When you make the decision to buy a property abroad, there are a ton of factors to consider, including where to buy. So, should you choose the Caymans or the US?

Two of the most popular countries to buy property in are the US and the Cayman Islands because of their rich economies and lucrative investment opportunities. However, there are other factors you need to consider when buying property in the Cayman Islands or the US.

In this post, we’re going to share the pros and cons of purchasing property in each country to help you decide which one is best for you.

The Pros and Cons of Buying a Property in the US

We’re going to start by looking at the pros and cons of purchasing property in the US.

Pros of buying property in the US

1. High return on investment

As we alluded to in the introduction to this post, the investment opportunities in the US are great, and the property market is no exception.

As long as you choose the right type of property, you can see huge returns on your investment. Generally, property increases in value over time, and your investment in the US property market is safer than in most other countries.

This is because the US economy is relatively stable, unemployment rates are usually low (the pandemic has changed the landscape somewhat), most big industries are booming, and there are a bunch of new properties being built all the time for you to invest in.

2. Wide variety

When it comes to buying property in the US there is a wide variety to choose from.

If you’re on a low budget, you could buy a residential property as there are loads to choose from. And, if you have a large budget, there are apartment complexes and large commercial properties on offer as well.

There’s also a wide variety of places you can buy property, from Silicon Valley and New York, to more rural properties in Texas and Colorado. Basically, whatever type of property you want to buy, the US has you covered.

3. Welcoming to foreign investors

No matter where you’re investing from, the US has a welcoming attitude. There are certain regulations foreign investors have to follow but, in general, they’re quite open to accepting property investments from anyone.

You don’t even have to have a residency in the US to invest in their property market.

Cons of buying property in the US

1. Expensive legal costs

To buy a property in the US, you need legal council both in your home country and in the US, which doubles the cost of legal fees.

2. You have to visit the country

If you were thinking of buying a US property from the comfort of your own country, think again. In order to buy a property in the US, you have to open an American bank account which you have to do in person.

If you plan on buying a lot of properties in the US, then this one-off trip isn’t a big deal. But, if you’re only planning on buying one residential property, for example, the flights alone will add a couple thousand dollars to the transaction.

The Pros and Cons of Buying property in the Cayman Islands

Now that you have an idea of what buying a property in the US would entail, it’s time to look at the pros and cons of purchasing one in the Cayman Islands.

Pros of buying property in the Cayman Islands

1. Simple and straightforward

The real estate market in the Cayman Islands is one of the most simple and straightforward in the world. Other than having to pay a one-time stamp duty, there are zero annual property taxes or restrictions on foreign ownership.

Titles are granted quickly by the Cayman Islands Government, and you can own a property very quickly from the moment you start looking for one.

2. Opportunities to develop property

With no property taxes, owning land in the Cayman Islands is a solid and hassle-free investment. You can hold onto it for as long as you like and sell it at the opportune moment.

You can also buy land to develop on, and this is being actively encouraged by the Cayman Islands Government right now due to there being a high demand yet short supply of current available properties. This means you can build the exact property you want and, if you want to sell it, there are thousands of willing buyers waiting for the opportunity.

3. You can buy a property without visiting it

To some of you, buying a property without visiting it is a crazy idea. But, with the COVID-19 pandemic making travel so much more difficult, this might be the way most properties of the future are purchased.

Unlike the US, you don’t have to travel to the Cayman Islands to open a bank account. Instead, you can buy a property overseas with your current account. In fact, the Caymans are selling lots of properties ‘sight unseen’, with one being sold for $8,200,000 last year.

Cons of buying property in the Cayman Islands

1. House prices are skyrocketing

Buying a property in the Cayman Islands is always going to be a good investment, but you have to be able to afford the property first. In 2021, a high demand for properties in the Cayman Islands, combined with a dwindling inventory, massively inflated property prices.

2. Foreign investment could be restricted

Even if you can afford to buy one of these homes, the Cayman Government might choose to restrict foreign investments sometime in the near future to stop the local residents being priced out of the market.

There are no plans to do this, as of yet, but it is something the government is being pressured on as house prices continue to rise.

Should You Buy Property in the US or the Cayman Islands?

In this post, we’ve shared the pros and cons of buying property in the US and the Cayman Islands.

Which country you choose is completely down to what you’re looking for. If you’re looking for variety in your portfolio, and want the opportunity to buy some cheaper properties, the US is probably the way to go.

However, if you have the cash and want a rock solid, tax-free investment that will always increase in value, you should consider buying property in the Caymans. Whichever way you choose to go, just make sure it’s the right investment for you.

Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained property professional. Be sure to consult a property professional if you’re considering buying a property in the US or Cayman Islands. We are not liable for risks or issues associated with using or acting upon the information on this site.

Photo credits:

Bird’s eye view of suburban neighbourhood - Photo by Blake Wheeler on Unsplash

White suburban house - Photo by Scott Webb on Unsplash

White condo - Photo by Pixasquare on Unsplash

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