Why Bahamas

Why NOW is a good time to buy real estate in the Bahamas

* The Bahamas is a politically and economically stable country, having the longest uninterrupted democracy in the western hemisphere.

* The Bahamas Government does not tax on capital gains or rental income earned from real estate holdings.

* There is no red tape for foreigners purchasing vacation or second homes in the Bahamas.

* Many foreign purchasers qualify for Economic Permanent Residency status which can lead to significant tax advantages in their home country.

* Real Estate is a great hedge against inflation.

* There was no ‘housing bubble’ in the Bahamas and there is no mortgage crisis. Properties in the ‘vacation home’ segment of the market have been consistently appreciating over the years.

* The Bahamian currency is on par with the U.S. dollar which provides favourable exchange rates to British, European and Canadian purchasers.

* Demand for Bahamian property invariably exceeds the supply in this small island nation.

* The Bahamas is an English-speaking country with daily direct flights to and from dozens of international cities.

* The beauty of the Bahamas continues to attract numerous individual investors, millions of tourists each year and billions of investment dollars each year from some of the world’s most respected hospitality and development firms.

More good reasons to invest in Bahamas Real Estate

* Proximity to the US

* A peaceful and stable democracy since 1729

* An independent nation with compliant legislation

* No local taxes on capital gains, inheritance, corporate or personal income

* Proactive incentives for investment

* Highly trained professionals

* Essential public services

* Modern, ever improving infrastructure

* Ideal climate and lifestyle
 

An investor looking to invest in the Bahamas is seeing more than just the selling point above. The investment has to make commercial sense and provide a suitable return for the risk of making the investment.

While the aforementioned points certainly contribute to the sustainability of a business model, when it comes down to conducting a detailed due diligence, where can the Bahamas really offer an advantage? What is it that makes the Bahamas a more desirable place in which to invest than another country in the Caribbean region, or other international financial centres such as Bermuda or the Cayman Islands?

Bahamas Tourism:

Pure volume of prime real estate. The Bahamas has an estimated market with significant opportunity for growth across 700 islands and cays. Recently the country has been seeing unprecedented inward development in tourism, into many billions of dollars. Throughout the Bahamian archipelago there lies opportunity for development, preferably sustainable and eco-friendly. A huge amount of beachfront or ocean view real estate remains to be developed.

A Knowledgeable counterpart:

Each investment is a negotiation. The government of the Bahamas understands the business intimately and any serious investor with the track record, management team and financial capability to successfully complete a project will be taken seriously. It is normally easier to negotiate with an informed counterpart. The investor woes we tent to hear tend to come from those who have not fully thought out their plans, have inadequate funding or expertise, or have elevated expectations when it comes to concessions. The Bahamas knows the tourism industry extremely well, easing the load for investors.

No Need to reinvent the wheel:

There is an old adage that states: pioneers get arrows in the backs. Fortunately investors in the Bahamas do not have to be pioneers. The Bahamian portfolio of product is hugely diverse, allowing investors to benefit from an existing infrastructure and a thorough understanding of the offerings by regulators and industry marketers. This product ranges from magnificent aquatic enticements and casino at Atlantis, to luxury mixed-use resorts such as the One&Only Ocean Club on paradise Island, Four Seasons in Exuma, Winding Bay in Abaco, the forthcoming Ritz-Carlton on Rose Island and the Conrad in Bimini. Also on offer: a world famous golf course designed by Ernie Ells and Tiger Woods at the Albany Golf & Beach Club. There is also something for those seeking a quieter existence, such as the eco-friendly Tiamo in Andros, bone fishing lodges, and Out Island barefoot experiences.

Outstanding Beauty:

The geographical product is out of this world. There are a few places in the world with beaches and seascapes that can match those in the Bahamas, and certainly there is nowhere else with the sheer expanse of stunning beach front that the Bahamas possesses Appropriately the Islands are named after that that makes them so beautiful.

An experienced and proud workforce:

Labour is not cheap in the he Bahamas, but the levels of expertise and experience exceed those in may competitive jurisdictions, as does the friendliness of the Bahamian people. Most Bahamian resorts are staffed primarily by Bahamians who are proud of their product, unlike some competitors whose hotels are staffed by imported labor.

Infrastructure:

The Bahamas already receives approximately five million visitors annually, and has the air and seaports to manage this traffic effectively. Indeed, the country's major airport gateway is about to be upgraded with new and renovated terminals in order to handle the expected future increase in passenger traffic. Airport Management Company Vancouver Airport Services Ltd, has been appointed to see the airport facility through its $300 million expansion program. The major cruise port, Nassau Harbour, is regarded as one of the most beautiful in the world, with natural harbour flow through, clean water and large turning basin.

An attractive jurisdiction for lenders:

Lenders understand and like the Bahamas. Virtually every development project is financed with some leverage. In a recent survey conducted by KPMG corporate finance, The Bahamas was noted as the most popular destination in the region to lend into by the majority of the banks surveyed. Why? In addition the reasons noted above, the major lenders to the hospitality industry in the region recognize The Bahamas as being a well-established jurisdiction for tourism. Furthermore, non-traditional lenders are financing a variety of Bahamian projects, as the Bahamas has a sufficiently prosperous industry to be deemed a key player by the syndicates in New York, Toronto and elsewhere.

Bahamas Financial services:

The Bahamas is also a long-established and well-recognized financial services centre with particular competitive strength in the private banking and trust environment, and extensive suite of related products and services.

The Bahamas is one of the largest private banking locations in the world. According to the Bahamas Financial Services Board, "The Bahamas is home to some 250 banks and trust companies, of which 125 are subsidiaries of institutions from 28 originating countries. With combined balance sheet assets of $300 Billion, and having over $1 trillion in assets under administration, financial services make a significant contribution to the Bahamian economy. The country's private banking and trust business accounts for nearly four-fifths of its financial services business, which contributes about 20% of GDP."

The Bahamas also has over 80 insurance companies, with assets approaching $700 million. Seven hundred and twenty-plus investment funds have assets under management totaling in excess of $205 billion. The Bahamian ship registry is one of the worlds most prestigious and currently it is ranked as the third-largest ship registry in the world, with merchant ships representing some 42 million gross tons.

Investors can therefore gain comfort from the fact that The Bahamas is no newcomer to the industry. A partnership with regulations and government led by the Bahamas Financial Services Board is also a healthy feature of the financial services marketplace that has allowed for innovative ideas such as the SMART fund* and other key legislation to be developed in recent times.

Big names:

Many high-caliber financial institutions have a significant presence in The Bahamas, including HSBS, Credit Suisse, Picted Bank & Trust, UBS, SG Hambros, Cititrust, Ansbacher, JP Morgan, Royal Bank of Canada, Scotiatrust and CITCO. This impressive array of reputable institutions means new entrants can feel confident that Bahamian regulators and the professional community understand the financial services business and can provide the necessary support.

Stable and solid growth:

The Bahamas adapted extremely quickly and decisively to a significant global shake-up of financial services industry earlier this decade. This meant a change in the way financial services regulations was administered - a change for the better. The Bahamas is now reaping the benefits, as a spate of new high-profile banks and financial institutions is choosing our islands as an attractive location from which to conduct business. very recently, for instance, one of the fastest growing private banking businesses out of Europe, EFG International, set up shop in The Bahamas.

Top-tier service providers:

The industry is serviced by the largest global accounting firms, including KPMG, PricewaterhouseCoopers, Ernst & Young and Deloitte & Touche, as well as other mid-tier firms, which have significant on-the-ground resources and are able to tap into global networks to serve their clients effectively. These firms can provide an array of advisory services outside of the traditional audit space. The legal profession also has deep roots and strong connectivity with the major financial services centers.

People Power:

The Bahamas Financial Services Board says it best: "people power continues to be a key ingredient in providing continuity and consistency of services. The Bahamas has a large skilled labour pool, well educated and committed to professional development, and driven to perform..... An available pool of well-qualified International and Bahamian professionals means The Bahamas can offer long-term working relationships with resident expertise."

There are several generations who have grown up in the Bahamas during the time that it has been a financial centre, and new ideas and enhancements continue to be made to the product. The industry is growing in a well-managed and orderly fashion, fostering the type of environment that is attractive to sophisticated investors.

A great place in which to invest:

In conclusion, the Bahamas continue to look for ways to build its competitive advantage, develop new products, and better service the needs of tourists and financial services clientele. The foundation has been laid, and the framework put in place, to make the Bahamas an attractive place for investors to grow their assets.



By Simon Townend source