{"id":17254,"date":"2012-01-24T09:08:27","date_gmt":"2012-01-24T14:08:27","guid":{"rendered":"http:\/\/www.bahamasb2b.com\/news\/?p=17254"},"modified":"2012-01-24T09:16:28","modified_gmt":"2012-01-24T14:16:28","slug":"bahamas-real-estate-sector-gets-no-respect","status":"publish","type":"post","link":"https:\/\/www.bahamasb2b.com\/news\/2012\/01\/bahamas-real-estate-sector-gets-no-respect","title":{"rendered":"Bahamas Real Estate Sector Gets No Respect"},"content":{"rendered":"
\"\"
Mario Carey<\/figcaption><\/figure>\n

According to the National Association of Realtors (NAR), every house sold in the USA equates to three full time jobs. This is as a result of the obvious domino effect. Let us assume this statistic applies to the Bahamas.<\/p>\n

As noted in 2010, the Government reported that funds collected from conveyance stamp duty had reduced by approximately $41 million. Let us assume that this number has gotten worse given the current worldwide economic crisis.<\/p>\n

The worlds\u2019 largest economies have made and continue to make drastic changes, long term and short term to their policies in response to the current economic crisis. They all see the need to foster growth, provide relief and to alter policies using a range of tools.<\/p>\n

When the Bahamian Government used its tools and policies and decided to raise the stamp duty and real property tax, it was and still is a bad decision. There is no one that I have spoken to that will not agree that a reduction in any cost of doing a real estate transaction can lead to increased business, increased jobs and increase monies for a troubled debt ridden Government.<\/p>\n

Our Government needs to move decisively and aggressively through its tools and policies to decrease stamp duty, real property tax, interest rates, lending requirements and find a suitable solution for the disposal of foreclosure properties.<\/p>\n

How can economic growth and job creation be achieved by reducing the stamp tax?<\/p>\n

Currently, there are approximately four hundred and fifty licensed BREA Agents in the Bahamas. If the stamp duty was reduced for a two year period of time to 6% across the board and fifty percent of the Agents each sold only one home in one year on an average price of $550,000. One can see the obvious domino effect.<\/p>\n

225 Agents, 225 homes = 225 x 3 jobs = 675 jobs
\n$550K x 225 Agents x 6% Stamp duty = $7.425m in income
\nFor a period of two years, 1,350 permanent jobs, $14,850.000 in stamp duty collections
\nWhat happens if each agent sells 2 homes = 2700 jobs: +30 million in Income<\/p>\n

Look at what the world powers like China, India, USA and Europe are all doing to stimulate economic activity. They all focus on the real estate sector as they assess it to be an important pillar of the economy.<\/p>\n

On January 7th, 2012, the federal Chairman Ben Beranke noted,\u201dThe ongoing weakness in housing has made it more difficult to achieve a vigorous economic recovery\u201d. He goes on to say, \u201cWith additional housing policy interventions we could achieve a better set of economic outcomes\u201d.<\/p>\n

The Real estate sector in the Bahamas gets no respect. Whenever the Government talks about economic forecasts and the pillars of the economy, rarely is the real estate sector mentioned. In most economies around the world the housing market is a primary pillar.<\/p>\n

The Bahamas can greatly benefit from stamp duty policy interventions. At present every sale lost because of the high cost of stamp duty results in zero, zero, zero. Loss of income, loss of jobs and the loss of a possible, better economic outcome.<\/p>\n

Each time a piece of real estate is sold in the Bahamas it has a positive effect on one or all of the following jobs:
\n1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Lawyers
\n2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Title Company
\n3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Surveyor
\n4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Realtor
\n5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Banker (Loan Officer)
\n6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Architect
\n7.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Builder
\n8.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Hotels
\n9.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Restaurants
\n10.\u00a0\u00a0\u00a0 Taxis
\n11.\u00a0\u00a0\u00a0 Airlines
\n12.\u00a0\u00a0\u00a0 Shopping
\n13.\u00a0\u00a0\u00a0 Referral of Friends
\n14.\u00a0\u00a0\u00a0 Car Purchase
\n15.\u00a0\u00a0\u00a0 Gas Station
\n16.\u00a0\u00a0\u00a0 Mechanic Repairs
\n17.\u00a0\u00a0\u00a0 Car Cleaning
\n18.\u00a0\u00a0\u00a0 Gardener
\n19.\u00a0\u00a0\u00a0 Pool Maintenance
\n20.\u00a0\u00a0\u00a0 Generator Sales and Maintenance
\n21.\u00a0\u00a0\u00a0 House keeping
\n22.\u00a0\u00a0\u00a0 Babysitting
\n23.\u00a0\u00a0\u00a0 Medical Services
\n24.\u00a0\u00a0\u00a0 Food Shopping
\n25.\u00a0\u00a0\u00a0 Liquor Store
\n26.\u00a0\u00a0\u00a0 Boat Rentals
\n27.\u00a0\u00a0\u00a0 Visits to Family Islands
\n28.\u00a0\u00a0\u00a0 Donation & Charities
\n29.\u00a0\u00a0\u00a0 Movies
\n30.\u00a0\u00a0\u00a0 Hair dressers
\n31.\u00a0\u00a0\u00a0 Massage Therapy
\n32.\u00a0\u00a0\u00a0 Night Clubs
\n33.\u00a0\u00a0\u00a0 Real Property Tax
\n34.\u00a0\u00a0\u00a0 Insurance
\n35.\u00a0\u00a0\u00a0 Interior Designer
\n36.\u00a0\u00a0\u00a0 Information Technology
\n37.\u00a0\u00a0\u00a0 Cellular Phones
\n38.\u00a0\u00a0\u00a0 Government Jobs
\na.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Registrar General
\nb.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 BEC
\nc.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Batelco
\nd.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Water and Sewage
\ne.\u00a0\u00a0\u00a0 Currency exchange<\/p>\n

Article by Mario Carey
\nMario Carey Realty<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bahamas realtor, Mario Carey says the government’s decision to raise the stamp duty and real property tax was a bad one that will negatively affect the Bahamian economy.<\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10223285771444175_51037792744":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[3],"tags":[153,29,40,28],"class_list":["post-17254","post","type-post","status-publish","format-standard","hentry","category-business","tag-business-2","tag-economy","tag-government","tag-real-estate"],"_links":{"self":[{"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/posts\/17254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/comments?post=17254"}],"version-history":[{"count":0,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/posts\/17254\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/media?parent=17254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/categories?post=17254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/tags?post=17254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}