If you were contemplating the idea of buying a property in Jamaica, know that this might be the right time for doing so. Some would argue that buying a property during distress times, such as the current coronavirus pandemic, is not recommended.
But what if the circumstances are ripe for one such investment? What if everything points to a good investment with great returns? Plus, why keep the money under your pillow when you can make them work for you by investing in real estate property in Jamaica.
Here are the top five arguments why there isn’t a better time to invest in property in Jamaica than in the present time.
Low Closing Costs
Suppose you are a foreigner and unfamiliar with real estate transactions in Jamaica. In that case, you are most likely not aware that the total cost of real estate acquisition is different from what’s advertised.
By all means, that’s no scam, just that when you add the closing costs, the price is somewhat higher. Therefore, the total purchase price is a sum of the agreed purchase price (between the seller and the buyer) plus the closing cost.
In regards to that, there is a big difference whether the property is being sold to you by a family member, government, company, or real estate agent. Closing costs consist of several legal fees and taxes. On some occasions, the property purchase can even include additional costs such as survey plan and valuation.
In 2019, The Jamaican government significantly lowered the taxes associated with real estate transactions. For example, the stamp duty that was once 4% percent of the total price, equally split between the seller and the buyer, is now a flat fee of just $5,000.
Interest rates are at their lowest points in the last five or more years. The Bank of Jamaica has constantly been lowering interest rates. But at the same time, banks keep the criteria that determine who can and who cannot get a mortgage.
Surplus Supply of New Residential Units
Before the coronavirus pandemic, there were numerous projects on the way. Some were initiated by the National Housing Trust, others from private entities, and each was aimed at adding new housing units to the market.
As a result, there is no shortage of new residential units on the market, both condos and houses of all sizes.
The Economic Turmoil Brough Down Property Prices
The same as the other country in the region, Jamaica’s economy was hit hard by the sharp decline in the tourism sector. The unemployment rate increased, in some industries, there were pay cuts, and then there was the fear of what next that might come with the pandemic.
All that made people lose interest in investing in real estate, which meant only one thing – hard time for the real estate industry and prices were bound to go down.
So, anyone interested in investing in property can get some pretty sweet deals.
The economy might be down, the property market is far from its best days, but things will surely change soon as the pandemic will end eventually. The many promising vaccines on the way practically guarantee that. In that sense, the property market is bound to bounce back. The only question is who will benefit from all that and to what extent.