If you are looking at investing in mortgages offshore, we can help. In both the TCI and Cayman islands, we can assist you in setting up an offshore company and bank account so you have the proper structures put in place to protect your investments. Brokering mortgages is only one of the many tools at our disposal.
Mortgage Investments in the TCI and Cayman Islands
Whether you are investing at home or abroad, you want to make sure the market you are investing in is strong. Both the Turks and Caicos and Cayman Islands weathered the 2008 financial storm particularly well, much better than most Caribbean destinations. This should give investors confidence knowing their dollars are safe from economic uncertainty.
Unless you are investing in GIC’s, any investment carries a certain amount of risk. However mortgage backed securities secure your investment with highly marketable properties at a very conservative loan to value. A much safer investment than mortgage investment funds in North America, where loan to values are pushed to 80 or 85%.
By setting up an offshore company, you can be paid quarterly right to your bank account in either the TCI or Cayman Islands. This is a smart and cost effective way to reap the benefits of your offshore investment.
Comparing Mortgage Funds in North America to the Caribbean
As mentioned above, mortgage funds in North America are much more aggressive than you would find in the Caribbean. At loan to values of 80% on second mortgages, the risks of losing some or all of your investment are real. Contrast that to the Caribbean, where mortgage funds only offer first mortgages, and max out at 50%. The risk of losing any of your investment are very low.
Second mortgages in North America will have a higher return due to the added risk involved. The investments in the TCI or Cayman Islands will be a safer investment but still offer a reasonable return, only a few points lower than the much riskier second mortgages.
Rate of Return on Mortgage Investing in the Caribbean
The rate of return you should expect on your investment depends on whether you go into a mortgage investment fund or simply lend your money privately. Your return will range from 6-10%. There is more risk involved in a private mortgage investment, as all of the funds are your own versus a mortgage fund which spreads the risks over a number of investors.
Talk to us today about all of the investment opportunities available in the Turks and Caicos and Cayman Islands.
