Grenada is b beginning to thrive within the Caribbean real estate market, but it still remains fairly untouched – though not undervalued, which is especially true of the land and property located on the tiny islands around the island itself.
No matter which slice of property you choose, securing your dream property in Grenada is dead easy to do. It is wise to note however, that it is a bit more expensive than in similar countries. Let us look at how the purchase process works here in Grenada.
Grenada Property Acquisition & Sale Fees
The following fees must be paid before you will be allowed to own any property on the island:
- Alien Land Holding License: 10% of the property sale price
- Property Transfer Tax: 15% of the property sale price
- Realtor’s Fee: typically, 5% of the property sale price
- Legal Fee: 1% – 2% of the property sale price
- Stamp Duty Tax: 1% of the property sale price
A Property Transfer Tax of 15% of the sale price of your property must be paid if you ever choose to resell your property.
After reading the above list, let us consider what the actual price would be for a beachfront residence with a sales price of only $254,900.
- Property Sale Price: $254,900
- Property Transfer Tax: $38,235
- Realtor’s Fee: $12,745
- Legal Fee: $5,862.70
- Stamp Duty Tax: $2,549
- Alien Land Holding License: $25,490
- Total purchase price: $339,781
The break-even resale price for $254,900 property is $380,142.41.
That means, whatever the value of your property in Grenada, add 50% that, and that would be the price at which you would have to re-sell it just to break even.
Now, before you squash your hopes and dreams to own property in Grenada, consider the following:
Experts stated that 10-30% annual appreciation in the real estate sector is a reality that can continue for years to come. Even though the purchase and resale fees are quite high, it is more than possible to receive significant returns on your initial investment if you hold onto your property for at least five or more years.
If the fees did not alarm you, and you are ready to purchase your dream property in Grenada, follow these steps and it should be a breeze:
- Select your dream property.
- Negotiate the price.
- Employ a trustworthy attorney.
- Apply for your Alien Land Holding License.
- Submit a 10% deposit to be held in escrow.
- Pay your Realtor, Attorney, Land Transfer Tax & Stamp Duty Fees.
- Take care of any additional government fees.
- Register your new title deed in the Deeds and Land Registry.
- Take a break and relax on your new property.
If you are looking to purchase land in Grenada or buy real estate in Grenada then you have come to the right place. We have experience with land transfers, purchases and real estate rentals and purchases in Grenada. When searching for luxury real estate or yachts in Grenada you can rest assured that you are safe with our experienced team. Additionally, we can help with yacht charters as well just give us a call for all your land, real estate property and yacht needs in Grenada.