By the time you make the decision to purchase real estate in Jamaica, it is critical that you understand everything that is involved in this process. Regardless of whether you would be interested in a residential home, agricultural land, residential land, or commercial buildings, you will need to comply with Jamaican real estate laws and regulations.
This can be a simple or complicated process, depending on the type of property you are acquiring or if it is a cash purchase or with a mortgage loan. If you need help, here are some simple suggestions that can guide you in buying a home in Cherry Gardens or office space in New Kingston.
Before your search to find the property you need to buy, it would be best to get pre-qualified for the mortgage first. You can do this at one of Jamaica’s financial institutions or at the National Housing Trust (NHT). Getting this pre-approval for a real estate mortgage will be just as essential as when you buy property in Jamaica.
Most people do this after they begin their search for suitable properties, but this pre-approval process could save you a substantial amount of time in the end. This means that when you’re ready to buy real estate in Jamaica, you’ll already know the exact amount the lender is committing to, and you won’t waste time looking at real estate you can’t afford to buy.
Hands down, any time you make an offer to buy, there’s a good chance you’ll get the property because you had the prequalification letter to accompany the offer.
Generally, the leading mortgage companies in Jamaica for real estate loans are Jamaica National Building Society, Victoria Mutual Building Society, First Caribbean and Scotia Jamaica Building Society.
They provide both the business and the individual with pre-qualification letters that will indicate the highest amount an individual can get for a loan and how much they are willing to offer.
However, before requesting this prequalification letter, you must have your earnings statement, proof that you can make the deposit, and pay any required closing costs. In addition, the financial institution will ask for other monthly expenses such as credit card payments, motor vehicle loans, utility bills, or any other financial obligation.
The following would allow the mortgage bank to determine exactly how much to loan to you.
When deciding which financial institution to choose, try not to go with one that offers significantly lower interest rates. Most lenders currently have a high rate and if one offers you a package that is actually below current market rates in Jamaica, you can expect to pay some hidden costs. Also, you should keep in mind that these companies are not related at all, as they are separate entities.
Make sure that the areas in which you are thinking of buying this property will not have a negative effect on the future value of this investment. This means that you should research the area carefully and stay away from places with such high crime rate problems.
These areas are not good for buying Jamaica real estate, especially when you want this investment to yield good returns over the long term. The rental market in Kingston is booming right now, so you might consider buying apartments in areas like the Golden Triangle or commercial buildings in New Kingston.