The second home market is big in The Bahamas. The Central Bank’s latest monthly report, in July, characterised the second home market as a driver, along with residential homes, of economic activity in the construction sector.
In Hope Town, Abaco, the second home market is the equivalent of a 400-room hotel, a real estate expert said.
Realtors are growing increasingly concerned that the government is putting a damper on the sale of property to non-Bahamians.
The experts, who spoke only on condition of anonymity, said that the second home market is a “real and major driving force in the Bahamian economy.”
“The second home market is thriving in Abaco, Eleuthera, Exuma, Grand Bahama and even in Nassau,” said John Christie of the country’s largest firm, HG Christie.
He confirmed that where there is the infrastructure people are prepared to buy and build second homes.
“In some of the southern islands like Long Island we are seeing some sales,” he said.
Consequently, realtors are questioning the attempt by government to curtail the sale of property to non-Bahamians.
One realtor explained that under the current act which replaced the Immovable Property Act, a first time buyer of five acres or less for single family use must register the purchase.
Where the non-Bahamian buyer already owns property or is buying for other than single family use, the purchaser needs a permit and the sale is subject to the permit being granted.
Mike Lightbourn of Coldwell Banker/Mike Lightbourn Realty said that in the second instance the purchase of additional property is usually for storing a boat or buying the piece of land adjacent or across from the property that is already owned.
“Usually these ‘permit purchases’ are for additional lots either adjacent to or across from the existing property and it is wanted for things like storing a boat,” the veteran realtor explained.
Recently, non-Bahamian purchasers have been told by the relevant government agencies that they must build on the land within two years of the completion of the purchase of the land or pay a penalty amounting to 10 percent of the value of the property.
One realtor said that the way in which the transaction takes place makes it look like a conspiracy by the realtor, the attorneys, and the government to get money out of the non-Bahamian buyer.
The current legislation carries no penalties for not building on the land. Hence the question of a building time limit or a penalty never occurs when the non-Bahamian buyer meets with his realtor and attorney.
One realtor pointed out that in Abaco, it took two years to get a good builder because they are extremely busy. In the case of persons whose land purchase requires a permit, the penalty appears absurd since the land is not being acquired for building, but for storing.
Minister of Financial Services and Investments Allyson Maynard-Gibson, who has responsibility for land sales, is out of the country. She is due to meet with realtors later this month to address some of the problems facing the industry.
By: C.E. Huggins, The Nassau Guardian
