Property Investment Case Study: Grenada (TPI-GJ-001)
Introduction:
The real estate market in Grenada remains appealing because it offers some of the region’s most affordable properties in a landscape of unquestioable natural beauty and charm. All this is a relatively stable economic and political climate that is conducive to safe investment.
Ownership of real estate is either by absolute ownership of the freehold interest or by way of temporary ownership i.e. relatively short term rentals. The history of leasehold ownership is rudimentary. Presently, the real estate industry remains relatively unsophisticated with no real estate boards ensuring that individuals are licensed or have expertise in any aspect of real estate.
Grenada was inhabited for thousands of years by the Arawaks and Caribs. Christopher Columbus sighted Grenada on his third voyage in 1498. In the ensuing colonization, these Amerindian races were wiped out. In the colonial wars of the 18th century Britain and France traded the island back and forth until 1783 when it came solely under British rule. On the 7th February 1974, Grenada achieved Independence. On 13th March 1979, there was a bloodless revolution which lasted for four and a half years before its demise due to an internal impasse and an invasion led by the USA. Since then parliamentary democracy along the British Westminster model has been re-established.
Location:
Grenada on the mainland, is big sister to two smaller islands -Carriacou and Petit Martinique located to the north of her, whilst the capital St. George, is located to the southwest of the island.
This mountainous island is twelve miles wide and twenty-one miles long with a population of over 102, 632, primarily of African, East Indian and European descent. Known for its warm friendly people and laid back atmosphere, the island is divided into six parishes: St. Andrew, St. David, St. George, St. John, St. Mark and St. Patrick.
Appropriately referred to as the Isle of Spice being the largest exporter of nutmegs after Indonesia, Grenada produces cloves, ginger, cinnamon, mace, cocoa and bananas.
Economy:
No data available
Property Market:
The real estate market in Grenada remains appealing because it offers some of the region’s most affordable properties in a landscape of unquestioable natural beauty and charm. All this is a relatively stable economic and political climate that is conducive to safe investment.
Ownership of real estate is either by absolute ownership of the freehold interest or by way of temporary ownership i.e. relatively short term rentals. The history of leasehold ownership is rudimentary. Presently, the real estate industry remains relatively unsophisticated with no real estate boards ensuring that individuals are licensed or have expertise in any aspect of real estate.
For non nationals wishing to purchase property in Grenada, the property must first be identified and then an application made for an Aliens’ Land Holding Licence. This application is usually made by a lawyer and involves a police clearance from the purchaser’s country, a banker’s reference and a character reference. Upon granting the Licence, the purchaser pays an Alien Land Holding Tax which is currently 10% of the purchase price.
Examples:
Attractions:
There is little room for boredom in Grenada as there is always some place to go or discover. For the adventurous hiking to Mt St. Catherine, the highest mountain on the island - 2,756 feet, or trekking through Grand Etang National Forest, while enjoying the sometimes ominous placid Grand Etang Lake will serve as the highlight of your stay.
You can also go snorkeling amongst the islands beautiful coral reefs and dive sites like the Bianca C, a French cruise liner that in 1961 caught fire and later sunk. All aboard were rescued and provided with accommodations in private homes, as there were no guesthouses or hotels on the island at that time.
For the laid back type, Grenada also offers long stretches of white sandy beaches, scenic waterfalls and numerous historical sites that speaks of the islands colourful past or, you can simply enjoy a glass of rum punch while you look out that the prettiest harbour in the Caribbean.
Transport Infrastructure:
No data available
Local Mortgage:
No data available
Inflation:
No data available
Economic Growth:
No data available
Sunshine Days:
No data available
Annual Rainfall:
The climate range from temperatures of 75F/24C to 87F/30C with the constant sweep of the trade winds. Grenada, like much of the other Caribbean islands experiences a wet and dry season that spans June to December and January to May respectively
Temperatures:
Winter: No data available
Summer: No data available
Property Price Inflation:
No data available
Local Currency:
The Eastern Caribbean Dollar is the currency used locally. It is linked to the US dollar. At the bank you will get EC $2.67 for US$1.00 cash and EC$2.68 for US$1.00 travellers cheques.
Cost of Living Index:
No data available
Income Tax:
No data available
Property Tax:
Property Tax is the charge placed by Government on Real Property. The Tax is an Ad valorem Tax i.e. The Property is assessed at Market Value and a Taxable Rate is applied based on the Land Use Classification.
Alien rates are 10% of the consideration when applying as a Purchaser, and 15% when acting as the Vendor. The first $20,000.00 are exempted. Excess taxed at 5%.
An exemption of $100,000.00 is deducted from the building value of an owner occupied property. Only one property can be given a homestead exemption. The remaining Assessed Value is multiplied by the classification rate: Agricultural lands are also entitled to an exemption but must first get a certificate from the Chief Agricultural Officer, before 90% of the tax can be exempted.
Capital Gains Tax:
No data available
Buying and Selling Costs:
No data available
Rental Yields:
No data available
Report Compiled By:
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Report ref: TPI-GJ-001
Date created: 12-01-2006