Jamaicans living overseas who are looking to invest in real estate here are being urged to take a structured and professional approach to homeownership. That was the central message at VM Group’s Keys to Your Dream webinar, a session dedicated to helping diaspora buyers navigate the process of purchasing property in Jamaica while living abroad.

According to experts, the first step is building a solid savings base, particularly as many of the upfront costs are borne by the buyer.

“When you save, it means the strength of your money will help you to get on the property ladder much sooner,” Leighton Smith, CEO of VM Finance UK, advised participants in the recent webinar.

Smith pointed out that while saving is essential, prospective buyers must also be prepared to make sacrifices. He explained that the mortgage journey begins with a dream but requires careful research, including working with a licensed real estate professional.

“We have to make sure all the work you do in the rain and snow doesn’t go to waste because you didn’t use subject matter experts,” emphasised Allison Morgan, CEO of VM Property Services.

Real estate professionals, she explained, are critical in helping to identify suitable properties, assess locations, and guide buyers through the ever-evolving Jamaican property landscape. Morgan warned that many diaspora buyers fall into the trap of “window shopping” when they visit Jamaica and end up making offers without engaging a certified realtor. This could result in major losses, including giving money to people who aren’t legitimate owners or entering into legally binding contracts with unfavourable terms.

“Before you part with your funds, let the professionals guide you. You want to ensure that there is a legitimate title for the property,” she said.

She pointed out that title fraud and probate property disputes are still common in the local market. In some cases, a seller may appear legitimate but is involved in a legal dispute over the property, such as a lodged caveat, which the buyer would only discover after incurring losses.

Smith also cautioned buyers against relying on shortcuts, noting that all property transactions must follow Jamaican law, regardless of convenience.

“There is no short cut, my friends; there is no quick fix, there is no friend, and there is no man that can ‘do a thing’; it is a process,” Smith stressed.

Once the property search is complete, buyers must go through several stages in securing a mortgage: pre-qualification, application, adjudication, registration, and disbursement. Lenders assess a borrower’s ability to repay by examining income versus expenses, credit history, and debt servicing habits. For diaspora buyers, this includes credit reports from both the country where they are living and Jamaica. Morgan explained that many diaspora clients hurt their credit by co-signing loans for friends and family, later finding themselves unable to secure a mortgage due to damaged credit scores.

To complete the application, borrowers will need to present a job letter, payslips, bank statements, and, for self-employed individuals, financial statements and tax returns.

Attitude toward debt also matters. A borrower in the “fair” credit score category is advised to repay outstanding debts and avoid taking on new, unnecessary credit.

“A lot of times people go to take payday loans; no, try not to do that; it really doesn’t work well for you,” said Smith.

Buyers should be prepared for both deposit and professional fees, many of which are often underestimated. While the rule of thumb is to save 10 to 15 per cent of the home’s value for a deposit, sellers sometimes request up to 25 per cent. Other costs include credit report and processing fees ranging from 0.5 per cent to two per cent of the loan amount; professional fees such as attorney and realtor charges between 10 per cent and 12 per cent of the property value; as well as survey and valuation fees, stamp duty, transfer tax, mortgage registration, and legal fees.

Buyers are also advised to understand their debt-to-income ratio and the loan-to-value ratio, which is outlined in the valuation report. The valuation must be done by a company licensed by the Real Estate Board. To begin the search for a property, most lenders and realtors require a pre-qualification letter, which shows how much a buyer can afford to borrow.

“Going property shopping without a pre-qualification letter is like going to the supermarket without your wallet,” Morgan said.

Both Smith and Morgan emphasised that buyers do not have to purchase their forever home right away. A smaller, more manageable property can still be a smart long-term investment.

“Real estate is the gift that keeps on giving,” said Morgan.

She encouraged buyers to consider rental or lease opportunities. A starter home can appreciate, generate rental income, and eventually be leveraged to buy a larger or more strategically located property in the future.

“You don’t have to start with what is in your mind immediately; you can start and work your way towards it. It is, in fact, a journey,” she said.

MORGAN… real estate is the gift that keeps on giving