Grenada may be located within the booming Caribbean real estate market, but it is still relatively undiscovered - although not undervalued, which is especially true of the land and property located outside of Grenada Island.
No matter which island you choose in Grenada, the fact remains that securing your dream property is easy to do. However, it is quite a bit more expensive than some similar countries! That being said, let’s look at exactly how the purchase process works here in the State of Grenada.
Grenada Property Acquisition & Sale Fees
The following fees must be paid by you, the buyer, before you will be allowed to own the property of your dreams:
- Alien Land Holding License
- Additional Government Fees
- Land Transfer Tax: Percentage of the property sale price
- Realtor’s Fee: Percentage of the property sale price
- Legal Fee: Percentage of the property sale price
- Stamp Duty Tax: Percentage of the property sale price
A Land Transfer Tax of 15% of the sale price of your property must be paid by you if or when you ever re-sell your dream property.
Securing Your Dream Property One Step at a Time...
After reading through the above list, let us look at what the real price would be for a bargain beachfront private residence with a sales price of only $254,900. The following is an example of costs that would apply to your purchase.
- Property “Bargain” Sale Price: $254,900
- Land Transfer Tax: $25,490
- Realtor’s Fee: $10,705.80
- Legal Fee: $5,862.70
- Stamp Duty Tax: $2,549
- Alien Land Holding License: $709
- Additional Government Fees: $96
- TOTAL PURCHASE PRICE: $300,312.50!
The break-even resale price on a $254,900 property is $380,142.41.
In short, whatever price your dream property has in Grenada, add nearly 50% to that, and that is the price you would have to get if you re-sell it - just to break even!
Now, before you start shouting obscenities at your computer screen--thinking Grenada real estate is as risky as playing the lottery or as useless as George Bush at a world peace conference - consider the following:
Grenada is located in the booming Caribbean real estate market. While I prefer to stay in the lovely, peaceful, undiscovered and undervalued Tonga, many folks would love to stay “closer to home”, especially if home is in the United States of America. This “close to home paradise” of Grenada is a great drawing card and looks to become more popular and important in the coming years.
This author lives in Vava’u, Tonga - a small island group with less people than you might find at a high school basketball game. The value of real estate in Tonga has been skyrocketing by more than 25% per year for the past 5 years without any sign of slowing down until it matches, or exceeds, Fiji levels. If this is true in Tonga, it certainly could be true in Grenada.
Experts have stated that 10-30% annual appreciation in the real estate sector is still a reality that looks like it could continue for quite some time. That being said, even though the purchase and resale fees are quite high, it is possible to receive a considerable return on your initial investment if you hold onto your dream property for five or more years.
If the fees don’t scare you and you are ready to purchase your dream property in Grenada, just follow these steps and it should be a piece of cake:
- Choose your dream property.
- Negotiate the price down as far as you possibly can.
- Hire a trustworthy attorney.
- Apply for your Alien Land Holding License.
- Submit a 10% deposit to be held in escrow until sale is completed.
- Pay the Realtor, Attorney, Land Transfer Tax & Stamp Duty Fees.
- Pay the additional government fees.
- Register the new title deed in the Deeds and Land Registry.
- Take a rest and relax on your new dream property.
Excerpted and adapted from the ebook "State of Grenada: Spice of the Caribbean" by Trevor Jefferson and Julie Scott.