Buying a home can be a bit overwhelming, especially if the home is in another country. In 2015, my husband and I bought a home in St. Ann, Jamaica (about 10 minutes outside Ocho Rios). The home is in a gated, 24 hour secured community with a swimming pool, club house, gym, tennis courts and walking trails. It was a new development, which meant we bought the home and waited about 18 months for it to be built. The process of buying a home in a new development in Jamaica is not easy and it is time consuming. It took months to get all the paperwork completed, but it was well worth it. We bought the home with the intention of retiring in Jamaica. The best part is we get to enjoy the home before we retire!
[convertkit form=1996926Why Invest in Jamaica?
Now is a great time to invest in Jamaica. There is a lot of money being pumped into the growing economy and there is extensive work being done to the Kingston Port that will increase transshipping over the next few years. You really cannot lose if you buy land or real estate in Jamaica. For example, the home we bought in 2016 has more than doubled in value!
So, I would like to share the steps I went through to make this dream a reality. I realize it may be a stretch for some people to consider buying a home in another country. There are a lot of unknowns. However, if you have patience and are looking for a great investment, you can’t go wrong!
How it all Started!
I visited Ocho Rios for the first time in 2013. My husband was raised in Kingston, Jamaica and never spent any time in Ocho Rios, so it was a new area for him as well. On our first stay in Ocho Rios we came across a new development being built in Drax Hall. At the time it was a big pile of dirt, but we checked it out anyway. The staff at the sales office walked us through the model floor plans and we immediately saw a home that we both liked. At the time, the price was out of reach for us and we did not feel it was the best time for us to buy.
The next year, we visited Ocho Rios again and went by to check on the new development. I was so surprised that ALL the houses in the development had been SOLD! The developer sold out so quickly that they decided to build a second community on some adjoining land. The floor plans were similar to what we had looked at the previous year. One of the things I loved was that there was 24 hour security. Being from another country, security was very important to me. I wanted to make sure I felt safe. The amenities, such as the pool, club house, gym and tennis courts were very nice. We had been saving money through the year and decided it was the right time for us to buy. We spoke with the sales office and they gave us all the information needed to move forward with the purchase.
Fill Out an Application
First, we had to fill out an application with the developer, Kemtek, which provided them with basic information and allowed them to enter our details in their system. Once they approved our application, which took about a week, they sent us information.
Obtain a Pre-Approval Letter
I contacted five different banks in Jamaica to see what information they required to provide a pre-approval letter. Each bank required slightly different documentation. The process was grueling and took way more time than it should have.
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Once I had the needed documents gathered, I emailed them to the various banks. It took them about a week to provide a pre-approval letter. A few of the banks contacted with questions. (A great way to communicate with the banks is through WhatsApp. It allows you to send texts and make free calls.) Once I received the pre-approval letter I emailed it to the developer.
Wire the Down Payment
Once Kemtek received the pre-approval letter they sent me their banking details so I could wire the down payment. Due to the fact that the home was in a new development, I had to put 10% down to secure the lot. I wired the money to the specified bank, which can take up to 10 business days.
Select a Lot Number
Once the bank confirmed receipt of the 10% deposit, Kemtek sent me a list of available lots, so we could select a lot number. My husband and I selected the lot we preferred most and advised the developer. It was happening! We were on our way to buying a home in Jamaica!
Now, I have to add a side note here…The above makes it sound like this was so easy and there were no bumps in the road. That was not the case! I contacted the sales office by phone, from the U.S., multiple times, sent emails, etc, and had no response. This went on for about 3 weeks. At this point, we made the decision to hire an attorney to help us through the process and be our representative in Jamaica.
Once we got our attorney involved she was able to move everything along quickly. The attorney I use is reliable and trustworthy. If you are interested in doing any business in Jamaica, I would highly recommend her. If you are looking for an amazing real estate attorney in Jamaica, click here.
Complete Legal Documents
While the home was being built we had to complete various legal documents to be sent to Kemtek and their attorney. Thank goodness for our attorney as she coordinated all the documents and back and forth with the developer’s attorney. Below is a list of documents we had to return prior to taking possession of the home.
- Agreement for Sale
- Property Owner’s Management Agreement
- Transfer of Land
- Purchaser’s Estimated Statement of Account
- Vendor’s Attorney at Law Statement
- Retainer Agreement for our Attorney
All the above documents must be printed, signed and most must be notarized. I sent all documents to my attorney by FedEx, so it could be tracked. Just FYI, it usually costs around $75-$100 USD to send documents to Jamaica, so I made sure I filled out everything correctly the first time! I didn’t want to have to pay to send additional or missing documents!
Obtain Letter of Commitment
About four months before the home was completed I reached out to all the financial institutions that had provided a pre-approval letter. I asked for their current interest rate and terms. After sending updated financial documents, that were listed above, they provided the interest rate and terms. We moved forward with the best deal and obtained a letter of commitment from the bank. We submitted this letter to the developer to finalize the home purchase.
Once the above steps are complete you just have to patiently await the completion of your new home and take possession. The home buying experience in Jamaica required patience and perseverance, but it was well worth the wait when I walked through the front door for the first time!
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