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Go Global ….
Experience Island Living in the Bahamas
By Pat Tan
When Christopher Columbus first visited the Bahamas in 1492, he found Indians occupying islands surrounded by white and pink sands and crystal clear waters. Columbus was followed by a group of Puritans who landed in the Bahamas in 1648, and by Loyalists fleeing America after the War of Independence, many of whom brought their African slaves to the islands. Today, the Bahamas is a rich tapestry of African and European cultures living in harmony on those powder sands and enjoying all that the crystal clear waters have to offer.
Today’s Bahamas can be a bustling town with fine restaurants, casinos, stores and many commercial activities. It can also be a colorful island village from which to experience endless beaches and breathtaking sunsets, or a sportsman’s paradise of golf, bone fishing, and scuba diving. But these are just some of the faces of the Bahamas that draw investors to the shores of its 700 islands. A stable political environment and a government with a focus on investor friendly policies have made this island paradise a very desirable place to live and invest.
For someone looking for a new place to call home, what does the Bahamas have to offer? Apart from its obvious natural attractions, the Bahamas makes it easy for foreigners to permanently reside there. An overseas resident must purchase a property valued over $500,000 and make the necessary application for residence. They must be of “good character” and able to show that they have financial resources to support themselves. (Residency in the Bahamas rarely includes the right to work).
What about investors? What draws them to these beautiful islands? One of the Bahamas’ key attractions is its tax friendly environment for individuals, trusts and corporations – no taxes on capital gains, corporate earnings, personal income, inheritance or dividends. Non-Bahamians may purchase residential property of less than five acres on any single island in the Bahamas, except where the property constitutes over fifty per cent of the land area of a cay or involves ownership of an airport or marina. Foreign persons also enjoy a two year real property tax exemption when they acquire undeveloped land in the Bahamas for development purposes, as long as development takes place during those two years.
Real estate choices are as varied as the islands themselves. When making an investment decision, however, there are a few guidelines that investors would be wise to consider:
Location. As always, a primary consideration when investing in real estate. Does the investor seek the commercial returns from a building or residence in one of the larger towns, or will he make more of a “lifestyle” purchase and enjoy the potentially higher appreciation of beach front, hilltop or waterfront property.
Infrastructure. Some islands and areas are more developed than others. Access to electricity, water and telephone services should not be taken for granted!
Transportation. It is important to understand the availability of flights and ferries, and how easily a property may be accessed.
Neighborhood. Overseas investors tend to favor gated communities, but in some of the smaller islands they may be wise to explore alternatives.
Income Potential. If rental income is the target, think about how the property will be marketed to renters. Who is the target market? Golfers, sport fishing enthusiasts, beach lovers, gamblers, business people – there is demand from all of these categories.
The experience of laid back island living, or the potential offered by real estate investment are just two of the many reasons people are drawn to these beautiful islands.
The International Division of Prudential Palms Realty in Sarasota represents a number of Bahamian developers and private sellers of real estate. Call Patricia Tan on 941-504-9232 for more details.
Patricia Tan was born in England, and moved to Sarasota in 1997. Her career afforded her the opportunity to live and work in many countries around the world, including Australia, Hong Kong, Singapore, Malaysia, Indonesia, Germany, France, Belgium, Netherlands and the United Kingdom. She spent five years as a Director of an American real estate franchise in England in 1990s. Patricia has served as Chairperson of Sarasota Association of REALTORS®’ International Council, and serves on Florida Association of REALTORS®’ International Operations Committee. She currently works as International Sales Director for Prudential Palms Realty. Patricia may be reached at 941-487-5107 or patriciatan@prudentialpalmsrealty.com [2].
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