To buy or to build in Cayman?

So you’ve decided you want your own home in Cayman. The next question is: will you buy an existing home, or build your own?

The main advantage of buying an existing home is that it’s the simpler, faster option. The downside is that it’s not necessarily your dream home, tailored to your needs and wants.

Buying land and building a home takes longer and is far more complicated, but it gives you the ability to create a custom home that is exactly the size and style you want. New builds will, of course, adhere to the latest building codes so are durable, energy efficient, and should not require any maintenance for several years. If you are weighing up the options, these are some questions you should ask yourself:

Are you looking for a forever home or an investment?

If you’re considering investing in property in the Cayman Islands with a view to renting it out and/or reselling in the future, it is arguably more important to put your money into something that has broad re-sale appeal, rather than something tailored to your personal style.

If, on the other hand, your motivation is to find a home in Cayman that you can live in for many years to come, if not the rest of your life, you may not need to factor in how easy or hard it may be to sell further down the line. You can focus on finding a home that suits your particular lifestyle and needs.

Can you afford it?

When you buy an existing property, you know exactly what it is going to cost you: the purchase price, plus stamp duty and other minor fees. (See our previous post on cost of buying property in Cayman for the full breakdown)

If you opt to build a home, however, the final costs are something of an unknown. While you can get all sorts of estimates, as any developer will tell you, additional costs almost always come up with building projects, so you need to factor a buffer into your budget.

And bear in mind that while you are building you may be paying a construction mortgage in addition to your existing mortgage or home rental costs… can you afford both?

Building costs are particularly high right now, across the world. As a consequence of the pandemic there are shortages of construction materials, shipping delays, and labour shortages – all of which are contributing to significantly increased costs.

At the moment, building in Cayman is costing anywhere from $300-$500 per square foot. These costs may come down in the next year or two, as backlogs clear and shipping issues ease, so it could be wise to wait for the dust to settle before embarking on a build project.

Do you have the time?

Buying a built property all happens relatively quickly. Within a couple of months of making an offer you could be settled in and living in your new home. But if you’re building, it’s likely to be at least a year before you can move in.

Building a home is a massive undertaking and for most who do it, it’s one of the biggest challenges they take on in the their lifetimes. It’s incredibly time-consuming and even with project managers and interior designers taking care of many aspects, you’ll still want to be visiting the site regularly to check on progress.

However much you delegate, there are still thousands of decisions to be made, from choosing flooring materials and window sizes to light switches and door handles. Some people love the whole process, others not so much.

Ask yourself honestly whether you relish the idea of monitoring and tracking such a complex project, or if the thought fills you with dread.

Should you compromise?

When the ideal home in your mind’s eye doesn’t exist in reality, the obvious answer is to build it yourself.

However, there are other options.

Numerous property developers in Cayman are busy building residential developments, from condos and townhouses to prestigious gated communities with private villas. These offer all the advantages of a new build without requiring the time and effort on your part to design and construct it.

You also benefit from the developer’s expertise and know the cost upfront. And while these may not be your exact dream home, floor plans can often be modified or customised pre-construction, to adapt them to your needs.

The other option may be to purchase an existing property and renovate or refurbish it. It’s far less complex than building from scratch as the main structure is already in place, but it offers you the ability to tailor the property to your needs and style, and to put your personal stamp on the decor and interior.

Whether you are clear on what you want, or are still considering your options, the team at Century 21 is here to help.

Set on buying land and building? Explore land for sale in the Cayman Islands.

Not sure which area will suit you? We’ve listed the best areas to invest in Cayman.

Or contact us with any queries you may have.