We look at the factors that lead to land value appreciation and the nature of due diligence that should be done.

Land has limited supply in the sense that available land in a particular location cannot be increased. As demand for land in that location goes up, land value will inevitably go up. The task before the investor is to look at the particular situation of the selected location and check whether it is likely to lead to sufficiently quick appreciation in land values.

The two major factors that can lead to land value appreciation are population increase and economic development. Population increases can occur through higher birth rate or through immigration. More people in a location will tend to increase the demand for land even though building high rise apartments can reduce land demand to some extent.

Economic development of a region means demand for land to put up factories and offices. It also typically means attracting more people to the location and putting more money into their hands. Higher demand for land and more money to buy it will inevitably lead to land price increases.

There are other factors, such as revival of tourism industry as the world comes out of an economic slump that can also increase the demand for accommodation and land at tourist destinations.

In addition to assessing the potential for land value appreciation, investors should do a due diligence to check for political stability, rule of law, land records maintenance and availability of dependable real estate managers at the location before buying land abroad.

Related posts:

1. Land Abroad
2. Why Buy Land in the Cayman Islands?

Little Cayman is a quaint little island that is less than ten square miles in area and just one mile wide. The island also has a small permanent population of less than 200. This small island however has the world’s top wall diving facility at Bloody Bay and this has made it into a popular tourist destination.

The very smallness and out-of-way location of Little Cayman can appeal to many people. It is away from the hustle and bustle of the ordinary world and has great beaches on the crystal blue waters of the Caribbean Sea. It also offers the sunny environs of a tropical island.

At the Bloody Bay area, there is a vertical underwater cliff that goes down 1000 feet to the ocean bottom at places and just 18 feet at other places. Wall diving involves scuba diving along a vertical underwater cliff without using dive propulsion vehicles. The Little Cayman wall diving facility has been rated the top such facility in the world.

There is another scuba diving facility at Jackson’s Bight on the island. Another intriguing attraction is the small islet, Owen Island that can be reached with a kayak or sailboat from the south of Little Cayman. This small islet has no buildings or human inhabitants.

Buying land in Little Cayman is safe as it forms part of Cayman Islands where British Common Law applies and the Cayman government permits foreign ownership of land. Developed plots in approved projects are available on the island.

Related posts:

1. Why Buy Land in the Cayman Islands?
2. SIPP Approved Investments in the Cayman
3. Earning Returns on Your Investments in the Cayman

SIPP is different from standard personal pension schemes in that the subscribers can manage the fund investment on their own. Standard schemes, on the other hand, entrust the task to an insurance company or other third party. SIPP is administered by the Financial Services Authority (FSA) and investments should be in assets approved by an FSA regulated Independent Financial Advisor.

SIPP subscribers can not only invest in assets of their choice (subject to the approval mentioned above) but also switch between assets when they want. They can thus invest in assets that generate the highest returns from time to time.

Certain real estate investments qualify as approved assets for SIPP. Crown’s land products in the Cayman Islands (British Overseas Territory in the Caribbean) are approved assets. Developers of these land products can help investors to arrange a discussion with a regulated Independent Financial Advisor.

Using SIPP funds to buy land plots in the Cayman Islands has the advantage that you can acquire attractive investment properties using your pension funds, instead of your free personal savings. Paying the full price using SIPP funds has the advantage that you can get an assured 30 percent return over a five year period if you enter into a buyback agreement with the property developers.

The buyback agreement gives the developers an option to buy the property back at a price that is 20 percent over the price you paid during a period of five years, in addition to the 30 percent return on your Self Invested Personal Pension funds.

Related posts:

1. SIPP Approved Investments in the Cayman
2. Earning Returns on Your Investments in the Cayman
3. Why Buy Land in the Cayman Islands?

In the above post, we also mentioned that investment in Little Cayman land is safe as it forms part of Cayman Islands where British Common Law applies and Cayman government permits foreign ownership of land. In this post we look at this issue in a little more detail.

The Cayman is British Overseas Territory in the Caribbean with a governor appointed by the British Monarch and a parliament elected by Cayman citizens. There is political stability in the country and it also has one of the highest living standards in the world. The country is ranked as the fifth largest financial centre in the world.

Land records maintenance is another issue of importance for property investors. Cayman has an excellent system of land records maintenance with its Land & Survey Department allocating unique Block and Parcel number to each piece of land. And the country’s Planning Department keeps an eye on land use and keeps residential and commercial areas separate through zoning regulations.

In addition to tourists, whose flow will pick up once the world comes out of the current economic slump, Cayman is also a favourite destination for wealthy retirees from all over the world. The government of Cayman Islands welcomes such retirees by granting them long-term permanent residency status. These wealthy individuals and the high net worth employees of the financial center are prospective customers for land in the Cayman Islands.

Buying land in the Cayman Islands, including Little Cayman, is thus a good investment option.

Related posts:

1. SIPP Approved Investments in the Cayman
2. Earning Returns on Your Investments in the Cayman

There are two Crown’s land products in Little Cayman where you can currently invest in land plots. As mentioned elsewhere, Crown’s land products qualify as approved investments under the Self Invested Personal Pension scheme of the UK government. You can invest your SIPP funds in these assets (and incidentally earn a higher assured return on those investments).

The Little Cayman Estate project involves a layout with developed land plots with asphalt roads and electric power. The layout starts from the beaches on the North Coast and extends into the interior greenery. Each plot has a pre-approved residence design allocated to it and comes with a full suite of architectural and construction drawings.

The Lakeside Estate project also has similar features of land plots with infrastructure and pre-approved residence designs. However, this project is located towards the southwest of the island, and lies adjacent to the Sandy Point Lake, not far from the beaches on the southwest.

The assured returns potential is realized by signing a buyback agreement with the property developers. Under the agreement, the developers get an option to buy back the property at a price that is 20 percent over the price you paid during a five year period. In return for this option, the developers will provide an assured return on your investment for the five years.

The rate of return varies depending on whether you pay the full price (say by using your SIPP funds) or pay it in five yearly installments using the interest-free finance provided by the developers. The first option results in a return that works out to 30 percent of your investment over the five years while the second option yields 20 percent during the same period.

Related posts:

1. SIPP Approved Investments in the Cayman

The Dubli Golf & Beach Resort is an elite project on the Grand Cayman Island of the Cayman, located in an area known as the Millionaires Row. In addition to developed plots, the project also features a four-hole golf course. Other features include a beach club and a resort condominium.

The Little Dolphin Estate is located on the Cayman Brac Island that has considerable greenery including dense Karsh forestation. The walking and hiking trails provided in the forests provides a great experience to nature lovers. The project is also not far from the northern beaches of the island.

The Little Cayman Estate and the Lakeside Estate are projects on the Little Cayman Island. While the former is a project that starts from the North Coast Beach the latter is adjacent to the Sandy Point Lake on the southwest of the island.

The land plots in these projects come with infrastructure like asphalt roads and access to electric power, and also a full suite of architectural and construction documents. Each plot has a designated residential design, a single level or split level villa, or a townhouse and the documents contain related design drawings.

Using your SIPP funds for making these approved real estate investments in the Cayman has the added advantage that you can get an assured 30 percent return on your investments over a five year period as outlined in the post referred at the beginning.

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