Bahamas due to it's proximity to the United States (it's a 30 min flight from Florida) and low personal income taxes (Zero) - has long been a favorite for entrepreneurs and tax exiles. Our Bahamas Property Guide will help you navigate through all important aspects of investing there.
Bahamas property prices saw an average correction of 20% from peak after the financial crisis, with some areas seeing declines of as such as 60%, according to Bahamas Realty. Local agents say house prices dropped by 30% to 40% from 2007 to 2010 (there are no official house price figures).
Half a decade later, challenges remain – uncertainty over the Trump presidency, and property oversupply in some regions. In 2016, inward property investment flows fell to $163.2 million, with net purchases amounting to -$49.9 million due partly to the exit of foreign buyers. Foreign investment inflows fell from $1.20 billion in 2014, the year of peak Baha Mar construction (more on this later), to $250.3 million in 2015, with net purchases of -$42.2 million. But Bahamian Central Bank Governor John Rolle downplays the significance of the outflows, suggesting that the Central Bank’s data was “still plagued by incomplete coverage of foreign residential construction”.
The net outflows, nonetheless, are a source of concern given that overall foreign direct investment (FDI) in the Bahamas has been relatively depressed for the past two years.
This is especially worrying given the government’s decision, in the Homeowners Protection Bill, to try to attract “cream of the crop” ultra-high net worth individuals by raising to $1 million the permanent residency threshold.
Foreign Affairs Minister Fred Mitchell describes the current $500,000 investment threshold for permanent residency consideration as “absolutely too low”. “The cost of a work permit is $12,500 for someone who is a managing director of a bank for one year, and then you’re giving permanent residency to someone because he could pay $500,000 for a house. Something is wrong with that.”
Holiday Home Times is the definitive guide to International Real Estate investing with a special focus on holiday home assets. Learn how to live a better life by investing in some of the most beautiful places on the planet and open your eyes to new opportunities - a beautiful life, tax free residency and a second passport with it's numerous benefits.