At the time you make the decision to buy real estate in Jamaica, it is essential that you know everything that is included 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 a mortgage loan. If you need help, here are some simple suggestions that can guide you to buy 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 first get pre-qualified for the mortgage. 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 purchase property in Jamaica.
Most people do this after starting 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 be wasting time looking at real estate you can’t afford to buy.
Hands down, every time you make an offer to purchase, you will most likely get the property because you had the pre-qualification letter to accompany the offer.
Typically, the leading Jamaican mortgage companies for real estate loans are the Jamaica National Building Society, Victoria Mutual Building Society, First Caribbean, and the Scotia Jamaica Building Society.
They provide both the business and the individual with pre-qualification letters that will indicate the highest amount a person 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 the required closing costs. In addition, the financial institution will ask you for other monthly expenses such as credit card payments, motor vehicle loans, utility bills, or any other financial obligations.
The following would allow the mortgage lender to determine exactly how much would be loaned to you.
When deciding which financial institution to choose, try not to opt for 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 be aware 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 Jamaican real estate, especially when you want this investment to yield good long-term returns. Currently, the rental market in Kingston is booming, so you might consider purchasing apartments in areas like the Golden Triangle or commercial buildings in New Kingston.
