Rupee: All real estate values expressed in US Dollars as approximately 0.01 rupee’s = 1 US$. The cost of living is extremely low, yet the overall infrastructure is good

Economic climate: The UNP government has decided to attract more overseas residents by abolishing the previous 100% tax on foreign owned property from 1st of April 2002. There are no restrictions on foreign investment.

Taxes: Foreign investors will now pay the same as Sri Lankans: 3 - 5 % of the buying price.

Popular areas: Hikkaduwa, Unawatuna and Kandy are major attractions as tourism expands. Hikkaduwa is close to beautiful beaches as well as lakes and rivers inland.

Price ranges: Prices vary according to whether houses are new developments or older colonial style dwellings and of course by location and proximity to the beach. The cost of renovation of the more dilapidated properties is not dramatic.

Budgetary guide: Luxury houses (new): US$ 230,000. Villa’s (4 beds + pool): US$ 135,000. Beach houses (3 beds) US$ 80,000. 47,000-65,000. Colonial houses (medium renovation): US$ 35,000. Colonial houses (major renovation): US$ 17,000.

Buying Property: A deposit of 10 - 20 % of the purchase price with a lawyer to exhibit commitment to buy is expected. The buyer should be present in Sri Lanka to sign the contract and pay the outstanding balance in cash.

Service Fees: Overall 7% of sale price: Stamp Fees: 30 US$. for the first 1,000 of the purchase price plus 40 US$ for each additional 1,000 US$, Legal fees 3%. Overall includes tax and registration.

Mortgages: A Mortgage is not an option, no local or foreign bank is prepared to finance property purchases in Sri Lanka. Vendors will only accept payment in cash not cheques or bank transfers.



 Related site: http://www.lankalibrary.com