Buying in Mauritius: 7 elements to consider when investing in a real estate project from abroad
Real estate is a very promising sector for those who wish to invest in it. The benefits that result from this type of investment are numerous. Real estate investment is indeed a profitable investment as it allows to get a residence permit, to receive rental income and to generate good profits following the resale of the property. Are you living abroad and you wish to invest in Mauritius ? These 7 points are crucial before going on this journey, check them out in this article…
Learn about the country
When investing abroad, it is necessary to do some research on the country you planned to invest in. You have to make sure that the real estate investment will be profitable in this country and of course, if it will be really profitable.
Make sure that the country has a good security system for expatriation or for vacation. The climate, the language, the taxes and legal infrastructure are also among the important elements to investigate.
If you choose Mauritius for your investment project, you will have the opportunity to acquire a property near the sea, the golf and surrounded by a magnificent landscape. In addition, this destination enjoys a tropical climate, with an average temperature of 24 degrees in winter.
The island is also home to a peaceful and trilingual population who are fluent in Creole, English and French
Another advantage: the island is famous for its attractive taxation. Indeed, Mauritius has signed a double taxation treaty with 33 countries, including France. This allows residents over 6 months of age to have a single tax rate of 15%, fixed on their income tax. Whether you live in Mauritius or not, rental income is also taxed at the rate of 15%. It should also be noted that property tax and housing tax are not applicable for property owners.
Regarding the legal system, the Mauritian civil code is governed by the Napoleon code. This democratic country applies indeed a legal framework where the legislative, executive and judicial powers are separated.
Investigate on the reliability of the promoter and his plans for the future
To be able to realize your real estate project, you must choose a developer who is trustworthy, that is why doing some research is important. You may consult customer reviews and or check out the projects that have been carried out by the agency.
It is indeed more secure to acquire from a renowned promoter. On the other hand, choosing an urban developer is also a good choice as the project development will continue over years. This is the guarantee that you can get in touch with the promoter.
BlueLife Limited is one of the main promoters in Mauritius. He is notably renowned for being the promoter of Azuri Ocean & Golf Village. Blue Life Limited aims to offer an exceptional living environment and optimal support to its residents during their procedures.
Choose the location accordingly
Before investing in a real estate project, consider the geographic location. If you plan to rent your property, opt for a lively place close to facilities in order to avoid rental vacancies. The latter is defined as the absence of a tenant and of rent, between the departure of the last tenant and the arrival of the new one.
Go for a strategic location which is attractive and which add value to your real estate project. This allows you to have a property that everyone will like to have either as an owner or as a resident because the living environment is ideal.
For example, if you want to target tourists, investing near a seaside resort or in a dream-like location would be an ideal option.
Azuri Ocean & Golf Village offers a secure environment for real estate investments. The seaside village offers many facilities, within walking distance you can go for a café, a tennis club, restaurants, a grocery store and the future golf course which will be ready in 2022. Azuri Ocean & Golf Village also enjoys an excellent reputation thanks to its warm atmosphere and dynamic community. The setting will seduce you in a short lapse of time !
Verify the quality of the property
A real estate investment is a project that involves financial costs. It is therefore essential to find a property that offers good value for money. Before finalizing your choice, remember to compare the different properties that may interest you.
You may choose a virtual reality visit as well as an on-site visit, to ensure quality. You should also ask for more information to the agent if this helps to make up your mind.
At Azuri Ocean & Golf Village, each property benefits from decennial and biennial insurance. On the other hand, upon delivery of the goods, you can also decide to go for regular maintenance from Azuri.
Read on the existing laws for foreigners.
It is important to read and to know the laws of the country where you are going to invest. In Mauritius, the laws are advantageous for the foreigners as they may purchase under the PDS Scheme. The Property Development Scheme (PDS) currently replaces the IRS and RES programs. This new program promotes the sale of luxury properties; villas, penthouses and apartments, which are located in strategic regions of the island.
The recent laws implemented by the Mauritian government, allows a non-resident to acquire the permanent residency status if the latter invest in a property which costs minimum $ 375,000 instead of $ 500,000. The relatives of the owner may also settle in the country and the spouse may even work without obtaining a permit.
Learn about the bank guarantees
Before investing in Mauritius, it is good to take a look at the guarantees that your bank offers. In Mauritius, the VEFA (off-plan projects) allows you to secure your real estate purchase. With VEFA, payment is staggered until the construction work is completed. The bank will provide you a Financial Completion Guarantee (GFA) which protects you from construction defects.
Choose an all-inclusive real estate developer
Before taking the final step, make sure that you have all the services related to property and rental management. Azuri Ocean & Golf Village offers property management solutions to their owners whether it is for a short or long term rental management: housekeeping, customer management, concierge services, accounting management. Azuri Ocean & Golf Village takes care of everything to make your real estate investment a success.
Do you want to invest in a real estate project in Mauritius? Contact our experts!