PreviousThe ultimate investment
WHAT-TO-DO - FREEPORT/LUCAYA & GRAND BAHAMA ISLAND - JAN 2006
The ultimate investment
Buying a piece of paradise
Buy land, American humorist Will Rogers once advised, because they aren't making any more of it.
That was sound advice three-quarters of a century ago; it's sound advice today. To many people, land is the ultimate investment.
In The Bahamas, that ultimate investment gives you access to the blue-green ocean, powdery white beaches and year-round sunshine.
Buying a second home in The Bahamas is relatively easy as long as you have a qualified real estate agent on your side. Instead of setting up obstacles, the Bahamian government lays out a welcome mat, whether you are buying into a timeshare or building an oceanfront mansion.
The real estate industry here is well supplied with professionals - architects, builders, skilled tradesmen, lawyers, inspectors, insurers and agents - backed up by laws and regulations that protect owners and their properties.
Local building codes are clearly defined and they are stiffer than the regulations in many of the southern states in the United States - and equal to the codes of Miami-Dade County in Florida.
Local real estate agents are versed in the appropriate laws and can readily assist home buyers in meeting their legal obligations.
You are well-advised to use an agent accredited by The Bahamas Real Estate Association (BREA). While agents represent the seller, they will be more than happy to help you handle details and suggest financing sources.
Commissions are set by BREA. At press time, the agent's rate was six per cent of the purchase price for homes and condominiums. Undeveloped land carries a 10 per cent commission. But be aware that the government charges a stamp tax on real estate transactions. As in other countries, you can expect other costs, including legal fees. Purchasers who buy or build a home worth $500,000 or more receive accelerated consideration for permanent residency.
Foreign purchasers are required to answer and sign a confidential Know Your Customer (KYC) form. This form records the purchaser's name and sources of income. References and passport identification will also be required.
After purchase, The Bahamas assesses an annual property tax based on value. For detailed information on both the stamp and property taxes, consult with your realtor or read the blue pages in the 2006 Bahamas Handbook and Businessman's Guide.
The handbook also contains a listing of real estate companies and other useful information helpful to potential home buyers.
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