripAdvisor’s 2017 “World’s Best Destination” list, and that Kingston was named one of the “52 Places to Go in 2017” by The New York Times, both of which are indicative of the marketability of vacation rental properties in the area.

Jamaican real estate investments may provide over 60% annual returns during a five-year holding period. The recent rise in Jamaican property values makes this sum very clear. In light of this, investing in Jamaican real estate may yield excellent returns over the long run.

Now is a good moment to buy real estate in Jamaica, as prices are rising quickly. There’s a good chance that today’s asking price is the lowest it will ever be.

Demand for homes surged in 2016 as a result of a number of factors, including a drop in mortgage interest rates and higher lending ceilings at some institutions. Homeownership is thus no longer an unattainable goal. Time to buy a home has come for many more Jamaicans, especially young professionals.

Jamaican property is more reasonably priced than that of other Caribbean nations. In Barbados, oceanfront properties may be purchased for as little as $6,700 per square mile, while in Jamaica they can cost as much as $1,300 per square foot.

 

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