Bahamas Real Estate
Buying Real Estate in the Bahamas
When talking about real estate businesses, location and timing are everything. For many second homebuyers who always dreamed of owning a tropical hideaway, the Caribbean oceanfront real estate is the place and the time is now. In recent months, sales of investment properties strongly increased in and around the Caribbean, including Puerto Rico, the U.S. Virgin Islands, the Dominican Republic and the Bahamas. The rise in property for sale on the bay islands in the Caribbean in confirmed by recent reports coming from realtors and vacation property developers. They let us see the increased activity, which follows a brief period of lackluster second-home sales.What steps should you take when buying a house in Caribbean regions?
First, you need to contact local real estate agency in order to find what is right for you, to see the appropriate properties you could afford. You can choose from a lot of agencies that deal with Bahamas islands real estate, Caribbean lots and Bahamas rental businesses. After deciding that you want that dream property, a deposit is offered, the property is taken off the market and the sales agreement is signed. You will sign the Sales Agreement that details the terms of the transaction such as what is being sold, for how much, and the schedule of payments. Your attorney will complete the title search, draft the conveyance (exchange of ownership), handle the exchange and disbursements of all monies as well as oversee the signing and registration of all documents. Upon closing, the property is conveyed to the new owner after the seller has shown good title and the balance of the purchase money is paid. At this time all the closing costs like legal fees, government stamp tax, real estate commissions and recording fees are disbursed.
Caribbean Investment Properties
Industry professionals believe the factors of personal safety and investment security may be responsible for the Caribbean becoming known as a real estate “safe haven” and the driving force behind more people buying a second home in the region. The rise in Caribbean real estate for sale is so great that other factors seem to contribute to it. Among for sale Caribbean properties, you can easily find oceanfront and ocean view homesites, spacious seascaped vistas, a lot of Caribbean beach front property, gentle tradewind breezes, rustling palms, sparkling beaches, towering waterfalls, recreation, golf, boating, scuba diving utilities.
Rental Properties in the Bahamas
The existing laws encourage foreigners to purchase a second home in The Bahamas. In fact, it is so easy to buy Caribbean island for sale. And it couldn't be simpler. If a foreigner buys a single family dwelling or vacant land to be used in the construction of such a dwelling, then he no longer needs to obtain a permit from the Government prior to the purchase. He only needs to register the acquisition later with the Investments Board. Permanent residents of the Bahamas and foreigners who inherit property in the Bahamas don't have to obtain a permit before acquiring land but must register afterward.
However, there are cases where a permit will be needed for Bahamas real estate. First, if the property is undeveloped land and of five acres in size or larger. Secondly, if the property is not a private residence, or it is not intended for development as such, a permit is needed.
More that this, when dealing with mortgages, the act is not meant to be a road block. In fact, it provides that licensed banks, trust, and insurance companies who acquire an interest in or take possession of property under a court order must register that acquisition. An acquisition by way of foreclosure under a mortgage or of land acquired by an authorized foreign state will not require a permit but must be registered.
With leases, foreigners are not required to obtain permits, register leases, or letting agreements unless they are for trade or business purposes and the term can exceed 21 years.
Not only has the government made owning a second home easy for foreigners, they have also included a condition so that a foreigner no longer pays a double rate of stamp duty; he now pays the same single rate as a Bahamian.
The stamp duty is a tax that is payable on the delivery of all real property based on the value as follows: Stamp duty starts at 2% for real estate valued under $20,000 US, but increases to 10% for real estate over $250,000 US. Payment of this tax is usually shared equally between the seller and the buyer. There is also a 1% stamp duty on mortgages paid by the borrower. The usual practice in the Bahamas is for the tax to be shared equally between buyer and seller unless otherwise agreed upon.
If you are entering the Bahamas, you must fill out an embarkation-disembarkation card, which is usually provided by your travel agent, the airline, or the ship you are traveling on. A visa and passport is not required of you if you are a Canadian citizen or subject of the United Kingdom unless the stay exceeds three weeks. U.S. citizens on regularly scheduled airlines, pre-cleared for return at U.S Customs and Immigration at Nassau International Airport also do not require a visa (though proof of citizenship is required).
You are allowed a maximum stay of eight months with proper documents, which includes a return ticket and evidence of financial support. If you would like to stay longer, then you have to apply for temporary residency to the Director of Immigration. If, however, you would like to make the Bahamas your permanent residence by way of Bahamas property investment, then you will have to apply for permanent residency. If you plan on working in the Bahamas, a work permit must be applied for separately.
There are different levels of residency. The first is permanent residence, which requires a purchase of a residence of more than $500,000, subject to a $10,000 one-time payment. Another level of residence is that of a homeowner where no minimum purchase is required, however, your card must be renewed every year for a fee of $1000. And the last level of residence is an annual residence where, again, no minimum purchase is required but you must renew every year for a fee of $1000.
Owning Bahamas real estate sounds spectacularly easy and that's because it is. So whether you're making an investment or buying a vacation home, the Bahamas will welcome you with open arms. All you have to do is make your ticket to this paradise.
Vacation in Bahamas
Vacation in Bahamas
About the Bahamas
All Inclusive Vacations
Bahamas Accommodation
Bahamas Food and Culture
Maps and Locations
Products and Services
Bahamas Real Estate
Bahamas Vacation
Bahamas Weather
Caribbean Cruise Reviews
Caribbean Cruises
Films and Production
Caribbean Sailing Cruises
Caribbean Vacation Packages
Discount Bahamas Vacation
Discounted Caribbean Cruises
Fishing in the Bahamas
Sailing in the Bahamas
Highlights and other attractions
Resorts in the Bahamas