Market Rises in Bahamas Thanks to New Developments
Property prices are rising once again in the Bahamas, thanks to a host of new housing and accommodation developments. According to agents, the market on the stunning islands is recovering after taking a battering during the global economic downturn.
Between 2007 and 2010, property prices in the Bahamas fell by as much as 40% according to local agents. But now the agents say that prices are back on the rise, and that looks set to continue for the foreseeable future, with new developments springing up across the islands.
Many investors and property owners are being attracted to Caribbean properties for sale, and with good reason.
Attractive finance options
The financial options and potential for high returns are a key reason why interest in the Bahamas has grown. Property can be obtained with a 30% deposit and 70% finance agreement, providing an average rental return after monthly repayments of as much as 13%. There is also a five year guaranteed buy back clause which comes at double the price of the paid deposit.
In addition, owning property in the Bahamas also offers additional benefits to investors, such as the right to a homeownerâ€™s residence card, and in some cases priority when making permanent applications for residence on the islands.
Attractive tax laws also make property for sale in the Bahamas an interesting proposition for investors, particularly those from overseas. This means that returns are maximized, and the tourism market in particular looks to be a profitable venture.
According to Perry Christie, Prime Minister of the Bahamas, the tourism industry now accounts for 60% of the islandsâ€™ total GDP, as well as half of total employment.
Amongst the Bahamas are a number of stunning locations that attract thousands of tourists each year. Of course, these places also attract investment, through holiday and tourism accommodation projects.
One such place where this is evident is Rum Cay, a stunning resort where developments are being constructed and provide great options all round. Luke Smith, Managing Director of Crystal Investment and Real Estate, says: â€śThere are many good investment opportunities, but one that stands out is The Rum Cay, Bahamas Ocean Resort Hotel & Spa is currently being developed and there are one and two bedroom beach cottages, fully furnished and air-conditioned, starting at ÂŁ81,500 (50% below market value).â€ť
With affordable properties for sale and attractive, low tax returns available, the Bahamas are once again showing its worth in the overseas property market; and both the islands and the investors are reaping the rewards.