Navigating the real estate market during uncertainty

December 7, 2022

Uncertainty in various aspects of life has been one of the most common themes in recent years.

However, from an economic standpoint, the Cayman Islands has demonstrated resilience during this period, maintaining a steady economy in part to the success of several industries and sectors. These include financial services, construction, and real estate, to name a few.

The Cayman Islands Government recently reported that the country's economy for the year's first quarter exceeded its projections at an estimated GDP growth of 3.8%. And there's no expectation for it to slow down just yet.

The public sector generated a financial surplus of $129.6 million in the first half of the year – roughly 25% more than forecasted.

This is reassuring news for current and potential buyers in Cayman's real estate market as the global market is currently experiencing normalisation. This means, as interest rates increase, sales decrease and allow for a bigger pool of properties for buyers to shop from.

Berkshire Hathaway HomeServices Cayman Islands Broker Paula McCartney and her team of agents have worked with clients who were initially hesitant to purchase property amid concerns of economic uncertainty.

"Our team takes a client-first approach, which means getting to know and understand their needs and criteria to assist them through the home buying or selling process," says McCartney. "In light of what's happening worldwide, we've heard concerns from customers about buying property at this time. Our first advice to them is to have discussions with financial institutions to understand what mortgage range they qualify for and how interest rates can impact it".

"Though there's always the possibility for market values to fluctuate, as with any investment, through proper planning and considerations, you can reap the rewards in years to come, if not sooner."

Diamonds Properties shares some key considerations for anyone entering the real estate market:

Allow for flexibility. Plan for a fluctuation in interest rates by either borrowing under your qualified limit or exploring the route of a fixed-rate mortgage. Take the time to speak with multiple banks ahead of time to see who can offer you the best rate and loan term.
Prepare for the unexpected. If you have concerns about finances, discuss job security with your employer, family planning with loved ones, or get advice from a financial professional. Financial situations may shift due to a change or loss of employment, family growth or an unexpected crisis, but there's often a better outcome if planned for as best as possible.
Make an investment suitable for you. We can assist you in considering all factors. 'You'll need to consider the price, location, size, need for renovation, et cetera, and determine which property is the right option for you.

The agents at Berkshire Hathaway HomeServices Cayman Islands will be by your side each step of the way, guiding you through the process to make the right investment when you feel ready. Contact any team member if you have additional questions or want to discuss the home-buying process.