Frequently Asked Questions
1. What costs are incurred when buying a property?
* There is no Property Transfer Tax for buyers.
* Buyers Legal Fees - Approx. 1% to 2.5% of the purchase price (plus 17.5%
* Local Mortgage Down Payment - Usually a minimum of 10%
Local Mortgage Repayment Time - Up to 30 Years or until the borrower reaches 65 years of age.
Non-National mortgage Down Payment - Usually between 30 to 50%
Non-National Mortgage Repayment Time - A maximum of 15 years and must be approved by an offshore financial institution
Mortgage Commitment Fee and Negotiation Fee - Ranges from 0.5% to 3%.
Life Insurance - Required if you need a mortgage.
Annual Property Insurance - 0.4% for a residence, 0.6% for commercial and 0.9% for hotels. Other things such as location, value and use of the property can affect these rates.
2. Why should I buy instead of rent?
A home is an investment. When you rent, you are probably paying someone else’s mortgage and that money is gone forever. But when you own your home, you’ll enjoy something that is all yours. There is the additional benefit of being able to deduct some of your house costs from your yearly taxes.
3. Why should I use a real estate agent?
Imagine that with just one phone call to Seaside Realty you can start your home search. We do the work for you for FREE! All you need to provide us with is some basic information:
Number of bedrooms you require
Specific needs (ie – home office, apartment, large garden, pool, a/c, etc)
Any particular dislikes
With this information, we set the wheels in motion:
· We search not only our property portfolio, but that of all other agents that we work with on the island. By doing this it exposes you to plenty more property options.
· We send you options that fit your criteria via email until you have decided on those you wish to view.
· We make the arrangements for the viewings and are always present for them.
· We work as the liaison between yourself and the owner, asking the owner any questions you may have or any requirements you wish met.
· We always provide you with our honest advice and opinion.
· We assist in the bidding process, and take you through the entire process until the keys to your new property are in your hands!
And what’s best of all…….we do this all at NO COST TO YOU WHATSOEVER!
- In addition to the mortgage payment, what other costs do I need to consider?
· Monthly utilities. Your real estate agent will be able to assist in getting these approximate costs from the current owner.
· You may have Homeowner / Association fees
· Property tax
· Repairs and maintenance
5. How do I put forward an offer?
First know what you can afford and then let your real estate agent present your offer to the owner. The owner will either accept, decline or come back with a counter offer. You have nothing to lose by putting forward an offer. Please note that having an offer accepted does not necessarily mean that the property will be removed from the market. This all depends on what agreement has been arranged between yourself and the home owner.
6. How long with the sale process take?
This time period can range anywhere between 3 to 6 months. Several factors affect the time period (for example: Cash purchases usually close quicker than if a mortgage is needed by the purchaser)
7. When does the property become mine?
When the sale has been completed, and the owner or his attorney has received full payment. The keys are then either issued to you or your attorney.