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Acquisition
Considerations:
1. For non-citizens a
license is required to purchase property. The cost is 5% of the
value of the property.
2. For vacant land, building must be completed in compliance with
the non-citizen’s license terms.
3. Government transfer fees to the buyer is 2.5% and to the seller
is 7.5%.
4. Property taxes/rates are based on rental value and are reasonably
set.
5. Most property is fee simple or freehold. Leaseholds are rare and
usually held by the Crown.
6. Legal cost 1% to 2% depending on the value of the transaction.
7. There is no title insurance. Properties are registered at the
Land Registry.
8. Real estate agent commissions are from 5% to 7%.
9. The property management fee is usually 10%. Rental commissions
8.33% of the value of the lease.
10. Withholding taxes are 25% of net rental income for
non-residents.
11. Insurance coverage is approx. 2.0% of insured risk; deductible
of 2% includes earthquakes & named storms.
12. Bank financing is available but interest rates are high by world
standards.
13. Most houses are serviced by septic tank. Water cisterns are
required.
14. Most properties are serviced by government electricity and
water, cable TV, telephone and broadband.
15. The Antigua Barbuda Investment Authority offers attractive
fiscal incentives to developers.
Antigua was discovered by Amerindians and later
by Columbus when the trade winds blew his fleet towards the new
world. Its natural beauty, friendly people, rich culture,
progressive government, excellent investment climate and sun, sea,
sand and cooling trade winds provide excellent incentives for
developers and investors, making Antigua one of the hot property
spots in the Caribbean. Property values have increased reflecting
demand and costs of building, yet Antigua still represents value for
money compared to other Caribbean destinations. The British and
Europeans are active investors and Antiguans, including those living
abroad, have also participated actively building fine homes.
Vacation, Residential and Retirement Homes:
Highest demand is for single-family residences including apartments,
condominiums, detached and semi-detached houses. While construction
is evident throughout the island, there are leading property hot
spots and location is the single most important decision. Property
investors tend towards being close to St. John’s, the capital,
English Harbour, the yachting centre, Jolly Harbour in the southwest
and the less populated east coast. Proximity to sporting facilities,
marinas, schools, bars and restaurants plays a key role in location
decisions. Some prefer gated communities while others the freedom of
living closer to the local population.
There are several well planned gated communities in Antigua, the
oldest of which is Mill Reef Club located on the more sparsely
populated Atlantic coast. It was established shortly after the end
of the Second World War as an exclusive residential development and
throughout the years residents have shown great philanthropy towards
Antigua. Their generosity and caring is a common thread among ex-pat
investors who find creative ways to give back to the island they
come to love. Other east coast developments include La Perla’s
Nonsuch Bay, Emerald Cove, The Peninsula and St. James’s Club.
On the Caribbean side La Perla’s Jolly Harbour is the largest
residential resort in Antigua. Nearby, Sugar Ridge, Harbour View
Estates and many other smaller developments benefit from facilities
offered by Jolly Harbour, especially shopping, golf, marina and
sports centre. Sugar Ridge, a gated community adjacent to Jolly
Harbour, features a Boutique Hotel, Spa, restaurant and shops. The
development enjoys spectacular views of the Caribbean Sea with
Montserrat, St. Kitts and Nevis visible on clear days. Tamarind
Hills is the newest comprehensive development on this coast enjoying
entry to arguably Antigua’s two best beaches, Darkwood and Ffryes.
In the north, the residential areas of Hodges Bay, Crosbies,
Paradise View, Cedar Valley and Friar’s Hill are close to the
capital, airport, golf course, shopping mall and other amenities.
The north is especially popular with permanent residents and
returning Antiguans.
The English and Falmouth Harbour area is a complete community
featuring historic Nelson’s Dockyard, Fort Shirley, Antigua Yacht
Club, Temo Sports and Spring Hill Riding Stables. Yachting has made
this area famous for cuisine, provisioning and catering - all useful
in complementing one’s lifestyle.
Building Plots and Off-Plan Homes:
Property development, new building and an active re-sale market give
buyers wide choices. Building quality custom homes on even the most
challenging plots is achieved with professional architects,
engineers, builders and contractors. Building costs are estimated at
US$125 to US$350 per square foot, plus pool and landscaping.
Purchasing a plot offers the advantages of lower acquisition costs
and choice in design, decoration and landscaping. Some developers
offer turnkey and off-plan homes complete with furnishings and
fixtures.
Commercial Properties:
There are many business opportunities in Antigua’s growing tourist
economy. Investments that provide jobs and stimulate the economy are
encouraged with attractive fiscal incentives. New business
start-ups, especially those associated with the Internet, offshore
financial services and the hospitality industry are welcomed.
Developers seeking to invest in the hotels and toursit sectors are
encoraged to investigate the attractive fiscal incentives offered bt
the Antigua Barbuda Investment Authority.
Time Share/Fractional Ownership:
Fractional ownership, or time-share, is offered at Jolly Beach
Vacations while re-sales are available at Antigua Village, Jolly
Harbour and St. James’s Club. The concept divides ownership, costs
and utilization over 52 weeks and allows for vacation exchange with
over 3,000 resorts worldwide.
Professional Services:
Real estate agencies offer a full range of professional services and
can be a one stop shop for all your real estate needs by cooperating
with each other. A buyer can also appoint an agent to locate and
negotiate the property of choice. Lawyers, builders, engineers and
architects are experienced and knowledgeable of European and North
American requirements and their services are recommended in
selecting and acquiring property in Antigua.
Article written by
Tradewind Realty and published in "Life in
Antigua"
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