If you are planning to invest in Vanuatu real estate it is important that you know about our financial institutions.

Vanuatu real estate can be purchased with finance from any of our 4 major banks, Westpac, ANZ, The National Bank of Vanuatu and the French bank BRED which opened in late 2007.
Usually the best scenario for any investor in real estate in Vanuatu is to finance as much as you can against equity in your home country at lower interest rates and longer terms – and then to enjoy the higher returns of Vanuatu real estate. In general in Vanuatu you will be offered from 60% to 80% of the equity value.

VANUATU FINANCE COSTS
Updated as of 30/12/2010
Due to the world financial crisis, Vanuatu is suffering from a shortage of liquidity. Consequently, while the rest of the world is lowering rates, the rates are going up in Vanuatu . The local banks are currently offering  rates from 8.5% to 10.99%. for vatu currency loans. If you can qualify for an Australian Currency loan you can obtain around 7%. To qualify for this you need show that your income is in Australian dollars. My suggestion is to apply to all the banks and you will find quite different fees and interest from one week to the next.

Other fees:
Lands Dept Registration fee – 5% of purchase price (payable to Government)
Stamp Duty – 2% of purchase price  (payable to Government.)

$1,000 to $3,000 legal fees.
$1,000 establishment fees
$500 conveyancing.
1.1% of mortgage – Stamp Duty and Lands Dept Registration fee (payable to Government)
Loans can take 3 weeks to finalise.
I hope this gives you a guideline on Vanuatu Finance. If you need any more information, please  feel free to contact me.
Paul Vogelsberger,
Director, Professionals Vanuatu