dolphin estate investment guide - cayman islands - dsr asset management ltd
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DOLPHIN ESTATE
CAYMAN BRAC
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1.1 Property Market Overview
Although Caymans economy is based primarily on the twin pillars of the territorys
a key economic generator and a spin off from the tourism sector.
There are no legal restrictions of any kind to foreign ownership of property in Cayman,
which makes it very attractive to overseas investors. A real estate title can be held
in one name, a group of people or by a company or corporation. Title to property is
granted and guaranteed by the Cayman Islands Government protecting ownership.
These attractive factors, in addition to no annual property tax, no inheritance tax,
political stability, favorable landlord and tenancy rules, a beautiful natural environment
property market.
1.2 Tourism-fuelled Economy
The territory has enjoyed stable economic prosperity for many years, with steady
GDP growth being fuelled by luxury tourism, attracted to the clean, friendly and safe
ambiance of all three islands.
The Tourism industry is responsible for more than 70% of Caymans GDP. This is
fuelled by the islands vast unspoiled beaches, duty-free shopping, SCUBA diving and
Its crystal-clear waters and unspoiled reefs make the Caymans one of the worlds most
revered SCUBA diving destinations, with Little Cayman being listed as one of the best
diving sites in the world.
The Cayman Islands are also the world leader in the registration of mega-yachts, and
a major player in the registration of other vessels, thus underlying its proven capability
to compete on an international level.
1.3 Financial Services Industry
banking liabilities and a concentration of top-quality service providers such as UBS
and Goldman Sachs.
domestic and international levels.
The most prominent sectors are banking, hedge fund for mation & investment, structured
1.4 Political Stability
The success of the Cayman Islands originates from a long-standing stable government,
operating British common law.
The Caymans have cultivated a robust platform to foster continued successful economic
skilled personnel.
1.5 Commitment from the Government
The Cayman Administration have committed to bolstering long term growth of economic
output with continued investment in infrastructural enhancements.
by their current airport expansion program, in which terminal capacity will be tripled.
This will support the addition of new air routes into the islands from north-eastern
markets for US visitors.
Further initiatives aimed at boosting stay-over arrivals include a new promotional
campaign by the Department of Tourism to target secondary markets such as Canada
and the UK under the slogan of Three islands, one idyllic destination.
the territorys dedicated investment promotion agency with a mandate to facilitate and
stimulate long term investments in all sectors of the economy.
1.6 Population Growth
With a current population of 57,000 residents, the CIA World Factbook lists theCayman Islands as the 34th fastest growing population in the world at 2.39% per
a greater level of growth of 3.5% against the same period in 2007. Comparatively, the
UAE is the highest at 3.69%, whilst the UK is listed at number 175 with a growth rate
1.0 The Investment Argument
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1.7 Construction and Real Estate
representing a 12.5% increase on the previous year. Furthermore, despite a global
decline, the number of transferred freehold properties rose by 4.5% in this year, to a
1.8 Tax Residency
High-net-worth investors are encouraged to invest in the Cayman islands, with a view
this may present. Application for residency is available via two different channels,
either as Wealthy Retirees or Entrepreneur/Investors.
1.9 Summary
With the 10th most valued currency in the world, the highest standard of living in
the Caribbean, its own stock exchange, no direct taxation and a distinguished
investments.
No local taxes - there is no income tax, no inheritance tax, no non-residents tax,
capital gains or other similar taxes in the Cayman Islands
Stability and Security - the Cayman Islands has a stable government, sophisticated
infrastructure and a strong economy based on international banking and tourism
Privacy - no reporting of income or ownership to any government agency
Investment freedom - no restrictions on investment purchases
Comprehensive investment services and opportunities
Increasing population growth and commitment to securing increased tourism
revenue
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2.1 Introduction
In the face of current global market conditions, the average number of Cayman Land
A viable, and potentially lucrative opportunity to purchase freehold plots of land issued
with planning consent for residential development is now available to investors.
These building plots will be delivered with communication and utility infrastructure in
place, including roads and electricity, giving owners the opportunity to develop their
own bespoke luxury villas.
their investment at a later date.
2.2 Developing your plot
personal use, rental returns or simply to sell on completion.
A choice of Architects, Surveyors, Engineering and Project Management services, and
facilitate a straightforward and bespoke service.
2.3 Realizing your investment
As populations grow, the challenge of balancing the increasing need for housing with
the growing importance of environmental and heritage concerns means that land
with development or building potential can provide increasingly strong returns for
investors.
of the price increase that will be associated with the completion of infrastructure
components.
The second, longer term scenario will harness the combined increases in value
value.
2.0 Investment Options
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3.0 Developing your Plot
3.1 Land purchasing costs
There is no direct form of taxation levied within the Islands, aside fr om a one off Stamp
Duty on real estate, at time of purchase.
Stamp Duty is charged at 7.5% on Grand Cayman and 6% on Little Cayman and
Cayman Brac.
3.2 Project Services
DDL Studio Ltd.
Based upon your requirements and objectives, the following scope of services are
available:
Design of bespoke individual villas and facilities.
Design development leading to planning application.
Preparation of renderings and plans suitable for marketing purposes.
Constriction documentation including all structural, mechanical, electrical and
plumbing design.
Building permit application.
Preparation of bills of quantities / schedule of rates for the proposed works.
Tender procedure.
General contract documentation.
Contract administration / project management.
3.2 Projected land development costs example
All building plots will have planning consent to construct a detached villa over 2 storeys.
Each story is allocated a built area covering 25% of the total plot square footage.
The budget for architectural, engineering and project management services should be
based on 10% of the construction costs.
Allow 2 - 3% for miscellaneous costs.
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4.1 Payment Plan Options
Each parcel of land is purchasable under the following terms:
First Payment: 30% of purchase price within 7 days of reservation
Remaining balance can be paid, interest free, as below:
Option 1: Payable quaterly over 1 year
Option 2: Payable quaterly over 2 years
Option 3: Payable quaterly over 3 years
4.2 Purchase Procedure
Reservation Agreement completed, signed and returned by fax or email1.
Deposit paid via credit card2.
Plot taken off the market3.
Original copy of signed Reservation Agreement expedited by registered post,4.
along with copies of required supporting documents
5.
Purchase & Sale Agreement prepared by land owner and couriered to buyer6.
Buyer receives and completes Purchase & Sale Agreement7.
First Payment sent via bank transfer
Signed Purchase & Sale Agreement expedited by registered post by buyer9.
Title deeds issued once 100% purchase costs have been received by land10.
owner
4.0 Purchasing Structure 4.3 Due diligence
All relevant due diligence has been carried out on each building plot by one of the
available upon request.
4.4 Transferability
Before title deeds are issued
Investors have the option of selling their contract for the freehold plot of land at any
On receipt of title deeds
There are no legal encumbrances to prevent title deeds being reassigned.
All land in the Cayman Islands is recorded in a single registry. The land registry is
maintained by the government which effectively guarantees title.
There are no time limits to development and planning permission will not expire. Plots
as an asset can be willed and inherited.
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5.1 Location
The Cayman Islands comprise of Grand Cayman, Cayman Brac, and Little Cayman.
They lie south of Cuba and north west of Jamaica, timezone GMT -5.
Grand Cayman is by far the biggest with an area of 76 square miles. The two Sister
Islands of Cayman Brac and Little Cayman are located about 80 miles east of Grand
Cayman and have areas of 14 square miles and 10 square miles respectively.
All three islands are surrounded by healthy coral reefs, which lie at the top of dramatic
walls and drop-offs close to shore, creating ideal conditions for diving and sport
5.2 History
Christopher Columbus discovered the Caymans in 1503. They remained uninhabited
until well after the 1670 acquisition of the islands by the British Crown, which has held
dominion over the three islands ever since.
Its superior diving conditions put the Cayman Islands on the international tourist map in
the early 1950s. Despite its diminutive size, Little Cayman quickly established itself as
a top diving site. Bloody Bay Marine Park has some of the best wall diving anywhere
in the world.
During the next decade, Caymanians began to draw up the tax structure that would
make Grand Cayman an economic powerhouse and at the same time put in place an
infrastructure that has made it the undisputed capital of Caribbean tourism.
5.3 Money
87,000 companies were registered in the Cayman Islands as of 2008, including almost
300 banks, 800 insurers, and 5,000 mutual funds. A stock exchange was opened in
1997.The Cayman Islands have more registered businesses than they have people.
With an average income of around $42,000, Caymanians enjoy the highest standard of
to US$1 (US$1 equals CI$1.25).
5.0 Background Information 5.4 Travel
Several airlines serve the Islands, which are just over one hour south of Miami. Thes e
include the national airline Cayman Airways, American Airlines, USAIR, Northwest,
Delta, Continental, Air Canada, British Airways, and Air Jamaica.
The national carrier serves Miami, Houston, Tampa, Orlando, Fort Lauderdale, Boston,
Chicago; Kingston and Montego Bay, Jamaica; Havana, Cuba; and Cayman Brac and
Little Cayman. Direct links with other US gateways such as Atlanta, New York and
Charlotte are provided by the US carriers serving the Islands.
Robert Owen International Airport are available with British Airways.
5.5 Climate
The Cayman Islands boast an exotic, tropical climate throughout the year, with trade
winds moderating high temperatures which range from 25oC in winter to approximately30oC in summer. Hi gh season runs from December to April where temperatures are
generally cooler and more favorable for tourism. The rainy season is typically from May
to October with short burst showers
Strict building codes are in place to withstand hurricanes. The government has
appropriate measures in place to prepare for such conditions and offers a hurricane
protection policy guarantee in order to maintain tourism growth.
A
A
B
Grand Cayman
Little Cayman
Cayman Brac
0 5 Miles
0 50 Miles
B
GeorgeTown
The Sister IslandsLocation
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0 5 Miles
CAYMAN BRAC
West EndPoint Dick
SessingersBay
SOUTH SIDEROAD WEST
SOUTH SIDEROAD EAST
ASHTON REIDDRIVE
WEST ENDROAD
Spot Bay
Creek
DennisPoint
The Rock
DeadmansPoint
Stake Bay
Bamboo Bay
Stake Bay Point
Mallarbs Point
Booby Point
Bessy HowardCay
Salt WaterPoint
JenniferBay
HawkesbillBay
Tom JennettsBay
Cat HeadBay
PollardBay
North East Point
Gerrard SmithAirport
DOLPHIN ESTATECAYMAN BRAC
6.0 Project Location
6.1 Cayman Brac
Cayman Brac is the second largest of the Cayman Islands - 12 miles long by 2 miles
wide.
It is easily recognisable with a skyline of sheer limestone Bluff which runs through the
centre of the island. The highest elevation above sea level on the island is 140 feet and
the island is home to approx 1800 residents.
They are a warm and independent population who take pride in their homeland and
enjoy sharing it with visitors.
Cayman Brac boasts a well established infrastructure in small towns like West
End, Watering Place, Cotton Tree Bay, Creek and Spot Bay, which includes many
facilities not readily available on other small island locations. Brac is a blissful piece
of paradise.
6.2 Dolphin Estate
Cayman Bracs rugged 14 square miles retains the charm and friendliness of a
traditional seafaring community - yet it offers the countrys most dramatic scenery.
Brac is the Gaelic word for bluff, the Bracs dominant natural attraction. It is a
limestone ridge which rises gradually from the west along the center of the island to
140 ft. at the eastern tip, plunging as a sheer dramatic cliff into the indigo Caribbean
Sea below. It sculpts the landscape into unexpected vistas carved with caves and
Dolphin Estate, however, is located on the west of the island which is ringed by white
sandy beaches and warm, shallow waters which is an ideal place to relax and soak in
the sun or to go SCUBA diving around the islands newest attraction the wreck of the
330 ft. M/V Captain Keith Tibbetts, a Russian built Cuban naval frigate which was sunk
off the islands northwest coast in September 1996. It is already the home for a variety
of marine life. There are two other small wrecks off the Bracs coast.
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7.0 Advisors
Maples and Calder - International Law Firm
PO Box 309, Ugland House
South Church Street, George Town
Grand Cayman KY1-1104
Redmount Trust Group Limited - Wealth Management and Offshore Specialists
Library Street
Gibraltar
DDL Studio Ltd - Architecture and Project Management Services
Seven Mile Beach
Grand Cayman
KY1-1206
Fax: +1 345 945 3623 www.ddlstudio.com
Cayman Islands Government - Planning Department
Leeward One Building
West Bay Road, George Town
Grand Cayman
Tel: +1 345 769 7526 www.planning.gov.ky
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