The Turks and Caicos Advisory Council recently approved the introduction of Fractional legislation in the Turks & Caicos Islands and it is expected that the draft Ordinance will be enacted in the coming months.

The Turks and Caicos Islands are a high-end tourist destination and a British Overseas Territory located at the bottom of the Bahamian chain.  Its world famous Grace Bay has been developed by a series of condominium resort developments; which have sold to foreign investors, mainly from North America.  Nearly all properties have sold through whole ownership.  To-date any type of shared ownership has been limited in the islands, largely due to the Time Sharing Ordinance that was introduced nearly 30 years ago requiring a complicated approval process that only one development obtained (the Alexandra) and leaving some promoters to offer a percentage of shares in a company owning the underlying real estate.

The new draft legislation should radically change the way that investors can purchase real estate in the Turks and Caicos Islands.  The proposed draft legislation is simple and will allow owners or developers of condos or villas to divide their properties into increments of up to a minimum of 1/12^th interests.  Such interests will be separate registered proprietary rights, with an individual register created for each proprietary interest at the Land Registry; and the name of the owner will be registered on each individual Register for the designated fraction (and hence akin to what North Americans refer to as deeded interests).  The Turks and Caicos Land Register is certified by the Crown and hence gives secure protection to investors.

The application to create fractional interests in the property will require, by the anticipated statute, the lodging of fractional By Laws that will enshrine the usage rights, cost sharing rules and rights to attend and vote at condominium or homeowners’ association meetings.  The attorneys who prepared the draft Fractional Ordinance recommended the registration of such By Laws at the Land Registry in the same manner that Condominium Strata By Laws must be registered at the Registry, in order to mandate a public record of such rules and to ensure that all subsequent owners are fully bound by the By Laws.

In essence, the system that is proposed under the draft Ordinance is both easy to register and to administer thereafter.  It is hoped, by the attorneys involved in the initiative and by the Turks and Caicos Government, that such a system will be considered by investors and lenders as a highly secure and simple means of obtaining registered rights in Turks and Caicos that reflect the time and monetary investment that owners would like to make in our islands.  For the first time it should allow luxury Grace Bay condos to be available to persons wishing to invest $500,000 or less in our real estate market; whilst obtaining the protection of registered proprietary rights that are capable of appreciating in a rising real estate market. The timing of the new laws is much welcomed as we see new airlines such as JetBlue and Continental flying into Providenciales and the airport extension, which is hoped to increase the transatlantic flight options.

It is anticipated that the sales of fractional properties could also assist the local economy in a similar manner as seen in North America and other islands in the region that have sold fractional interests.  With more foreign owners in Turks and Caicos there could be a boost to the local economy from more repeat “owner visitors”.  Such types of “owner tourists” have already “pre-paid” for their accommodation and are renowned for spending more money within their resorts and the local communities on tourist types activities than tourists who stay in accommodation that they are paying for on a nightly basis.  Hence, there could be a positive impact on all types of service industries in addition to real estate sales and hotel management.

Fractionals sales have historically done well in a region where the climatic conditions are good for most of the year and the region is known for repeat high-end tourism, and the location is a prime site with ease if travel to the destination.

The Turks and Caicos Islands are 90 mins from Miami, 3 hours from New York and 4 hours from Toronto, with daily flights to many other large cities.  There are no annual property, income or inheritance taxes.  The one-time tax due on the purchase of a property (stamp duty) has been substantially reduced since 2010.  Foreigners can own property without restriction or the requirement for any type of alien licence (as is required in some other islands in the region) and can obtain non-working residency status.

The Turks and Caicos Islands are well positioned to become a strong destination for successful and sought after fractional ownership property

New Stone and Marble Business for Turks and Caicos

Their stone experts provide top quality and professional service from start to finish.

Situated in the Heart of Grace Bay

Caribbean Imports has a focus on quality whilst at the same time attempting to give the customer the best value for money. They confirm that no project is too big or too small and every job is treated with attention to detail that makes all the difference.

For more information, visit Caribbean Imports in Suite 105, Neptune Court, Grace Bay, Providenciales or contact one of their representatives.

+1 -649 -2322547 or +1-649-2322548

Email: caribbeanimportsmail.com

It is understood that the service will commence on 17th of February, 2011 with a daily service from New York’s JFK airport and that it will commence from Boston (Logan International) on 19th February 2011

The airliner is apparently awaiting confirmation from the Turks and Caicos government operating authority.

It is understood that seasonal service from JFK will operate from November to April in general, and a  Saturday only service will begin 19th  February from Boston Logan International airport.

Actual Source: JETBLUE.COM

There are many beautiful spots within the Turks and Caicos, and whilst most buyers look at the busier condo options in Grace Bay, there are some relatively undiscovered and beautiful residential development parcels like these in Turtle Tail, on the south of Providenciales.

Beach View Land

Beautiful Panorama

Turtle Tail Oceanfront Land Lots

MLS# 076938

MLS# 077071

MLS# 077074

MLS# 076936

Click here to see more about these lots.

Or Contact us at RE/MAX ELITE for more detailed information.

Simon Padgett, Broker of Re/Max Elite states: “Emma brings with her a wealth of experience, but most importantly a fresh and energetic approach to doing business’ Emma is one of several lawyers that I recommend because she is very efficient and most notably, she gets the job done in a timely manner!”

Emma Riach

Emma is originally a London barrister & solicitor who has been living and working in the Caribbean for the last 6 years advising on all aspects of real estate and commercial developments and transactions.  In the Turks and Caicos, as an attorney admitted to the local Bar, she has for many years advised several of the leading developers in the development of high end resorts on the islands.  Additionally she has assisted numerous private vendors & purchasers in the sale/purchase of villas, condominiums and land (and development thereof) throughout the islands.

Emma holds a number of legal qualifications and has worked over the last 16 years in the Turks and Caicos Islands, Bermuda, Anguilla, London and Paris. This provides a wealth of comparative knowledge on these countries and some of the unique advantages of real estate investment and development in the islands.  Emma feels that she is privileged to be able

to call Providenciales home and loves exploring and staying on the other Turks & Caicos Islands at the weekends. She is more than happy to impart her knowledge and enthusiasm for all of the islands with her clients.

Emma can be contacted at emmariach@karammissick.com

The Venetian Unit 702
The Venetian Unit 204

The Venetian offers a luxurious year-round home or a much desired holiday escape. With the elegance of ocean-front living and set on the white sand and glistening turquoise sea of Grace Bay Beach, The Venetian captures the best in beach-front living. From its architecture to design and finishes, The Venetian offers all of the amenities and beauty desired by those seeking the best in their personal piece of the Caribbean. In terms of value for three bed condominiums in this current economy, you will not beat the Venetian, in terms of its quality finishes and most importantly its location with probably the best sunsets on Grace Bay.

The credentials of the development team are clear to see. The first of the two developers behind The Venetian, Brian E. Butler, has won the proud reputation as Cayman’s foremost builder of resort condominiums. In twenty successful condominium projects on Cayman’s Seven Mile Beach, Mr. Butler has set and achieved high standards of design and quality.

Robert Ellingson-Lewis, a co-developer and project manager, has also been involved with successful land development projects and the building of custom homes in both Canada and the United States. Mr. Ellingson-Lewis is responsible for the team’s most recent and very successful condominium development, The Tuscany.

The Venetian is a very exciting new opportunity that is due for completion January 2011. Contact us now for more information.

The View from the Venetian

Ambergris Cay is easily accessible via Providenciales on private jet (taking less than twenty minutes), but the beauty of the island is that it feels like you alone know about it. It is possible to enjoy wonderful diving, snorkeling and fishing off the island. At certain times of year it is even possible to watch the whale migration that gave the Cay its name (Ambergris is a valuable waxy substance left by migrating Hump-back whales).

Ambergris Cay Beach

In keeping with the rich biodiversity of the island, the ecologically sensitive development has sought to preserve the ecosystem in place and even educate residents and visitors further with the Environmental Learning Center. This project has sought to embrace and preserve the flora and fauna of the island to continue the beautiful legacy of the region. One third of the island is even set aside as a reserve to keep those elements untouched.

Whether you decide to build a villa here in the same style as one of the fantastic examples already developed, or create a home based on your own designs, this could be one of the most wonderful oasis’s in the Caribbean.

As a follow up to this blog we will be featuring interviews and thoughts from some of the individuals connected to this stunning island in the coming weeks. Please come back to read more.

Click here to see our Hawkins Ridge listing.

The Turks and Caicos Islands are a fantastic destination to visit or live in. Please be sure to contact us when you next visit.

A Beautiful place

The new hospital has opened in April and we are blessed with state of the art medical facilities that are better than anything I have personally attended in the UK. You can view more information on the Hospital here.

The new airport expansion was announced last year and the construction contract was recently awarded, after a lengthy bidding process. The contractor hopes to start work as early as June. The newly completed airport will allow access to larger aircrafts, which will open up the islands ability to attract other carriers and open up new flight destinations. I am keeping a close eye on what evolves in this regard, but I believe we may possibly see additional flights to Europe, which would hopefully have a positive impact on bringing the fares down that British Airways charge for its direct Sunday afternoon flight. I actually do like the BA flight from Provo to London, but if we can bring in competition and make the trip a little more cost effective, we will surely then see progressively more Europeans coming to the islands.

In speaking with all my friends who operate hotels on the island, they have all commented on what a significantly improved year it has been for their occupancies during this high season, albeit they have all had to offer better rack rates to compete with each other. I have frequently been informed by a number of operators that they have frequently seen 100% occupancy and I can’t recall anyone saying this in 2009!

The underlying strength and characteristics of the Turks and Caicos Islands remain intact and the light is bursting through the tunnel in terms of infrastructural advances that will take this island forward in to our next real estate cycle.

Simon Padgett, Broker, RE/MAX ELITE, Turks and Caicos.

Re/Max Elite Broker Simon Padgett stated “I am very encouraged by the recent news that Stamp Duty is being lowered across the islands”

“Whilst I do not believe it will significantly increase new real estate enquiries in the short term, it will actually enhance the chances of those who have perhaps been hesitant on making a purchase to move forward and buy something. I have found that we have a group of buyers who feel our price drops have some way to go, then you have others who feel we are at the bottom. It is the latter that have been making the recent purchases. It is the group that lies somewhere in the middle that I feel this reduction will be seen as the catalyst that makes them move forward with a purchase.

My own personal thoughts on real estate values is that certain areas have bottomed out and the properties that still need reducing are those where owners are simply not realistic about their market values and are dictating to their agents what they feel it should be priced at versus accepting the factual advice they are receiving.

In essence, whether we like it or not, we are in a buyer’s market and this reduction goes a significant way to enhancing the absorption of properties on the Turks and Caicos Islands and creating excitement whereby buyers start to hurry to buy a certain bargain, before somebody beats them to it! I am starting to see this in certain areas already and this reduction only goes to aid the acceleration of this process and take us into the next cycle”

The new fees apply to all islands except North Caicos, Middle Caicos, East Caicos, South Caicos, Grand Turk and Salt Cay, which are 50 percent of the following rates:

Less than $25,000—no duty.

$25,000-500,000 — 4%

3.6% — one payment

1% — four payments

$500,000-1.5 million — 6%

5.4% — one payment

1.5% — four payments

$1.5-3 million — 8%

7.2% — one payment

2% — four payments

More than $3 million —10%

9% — one payment

2.5% — four payments

We have some tremendous deals out there at the moment and some are visible on the MLS and some are not.

If you have interest in Turks and Caicos Real Estate, contact one of our agents at RE/MAX ELITE