Investing & Development
All land in Vanuatu is leashold with the Minister of Lands being the Lessor in urban areas around the CBD and the traditional custom owners being the Lessors in the rural areas. The leasehold system came into being during Indepence in 1980 and new leases created are 75 years for residential leases and 50 years for commercial leases. When you buy a property, you buy the remaining years left in a lease. All the lots at Mele Cove have brand new 75 year leases for the residential lots and 50 years for the 3 commercial lots. The Government of Vanuatu levies 7% of the purchase price for stamp duty and registration.
You do not need to be a local or resident to purchase land in Vanuatu. Anyone may purchase land and with the purchase of your property (currently an investment over $60,000AUD) you are able to apply for a residency permit. If you are travelling back and forth between Vanuatu and another country you can reside in Vanuatu for a period of up to 4 months by applying for an extension of your tourist permit. If you would like to stay longer than this period of time, you should apply for a residency permit. This does not entitle you to engage in employment while visiting.
Banking
ANZ and Westpac banks (Australia and New Zealand) are located in dowtown Port Vila and both banks will provide loans to secure your purchase. Generally a 20% deposit for residential loans and 40% for commercial property is required. Additionally, the local bank Bank of Vanuatu will also provide residential loans. At the time of writing, The Bred Bank, from France is scheduled to open in Port Vila around Christmas of 2007. We are able to offer you a personlised introduction to any of the banks, insurance companies, local builders, architects, engineers, solicitors or accountants and you may contact us for more information in this respect.
Options For Developers
Developing property in Vanuatu through building of houses or apartments produces very good returns. With the current market conditions the demand for quality rental properties exceeds supply. This has driven up the rental prices and the yields on properties. As a result it is fairly straight forward to build houses with gross rental returns of above 10% and capital gains around 25%.
Saltwater Projects supports the development at Mele Cove. This is done though the following ways:- Landscaping and maintaining your vacant lot.
- Assisting with the design and construction process by providing advice based on experience and recommendations. Problem solving advice on importation of materials.
- Provision of full time security of the construction site.
- Offering developers builder's terms on vacant land in certain instances.
- Assistance with marketing and rentals management of your property.
