Investing in real estate has always been one of the most profitable ways of investment, especially when it comes to islands like Grand Cayman. With the right assets chosen, investors can enjoy the rental income, predictable cash flows, tax advantages, and deductions, and versatile diversification of their wealth.
Are you planning on investing in luxury real estate in Grand Cayman? If yes, then you have made the right choice. The island offers one of the most profitable real estate markets in the world to both the residents and the foreigners. You might be second-guessing your decision, but here is what you need to know to understand why investing in real estate is a good investment for you.
1. Generate Cash Flow
One of the biggest advantages of investing in real estate is its ability to generate cash flows. Cash flow refers to the net income earned after payment of mortgage and operational expenses. Your cash flow begins to increase as you pay your mortgage payments and start building your equity.
2. Take Deductions and Breaks
The best thing about real estate is that the governments understand the financial pressure landlords face when purchasing, managing, and maintaining their properties. Therefore to provide relief, a number of tax deductions and breakers are applicable in the law, which allows you to cut back on your taxes for around 25 to 30 years, based on your property’s useful life.
3. Rental Income
If you believe you can pay the mortgage payments on time, then the best way to build your equity is to rent your property and let the tenants take care of most of the monthly mortgage payments. Once you are done with your mortgage payments, you can enjoy rental income and get a higher rate of return in years to come.
4. Used as Collateral
Having real estate property in the Cayman Islands gives you the leverage of using it as collateral for your next big loan. Since your building or land is a tangible asset, thus getting loan approvals becomes easier, making it profitable for you in the long run.
5. Inflation Affect
For decades there has been a positive relationship between inflation and demand for real estate. There is rarely a time when the real estate markets are down. With the passing of time, the demand increases as the economies expand, leading to higher rents, which in turn lead to higher capital values of the properties.
Grand Cayman is where you want to spend your money next. With the increase in demand and emerging as a blooming residential and tourist spot, individuals from all around the world are looking to spend their time peacefully by the beach.
You can either move to the island with your family, or you can use it as a rental property, which in time can be sold to generate a higher rate of return. So what are you waiting for? Get in touch with the Dolphin Point Club and invest in your new luxurious home by the calming beach.