Saunders calls for tax on foreign-owned property
(CNS): Chris Saunders, the independent opposition MP for Bodden Town West, has filed a private member’s motion asking the government to create a Healthcare Protection Fund through an annual fee of 2% on real estate properties owned by foreigners. In a video message on social media, Saunders and UPM backbench MP McKeeva Bush, who is supporting the motion, say that this is the best way to address the healthcare crisis Cayman is facing, given its ageing population who cannot afford health insurance.
The idea of taxing properties owned by expats, especially those who don’t live in the Cayman Islands, has been floated recently in several quarters as a way of curbing the surge in property prices fuelled by allowing anyone from anywhere to buy property here with no tax beyond the initial stamp duty. The permanent residency application point system also incentivises people to buy to increase their points.
This open market has put homeownership out of reach for many locals and encouraged developers to focus exclusively on luxury projects for overseas investors, millionaires looking for a beach home and well-paid permit holders looking to secure their residency rights.
Sanders is now suggesting that an annual fee on all property owned by foreigners who do not have PR would help the government address the mounting healthcare crisis.
“In the next twelve years, at least 14,000 Caymanians will reach the age of 65 and will have inadequate or no health insurance,” Saunders said as he explained his rationale behind the motion. “I understand that this will have an impact on foreigners buying real estate, but there will be a greater risk to thousands of Caymanian families if we do nothing. We can no longer afford to ignore this issue.”
Saunders said the combination of the high cost of health insurance, the ageing population and the inadequate pension system, which will see most retirees have less per month to live on than the current cost of coverage for the over-60s, means that the government’s already huge multi-million dollar annual bill to cover healthcare for local seniors is unsustainable.
As a result, the government needs a dedicated source of funding to cover these mounting costs and ensure Caymanians can get health coverage to enable them to enjoy their retirement years. Saunders also warned that without it, the crisis would destroy “our whole way of life”.
The tax will not apply to Caymanians, permanent residents, or entities part-owned by Caymanians or PR holders that own property. The tax is aimed at foreigners only, whether they live here or not, who own property unless that property is a commercial venture offering educational or medical services to Caymanians or any entity or company that owns property where a partner is a Caymanian.
Last year, the government spent CI$78 million to cover the health insurance costs of 2,068 Caymanians who couldn’t afford coverage. Saunders said that in around a dozen years, at least 14,000 Caymanians will turn 65. If most of them can’t afford health insurance, the government will no longer be able to pay the already staggering healthcare bills for the under- or uninsured or to subsidise insurance coverage.
He said that neither he nor Bush are “fans of fees”, but the issue can no longer be ignored. While the idea is likely to gain support among the voting public and looks likely to become a policy commitment when Saunders and Bush begin their campaigns, it will not be popular with foreign property owners or the real estate sector. However, Saunders has said he is more than happy to discuss it with the industry.
CIREBA issued a statement Tuesday acknowledging the need to address the healthcare needs of Caymanians. However, the proposal has not yet undergone the necessary consultative or legislative process.
“We support meaningful dialogue around solutions to national challenges, and we believe it is essential that any proposed measures be thoroughly evaluated for their economic and social implications,” the realtors association stated.
“At CIREBA, our priority is to support balanced and equitable policies that contribute to the growth and stability of the Cayman Islands for all of us who call these islands home. We will continue to monitor developments closely and encourage open, informed, and respectful discussions among all groups.”
See the MPs’ TikTok video here.
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Category: Business, Government Finance, Politics, Real Estate
I’m just thinking out loud.
Residents can purchase property. One property at a maximum of $1 million in value. If they leave the island, they have to sell in 3 years or its 10% tax per year.
Foreign ownership, 50% stamp duty and 10% tax every year.
Corporations cannot own residential property.
Corporations with foreign ownership of property 5% tax per year.
Its a starting point.
Yes, I’m an expat. Yes I agree with foreign ownership rights must change and tax people who don’t live here.
Also it shouldn’t contribute to PR.
@1:08PM,
Hmmmm..methinks thou art not an expat…if you are you are a complete idiot to think that economically that would work…Why would any expat be willing to pay 50% stamp duty and then 10% on that same property every year? FFS, get a clue, the whole financial industry that our islands rely on would take flight overnight with this implementation of the draconian law..
This is nothing more than Chris Saunders and Mckeeva, posturing to get votes to get elected..Throwing out these stupid things to cause division between us and epats to play on our fears and emotions making the expats out to be the boogey man and the blame for all of our ills when people like McKeeva has been in power for over 40 years have not planned for anything but their own retirement..which by the way is guaranteed by government ..they passed the law to ensure they got this.
All these two are doing is trying to transfer blame so that they can get elected again because they know damn well they won’t do this, because if they did the country would go into a tail spin overnight.
Too little and Too late Cayman this cannot help or fix the problems we now have with foreign ownership of Cayman property . Why don’t we tax those who are selling this land or properties to foreigners 45% to discourage the sale of the property? Punishing the buyer and ignoring the seller is discriminatory to say the least.
I agree 100% but I would like him to include his Jacan brethren dem who buying up the place ya for the past 20 years and make it 12 % especially those who don’t pay their PR fees on time or at all also tax those who putting their names on their brethren land to get PR.A rate of let’s say 33% could raise all kind of money bout yah!
if they rent out the property, who do you think is going to pay this increase? it will just be passed on to the people who live here. it doesnt solve anything other than giving a way for the government finding a new revenue stream for JuJu’s school disguising it as Foreigners paying for it. When most of it will be felt by Caymanians who rent.
Tax them so they can vanish from around here they wont pay to stay as theyre broken in actuality and only here benefiting from our resources like vultures. Let us win finally.
There are dozens of part time residents in little cayman who enjoy Caymanian taxpayers subsidese health care/ water delivery/ garbage collection and other benefits while contributing close to NOTHING to our economy but wants to dictate how to run our country. ( they import everything they need for their 6 months stay to avoid purchasing on island).I think taxing their property is a good way to make them contribute something to the economy and if it results in some of them leaving the island then that would not be a bad thing.
True for Grand Cayman too. Not only do they just suck from the economy they pay no tax to the Cayman government for the renting they make on their houses or the gains they make when flipped. Tax them!
FYI…CIG already collects a tax of 13% on any tourism rentals including hotels and condos.
well, I’ll sell my property to my partner with status for 1.00 and then we’ll get married. Problem solved.
The principle is good, but you’re forgetting 7.5% transfer tax on a valuation agreed by government.
There will be many variations to that theme being designed by lawyers and accountants as we read write and speak.
Own it through company structures. Lots of transfers of shares with no corresponding stamp duty.
Agreed. It should go towards housing for the unhoused. Affordable dorm like accommodations.
It can also pay to expand training for skilled workers and to support small businesses as grants.
There are certainly countries that have an annual charge on real estate. However they are coupled with a low stamp duty when you buy.
For example Florida has a Documentary Stamp Duty of under 1% when you buy (foreigners and Americans alike) and an annual tax of about 1.5% of the current assessed value of the property, again on everyone but full time residents can claim a homestead exemption which prevents the annual charge going up too much every year.
The UK has a high Stamp Duty, similar to here, which is about 2% higher for second homes, whether British or foreign owned. They also have an annual property tax called Rates, which maxes out at about $4,000 per year. On EVERYONE.
Want to crash our economy and drive away foreign investment? Chris Saunders is showing you the way.
Yes, foreign investment should be stopped. It’s leaving nothing for the local economy
@2:30pm Say what now? Foreign investment should be stopped….what would happened if we had no foreign investors? Let that sink in for a few minutes…then read it again..Okay now that that has sunk in, another question. How does the local economy work/survive without foreign investment? read that question again and let it sink in…Okay now answer those two questions, the best you can….
Is this Chris or Mac by the way??
2005: “Ex-pats, it is muttered (and written in very concerned and usually badly spelled letters to the newspapers), come over to the island, take jobs away from honest hard-working Caymanians (I’m told there is such a thing…) and end up taking Caymanian dollars off the island – weakening the economy. Weakening the economy? We are the economy. Where the bloody hell do they think all their money comes from anyway? Fish? Aside from which if there was a Caymanian capable of doing my job, there’s not a chance in hell I’d be here. Personally, I suspect that the real problem is that they don’t trust us because a lot of us don’t go to church. I also think that the Caymanians resent us because they have this nagging suspicion that the ex-pat community is laughing at them behind their collective backs, sniggering and poking fun amongst ourselves. They are, of course, absolutely correct in that last suspicion.”
Plus ça change, it’s been like this for decades. The above comments come from a physician back almost two decades ago:
Cayman Islands – What the brochures don’t say”:
Part 1 – https://h2g2.com/entry/A4503665 and
Part 2 – https://h2g2.com/entry/A4503683
If Mac had not voted to take off the 4 % that was put on the condominiums (law was passed in 1981) that was put aside in a special fund to buy land and build houses for any Caymanians that needed assistance. On the 12th December 1984, they called a special meeting to take the 4 % off. From 1981 to 1984 all developers except for one was paying it. If he had left that law on the books Caymanians would not have a housing problem now. In that same sitting the parliamentary pension was shelved which would qualify any Assembly Members (MP’s) that was there for two terms to get their pension. Mac did not qualify to get it as it was his 1st term and he said in that meeting he said that there should never have been in the first place such a thing as pensions for Assembly members. When he brought back the pension law, all that was required is one term and you can get your pension and he is now drawing his pension while he is a sitting member. Ladies and Gentlemen if you want to know more about this, look in the handsards for the 12th December 1984.
You are so right. That tax was the idea of Jim Bodden and it worked. I was never a fan of Jim but it was a good idea. I think Bush removed it at the same he removed me from the Board of the Housing Development Corporation after 16 years service. No thank you letter. I just read about it in the Gazette.
What an ignorance the man is.
Tax anyone holding more than 3 acres that are holding for investment purposes and not passed down generational holdings. Here that Ken Dart? Fed up of him owning all the land – imagine how many new homeowners there would be if that land wasn’t banked doing nothing.
That’s very complex to figure out and regulate. Wouldn’t it be easier to just use the Communist theory that the state owns all of the land and gives to each citizen according to his/her needs?
you could tax Dart $1M annually….it would take around 3,000 years to bankrupt him if he never made another penny…so tax him all you want, he aint going anywhere
Why would we tax DART. He has billions invested here, is a Caymanian, employs hundreds of Caymanians and puts up with our $hit and complaining every day..imagine if he would lock down Camana Bay and all of his other businesses including his 4 hotels and move them elsewhere? I’ll bet then we will be wishing we could find another billionaire investor..
What rubbish? So any Caymanian holding 3 acres or more of land would be taxed. You obviously never had the ambition to try to buy a piece of land. I don’t have any children so what if when I get older and too ill to work and I want to sell my land to pay for my medical bills and to subsidize my other bills.
Every election these stupid politicans come up with this foolihness about taxing people to pay for their damn mistakes..You realize Chris Adn Mac could give a crap about you except to get your photo. They do basically nothing for 4 years make $12K-16K a month plus have other businesses on the side while they telling you to vote for them because they ill tax others because of they failed to plan over the 40 leventeen years they been in the house for our futures..Make them come after my land about taxing it and see how far they will get..
There are benefits to this. An annual property tax is a very common practice in many parts of the world. Something needs to be done to dampen (not stop) the rate at which foreigners are able to access property. This will not cause the mass exodus that most commenters seem to think will happen. Life is too good in Cayman for them to want to up and leave.
At a minimum this should be considered for foreigner property owners that do not reside in Cayman.
it’s a slippery slope
Slippery slope indeed, Promoted by Cayman’s slippery duo.
My level of disappointment cannot be described.
Mr. Bush:
Thank you for the good you have done for these Islands during the course of your career. However, your unethical behaviour makes you unfit to hold any position.
Mr. Saunders:
Did you forget that you campaigned about this same point (affordable healthcare for minors and elders) in the last election? What have you or the government done? When was the public updated on the progress thereof?
Tax on property for foreigners – Where is the research, analysis, and evaluation to determine economic impact? Will it even work given the workarounds? Why 2%? Where is the forecasting and scenario testing? Has anyone in Government done any? Until then, leave the foreigners alone. Whilst I believe in protectionism to an extent, and agree that some measures need to be put in place to control the housing market to ensure fairness, stop trying to make the foreignors pay for everything. Reallocate some of the money for the luxurious Cayman Brac school to further this purpose. This is a bloody stain on CI Government.
When is the last time you held a public meeting in Bodden Town West?
Why do you or your assistant not answer emails? This seems to be common feedback from people in the area. We are not stupid, we do not want handouts, and we have researched; some maybe needed a point in the right direction, others maybe needed clarification on a point and thought maybe the MP might have additional information he can share. Laughable, I know.
Voters:
Please, please place your votes carefully in the next election. I know, options are so limited.
Respectfully, Mr. Saunders, you are not credible. This (affordable healthcare for minors and elders) was one of your campaigning points from the last election. What have you or the government done to make effective progress?
This strikes me also as a pre-election stunt. Let me assure you, it will not work. Times are too hard and people are tired.
When is the last time you had a meeting with your constituents? You do not even respond the emails.
Same man fired as Minister following complaints from female staff members.
Now , he’s our pre election savior joined up with his own kind Mac.
Rxxxxxxx
Is this a Text scam ? What is Boss Hogg and Roscoe wrowing bout now? 2 % for reeeeal no less than 22% to match the rims on Jay’s Escalade! Now that would get our attention and give some weight to your election time proposal . Think big Boyz stop small timing your Caymanian people nah!
Never supported any thing these two Nickodevious political pariahs proposed previously, but this was needed 30 years ago to stop this terrible situation or onslaught we now find ourselves in today in Cayman. My next question to both is why now ? And why so little? I distinctly remember something similar to this being proposed to tax their immigration process but was kill off by the very vocal majority foreign lobby and their fool fool sympathizers who were forming protest and movement to fight it . I wonder in light of the dire situation and consequences of their inactions then If they have the same enthusiasm to protest in light of all these now elitist Caymanian hypocrites who’s economic and political influence is now being curtailed, marginalized and disenfranchised by their very own greedy and corrupt behavior then. As for Robert Mugabe Jr and B diddy now crying about the third world status they help bestowed on us. I would like to request a song by A well known and great UK rock band how first nostalgic an appropriate called DeF Leppard: song Too Late for you two @$$holes now with your 2% rinky dinky and ineffective proposal !
So many have commented more eloquently than I on this topic but put simply the islands rely on our financial and legal services sector. They leave, no amount of cruise tourism or unregulated, poor quality condo development is going to supplement that. The Caymanian miracle is genuine, just look at the quality if life here compared to our closest neighbours. Mac, Chris, Kenny et al would destroy this for their own selfish vanity and prejudice. It is so sad to see the things that made these islands so beautiful being destroyed everyday. Elect this same bunch of bigots, fraudsters, criminals and morons again and a crisis soon come. By all means control immigration and actively seek to employ young, qualified Caymanians in jobs currently done by expats but don’t turn these wonderful islands into another failed Caribbean nation.
Time for the Johnny come lately to pay their fair share 7.5% is a much better figure we down with you MP Saunders &Bush hightime they pay for all deh privileges they got round ya
This is a great idea! If foreign investors can afford to buy property in the Cayman Islands, they certainly can afford to pay a yearly tax on such property. I totally agree with this proposal.
This is the problem.
This is usually incorrect: “If foreign investors can afford to buy property in the Cayman Islands, they certainly can afford to pay a yearly tax on such property.”
In fact, for many people CIG’s requirement that they pay a very high stamp duty, but no recurring taxes, was the specific reason for the purchase. If you change the rules retrospectively, you undermine the business case.
So what? They sell, other people sell, a cascade is started and after a very short period you have a financial crisis because property prices drop and you start to receive far less in both stamp duty each year, and in work permit fees (because work permit holders won’t be able to afford the new tax, either).
Same old crap from Chris and Mckeeva..Elections are coming and they want to remain relevant and the only way they can do that is by riling up us Caymanians by transferring their xxxx, fiscal mismanagement and lack of planning on to our emotions and the easiest way of doing that is to go after the “low hanging fruit” called the expats.
Cutting off our noses to spite or faces is not the way to solve the health care issues of our elderly. He is basically asking us to put a “tax” on expats who own property here to pay for their mistakes and lack of planning.
What happened to the Environmental Protection Fund that they raid every time they run out of money? Did they spend all of that already..For the record, that should never be used as the Government’s piggy bank. Why not take 50% of the millions of dollars that Julie is wasting building a monument to herself on the Brac and put that into some type of growth fund investment to be there in the future when we really need it for our seniors? Cayman Brac has the most aging population of all 3 islands and she is hyper focused on building a monument to herself, that will benefit at most, 100 to 150 students and maybe less by the time it is completed makes absolutely no sense.
I’m sorry but whenever I hear the words “tax” it scares me. The minute you let these useless politicians implement a tax it opens up Pandora’s box and the next thing you know it won’t be only the expats that they are taxing..
Chris and McKeeva, try go sit down and find something else to do. Let some of the younger, more forward thinking Caymanians have a chance at running for office. You old recycled politicians are so set in your ways that you always go back to your old fear tactics of division making your campaigns about “us” and “them.”
I just hope that if this private members motion ever makes it on to the order paper in the house prior to election that it is voted down by every member in the house so that these two fools can find something else to run on instead of trying to find ways to cause strife and division amongst us.
Well matched pair, Reptile and Cockroach posturing under the guise Cayman’s saviors.
No this is a foolish hare brained suggestion
Why didn’t he set up a fund for Caymanians when he was Minister of Finance!! This is just more politicking for votes…. but when he had the chance he did nothing!!!
Is it just my imagination, or does the photo of Chris Saunders above the article bear a striking resemblance to the brave Gamorian Guards of Star Wars fame? See https://tinyurl.com/ChrisSaundersKY 🪐☄️🚀🧑🚀
Perhaps they were separated at birth?! 😂
Xenophobic racism is what Saunders apparently believes and practices.
Purely from a selfish perspective, this would be disastrous. We are already struggling to justify working this far from home, because of the cost of living here, including school fees. We couldn’t afford to pay the proposed tax. We stretched ourselves to the limit when we bought out house, and it just about works.
I don’t doubt that Saunders and Mac would celebrate my family’s departure, but my firm wouldn’t. We are already struggling to recruit, because of reasons listed above make Cayman far less attractive. (Also, post-Covid, people in Aus, NZ, the UK and Canada are increasingly working from home, so there’s less commuting and thus fewer ‘push’ factors for people to move).
This article last week highlighted the risks of pillaging expats who live here: https://www.caymancompass.com/2024/11/13/analysis-is-public-spending-in-cayman-out-of-control. In short, Cayman is massively exposed to downturns to the financial services sector; 40% of government revenue is explicitly derived from it (to say nothing of the import duty, permit fees and such like connected to those who work in it). Adding revenue from work permits and tourism, at least 59% of government revenue is derived from expats. That’s very high for any country and illustrates how reliant Cayman is on firstly keeping its reputation intact (by not imposing surprise taxes), as well as how dependent Cayman is on the expat community to fund government’s spending.
If you lived pretty much anywhere else in the world you’d be pay much more tax than 2% of your property value. More fool you for living above your means. Lowering house prices should be a government priority and small tax brings this in line with the rest of the world.
but Saunders you nah a Jamaican?
If he looks like a Jam.
Walks like a Jam.
Talks like a Jam..
Yeah, he a Jam.
Goes to school in Jam without a Jam student visa, also reason to believe he is a Jam.
But that could not possibly be the case. If it were he would not be eligible to run for election now, would he?
Ask the UK how that old thing about ‘no taxation without representation’ went for them…
You can never fix your own problems by making others pay.
They will just hire Caymanians and put property in their names.
Yawn.🥱
If he really wanted to help Caymanians get on the property ladder he’d legislate against CIREBA. Over a lifetime that typically involves 2 to 4 changes of property, the egregious CIREBA fees add up to one of the largest expenses Caymanians face. And for what? People are paying 10’s if not 100’s of thousands of dollars to be shown around a house by an expat. Seriously? CIREBA fees are a disgrace but too many of these politicians have family involved so we’re back to blame the expats.
You don’t have to use a CIREBA agent to sell your property. You can use any non-CIREBA agent, a company or individual, to sell your property. Or, you can sell it yourself.
CIREBA is a private association that agents voluntarily join. An agent is required to join CIREBA; they can go it on their own.
No requirement to hire a CIREBA agent.
(Its like complaining about blender prices at Kirk Home or AL Thompson, when you can import one of your own).
BRB importing a house and piece of land from amazon
No. This is inaccurate, overly simplistic and tainted by self-interest. Plainly, you are a realtor, and in on the racket.
The Cayman Islands Real Estate Brokers Association (CIREBA) functions in a manner that raises serious concerns about monopolistic practices and their impact on consumers. Competition law, or antitrust law, is designed to promote fair competition and prevent entities from engaging in practices that harm consumer interests through monopolies or cartels.
In the United States, a successful lawsuit against the National Association of Realtors (NAR) highlighted similar issues. The NAR was challenged for policies that fixed commission rates and stifled competition, violating antitrust laws. The case underscored the importance of enforcing competition law to prevent industry associations from manipulating the market to the detriment of consumers. See:
1. Overview: https://www.brookings.edu/articles/how-will-the-national-association-of-realtors-settlement-affect-the-cost-of-selling-or-buying-a-home/
2. More detail: https://www.justice.gov/opa/press-release/file/1338606/dl
Comparatively, the standard real estate commission in the UK ranges from 1% to 1.5%, reflecting a competitive market that benefits consumers with lower fees. In stark contrast, CIREBA maintains a 6% commission rate in the Cayman Islands, which is disproportionately high. This significant disparity suggests that CIREBA’s dominant position allows it to impose excessive fees, highlighting the urgent need for regulatory scrutiny to foster a more competitive and fair real estate market in Cayman.
Sadly, CIG, Ofreg, and the wider “World Class Civil Service®️/Alternative NAU” are all utterly useless at best, and actively predatory at worst, so poorer Caymanians are doomed to be exploited by richer Caymanians in perpetuity.
You are clearly not a Realist and your information is far from factual…Clearly you know nothing about how CIREBA operates and maybe you should have done as much research on the them as you did on the real estate industry in the USA and UK.
Spouting innuendo and purely nonsense makes me know that you are not speaking from a point of knowledge even your numbers on commission Cireba charges are completely flawed and if you had done your research you would know it is lower than 6%.. Clearly you have no clue on how commission rates work with buyers and sellers agents either. The other point is that you don’t have to use a CIREBA agent, you can sell or purchase your property on your own, use an independent agent, use and agent from the other real estate association, CIRO..No one is forced to use a CIREBA agent. People use them because they expect a certain standard and level of service and the old adage of you get what you pay for still applies…In the end, if I don’t like the prices at Kirks, I will go to Fosters and if I still don’t like Fosters prices, I could go to Hurleys…same applies to you, you have choices but quite obviously you would prefer to tear down some honest person career and the way they make a living..
Before you run down some people’s career and means of making a living, you should at the very least ask someone who knows a little about the industry to assist you rather than going to Google and copyimng and pasting some articles that support your narrative…
Maybe you should tell us realtors what you do for a living so that we can google a few things about that..see how ridiculous that sounds??
And just so that it is clear, I am a born and bred multi-generational Caymanian and my family goes way back to some of the very early Caymanian real estate men and women that started our real estate industry. They brought investment to Cayman and in fact one of them was my grand father and one of the founders of CIREBA. For the record, it was these strong Caymanian men and women that saw that without rules and regulations the real estate industry would be nothing more than the wild, wild west in Cayman. Many Johnny come lately’s like you would have loved it to remain the way it was so that you could continue to take advantage of us.
So people are allowed to list their properties on the Multiple Listing Service without using a CIREBA realtor, are they?
And they can do so without paying any money to any realtor? Including not needing to pay the *buyer’s* realtor?
No, thought not.
Back to school with you. Oh no, wait, you didn’t even go to school – because realtors don’t need to.
You’re correct, though: I’m American. Every Tom, Dick and Harry over here has a realtor’s license, particularly here in Miami, because it’s a license to print money. Or, at least, it was until the August 2024 outcome of the lawsuit linked to above.
CIREBA is a cartel.
Same could be said about stamp duty. Every time property transacts it has to appreciate by at least 7.5% to break even on the investment when selling it.
@1:15pm,
This is nothing more than Chris and Mac looking for a way to launch their campaign. It is so easy to go after the expats and real estate agents to blame them for their own shortcomings and lack of planning during their exceeding long political careers and we seem to fall for it every election season. These two dinosaurs need to be put out to pasture instead of trying to divide us with their xenophoibic foolishness. The very thought of implementing taxation should scare us particularly coming from these two.
Are you aware that the majority of real estate agents in CIREBA are Caymanians, not expats? I am a born and bred generational Caymanian and I have been in the business and a part of the association since graduation from university and fell into it when I could find no job in my field of study when I returned home..We agents work solely on commission, meaning we don’t earn a paycheck unless a sale is closed. It’s important to note that the idea of simply “walking around opening doors” is a misconception. Real estate agents are responsible for much more such as marketing, advertising, and promoting properties— all of which they cover out of their own pockets, along with membership fees to be part of the association. The process of closing a sale can take 6-8 weeks, so agents often have long periods with no income. We are professionals who work solely on commission, meaning we don’t earn anything until a sale is closed. The fees you refer to are a part of the process that ensures both buyers and sellers receive professional services, such as marketing, advertising, and the operational costs associated with closing a property deal. This is why real estate agents often don’t get a monthly paycheck, and why the industry is commission-based. We also also have to pass a 3 part exam and pass with a 95% passing grade or we don’t get hired. We undergo vigorous training, including Anti-Money Laundering certifications, and are bound by a set of strict ethical rules and regulations to ensure the protection of our clients.
I understand the desire to make property ownership more affordable for Caymanians, but eliminating or undermining CIREBA could create a less regulated, less professional real estate environment. Without a trusted association, it would be much harder for both buyers and sellers to feel secure in their transactions, which could ultimately hurt the market and make it harder for Caymanians to access reliable real estate services.
You always have the option to purchase or sell your property on your own or work with an agent outside of CIREBA, but in my opinion, I believe the protections, professionalism, and security offered by CIREBA agents are invaluable. The fees may seem high, but the value provided in terms of expertise, guidance, advice and the assurance that you are working within a well-regulated framework is worth considering.
Caymanians don’t have to use a CIREBA agent, or ANY realty agent. Same for everyone here.
People have gotten so brainwashed with the CIREBA “ Weave” , that they think it’s just how it’s done now and there is just no other way.
Why would I contract a Canadian expat that flew in from Toronto 2 years ago to sell my property , when I have over 40 years of living in Cayman and bought and sold multiple homes?
As soon as the Caymanian and resident population stand up to the fleecing that CIREBA agents are dishing out to you, the better.
A non CIreba agent with a realistic contract and commission base would be preferable and should be pursued as an option, if an agent was needed.
@7:33pm
So is it your contention that every CIREBA agent is a Canadian or expat? Is it because you believe every CIREBA agent is white or fair-skinned? Do you know how many of us in the association are Caymanians, white, black, brown and whatever other they make us humans in.. Be for real with your Xenophobic accusations and beliefs. My father was one of the very first Caymanian Cireba members and our entire company still remains fully Caymanians. Have you even bothered to try to find out how many expats are in CIREBA?
Just the other day on CMR someone posted and embarrassed a fair skinned or should I say white Caymanian lady and ran her down accusing her as being an expat real estate agent…FFS, not every Caymanian is black or brown skinned..Stop with the damn xenophobic crap. Call up CIREBA and ask how many expats are in the association. I’ll bet you will surprise yourself.
Furthermore, if you don’t want to deal with a CIREBA member where you know there are at least some rules and regulations in place and where real estate agents are properly trained in the real estate business then do as you say and sell or buy your property yourself or go find yourself an independent agent to effect your sale or purchase. Nobody is forcing you to use a CIREBA agent. Do you know that there is another real estate association called CIRO that was founded by a “white” Englishman “expat?” I don’t want to pick on them and go to your level because, like us they are trying to organize themselves to provide some type of regulated ways of doing business for the general public..but there is another option that you are free to use an I apologize to them for opening them up to your ridiculous scrutiny and xenophobia.. The last time I checked this is still a free country and you have a choice. It is like running down Kirk Market when you have the choice of shopping at Fosters, Hurley’s, shop Right, Cost U Less or McRuss.
I am so sick and tired of this maliciousness towards an association that has been called everything bad in the book. If you want to do something productive stop threatening my job or way of earning a living and ask Chris and McKeeva to, instead of proposing taxes that they make certain jobs for Caymanians only. I’ll wait…
You seem to present yourself as educated on the matter. Can you tell us both how many immigrants and how many Caymanians are employed by Cireba?
CIREBA has not routinely covered itself in glory. You do not have to have been to Cambridge to understand that.
What’s the commission on a status grant these days, or was that just a sweetener in the good old days?
@7:33pm..
You sound like a real estate agent yourself. If you are 40 years old and bought and sold multiple homes on your own, something tells me you are not a Caymanian but a rich expat that came here to fleece us, as you say. You were just too damn cheap to use a real estate agent because you didn’t want to spend another dollar in the community that gave you the opportunity to buy and sell those homes, many of which I am sure belonged to Caymanians..Maybe you should correct your words by saying that you came here 40 years ago and bought and sold several homes on your own. Nothing wrong with that except that some of us prefer to have and experienced and qualified real estate agent to market and sell our properties and to ensure we are getting the best price.
Most 40 year old Caymanians have not bought and sold several homes in their lifetime on their own, unless they were born with a silver spoon in their mouth. You are no different than the other xenophobic paper Caymanians that add no value to Cayman. They are many expats that have come here and integrated themselves into our community and become part of our national fabric..You came here to make a ton of money while bashing the very Caymanians that you bought and sold their homes making a fortune that you have now retired on..
Just in case you didn’t know CIREBA agents are Caymanians too and for the most part are good honest people that go about their day making an honest living. You telling people not to use them is akin to you coming here 40 years ago and making yourself rich of the backs of Caymanians. Be grateful for what Cayman has done for you and please stop with divisiveness. We don’t need anymore of that here.
You said: “CIREBA agents… are good honest people that go about their day making an honest living”
In fact: “CIREBA agents… [add no value, and would not be missed if they all got washed off the island by the next nor’wester]”
It is entirely possible for sellers to advertise to buyers, without some parasite inserting themselves into the process to steal an exorbitant commission. This is called COMPETITION. It’s what CIREBA explicitly tries to destroy.
Here’s a simple example. eBay has scrapped selling fees in the UK:
Online retailer eBay scraps fees for private sellers in UK. The move comes amid increasing competition from rival platforms such as Depop and Vinted: https://www.theguardian.com/technology/2024/oct/01/online-retailer-ebay-scraps-fees-for-private-sellers-in-uk
The joys of competition – fees removed entirely for everyone! This would be perfectly possible for house sales in Cayman, too. But those who predate upon their fellow Caymanians by imposing margin-upon-margin transactional costs would howl that their easy gig was up. Tough.
Above Title can be renamed to “Saunders re-election grift”
“One of the traditional methods of imposing statism or socialism on a people has been by way of medicine. It’s very easy to disguise a medical program as a humanitarian project.”
-Ronald Reagan
Stage 1: Expat property sales plummet (he probably thinks that’s good)
Stage 2: Expat property fire-sale (he probably thinks that’s good)
Stage 3: Real estate value plummet, including for Caymanian owned property (He will blame the expats)
Stage 4: The money he thought he would have to pay for his re-election scheme doesn’t materialize. Still not enough money to pay for senior healthcare.
Stage 6: All expat healthcare providers leave Cayman (and virtually all upper income expats) , substituted with 3 world healthcare providers that are willing to work for less, with no interest to invest in property here.
Stage 7: He then needs to tax the “Rich” Caymanians and Status holders. Seek to broaden the tax base.
Stage 8: The Bahamas, Cayman now a mostly tourist based economy.
12:56, we’ve heard your Cassandra type prophecies long before you ever came here …..“the end of Cayman if we do anything to even slightly piss off the rich foreigner” was a mantra going back to Jim Boddens time. Cayman would be a better place in many many respects if we had pissed off more foreigners all those years ago.
Exactly right. We were sold a bill of goods that indicated that we’d all prosper. Well, we haven’t, and there is no indication that we will. The ‘rich foreigner’ IS prospering, as is the ‘rich developer’, and we all get to pay for their works without any benefit to us. I personally am tired of catering to foreigners.
The cruise ship companies want us to do various things to make their passenger’s experience more favorable. I don’t think we need their business. They need us as a stop after a long haul far more than we need them. DO NOT cater to them. They should be helping us, not exploiting us.
Good lord. Cayman has the highest per capita income in the Caribbean. There is no other Caribbean island that offers even a semblance of the quality of life that Caymanians have. What were you expecting? For everyone to become rich just based on their nationality?
5.11pm But you don’t understand what we lost if you think that our quality of life is better than in the ’50’s to ’70’s. We didn’t even know we were
poor until foreignors told us so upon their arrival.
Yes! 😂🤷♀️
No. I expected that we wouldn’t trade our natural resources and unique beauty for the benefit of foreign developers. As an added benefit, we now have overcrowded streets, noise, and crime — all the joys that come with low-paid expats needed to service these ruinous buildings.
Very accurate description , precise analysis and detailed description of what will happen in short order. What the MLAs fail to understand at this stage is that they will kill the financial sector on island in one swift swoop as well , just as it happened in the Bahamas !
Maybe that is exactly their plan all along!
Cayman’s success started with the Bahamas post independence demise…Saunder’s father was a politician in Jamaica overseeing Jamaica’s spiral into the cess pit , and Mac has sacrificed Cayman’s future by status grants to thousands of multiplying Jamaicans.
Still no lessons learned from that to save what’s left of Cayman.
No they will raid the pensions again. “Is your money so no one should tell you what to
Do with it. Me a fight fi your right!”
Poster it is the same cry from you expats over and over.
If you didn’t think that our strong tax-free KYD was not in your favour, you would have taken your ass out of our country just the minute you wrote your post. You go, five more of your kind coming. Truth be told!
Eh? Are you retarded? There is no KYD worth speaking of: it’s a fixed exchange rate to USD, the sole purpose of which is to allow local banks and retailers to fleece people by charging exchange and commission fees.
KYD/CI$ has also outlived its usefulness. It only serves to generate profits for the banks by charging people exchange fees to/from USD$. Moving to USD$ is long overdue. This is even the case with Caribbean countries with floating rates – it’s exponentially more so for Cayman with a pegged exchange rate.
See the following two articles:
“Core argument: The structure of Caribbean economies is different in quantity and quality. Caribbean economies are import dependent. This is not a value judgment or a temporary state of affairs; it is an immutable fact of the world. Even the most basic economic activity, agriculture, requires tools made from metals not found in the Caribbean – they must be imported. This has been the state of the Caribbean from the beginning.
All imports are paid for using an international currency – usually U.S. dollars. There is no advantage for Caribbean countries to have their domestic currency; all domestic currencies in small economies are anachronistic. Caribbean countries should abandon their local currencies and adopt the U.S. dollar. The region’s governments have uniformly abrogated their duties to design and implement credible macro-prudential policies leading to unjustified socio-economic degradation.
Properly construed, the current state of monetary affairs is a persistent abuse of power by governments to the detriment of Caribbean citizens. If Caribbean people used U.S. dollars as their sole currency, that would significantly expand their economic freedom and opportunities.
In essence, dollarization merely makes explicit what is already true: small open economies have a hard foreign currency constraint. It is not the so-called implementation of a straitjacket. The straitjacket has already been there.”
https://cpsi.media/p/notes-towards-caribbean-dollarization
And
“The currencies of Caribbean countries have now outlived their usefulness, and have become a liability. They were devised at a time when most payments were made using notes and coin, issued in distant metropolitan centres. Scarcity of the means of payment was a severe hindrance to commerce. In response Currency Boards were set up, to issue local currency as needed in the colonies. The system worked well because the local currency issue was backed by an equivalent value of Sterling, in a global system of fixed exchange rates. In contrast, nowadays payments are made mostly by electronic communication, credit and debit cards, cheques and drafts, with settlement over digitized bank accounts. In today’s world an own currency has become a liability for small economies, limiting access to international goods and services, exposing residents to risks of currency devaluation and inflation, eroding the value of domestic savings, increasing economic inequalities, providing a tool for unproductive government spending, and diverting attention from the need to increase productivity and enhance international competitiveness.” https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3400180
Did someone say wotes?
This is the same kind of anti-foreigner drivel that has sunk so many other Caribbean islands … guys like this pander to the poorer side of the population and drum up anti-expat, anti-wealth and anti-everything sentiments and on occasion; it works … then comes the ensuing brain-drain, money outflows and increased crime… a generation later, history reflects on those once robust locales as ‘dumpster fires’.. aka Cuba, Jamaica, Trinidad & Tobago, Turks & Caicos to name a few … once had it all and threw the baby out with the bathwater. Let’s toss this guy overboard before the stinks up the place!
This is yet another example as to the lack of IQ of these two politicians who have not thought the idea through.
1. The tax will give us a lack of competitive edge with the TCI and other islands. TCI is going gangbusters with its sales on Grace Bay, notwithstanding their crime problem. Their tourism is also going well unlike that in Cayman where another fruitcake is in charge.
2. Once you start this tax it will mushroom into other taxes.
3. The costs of collection will be enormous.
4. Try calculating and collecting from timeshare owners.
4. So a foreigner forms a local company and puts the shares in a discretionary trust. You see already fiddles will emerge CIG will never spot.
It is a stupid and unworkable idea something we are accustomed to seeing from this government.
I’m no fan of Chris Saunders but this idea makes some sense and has been used elsewhere where foreign buyers of real estate have driven prices into the stratosphere. If you want to reign in development the only other options are to ban foreign buyers all together, or severely restrict planning permission (no more hotels, only 3 stories, setbacks, etc.). Have to do something.
The property prices will simply plummet resulting in (1) lower asset value for Caymanians and (2) lower stamp tax for the CIG. Jeeze…. this is so obvious!! and we’re supposed to vote for this person??? duh??
dart owns almost everything and he caymanian! duh…
Cayman has a spending problem not a revenue problem.
cns: where are all the previous comments?
CNS: At the beginning of the comments, click “Older comments”.
does not work
Why should non-Caymanians pay a tax for Caymanian health care?
indeed!!…and why did’t Chris set up this ‘fund’ when he was the Minister of Finance???
It is often better to keep quiet than speak and prove oneself to be an imbecile.
Why am I not surprised in any shape or form by the toxicity of his “emanations” for lack of a more appropriate term and the collective he aligned himself with ? I wonder !
Alongside the outright vote buying and , the needless school , the lack of resolution of the dump issue, the disastrous disconnect of our political leaders from reality, mounting public discontent , the price gouging practices that continue unabated the lack of accountability and transparency, the carnival 🎡 of greed keeps on going full steam ahead !
No wonder that the perception of quality of life on my island is taking a severe turn for the worse !
Our Parliament takes with each passing day more and more the aspects of a mental facility with the inmates having taken over and the medical staff being locked up in a room, terrified to call for help!
This IS the comment of the YEAR!!!
Freaking brilliant; the last paragraph should be carved just below “House of Parliament” on the mental facility at the end of Panton Street.
Lip service, pure lip service.
A failed book keeper angry at people more successful and educated.
Now joined by another failure seeing an opportunity to spoil the party .
You guys have to remember how Cayman pays its bills, including your bloated salaries…it ain’t your Jamaican bredren.
No no no no no. This is the worst idea I’ve heard in a while and politicians have a lot of them.
This will have a dramatic and negative effect on the value of housing.
But most importantly it’s not anyone else’s job to bridge the gap for Caymanian health care costs. That is a home grown problem and a home grown f*ck up. Most doctors in this country are foreign. So what do you think they’re doing to do when you tax their homes 2% per year (on top of the 7.5% stamp they paid to buy it)? They’re going to raise their fees to compensate. Or they will leave. And then you won’t have medical professionals to care for an aging Caymanian population.
Also…governments all over the world are insatiable with their taxes. First it’s 2%…then they piss away all that money and raise it to 3%. Then 4. Then they add a gas tax. Then a road tax. Then income tax.
CIG has a SPENDING PROBLEM and they need to fix this. Not a penny more of tax on anyone from anywhere, no matter what!!!
The great Caymanian Health care system is failing for a good reason. Over two billion in debt(is that right?), With 78 million paid last year? For those who can not afford it but are intitled to it? The only way to fix it now is to go Bankrupt just like the forefathers planned. And trying to get expats to pay for it is a great way to get expats to stop paying for all the other things(like everything)that keep life running here on this little island for good and nobody wants that.
I’m not even against the tax as it’s pretty common. I’m against giving these guys more money.
100% If they were really serious about fixing health care why have they not done something, anything, about the cost of health insurance? Why have they not enforced the laws against employers (including politicians) that are not contributing/paying to employee health insurance? Why why why …..?
We are happy to tax you personally.
Spot on! the money is already there for this and many other things. the government is wasting so much of our nation’s money. This article in the Compass is eye brow raising in how little value for money we are getting from the civil service.
https://www.caymancompass.com/2024/11/13/analysis-is-public-spending-in-cayman-out-of-control/
Civil service is a Country-club minus the Golf and Polo.
Good. We’ve sold out long enough. Our property supply is finite and demand has skyrocketed for the past 20 years.
If you own multiple properties, you’re likely renting out some and turning a profit. Boo hoo, the multimillionaire who lives on island for 2 months out of the year didn’t make 150k and instead pocketed 130k doing absolutely nothing but hoarding land and property that natives would otherwise have access to.
Not to say Caymanians aren’t at fault for selling out their birthright though – a past US president said outside forces shall not be our downfall but our demise will come via internal suicide and that’s what Caymanians have done. I watched my grand father and father sell out the family land and have self-exiled myself from them.
Smoke and mirrors to believe you care about Caymanians. Election time is it? Chris what happened to the reverse back mortgage scheme to assist retires struggling to meet the basic expenses? Lets note you and your cronies have increased the cost of living expenses to meet government’s luxurious no need projects and high salaries you are all paid for nothing!
The bunch of you all have to go! People cannot survive and it’s hard in Cayman now. Changes are coming!!
Reverse mortgages is a terrible idea and most people know it.
The last thing the profligate reprobates need is more money to waste. I will only vote for candidates that will be fiscally prudent, morally upright and not working to turn Cayman into a parish of Jamaica…. yes I am hoping for new candidates to run in April.
The hate for foreigners in this place is unreal. Caymankind is long gone.
caymankind was always a caymanian generated myth.
Caymankind is not a Caymanian generated myth. Its a label placed upon Caymanians with the expectation that we role over and let everyone walk over us. The minute we stand up for ourselves, people always question “what happened to Caymankind”. That term is not a benefit to Caymanians.
You would hate to see a bunch of strangers walts in to your home and take over your room against your will because in 2003 daddeh allowed it
Yet the man who allowed it is still in power, despite groping and assaulting multiple women over the years. Maybe that is the definition of cayman-kind
True, though I’d love to see them waltz in and teach some proper English.
Chris is not stupid enough to think this would work (I hope), but rather is trying to show his voters that he cares about their needs. This would absolutely ruin the property market on island and could potentially tank our financial services industry. If people don’t trust the government to not change the rules as they go, then the money will move elsewhere.
Literally presented the idea.
I disagree, he is.
Agreed.. he is stupid enough blinded by envy and lack of forethought.
..so you’re saying that he thinks that we (the voters) are stupid???