The basics – The island of Anguilla experienced an unprecedented real estate surge during the recent real estate boom with a large number of uber-luxury resort projects undertaken. Much like St John, Barbados, St Bart’s and Grand Cayman before it, sleepy little Anguilla has seen its modest tourist traffic and under-the-radar status transformed into a playground for the private jet set and second home to multi-millionaires. Anguilla is best known for miles of beautiful, sandy beaches and upscale dining and luxury resorts. [This is one of the many Caribbean places with such a wealth of gorgeous beaches (30 plus) that it distinguishes between ‘walking’ beaches and ‘swimming’ ones as it has varied surf and wind conditions from location to location.] It is quite flat, overall, but has no shortage of picture postcard bays and beaches to enjoy.
Anguilla is located east of the Greater Antilles (Puerto Rico, the Dominican, etc.) and just to the north of St Martin/St Maarten in the center of the Lesser Antilles. It is approximately 35 square miles in size, laid-out 16 miles in length northeast to southwest and 3 miles wide at it’s widest. The currency is the Eastern Caribbean dollar, but you may use US dollars, which are accepted universally. Exchange rates are fixed at $2.68 EC for $1 US.
Accessibility/Getting there – The island’s airport is Wallblake (airport designator -AXA), which offers connecting service in from Antigua, St Maarten and San Juan, Puerto Rico – the latter being the usual connecting point for US visitors. Connecting service from Europe is typical of the Caribbean: from Spain, via Iberia to Puerto Rico; from Holland, via KLM to St Maarten; from France, via Air France to St Maarten; or various UK carriers (including British Airways, Virgin Atlantic, BWIA, BMI) via Antigua or St Maarten. Connections everywhere in the Caribbean are always available from Puerto Rico via American Eagle and from Antigua via Liat/CaribAir. Additionally, it is possible to arrive in Anguilla via a 20-minute ferry ride from St Martin. Ferries arrive to the Blowing Point Harbour from Marigot on St Martin and are scheduled on roughly the half-hour throughout the day. Of course, if you are traveling by private jet, AXA is suitable for direct service.
Desirability for investment – The explosion in real estate investment on the island has clearly caught the government off-guard and has resulted in some odd moratoriums on real estate sales and new developments. Expect this to change, of course, over time, but for now, there are a few hiccups to prospective home ownership or investment here in non-existing or underway projects. There are mandatory development timetables as part of an alien landholder’s license (18 months is common), which should be of particular note given the scarcity of available materials and construction professionals on the island. In other words, it may be a good idea to have a builder lined-up BEFORE you apply for the license if you intend to develop. It is unclear if the mandatory timetables are enforced (in many parts of the Caribbean, they are not) by the Anguillian government. Expect a 10% (of the freehold value) deposit at the time of the landholder's license, to ensure that the construction is complete within 18 months (this obviously applies only to the purchase of vacant land for building).
There is also a new (opened late 2006, but re-opened recently) Greg Norman signature golf course, named Temenos, in the Cove Bay/Merrywing Bay area toward the island’s southern end (where most of the existing developments are located). As part of Cap Juluca's re-opening in December of 2009, they also took over management of this golf course.
Investment Appeal -the tax and land use landscape of Anguilla:
RENTAL
There are numerous real estate agencies and others who can manage your rental villa for you. If your villa is part of one of the larger new resort properties, on-site management will provide full services. Expect fees from 20-40% depending on the level of services provided. Also note that the government will charge you a fee for renting your villa - expect $1,200 U.S./year if they allow the rentals.
OWNERSHIP AND TITLE INFORMATION PLUS TAXES
Almost all land is freehold. Title can be guaranteed from the likes of Stewart Title, as it is in the US, making properties eligible for a mortgage via a US bank [NOTE: Caribbean banks’ mortgage rates tend to be a one to two full points higher than US rates at any given time. Availability of mortgages - both in the Caribbean and the US - is widely variable as of mid-2010.]. Please note: direct beachfront construction is not allowed as a rule... though this "buffer" strip is rarely an obstacle for available properties or larger/commercial developments. Expect a stamp duty of 12.5% for the landholder's license and a 5% transfer tax. There is also a fee of about $400 U.S. for plan approvals. Fees are subject to change at any time and should be established prior to going under contract on any property on Anguilla.
DIFFERENCES FROM ONE AREA TO ANOTHER - "NEIGHBORHOODS"
The southwestern end of the island has seen the greatest amount of development, historically, though many individual homes have been and are being built more toward the northern end at this time (primarily due to the scarcity of land and how – relatively – crowded the southwestern end of the island has become). There is one notable exception, which is the Shoal Bay area toward the northeast of the island, which has always been fairly built-up and has a steady amount of beach goers including day-trippers from St Martin/St Maarten. One newer project there is the "Shoal Bay" development with various ownership possibilities.
Realtors/MLS:
There are only a handful of realtors and no active MLS system in Anguilla. Most “deals” travel by word of mouth and sometimes finding ANY property for sale or more than a smattering of available villas can be difficult. The island was in a strong seller’s market through 2008 but has understandably cooled dramatically. Best bets include talking to local taxi drivers and each of the island’s real estate brokers for their individual listings. Agents on island include: ReMax, Century 21, Sotheby's, Island Dreams and Capital Real Estate.
Projects - most with Condominium/Apartment/Townhome options
CuisinArt – known for its gourmet food, health spa and environmentally friendly features (including its own horticultural facility for growing the herbs for its restaurants). Located in the Rendezvous Bay/Cove Bay area. Medium-sized project with apartments and a hotel component.
Shoal Bay – located away from most of the tourist “bustle” in the northeast of the island at Shoal Bay, the Shoal Bay project offers “residences and villas.”
Seychelles Hotel Beach Estate – in the Meads Bay area.
Cap Juluca has been under recent renovations and should continue to see activity over the coming years. The grand re-opening occurred in December 2009.
Rendezvous Bay – tear-down of the existing hotel to be replaced by condominiums and – we expect – villas or residences. Our information is that some residences will be available as low as $400,000, which we found surprising.
Viceroy – located across Meads Bay and into Long Bay is the sprawling Viceroy development. This under-construction project is already being referred to as the new Anguilla standard for luxury and opulence by locals (replacing Cap Juluca and St Regis before it).