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. This method is being revised.

5. Most property is fee simple or freehold. Leasehold are rare and usually with 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 nonresidents.

11. A Capital Gains Tax of 5% applies at time of sale of property.

12. Insurance coverage is approx.1.4% of insured risk; deductible of 2% includes earthquakes & named storms.

13. Bank Financing is available but interest rates are high by world standards.

14. Most houses are serviced by septic tank. Water cisterns are required.

15. Most property is serviced by: Government Electricity and water, TV, telephone and Broadband.

Antigua’s Vibrant Property Market

Antigua was discovered a long time ago by Amerindians and later by Columbus when the trade winds blew his fleet towards the new world. Antigua has recently become a focus of attention and discovery for many visitors from all over the world. Many come just for a vacation while others are attracted to invest in property as second homes for vacation, investment or retirement purposes.

The original property owners were planters from England who built the old estate homes oriented to take maximum advantage of the cooling easterly trade winds. In the past 20 years Antigua has experienced a steady growth in the property market. In the past two years however there has been a feeding frenzy, especially by UK and European residents and by Antiguans living both at home and abroad. This attention to property investment can be attributed to Antigua’s natural beauty, the friendly people, rich culture and of course the sun, sea, sand and cooling tradewinds. Overseas buyers are also attracted by excellent property value, a stable Government and sound economy, escalating worldwide property prices, increased marketing and promotion and more scheduled & charter flights.

Antigua has a stable growing economy, driven by tourism and by an attractive Offshore International Business Corporations legislation. This growth has increased the demand for tourist accommodation and for rental and investment properties. This has continued to drive a consistent building boom of quality housing, tourist accommodation and commercial buildings.

Holiday, Residential and Retirement Homes

By far the highest demand for property is for single-family residences including apartments, condominiums, and detached or semi-detached houses. The highest demand is in the popular north end residential areas of Hodges Bay, Crosbies, Paradise View, Cedar Valley and Friar’s Hill. Other popular areas include English, Falmouth and Jolly Harbour. “Gated communities” in such areas as St. James’s Club, Emerald Cove, Jumby Bay, Nonsuch Bay, Sugar Ridge, Jolly Harbour, South Point and The Peninsula are developing at a fast rate. Project developments offering amenities, value added services and security attract discriminating buyers and renters who are prepared to pay extra for their homes.

In 2005 and 2006, Jolly Harbour, Antigua’s most complete and diversified development, saw all of the remaining 300 of the 501 two bedroom villas sold. The beachfront, marina and golf course building plots are now all sold with many developed with up-market holiday and retirement homes. There is a brisk re-sale market at Jolly Harbour where property values have doubled and beachfront plots in especially high re-sale demand. Jolly Harbour has now been acquired by La Perla International Living who have also acquired adjacent beach front land and Pearn’s Point. This confidence demonstrated by La Perla bodes well for a healthy property investment climate.

Building Plots and Off Plan Homes

New homes and re-sales are available but in short supply. Prices have increased but are still affordable so the time may well be right. Acquiring a building plot may be your best viable option. Building on even the most challenging plots can be achieved without your day to day involvement and supervision. Competent professionals including architects, civil engineers, builders, contractors and landscape architects can produce quality homes to your specifications. You should plan on paying from US$125 to US$250 per sq. ft. for building costs. Pools and landscaping are extra. One major advantage of purchasing a plot is that the property acquisition costs are lower, another is that you have the choice in the design, decorating and landscaping of your property.

Some Developers offer turnkey and off plan houses and apartments complete with furnishings and fixtures.

Business & Commercial Properties

There are many opportunities in a growing economy, some, such as day charter operations, are reserved for locals. In a tourist and service economy, investments that provide jobs and stimulate the economy are encouraged. New business start-ups, especially those associated with the Internet, offshore financial services and the hospitality industry are welcome. There are attractive fiscal incentives available to developers. Antiguan Citizen’s should be aware that the Government in conjunction with R. Allen Stanford has implemented an incentive plan to encourage you to start up new businesses. Most existing businesses that are available for sale are offered discretely – it is best to contact a real estate broker for assistance.

AFFORDABLE HOMES

The Caribbean style chattel house varying in size, style and utilizing wood, cement or other materials can be attractive and are in demand by locals and visitors alike. Antech Homes for example provide turnkey hurricane-resistant, steel-framed houses to individual sites. Their Plus series provides creative and innovative design with comfortable living space both on the inside and on generous verandahs. There are a wide variety of models to choose from. These homes may be financed through the local banks and are fully supported by the insurance companies. Prices range from US$85,000 to over US$250,000. It is advisable to acquire your building plot first.

TIME SHARE / FRACTIONAL Ownership

Fractional ownership or time-share is offered at Antigua Village, St. James Club, Jolly Beach Vacations and Jolly Harbour. The concept divides the ownership, costs and utilization over 52 weeks. It also allows for the exchange with over 3,000 resorts worldwide.

Professional Services

There are several real estate agencies offering a full range of professional services on the island. Some specialize by area and others by property type. The lawyers, builders, engineers and architects are well trained and knowledgeable of both European and North American requirements. We strongly recommend that you use the services of professionals in your selection and acquisition of property.

Article written by Geoffrey D. Pidduck and published in "Life in Antigua"