The thought of investing in real estate in the midst of today’s economic conditions can make even the most seasoned investor cringe, but real estate in the Bahamas Islands continues to be a good investment opportunity.
In the US, the economy is in a recession, market prices are plunging, and banks are not offering good interest rates on money. However, Bahamas Realtor and brokers point to the overall track record for property investments, which tends to rise despite property market cycles.
Barring unusual circumstances, buyers who invest in Bahamas real estate will see property values increase within the next five to 10 years. Also, a declining market allows more leeway for an experienced broker to negotiate prices for your investor, which means a bigger profit in the long run.
Here are some suggestions to consider from a real estate broker’s perspective when making a Bahamas property investment purchase during a market downturn.
Real Estate Investment Opportunity in Bahamas
The Bahamas has become increasingly friendly to foreign investors to buy property in the Bahamas. The International Persons Land Tenure Act grants foreigners automatic approval to purchase residential property if they own less than five acres on any island in the Bahamas. Exclusions include properties that consist of more than half the land area of a cay, a small island, and properties that include a marina or airport.
The IPLA also exempts foreigners from having to pay property tax for up to two years, as long as the purchased land is undeveloped and the investor begins to develop it during that two-year period.
scrutinize the market
Researching the market is essential to making a profitable purchase. When buying real estate in the Bahamas islands, buyers should look at the neighborhood, consider how much utilities cost, look at access to transportation to and from the island, and research comparable priced properties.
review history
When investors buy a property in the Bahamas that is currently being rented, they should ask about the seller’s rental history. Doing research on the property’s history and resale potential is often helpful in making a smart investment.
arrive early
“When making a Bahamas real estate investment, it’s always best to go in early on a project and speak with a local real estate agent to ensure the developer has a good track record of delivering on development promises.
Evaluate past developments
Seeing what a developer has done in the past, rather than assuming, will always pay off for potential Bahamas property investors. Ask to see specific examples of the developer’s past projects to determine if the efforts have been a success or failure.
