The National Bank of the Virgin Islands (NBVI) is offering locals 100 percent loan financing for land purchases within the territory.
The National Bank said the initiative is geared towards making it easier for likely land owners to capitalize on government’s stamp duty tax exemption period for locals.
Chief Executive Officer of NBVI, Joy Penn said the campaign will allow financing for terms up to a maximum of 15 years, which she urged locals to take advantage of.
“We believe that now, more than ever, customers need an opportunity to realize their dreams of becoming land owners,” she said.
“Loan candidates are examined regularly and oftentimes they are unable to meet the deposit requirements, but have sound repayment capacity. With this opportunity for 100 percent ﬁnancing, we hope to make their land ownership and eventual home ownership goals become a reality,” Penn added.
Thousands of dollars to be saved in deposits
The CEO also explained that potential customers will be able to save thousands of dollars on deposits.
“If someone wanted to buy a piece of land for $50,000, their normal deposit requirement towards the purchase would have been $5,000 (10 percent). Additionally, they would have been required to pay another $2,000 (four percent) in government Stamp Duty on the transfer (if the land was also appraised at $50,000),” Penn stated.
“So right away you see savings of $7,000 on that transaction under NBVI’s current land loan campaign. I am optimistic that persons will find raw land available for sale. I strongly encourage you to embrace this opportunity to own your piece of paradise today,” she added.
The National Bank also revealed that successful applicants will have their names entered into a draw for a $500 savings deposit at the bank.
Stamp duty waiver
Meanwhile, Cabinet made the decision to waive taxes on stamp duty from May 2020, to May 2021, as part of the Andrew Fahie administration’s economic stimulus plan.
Premier Fahie, however, warned locals taking advantage of the waiver that they must not resell the property acquired to a non-local until the end of a seven-year period.
Should a sale or transfer occur within the aforementioned period, the land owner will have to reimburse the government for fees that were previously waived.