Breaking News! – Premier Unveils Strategy to Make Home Ownership More Affordable for Caymanians!
On Friday September 22nd, 2023, Premier Wayne Panton unveiled a strategy aimed at boosting home ownership more affordable to Caymanians, by extending full stamp duty exemptions to first-time, and now second time Caymanians homebuyers. This is welcome news when mortgage and insurance rates seem to be spiraling out of control for some property buyers.
Under this plan, initial single Caymanian homebuyers will be eligible for a stamp duty exemption on properties valued at up to $550,000, as well as raw land valued at up to $250,000.
This marks a significant change from the previous stamp duty exemption thresholds, which were limited to properties valued at $400,000 or less and land valued at $150,000 or less.
During the House statement, Premier Wayne Panton announced a set of measures designed to enhance the existing thresholds, narrow down the concession to encompass only 'raw land' or residential property purchases, and introduce a new tier of concessions for Caymanian individuals acquiring their second property.
In addition to elevating the property values required for first-time Caymanian property buyers to qualify for stamp duty exemptions, the expanded concessions also introduce a reduced stamp duty rate for properties valued above the fully exempt thresholds and extend a new advantage to Caymanians purchasing their second property.
For a consortium of two to 10 Caymanians embarking on their first joint property purchase, there will be no stamp duty levied on properties valued up to $600,000, representing a $100,000 increase from the previous threshold. When the property value surpasses $600,000 but falls short of $700,000, a stamp duty of 3.75% will be applied to the amount exceeding $600,000. Encouraging family investment into the Cayman real estate market.
These revisions also formalize a pathway for Caymanians acquiring their second property to become eligible for a discounted stamp duty rate.
For a Caymanian acquiring a second piece of undeveloped land, a stamp duty of 3.75% will be assessed on values up to $300,000.
For a Caymanian procuring their second residential property or developed home, a stamp duty of 3.75% will be calculated on values up to $600,000.
For a collective of two to 10 Caymanians purchasing a subsequent piece of land together, a stamp duty of 3.75% will be imposed on values up to $550,000.
For a group of two to 10 Caymanians acquiring a second residential property or home together, a stamp duty of 3.75% will be applied to values up to $700,000.
Premier Panton emphasized in his parliamentary address that these concessions could be implemented without significantly affecting the government's fiscal position. Milestone Properties Cayman predicts that this will have a very positive effect on Cayman real estate as a while as there will also be a beneficial effect for Cayman residents looking to move up the property ladder.