Section 1 - Silver Reef Development
Who are the developers of Silver Reef – St. Kitts?
Fort Tyson Ltd. which is a Single Purpose Vehicle (S.P.V) Kittitian company, formed in 2006 exclusively for the purpose of procuring the 3.5 acre site and developing this project.The Construction Director, Mr. Sebastian Mottram has been responsible for significant projects in the Caribbean and the UK and has recruited local expertise to complete the construction.
Where is the company registered?
Fort Tyson Ltd. is a Kittitian company registered and incorporated in St Kitts and Nevis. Registration Number 004420
What is the concept of the development?
Silver Reef – St. Kitts has been designed as a private community living with high consideration given to ecoefficient detail. It comprises 1 & 2 bed apartments set in a tropical landscape featuring native vegetation in the heart of the tourist district of Frigate Bay.
What facilities will be available at Silver Reef St Kitts?
There are two swimming pools set in natural landscaped gardens in phase one and a freeform pool around which the three buildings of phase two are set. Silver Reef is a 5 minute walk to the nearest beach and 2 minutes from the nearest restaurant.
How large is the development?
It stands on a site of 3.5 acres.
Are the properties being sold as leasehold?
No they are Freehold with a Condominium Association agreement.
Who does the final registration of the property?
The choice of legal advisor is entirely at the purchasers’ discretion.
What is an Alien Land Holding License?
This is a license that all non-nationals must possess when acquiring an interest in land or real property in St. Kitts. Purchasers of Silver Reef units, by virtue of the resort’s location in the Frigate Bay area, are exempt from the standard alien landholder’s license requirements and accordingly buyers are not required to pay the otherwise standard 10% fee on the purchase price of property.
Is there a management company?
Yes. Indigo Properties Plus is a dedicated management company already in place and is responsible for managing the rental programme and maintenance of the property on behalf of Owners.
Are the properties insured against hurricanes?
Yes. The property insurance includes such perils. All properties are required to conform to a standard code known as the Dade County (Florida) Code. In practice the Caribbean standards are higher and buildings are designed to withstand 160 mph winds.
How far is the nearest hospital?
The nearest hospital is located in the main town and capital of Basseterre, which is a ten minute drive away.
Section 2 - St Kitts
What is the climate/location of St Kitts?
Saint Christopher (St. Kitts) and Nevis form an island federation located in the northern part of the Lesser Antilles chain of islands in the Eastern Caribbean. St. Kitts, with an area of 68 square miles (168 square kilometres) has a population of about 34000. It is located at 17°15′ North latitude and 62°45′ West longitude. This places St. Kitts approximately 1300 miles from Miami (3 hr. flight), 2000 miles from New York (4 hr. flight), and 4000 miles from London (8 hr. flight). Nevis, with an area of 36 square miles (93 square kilometres) has a population of about 9500. The two islands are separated by a channel which is two miles wide. St. Kitts and Nevis are four hours behind Greenwich Mean Time (GMT -4). Average air temperature is 79°F (26°C) and humidity 71.5% with extremes in temperature and humidity tempered by breezes from the north-east trade winds. The average sea water temperature is 80°F (27°C). Average annual rainfall is 55 inches (1397 mm).
How do I get to St. Kitts – what airlines?
Direct flights to St. Kitts are scheduled as follows: From San Juan, Puerto Rico daily with American Eagle From Miami, Fl daily with American Airlines From London, Gatwick twice per week (Saturday & Tuesday) with British Airways From New York (JFK) twice per week (Wednesday and Sunday) with American Airlines From Charlotte, NC once per week (Saturday) with US Airways From Atlanta once per week (Saturday) with Delta Airlines Other operators, including Continental Express, British Airways, Caribbean Airways, Air France, Lufthansa, KLM and Air Canada offer non-direct flights. Service is usually to San Juan, Puerto Rico, St Maarten, Guadeloupe, Virgin Islands or Antigua, with transfers to lighter aircraft for the final flight to St. Kitts. These schedules and carriers are subject to change.
What is the Kittitian Currency System?
Eastern Caribbean Dollar and US dollar. The EC dollar is pegged to the US dollar at a rate of 2.69 EC to 1 US dollar.
What language is spoken in St Kitts?
The spoken and official language of St. Kitts & Nevis is English. The education system has been rated very highly by the World Bank in its report on the Access, Quality and Efficiency in Caribbean Education. With 98%, St. Kitts & Nevis has the highest level of literacy in the region and its CXC and GCE results are among the highest in the English speaking Caribbean.
Is it safe and easy to travel around the island?
There is one main road which circumnavigates the island which is fully paved and easy to negotiate and navigate. Some of the roads serving the smaller settlements are unpaved and not always easy to tackle without a vehicle with good clearance. A round island drive takes approximately 3 hours at a very leisurely pace. The secret is to drive slowly and always be ready to stop short as many drivers will stop with no warning to chat with someone. Also be aware of the swales built across the road in the country as they can be devastating if you do not slow down first.
Can I use a UK driving licence in St Kitts?
You will be required to purchase a temporary license for about $25US on presentation of your UK driver’s license. Rental vehicles are readily available (cars, vans, 4x4s, scooters). Driving is on the left hand side.
Are there any legal safeguards for foreign investors?
Yes, the system of land title is based on the UK’s. The legal profession is represented in St. Kitts & Nevis by Barristers and Solicitors of the High Court. They alone have the right to practice before the Courts of St. Kitts & Nevis, and may give advice on local law within the Federation. Several major international auditing firms, are represented in St. Kitts.
What is the Government system in St Kitts?
St. Kitts and Nevis is a parliamentary democracy within the Commonwealth of Nations. Her Majesty, Queen Elizabeth II, is Head of State and is represented on the islands by a Governor-General. Basseterre is the capital of St. Kitts and at the same time, the administrative capital of the Federation. The capital of Nevis is Charlestown.
What is there to do in St Kitts?
St Kitts is blessed with a diverse and stunning combination of rain forested mountains and great beaches. The green and unspoilt nature of the island lends itself to varied activities. To follow are just a few: Sailing, diving, trekking, golf, rainforests, hiking, bird watching, tourist visits, and cultural events. Basseterre, the capital, has a good mix of historical sights such as museums and churches as well as a thriving local community of market vendors and modern shops.
For more info click here
Section 3 - Taxation
What taxes and other costs are involved with the purchase of property at Silver Reef St Kitts?
Legal fees are typically based on the value of the property and are on a reducing balance rate in Eastern Caribbean Dollars as follows: 2.5% of first EC$ 25,000.00 (~USD 9,328.36)
Can I avoid tax if I use an off shore company to buy the Kittitian company?
It is recommended that you take advice from a specialist tax advisor with regard to your personal requirements as there are many different taxes that may or may not be applicable surrounding the purchase depending on your individual circumstances.
What is the capital gains tax applicable to the appreciated differential between the purchase price and sale price of the lease?
There is a capital gains tax of 20% on profits or gains derived from a transaction relating to assets located in the Federation which are disposed of within one year of the date of their aquisition i.e. no capital gains tax to be paid after 1 year of ownership.
Are there any Tax Credits?
Is there an annual property tax?
0.2% of assessed market value of property.
Is there tax on any rental income I accrue?
There is no income tax per se in St Kitts. Rental income, where paid to foreign nationals, is subject to a 10% withholding tax.
Are there any estate duties in St Kitts?
There is no Inheritance Tax.
Section 4 - Payment Terms
In what currency are payments made?
Payment is made in USD.
Can I get financing for the purchase of a property?
Yes there are a number of mortgage products available. Please contact us for up to date information and advise.
What types of mortgages are available?
60-70% Loan To Value . A mortgage incurs 1% stamp duty on the value of the loan, plus additional legal fees on the same reducing balance rate based on the value of the loan. Mortgage rates in St Kitts are circa 8%.
What are the payment terms for purchasing at Silver Reef?
These vary depending on whether the purchase is finished or unfinished product. Please contact us for more information.
Section 5 - Construction
What kind of building standards are used in the building?
The buildings conform to the East Caribbean Building Code which makes special allowances for the prevailing conditions in the region.
Do the buildings have lifts?
No. Each apartment is accessed by partially covered flights of stairs.
What are the general building specifications?
Concrete framed structural frame and floors, block in-filled walls, timber framed roofs, tiled floors, rendered walls, single glazed impact resistant windows, solid, hard-wood doors.
What is the date of completion for the development?
Phase One is complete and occupied. Phase Two is well progressed with construction on site due for completion in 2012. Southern House is scheduled to be the first to complete in spring with MIddleton House expected a little later in the summer. North House will start on site later in the year.
Section 6 - The Properties
Do I need to furnish my apartment?
Yes. The apartments will come with certain fixtures and fittings such as taps, baths, showers, basins, wcs, cooker, hob, dishwasher and fridge but furniture will not be supplied. A furniture package is available for purchase upon completion of a unit.
How much is the furniture package?
One-bed package – $20,000 delivered and installed.
Two-bed package - $25,000 delivered and installed.
Are the bathrooms be fully fitted?
Yes. Each bathroom will include vanity, towel rails, robe hook, loo roll holder and bathtub. The floors and splashback areas are tiled. All bathrooms have mirrors.
Do the apartments have an air-conditioning system?
Yes. Rooms will be individually air conditioned allowing each one to be controlled autonomously and shut off when not required in specific areas. All buildings have been especially aligned in such a way as to catch the trade wind breezes. Units in the main rooms will be 24,000 BTU’s and 12,000 BTU’s in the bedrooms. The penthouse great rooms will be 36,000 BTU’s.
Are the properties insulated (walls/windows)?
The roof is insulated and the main structure is designed to be shaded to reduce solar gain and to be through ventilated.
How high are the ceilings in the properties?
The one bedroom apartments have a suspended ceiling at a height of 9ft. In the two bedroom apartments the ceilings are Caribbean style open rafter loft ceilings which are approximately 14ft high at the walls, 22ft high at the ridge (centerline of the apartment) in the kitchen/living room/dining room, 8ft high in the lower bedroom and bathroom, and 13ft high in the upper bedroom and bathroom.
What direction do the properties face? Will the patios get sun and what will the views be like?
Southern House apartments have patios with views to the south overlooking the golf course towards the Atlantic Ocean together with patios with views to the north overlooking the free form pool. Middleton House apartments have patios with westerly views towards the Caribbean Sea overlooking the freeform pool and patios facing east.. North House will have patios with views to the south overlooking the freeform pool and patios to the north.
Are there internet, phone lines and cable TV installed in the properties?
Each unit is constructed to have cable TV, phone and high speed wireless internet access. Connections and choice of service providers are at the discretion and cost of the individual owners.
What is a “Condominium Association”
A Condominium Association is defined by the St. Kitts and Nevis Condominium Act 1976 as a building or complex in which units of property, such as apartments, are owned by individuals. Common parts of the property, such as the grounds and building structure, are owned and maintained jointly by the unit owners.
Who is responsible for the property’s running costs?
The unit owner is responsible for the apportioned cost of the Condominium Association fee which typically covers: Upkeep of the grounds, communal roads, lighting, pools, gardening and maintenance. Running costs specific to each unit, such as electricity and water service, and contents insurance for fixtures, fittings and furniture, will be the personal responsibility of the unit owner. Once established, the Condominium Association is managed and run by elected board members chosen by the owners from the owners.
What are the annual fees and running costs for each type of property?
Annual fees are currently fixed at 25 US cents per square foot in Phase Two, but are set by the Condominium Association and are subject to change. A typical apartment of 905 square feet would be calculated on the following basis: 905 x 0.25 x 12 (months) = $2,175 US dollars per annum. A separate charge for buildings insurance is pro-rated on the same basis but is not included in the 25 cents fee. Buildings insurance is re-negotiated annually.
A rental pool facility has been set up to provide a comprehensive turn key service for those investors who wish to rent their apartment(s) with the minimum amount of administration.
Under this service, an owner can choose to have the payment of all condominium fees and insurance paid out of the rental income. Owners opting in to the rental pool may reserve the apartment for their own use at any time, subject to availability. However to maximise the revenue for the rental pool your stay will be subject to the normal standard rental rate at the time.
Do I have to participate in the rental programme?
No. The rental pool is optional.
Can I rent my property privately instead of using it myself?
Can I use my property for more than the allocated period?
There is no allocated period. You can use your property whenever you wish.
Do I have a storage area for personal belongings?
Yes. There is a small designated storage area within each unit.
Section 7 - Services
Does St Kitts suffer from water shortages?
Currently the Frigate Bay area is well supplied with a Government 4” main with no reported or anticipated supply issues. There is generally a good Government water supply below the 800' contour. Water costs EC $10 (US $3.70) per 1,000 gallons.
However, as part of our self-sustaining policy we are making provision for future higher demands. Waste water is collected by an underground system and pumped to an off-site treatment plant where it is recycled for irrigation and fertilization of the golf course.
Who supplies the electricity?
The Ministry of Utilities (electricity department) is responsible for the power supply. Power is 220V but units will have 110V plugs as well.
Are there enough parking spaces with the properties?
Each apartment unit has 1 parking space allocated, located close to the building.
Section 8 - Rental Pool
What is the rental pool?
Our rental pool has been created to help owners maximise their income and minimise the administration on their Silver Reef unit. The rental pool allows owners to combine their resources and reduce their costs. Marketing, administration and fees are all taken care of. You’ll have the peace of mind that your property is working on your behalf, earning an income and paying your bills without you having to lift a finger!
Am I obligated to contribute my residence to the rental pool?
No. You are free to use your apartment as you wish under the provisions of the Condominium Declaration.
Who will manage the Silver Reef rental pool?
The rental pool will be managed initially by the developer - Fort Tyson Ltd trading as Silver Reef. A dedicated Rental Pool Manager will be in place to manage the day to day running of the pool.
What services does the Silver Reef Rental Pool provide?
The Rentals Manager will market your condominium and provide housekeeping and maintenance services so that your apartment is always prepared for rental. The Rentals Manager will also take care of all the rent collection and bill payments.
Can I rent my property out myself?
If you choose to, yes. However, we are experienced in the marketing of such properties and are able to maximise revenue on your behalf while maintaining a watchful eye over your property when you can’t use it. We will also ensure receipt of proper deposits against damages by tenants.
What if I want to use the apartment myself?
You may reserve the apartment for your own use at any time subject to availability. However, to maximise the revenue for the rental pool your stay will be subject to the normal standard rental rate at the time.
Do I have to furnish my unit?
Yes. To join an existing rental pool your unit must meet our standards. For this reason we ask that you purchase the our recommended furniture pack.
Do I have to insure my unit?
When your unit is entered into the pool we ask that our standard contents insurance is put in place. However, this will only cover the items as listed on the recommended furniture pack. Any other items of value need to be covered separately. Building insurance is in place as part of the Condominium Declaration provisions and is covered in the fees for building insurance levied by the Home Owner’s Association.
Approximately how much does contents insurance cost?
Contents insurance is currently offered at 1% of the furniture and contents value. Contents insurance can also be arranged privately by the owner or deducted from the rental income for convenience.
When do I have to commit to putting my unit in the rental pool?
You can join anytime. The “Operating Year” runs from 1st April to 31st March. Once we have inspected your unit and it is approved, you will need to sign a Rental Pool Management Agreement. Your revenue will be pro-rated from the date we acknowledge receipt of your signed agreement.
What if I need to withdraw from the rental pool?
Should you wish to withdraw your apartment from the pool before the end of the Operating Year an administration charge may be levied. A written notice of 60 days must be sent to the Manager. Alternate accommodation will be sought to cover any bookings already taken but in the event that no alternative arrangements can be found the owner will be liable for any compensation due. Any rental income due to the owner will be pro-rated and will be payable at the end of the rental year.
How will I receive my share of revenue?
Distributions will be paid annually to your nominated account in accordance with the terms of the Rental Pool Management Agreement.
How will I keep track of the revenue?
Up to date statements will be made available quarterly on request and the accounts will be reconciled on a quarterly basis.
How much will I earn by contributing my unit to the rental pool?
In accordance with financial guidelines Silver Reef rentals may not project revenues. Simply put, your distribution from the rental pool is equal to the gross revenue generated, less expenses and pro-rated according to the square footage of your unit. To help with your projections the following are considered locally competitive rates.
Long Term (3 Months +)
1 bed 1,200* per month
2 bed 1,600* per month
(Typical rental charge USD $)
Short Term (nightly and weekly) rentals tend to be seasonable and are negotiable but might average $150 - $200* per night in high season.
*Amounts will vary according to season, length of stay and market conditions. These figures are provided as a guideline only and in no way constitute a projection or guarantee.
Is rental pool income guaranteed?
The demand for medium term rental accommodation is currently high in the Frigate Bay area but rental revenues are subject to seasonal variations and market conditions. The rental pool allows you to earn income even if not all the apartments are let for the same duration or at the same rates. Silver Reef does not offer a rental income guarantee and the rental pool may experience low income during periods of little demand.
What if I contribute my unit to the rental pool and it doesn't get rented whilst someone else's does?
To be fair to each owner, the rental revenue is pooled so even if your unit is not rented you will still get a share of the income.
All apartments are not the same size and do not have the same features. How do you divide the rental income and expenses fairly?
Experience shows us that different apartments appeal to different people so by offering a variety of different apartments we have a broad marketing appeal which is good for all owners. The expenses and income are pro-rated by the square foot as described in your Certificate of Title.
Who holds the rental income money prior to year end when the dividends are paid?
Silver Reef Rentals shall maintain a “Rental Pool Deposit Account” on behalf of the owners into which it will deposit the gross rental revenue. Any interest earned shall be added to the revenue and divided amongst the owners.
Who pays for minor repairs and maintenance?
Each owner is responsible for his own unit. However, for your convenience and to make sure your apartment is kept in peak condition and meets the standards required to participate in the rental pool, 3% of the gross rental revenue is paid into a maintenance fund specifically dedicated to the running repairs and upkeep of all the apartments entered into the pool.
What deductions are made from the gross revenue?
A charge of 13% is made to cover the costs and administration of the rental pool. This is a one-off, non-refundable fee. Of this fee 10% is for the management company and 3 % is paid into a maintenance fund to cover any small repairs or fair wear and tear replacements not covered by warranties or insurance. This will also cover the costs of cleaning the apartment and linens between changeovers.
Are my condominium fees covered?
The costs of buildings insurance and condominium fees will also be deducted from your share of the rental income and paid to the Home Owner’s Association by the Rental Pool Manager on your behalf. Any shortfall will be invoiced to you separately and must be settled promptly in accordance with the Home Owner’s Association Regulations.
How much are my condominium fees?
Every owner is liable to pay for the upkeep and maintenance of the Condominium Development. In order to do this a monthly charge is made irrespective of whether you have entered the rental pool or not. Monthly fees are currently fixed at 25₵ per square foot but are set by the Home Owner’s Association and are subject to change. – A typical apartment of 905 square feet would be calculated on the following basis: 905 x 25₵ x 12 (months) = US$2, 715 per annum. Buildings insurance is calculated and charged separately.
Do I have to pay expenses as incurred and then wait till the end of the year for the dividend?
Expenses need to be paid promptly in order for your apartment to be kept up to standard. These will be paid on your behalf from the maintenance fund. Any damages incurred as a direct result of accident or neglect during a tenancy should be covered by the tenant's deposit. A developer’s warranty exists for one year from the date of Transfer of Title which will cover defects reported within that time.
What types of repairs are not covered by the rental pool maintenance fund and would require me to be billed outside of the rental pool system?
From time to time more extensive repairs or redecorating may become necessary and owners will be advised of any major expense and have the opportunity to discuss, to pay, or to have it deducted from their rental share. In cases where the owner has agreed a deduction from their rent to pay the developer monies outstanding (for furniture for example) then that deduction will be made directly from their share of the rental income until the balance is settled.
How much will the management cost?
The rental pool management fee is a non-refundable fixed cost of 10% of the pooled annual rental income.
Will I be exposed to any losses Silver Reef Rentals may experience?
In the unlikely event that the rental pool is unable to cover its costs, then all of the unit owners share in the loss.
Is my unit cleaned when it is contributed to the rental pool?
The rental pool is worry-free. The Rental Manager takes care of all these details including the cleaning of your unit, changing the linens and maintaining any housekeeping items at the end of each tenancy.
Section 9 - Citizenship by Invesment
What is the Citizenship by Investment Program?
St. Kitts is one of the countries of the Eastern Caribbean where there is a well-functioning government sponsored citizenship by investment program, allowing foreign nationals a fast track to full citizenship through investment in approved projects on the island. Under this program, persons making a minimum investment of USD $400,000 in an approved project are eligible to apply for citizenship in the Federation. Properties purchased through the program can be sold and used for subsequent applications after 5 years.
Silver Reef St. Kitts is one of these approved projects which allow purchasers the option of seeking citizenship in St. Kitts and Nevis. Applicants are required to retain the services of a lawyer based in St. Kitts to prepare their application. The review process normally takes between 4 to 6 weeks, but applicants are not required to personally attend any interviews in St.Kitts.
Government fees are $50,000.00 for the main applicant, and $25,000.00 for spouse and minor dependents, and $50,000.00 for dependents over 18 years. The due diligence fee is $7,500.00.
For more info click here