One of the most lucrative investments you can make a lot with is the real estate business. However, it also holds risks, but the good news is that you can mitigate such risks by purchasing an insurance policy such as the homeowner insurance. Not everything is free especially the consultancy but you can get the best quotes from homeownersinsurancecover.net for first time.
If you are thinking of expanding your horizon, say buying an estate in the Caribbean, The Bahamas is an ideal choice. Herein is your guide to buying an estate in the Bahamas.
The Opportunities
If yours is an estate aimed explicitly at generating income, then the Bahamas has a lot of opportunities. For starters, with its amazing sceneries, beaches, and a warm weather year round, the Bahamas is one of the most-sort out tourist destination in the Caribbean.
As you plan to buy an estate in the Bahamas, consider the neighborhood and its popularity. Go for a region that is a popular tourist hub as it will bring sizeable traffic throughout the year, ensuring you make the most out of your estate investment. Examples of such regions include paradise Island, New Providence, Old Fort Bay, and Lyford Cay to mention a few.
The endless real estate opportunities are one of the reasons you should consider investing your capital in the Bahamas.
Tenancy Laws
Unlike in most states, investing your capital in the Bahamas real estate does get a lot of interference from the government. One of such intervention that significantly benefits your investment is the tenancy laws. The government does not set rental rates; instead, you get a chance to settle for an appropriate rate with your clients.
After buying an estate in the Bahamas, you can customize it in a way that stands out from the rest. From there, you can enjoy not only an edge in the market but also higher rates since you get to set them. With all that tourist traffic and competitive rates, your real estate investment can make a fortune in no time.
Foreign Restrictions
The other thing you need to know about buying an estate in the Bahamas is that there are no restrictions on foreigners buying property. This is owing to the 1994’s International Persons Landholding Act that replaced the Immovable Property Act of 1981. However, if you plan to purchase property whose size exceeds five acres, you will need a government permit.
If your estate investment in the Bahamas is aimed at making money through leasing, all you need to do is to register with the Bahamas Investment Authority. The fees are not exorbitant, meaning, you do not have to break the bank and the availability of annual permits allows you to stay in the Bahamas as you prefer.
With such lesser restrictions, you have no reason not to consider buying an estate in the Bahamas and tap into the lucrative venture.
Taxes on the Purchase
Stamp tax and value-added taxes are involved as you buy an estate in the Bahamas. A 2.5% stamp tax is charged on all real estate transactions while 7.5% value-added tax is charged on all transactions exceeding $100,000. Furthermore, a 7.5% value-added tax is charged on real estate services such as the legal fees, appraisals, and commission.
With the above information, you are ready to get started on a fruitful journey in the real estate market in the Bahamas.