British Virgin Islands - Build or buy a luxury property.Building or buying a luxury property or home in the British Virgin Islands sounds attractive to many people. The weather is balmy and the surroundings are beautiful. Anyone interested in moving to the British Virgin Islands should be aware of the governmental regulations that have been put in place for foreign buyers. Whether you are building or buying, all real estate investors are required to get an Non_belonger's Land Holding License (NBLHL) before the deal can go through. All property purchase agreements are made contingent on the buyer having a license. A license must be taken out to own a specific property.
Building versus buying luxury property
There are a variety of luxury homes for sale in the British Virgin Islands. Homes here can be bought in all shapes and sizes. Many buyers are quite satisfied to browse through the real estate listings and find a home that suits their needs. Other buyers may decide to buy a parcel of land and then have a home built to their specifications. Building a home is more time-consuming than buying a pre-built home. It requires that the owner keep an eye on the building process and they need a good relationship with the builder.
Building your own home costs between $250 and $300 per square foot if you want quality finishes and construction. Architects and contractors can be hired in the British Virgin Islands. If you cannot be there to supervise the project you can add in an additional 10 percent for supervision as well as design. A house may take anywhere between 9 and 18 months to build from the planning stage.
If the project is delayed for any reason, there may be extra costs involved. Many people do not wish to wait such a long time to move into their home and therefore choose to buy a pre-built home. Building a three-bedroom home will cost around $450,000 to $750,000 from start to completion. You will have to add in approximately $150,000 for an acre of land.
Buying a home is a pretty straightforward deal. First of all you have to find a home you would like to buy. Then you have to submit a letter of intent to purchase along with a 10 percent deposit. This money is held in escrow until the purchase agreement is signed. This letter is not legally binding for the vendor or agent, but it is understood as a clear indication that the buyer is ready to sign a purchase agreement.
A Sale and Purchase Agreement is then drawn up by a lawyer and signed by the parties involved in the sale. This agreement is legally binding once it has been signed. Next, an Non-Belonger's Land Holding License (NBLHL) must be obtained for the property. This license can be obtained ahead of time but can only be used for the specific property you are in the process of purchasing. A pre-built three-bedroom home usually sells for around $1,000,000, depending on where it is located. The furniture is usually included in the sale.
If the application for an NBLHL is for an undeveloped property, the applicant has to make a commitment to the British Virgin Islands government to spend a specific amount of money on the development of the property. This usually has to be done within three years. The requirements for development are placed at more than $250,000. A property cannot be resold until the fulfillment of the development commitment. This is designed to stop speculation on undeveloped property.
The license will have to be registered at the Land Registry Department. A registered copy of the document and registered Instrument of Transfers must be submitted within three months of the license date. The balance of the purchase price must now be paid. A 12 percent stamp duty has to be paid on the appraisal or purchase price of the property, whichever is the higher. If you are interested in purchasing property, you may wish to visit Simply Finance and investigate what financial products are available to fund such a project.