WHY INVEST IN THE CNMI? & THINGS TO BE TOUGHTFUL OF
The CNMI is currently like the old wild west, the economy is down but then so are all the pricing's as there is currently no equity in the land. So you can buy cheap and even with the limitation of the 55 year lease you can make your money back and in most cases double or triple it. I honestly don’t know anywhere else in the world that property prices are as cheap as they are here currently, and like most things in life that will not last forever. Currently the local Government is looking at trying to bring back equity by either extending the current lease term from 55 years to 99 years and lowering the blood quantum to some sort, which will open up purchasing lands to more Saipanese Chamorro’s and Carolinians located in Guam and around the world that previously did not meet the need level. If this does not work the next step will be to abolish article 12 in its entirety and allow a fare and open fee simple real estate market to develop which will finally bring the much needed equity to all its residents, and allow them to thrive while also raising our local economy back up to a manageable level and for those that have invested into this market while it was down they will be facing three to four times if not more on their returns and smiling all the way to the bank.
Like everything in life, its a gamble and a risk everyday you wake up, but what if you could go to a casino and know that the odds were stacked in your favor, wouldn't you try to spend more to gain more, of course you would so taking that same analogy and using Saipan as the casino, you can see that buying low now with no equity would definitely bring you high earnings when their was. even at 55 years, depending on your type of business plan, let’s just say a condo unit for example, you pay $30,000 and rent it for $300 per month, it would take you only 10 years to get your money back and if you continued to rent it at that price even and for sure the market would have gone up you would still profit $162,000 over the whole leased period and that’s with the original investment already taken out. This is 5X your original amount spent in profit, how can those odds be bad?
Situated on the door step of Asia and with visa waivers for China and Russia our tourism industry is booming, perfect year around weather, fresh air, and crystal clear water makes the CNMI the perfect atmosphere for anyone looking to settle down and enjoy retirement or set up an anchor company to do business throughout Asia, USA, and into Europe.
The CNMI has long been a tourism destination for Asia. Korea, Japan, China, and Thailand all merge here on the islands and with the tourist visa waiver for China & Russia we are getting more and more big investors getting involved with providing tourist related activities such as boating, submarines, underwater diving, and ECO tourism. This year alone has seen some 400,000 tourist arrivals. So the big question is: What do you have in mind, come see if our island can be your next big money cow.
Friendly, soft hearted, and easy to get along with, they live the pure island style life enjoying all the simple things like BBQ on the beach, fishing, and family and friends social gatherings. You will not find a friendlier race of people all in one place.
Things to be aware of
Like any country, you have your honest and trustworthy and you have those that would try to take you for all your worth (Greed) these items listed below are considerations you should be mindful off weather your Investing in the CNMI or anywhere around the world.
1. Double selling. It is prudent that you do a Property Title Research by a reputable company.
2. Review the contracts carefully, only sign the contract if you are at the notary’s office and then give the person the agreed upon money, then take your contract straight to the recorder’s office and record it immediately. For me I do this like within 30 minutes of signing and giving the money as a rule of them because as the law indicates, the 1st to record wins, so be smart, don’t get played by a scrupulous person.
3. Remember the golden Rule: If it sounds too good to be true it probably will cause you all sorts of headaches and lost investment, so do your due diligence and always back up the verbal info with written facts before giving anyone your hard earned cash.
4. Never sign any legal documents after you have been drinking or partying, this is usually how a scrupulous person will try to get you to do business, you will lose every time.
5. make sure the maps are legal and signed off by the appropriate government agency, I personally know of a guy who actually had survey maps done that were not approved but used them to sell land which when the PTR was done showed that piece of land to be clear, when in reality it actually belonged to the whole family clan and not him. This happened to me, so it goes to show no matter how good you think you are there is always someone that is one step ahead.
6. Homestead or Government issued properties. Make sure you see the deed of gift for these. For the CNMI there is a ten (10) year waiting period before the owner can legally sell the land that was homesteaded to them by the Government. A lot of people get caught with this one, so again make sure you pay attention to all the facts of the contract.
7. Placing property's in other local individuals of Northern Marianas Decent (NMD's) Names. This is considered to be illegal and the person selling you the land, if they find out, can get it back legally through the courts and they will win, so unless you want to lose your investment, never let anyone talk you into this situation unless they are your family and you are in some way related to them via a biological child with at least 25% blood line, or married to a NMD with at least 25% blood line.