BUYING AN INVESTMENT PROPERTY IN THE BAHAMAS

Space is limited therefore increasing demand will have to push up the prices.

If you buy a holiday home you can generate a healthy income from letting it during the time you are not there.The climate is warm all year round so this income can be generated through the whole year, covering the mortgage and more.

Location, Location, Location

The old axiom that states that location, location, location is a major determinant of demand and value has pushed the price of properties in specific areas of New Providence and Paradise Island to very high levels, but even at these levels prices are on par with other similar resort destinations.

It is still possible to purchase waterfront and beachfront property in the Bahamas for as little as $50,000. Alternatively one can also spend $4,500,000 for 1 ½ acre beachfront site on Old Fort Bay.

Property Law in Barbados

The International Persons Landholding Act, 1993, allows foriegners to buy property in the Bahamas if:

• 1. The property being purchased is greater than 5 acres.
• 2. The intention is to rent out all or a portion of the property.
• 3. The property being purchased is for commercial development.

Non-Bahamians who buy land for which a permit is not required must register their purchase with the Foreign Investment Board under such Act.

The appointment of a local attorney is highly recommended, apart from insuring that the paperwork is properly prepared, because when representing the buyer, he/she gives an Opinion on the title to the property. This Opinion is considered to be the same as title insurance as the lawyer is liable should the purchaser find that there is a defect in the title. Local lawyers will also carry indemnity insurance.

Taxes in The Bahamas?

Taxes? There is no income tax, no capital gains taxes or inheritance taxes. There is no sales tax with the exception of the Stamp Duty paid on the conveyance of real property.

Mortgages and Finance

Loan facilities for non Bahamians are only be given in US$'s at international rates and the down payment required is generally on the order of 40% of value.

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