Bahamas Real Estate Investing

Why Bahamas real estate investing?

With more than 700 islands and cays covering over 100,000 square miles in the Atlantic Ocean, the Bahamas’ real estate market offers investors thousands of miles of available oceanfront properties, with most priced at only a fraction of what you would expect to pay in the U.S.

There is no income tax (corporate or personal), no capital gains tax, no sales tax and no estate taxes, and property taxes are reasonable, ranging from 0.25% to 2% of property value.

The Bahamas’ real estate investing style is more informal than that of the U.S., but the transactions are nearly the same. Land is owned in fee simple (freehold estate), just as in the United States, and U.S. currency is accepted throughout the country.

Bahamas real estate opportunities fit for any investment portfolio

There is property in the Bahamas to suit every taste, style and budget. There are small, cozy beachfront cabanas, sturdy concrete homes downtown, luxury condominiums and elaborate estates. There are properties for $50,000 and others for over $10 million.

There are plenty of Bahamas real estate options, and quite a few different ways to make money from real estate investing in the area (developmental land, fix and flip, rental properties, etc.).

In fact, according to the 2010 Census report, there are 126,493 dwelling units in the Bahamas; 23,631 (18.6%) of which were vacant. The number of vacant homes has more than doubled over the past decade, making the Bahamas a profitable market for investing in vacant and abandoned homes.

Today, one of the biggest real estate opportunities in the Bahamas resides in cash flow vacation rentals, especially in Freeport, Grand Bahama. Short-term rental properties (such as waterfront homes, villas, condominiums, or properties within a couple of blocks from a public beach) can provide a very profitable income stream if marketed well.

For a hassle-free investment property, you could even consider purchasing in a managed resort. Not only are these properties often furnished, but they are easily placed in the resort’s in-house rental management program.

An essential guide to Bahamas real estate investing

Investing in the Bahamas’ real estate market is a very similar process to that in the United States, though it is considerably more laid back. Not only are there several programs providing for concessions on import duties, property tax abatement, and even land grants for private development, but there are also several types of potential investments.

Nevertheless, those purchasing Bahamas real estate as a cash flow investment – such as rental properties, commercial buildings or homes purchased with the intent to resell at a profit – should begin their journey into the Bahamas’ real estate market by determining their purchase requirements, motivation and funding sources, and then deciding on which island they should focus their attention. Since there are over 700 islands in the Bahamas, choosing an island is indeed an important decision.

We have put together an ebook to help you better understand the Bahamas’ housing market and guide you in your investment decision. Click here to download your free PDF copy, or contact us to discuss your real estate investing needs.

When you’re ready to get started investing in real estate in the Bahamas, we’re offering a free Property Analysis Comparison tool. With this easy-to-use interactive PDF spreadsheet, you can enter information for up to three properties, and the comparison tool will automatically calculate your total acquisition cost, your closing cost with all fees and duties included, and your total mortgage payment based on your mortgage term and interest rate.

In addition, the Property Analysis Comparison tool calculates your return on investment when using your Bahamas real estate investment as rental income. Simply enter the rental income for up to six units in one to three properties, the estimated occupancy rate and the annual amount for the ownership expenses provided, and the comparison tool will automatically calculate your net operating income and your return on investment, including your cash on cash return.

Click here to download your copy of our Product Analysis Comparison tool for the Bahamas.