The naturally-occurring privacy found on the islands has made these the latest high-priced accessories for Hollywood celebrities. Johnny Depp, Nicholas Cage, Michael Jordan and Tiger Woods have joined the boom.
But buyers aren’t limited to celebrities, according to real estate broker/appraiser Rachel Pinder of Island Living Real Estate, an all-brokers firm that specializes in Out Island properties on islands like Abaco, Eleuthera, Exuma and Long Island.
Pinder located various types of buyers who contributed to the land rush. They include:
or older investors planning their retirement;
or young investors setting up bed and breakfasts or other businesses;
or natives returning to their childhood homes; and
or the lovesick tourists who get a jump on the openings of major developments.
“Our real estate buyers don’t just come from the United States,” Pinder said. “We receive many calls from Europe and Asia. The desire to buy a piece of paradise is the main motivator, of course. We have many affordable properties, some of which are ripe for development. Affordability is only one side of the economic coin The liberal real estate and immigration laws of the Bahamas attract many buyers.
The government does not tax personal income, sales, inheritance, capital gains, dividends, or even corporate profits; exemptions available to all individuals, trusts, partnerships and corporations.
Property tax rates are also friendly. The first $250,000 of an owner-occupied property is fully tax-exempt. Up to $500,000, the rate is just 0.75 percent, with a 1 percent rate for all properties over $500,000.
While government approval is not required for foreign investors to purchase up to five acres of residential property; larger land acquisitions must be registered and approved by the Board of Investment.
The 1:1 currency exchange between the US and Bahamian dollars is hard to resist, particularly at a time when the US dollar is plunging in many other parts of the world.
Flexible immigration laws provide expedited consideration for annual or permanent residency for everyone from major investors to owners of homes valued at more than $500,000.
Rates for unimproved property are just as favorable.
“Vacant land accounts for a large portion of our sales,” Pinder said. including condo and house rentals.
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