Vanuatu Real Estate Investors Guide By Taylor White
Vanuatu won its independence from Britain and France in 1980 but the heavy influence can be seen everywhere. This is an archipelago and consists of approximately 83 islands. It has a thriving economy and tourism on the islands is the major cash generator. Almost all of the islands are inhabitated and some still have active volcanoes. Therefore the islands are still prone to volcanic eruptions and disruptions from the tidal waves as well. One of the worst hurricanes hit the islands in 1987 and many thousand people were forced to flee when there were fears of explosion of Mount Manoro on the island of Ambae.
Signs in English and Quebec are quite normal all through the streets. This is a great place where those that have retired love to stay. Many French people love to come to Vanuatu after they have retired and live on the Vanuatu real estate that they have bought. Though the living expenses can be quite expensive, this is one of the most hospitable places for foreigners and unlike other places, there are no race tensions either.
The Vanuatu real estate prices have risen and has happened due t a variety of reasons. The general perception by foreigners is that the Vanuatu government wants to attract foreign investment, the Hong King Chinese’s moved away from the island before 1997 and the Australians moved out of Papua New Guinea.
The real estate in Vanuatu is not freehold. All Vanuatu real estate for sale, whether it’s for commercial or residential purposes is leasehold and the lease periods are available accordingly. For residential Vanuatu real estate listings, the maximum lease period is 50 years, while for commercial Vanuatu real estate; the leases are available for maximum periods of 75 years.
The prices for the residential Vanuatu real estate for sale cost about $800 – $1000 per square meter. The Vanuatu rentals for a 100 square meter plot would fetch around $700 per month. The Vanuatu rental yields are between 6.5% to 8.4% approximately. The transactions for the Vanuatu real estate for sale is conducted in many currencies including the US$ and the Vanuatu Vatu (VUV). For foreigners and residents, the rental income is taxed at the rate of 12.5% flat. While capital gains tax or inheritance tax isn’t imposed on the selling or inheritance of the Vanuatu real estate.
The transaction costs for transferring the lease for the Vanuatu real estate is around 13%. This also includes the Vanuatu real estate agents commission of 5% of the total cost for the leasehold property. It takes 60 days for the leasehold to take effect.
Taylor White is an international real estate investor and leading the charge at International Real Estate Listings the worldwide leader in Vanuatu real estate for sale and Vanuatu real estate listings. Vanuatu real estate owners, agents, and developers are encouraged to create an account, upload an unlimited number of listings, write as much creative property details, include a You Tube property video, and it will be activated as a basic listing for 6 months, free.
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