Certain countries of the world have the potential to attract more people. And when the population increases as a result, demand for land and it price will go up. Land is an asset that is limited in its supply and increased demand translates into higher prices for the available land.

Another factor is the pace of economic development. In an underdeveloped economy, purchasing power of the population tends to be low and prices, including land prices, also tend to be low. As the economy develops, demand for land from new industries, as well as from people who have acquired greater purchasing power, tend to increase the demand for land at specific locations and land prices can often shoot up dramatically.

The first task of investors planning to buy land abroad for investment purposes is to assess the potential for land price increases. Are there any factors that can lead to such increases in the country being considered? Discuss the issue with the seller in the overseas country as well as other persons competent to advise you.

Once you have narrowed down to a particular location, you have to do a due diligence investigation of the factors that could affect the safety of your investment. The investigation will typically involve answering questions like:
• Is the country politically stable? Does it have a strong rule of law?
• Does the country permit foreign citizens to hold freehold title to land?
• Is there a good enough system of maintaining land records that can avoid unnecessary disputes about the ownership of land?
• Does the land records maintenance system disclose all liens and charges on a piece of property?
• Can you find a dependable local agent to manage the property and even add value to it until you are ready to sell it (unless you are planning to shift residence to that country)?

A considered selection of location and proper due diligence can reveal opportunities to earn high returns through buying land abroad.

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1. Land Abroad
2. Why Buy Land in the Cayman Islands?

The Cayman is British Overseas Territory in the Caribbean where British Common Law applies. Three main islands, Grand Cayman, Cayman Brac and Little Cayman make up the Cayman Islands. All the islands share the top Caribbean tourist attraction of great beaches and a sunny and tropical environment while each island has its own unique ambiance and tourist attractions.

Cayman is not only a tourist destination but also a top financial centre in the world, ranked the fifth largest. There are hundreds of bank offices in its capital city, George Town, and these banks employ highly paid professionals. In addition to these high net worth employees, demand for land also comes from wealthy retirees who have chosen to retire to the safe and pleasing environs of the Cayman.

The Cayman has one of the highest living standards in the world.

Freehold foreign ownership of land is permitted in the Cayman Islands, which also have a good system of maintaining land records. Each piece of land has a unique Block and Parcel number allotted by the Land & Survey Department of the government. And the Land Planning Department ensures proper zoning to separate residential and commercial areas.

With a governor appointed by the British Monarch and a parliament elected by local citizens, the country has a stable government.

The Cayman Islands thus meets all the criteria for investing in land abroad viz. high purchasing power of local residents, increasing demand as tourism picks up, favourable legal position for foreign ownership of land and a stable government. Investors looking for land investments abroad will thus find the Cayman an ideal destination.

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1. Why Buy Land in the Cayman Islands?
2. Earning Returns on Your Investments in the Cayman
3. SIPP Approved Investments in the Cayman

SIPP falls under the category of Registered Pension Schemes under Section 150 of the Finance Act 2004 and is regulated by the Financial Services Authority (FSA). Investments should be in assets approved by HM Revenue & Customs (HMRC). Certain types of real estate, including Crown’s land products in the Cayman Islands, fall under this category of approved investments.

What this means is that real estate investors investing in Crown’s projects such as those listed below can use their SIPP funds to buy the land. This eliminates the necessity of using one’s free savings to invest in the property. It also eliminates the need to avail of the finance offered by the developers.

Investors who pay the full price using SIPP funds can get an assured 6 percent return on their investment for a period of five years in return for giving the developers an option to buy back the property during the five years. The buyback option involves the developers paying a price that is 20 percent above the price the investor paid.

The investment needs to be approved by a regulated Independent Financial Advisor. Developers of Crown’s lands in the Cayman can help you by arranging a consultation with a regulated advisor.

The projects under which properties can be bought thus include:

• The Dubli Golf & Beach Resort in Grand Cayman,
• The Little Dolphin Estate in Cayman Brac, and

• The Lakeside Estate and the Little Cayman Estate in the Little Cayman.

You can use the funds in your Self Invested Persona Pension scheme to by developed plots in the above projects.

Related posts:

1. SIPP Approved Investments in the Cayman
2. Earning Returns on Your Investments in the Cayman
3. Why Buy Land in the Cayman Islands?

Let us now look at the unique characteristics of the islands that constitute the Cayman and see why it is such a good place for people to visit, and even consider living there for the long term. It is these people who create the demand for land and make Cayman property investment worth the money.

Cayman Islands is made up of three main islands, Grand Cayman, Cayman Brac and Little Cayman. Grand Cayman is the most developed island with all modern amenities while the other two, known as sister islands, are quieter places that will appeal to people who prefer to avoid hustle and bustle. All the islands offer great beaches facing crystal clear waters of the Caribbean Sea and a tropical, sunny environment.

Grand Cayman has the Seven Mile Beach and the North Sound, a 35 square-mile, reef-protected shallow lagoon that is ideal for all kinds of water sports. It is also home to George Town, the capital city that offers great shopping and accommodates the hundreds of bank offices that make the Cayman the fifth largest financial centre in the world. The Robert Owen International Airport near George Town has regular flights to major destinations in the U.S. and to London Heathrow.

Cayman Brac has an unusual attraction in the form of a sunken ship that is easily reached from the island. Divers can explore the wreck of a Russian frigate lying under the ocean. The island also offers rock-climbing facility at The Bluff, a 140 feet high vertical cliff that dominates its eastern coast. The island also has dense forests with walking trails for nature lovers.

The quaint Little Cayman, about ten miles long and one mile wide, has the world’s top wall-diving facility at Bloody Bay. The vertical underwater cliff in this area drops from 18 feet in places to 1000 feet at other places to the ocean bottom.

Related posts:

1. Earning Returns on Your Investments in the Cayman
2. SIPP Approved Investments in the Cayman

• The Dubli Golf & Beach Resort in Grand Cayman,
• The Little Dolphin Estate in Cayman Brac, and
• The Lakeside Estate and the Little Cayman Estate in the Little Cayman.

These are great projects that offer developed land plots with infrastructure and each plot comes with a full set of architectural and construction drawings (though you need not proceed to the construction stage as many investors prefer to keep the land as it is and sell it when the price goes up).

What makes these projects really special is the guaranteed return offers available to investors. To avail the guaranteed returns, you enter into a buyback agreement with the property developers. Under the agreement, you give the developers an option to buy back the property during a five year period by paying a price 20 percent above what you paid.

In return for the option, the developers will assure you a guaranteed annual return for the five year period. The rate of return varies depending on whether you pay the full purchase price (say, by using your SIPP funds) or avail the interest free five-year finance to pay the price in five annual installments.

If you pay the full price immediately, you get 6 percent per annum for five years, which works out to a 30 percent return over the five years. If you avail the option to pay in five yearly installments, the annual returns you get vary and will work out to a 20 percent return over the five year period.

One highly attractive feature of the offer is that you will get your full five year return even if the developer exercises the buyback option before the expiry of five years. In such a case, you will be paid a compounded final payment representing the returns for the remaining period.

Related posts:

1. SIPP Approved Investments in the Cayman

The Dubli Golf & Beach Resort project offers land plots with asphalt roads, electric power and water supply in an area known as Millionaires Row on the north of Grand Cayman. This elite project also includes a built-in four-hole golf course, beach club and a resort condominium.

The Little Dolphin Estate project offers land plots with asphalt roads and electric power amidst greenery on the Cayman Brac, not far from the northern beaches. Cayman Brac has dense Karst forests and walking and hiking trails have been created for the benefit of residents.

The Little Cayman Estate project offers plots both on the beachfront and interior greenery. The North Coast Beach Road runs through the project layout. The Lakeside Estate is another project that is also located on Little Cayman Island. This project is located adjacent to the Sandy Point Lake on the southwest of the island, close to the beaches in this area. Both these projects offer developed land plots with asphalt roads and electric power.

All the plots in all the above projects come with a full set of architectural and construction documents for an approved design specific to each plot. The designs include villa designs and a townhouse design. There is no need to proceed to the construction stage, however, and many investors leave the land as it is waiting for an increase in land prices for realizing their investment.

Using your SIPP funds for these approved investments in the Cayman can get you an assured 30 percent return provided you agree to give the developers an option to buy back the property at a price that is 20 percent over the price you paid.

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