Bahamas Real Estate Good Investment Even During Market Downturn

The idea of ​​investing in real estate in the midst of current economic conditions can make even the most experienced investor squirm, but real estate in the Bahamas continues to be a good investment opportunity.

In the US, the economy is in a recession, market prices are sinking, and banks are not offering good interest rates on money. However, Bahamas Realtor and brokers point to the general history of real estate investments, which tends to increase despite the cycles of the real estate market.

Barring unusual circumstances, buyers investing in real estate in the Bahamas will see an increase in property value within the next five to 10 years. Also, a declining market allows more room for an experienced broker to negotiate prices for their investor, which means a higher profit in the long run.

Here are some suggestions to consider from a real estate broker’s perspective when making an investment purchase of Bahamas property during a market downturn.

Real estate investment opportunity in the Bahamas
The Bahamas has become increasingly friendly to foreign investors buying property in the Bahamas. The International Persons Land Ownership Act grants foreign nationals automatic approval to purchase residential property if they have less than five acres on any island in the Bahamas. Exclusions include properties that consist of more than half the land area of ​​a key, a small island, and properties that include a marina or airport.

The IPLA also exempts foreigners from having to pay real estate taxes 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, 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 the story
When investors purchase property in the Bahamas that is currently being rented, they should inquire 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 an investment in real estate in the Bahamas, it is always best to enter at the beginning of a project and speak with a local real estate agent to ensure that the developer has a good track record in 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.