You Can Have The Best of Both Worlds
Dreading the onset of winter? Need to getaway or just spend some quality time with your loved ones?… Migration is an option, but there is another way to make this happen without having to uproot your entire life by relocating to a warmer foreign country! For all those who have been toying with the idea of a second home in the tropics, but just don’t know where to start, it can actually be less daunting than you think. As a Jamaican Realtor who has helped people do this for over 10 years, here are the top 5 things to consider before buying a vacation home:
Top 5 things to consider before buying a second home
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- The WHY – Give deep consideration to your why. Why do you want a second home in the islands? Think about what is most important to you and make a list of your priorities, as this will have a major impact on what you choose. For instance, if your number one priority is to spend more quality time with your loved ones, earning an income from your second home may not be as relevant as finding a property that offers a richer quality of life. If your main priority is income generation, then you will want to find a location with a good track record for Airbnb rentals and you will be prepared to sacrifice personal use in order to accommodate your guests. This usually means giving guests first preference for occupancy during peak season (winter months). Get comfortable with the idea of running a mini hotel, whether this means outsourcing or personally handling bookings, entertainment, upkeep, safety and complaints! Remember, while this route can be profitable, it will become a second business and not just a second home. (Find more useful information for New Airbnb Owners here.)
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- The WHERE – So you’re really warming to the idea of having a second home in the Tropics but you need to decide where. There are so many countries to choose from! Although I am partial to Jamaica, there are some general points to consider that will help you narrow your search. First of all, does the location need to be an English-speaking country, or are you more comfortable with another language? Having a home in a country where you can’t understand what people are saying is not impossible to do, but it will be extremely challenging. Also consider the distance from where you live presently. Ideally you will want to be certain it is a place that is easy for foreigners to access. Are there regular flights to and from the country? What are the requirements for entry? Do you need a visa? How long are you permitted to stay if you are not a national? When you’ve decided which country, you will still need to decide where in that country to buy. Some key considerations are: distance to the airport, health services, commercial centres, and leisure activities, among a host of other things. Jamaica is an English-speaking country with regular flights to the US, Canada and the UK and foreigners can stay in the country for maximum periods of up to 3-6 months at a time. It is also possible to acquire citizenship or dual nationality by decent, marriage or after residing with a work permit for 5 years. (For more useful links on this topic see Jamaica’s Passport, Immigration and Citizenship Agency Website here.) Another point to consider is the culture. Are you simply looking for sea and sunshine, or are you interested in submersing yourself in the culture?
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- The HOW – This is an extremely important question. You have to thoroughly explore the financing options that are available to you. If you are a cash buyer, the process will be a lot quicker; however, do not be deterred if this is not the case. Fortunately, in Jamaica, there are mortgage-financing options available to foreign buyers! It is also worth noting, that second home and luxury housing prices in Jamaica are extremely attractive when compared with other Caribbean islands. We work with a network of knowledgeable lenders who are happy to share more information on financing options.
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- The WHEN – When is the right time to buy? This largely depends on you, but there are some market factors to consider. Jamaica’s largest industry is tourism and its economy depends largely on economic contributions from foreign currency inputs. This impacts the housing market as well. Sellers generally prefer offers in foreign currency as it holds its value when compared to the local currency. Market forces would suggest it is technically a buyer’s market, however, there are many sellers who are not impacted by this and will therefore hold out until they get their price. Regarding the best time to tour properties, we generally have good weather year-round in the Caribbean, so you don’t have to worry about touring properties in the freezing cold! Just be sure to connect with a Realtor, to start the property search process before you land in the country. Serious and successful buyers make planning a priority and not an afterthought.
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- The WHAT NEXT – We know this has been a lot to digest and we are just touching the surface. There are several steps in a real estate transaction. That’s where having the right Real Estate Agent becomes critical. We want you to have an enjoyable home buying experience and feel confident in your home purchase! If you’re seriously considering making a move or buying a second home in Jamaica, let’s schedule a call and create a plan that works for you! The number one thing you can do now to prepare for homeownership is finding your Real Estate Team! Also check out our city guide for more insight into the local lifestyle.
