The post Why Buy Property in Cayman Islands elaborated on the desirability of land investment in the Cayman while this post looks at how you can earn assured returns on your land investments in the Caymans. We look at the investment opportunities in the Little Cayman Island and the returns you can earn on this investment.

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.

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