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Writer's pictureJames Punnett

Grand Cayman Property Hunt


I have just returned home from a week long property hunt in Grand Cayman, looking for property #2 for Partbnb. Our local agent Brian and I spent a few days viewing a number of appropriate properties, and I would like to share how it went.


Why Grand Cayman?


We like the Cayman Islands as a market, because it offers a number of benefits


- High demand for short term holiday rentals

- Low seasonality - other than some of the hurricane season (August - October), occupancy is generally pretty high all year round

- Reasonable prices (but increasing)

- Low tax environment (no capital gains, no income tax)


What we are looking for


Based on the assessment work that we have done on the market in Grand Cayman, we have worked out the type / price range of a property that would achieve high yield returns as a short term vacation rental. Here are our hunt criteria:


Type: 2 Bedrooms, 2 Bathrooms, Condo

Location: Seven Mile Beach / South Sound or Bodden Town

Price Range: <$350k USD

Condition: Fair but needs updating


There currently aren't a huge number of properties in our price range, which makes it a little trickier, but this kind of market requires a bit more digging, and sometimes there are off market listings which may be available that your agent can help with - in this case there was one.


A few photos from the property hunt journey



Top Property Pick Turtle Nest Condos, Bodden Town - Listed at $339,000 USD

My Summary: The location of the property in Bodden Town puts it a bit of a distance away from all of the action of George Town and the Seven Mile Beach area, but it is still <10 minutes from the shopping mall / restaurants in Savannah. The complex is right on the beach and offers two swimming pools. The particular unit is on the road facing side, and may receive some road noise from traffic. It is a fairly well presented unit, though is in need of a refresh / update to maximize occupancy. There are 2 good size bedrooms and 2 ensuite bathrooms located upstairs. There is a single toilet located downstairs.


The furnishings are in average condition, and many would be nearing the end of their usable life. A very odd cabinet setup for the TV, and an unusual upstairs bedroom TV are certainly in need of an upgrade.


The exterior of the unit appears to be in good condition, and presents well from the road. There is a "Inn" next door which is part of the body corporate, but runs itself. They offer management of the property, but you can self-manage it also. It is currently operated as a Vacation Rental by the Inn.


Interior Views


Location:


Best Feature: It's hard to look past the fact that this property is right on the beach. Whilst the unit itself doesn't have an ocean or beach view, you are literally 10 seconds from a nice beach.


Worst Feature: This is an end unit which has windows facing onto a road that is fairly close. The windows do appear to be thick, but those who are easily sleep disturbed may find this slightly annoying.


Projected Numbers: Our analysis is based on making some assumptions and projections based on data that we have about the local market and the likely performance of the property.


All of the inputs required to calculate the potential ROI

Projected Returns based on the above inputs

We have made an offer on the above property with the hopes to acquire it - we are currently waiting to hear back from the Vendor on acceptance of our offer. If we have success then you may very well see this property on the platform in 2019



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