With its crystal-clear waters, pristine beaches, and vibrant culture, the Bahama Islands hosts around 7 million visitors annually. You can own a piece of this paradise with the help of an international realtor for your own vacations and earn an excellent rental income when you’re not there. Let these 5 tips for buying a second home in the Bahamas make it easier.
1. Do Your Research
Whether you plan to use it as an investment or a second home, thorough research is critical for successfully investing in property in the Bahamas. You’ll choose between around 30 inhabitable islands with the principal islands including Grand Bahama, Cat Island, New Providence, and more. Consider access to beaches and proximity to shopping centers, restaurants, and safe areas. Evaluate each community until you find the ones that fit your needs. Take advantage of local listings and friendly real estate agents to help you find a property within your budget.
2. Know the Ins and Outs of Taxes and Permits
You’ll pay no income or inheritance taxes in the Bahamas but you must get familiar with the property tax on your investment home. Determining tax depends on the price of the house and how it will be used. For example, a multiple dwelling with more than 4 units will be classified as commercial and you’ll be charged accordingly.
Research how owning property in this paradise will affect your taxes back home. Consult a tax advisor to help you understand if and how to report your property in the Bahamas and comply with the laws in your country. As for permits, you must register your property with the International Persons Landholding Act.
3. Plan for Long-Term Use
Beyond taxes, laws, and regulations lies the fun part of your investment. Daydream about how you want to use the property later on. Do you want a place to retire to? If so, look for amenities like health care and community programs.
In the meantime, to use your property as a short-term rental, learn about the Bahamas Tenant Act and taxes required on rental income back home.
4. Factor in Property Management Costs
If you rent out your property you’ll need to consider management costs. It will save lots of hassles if you hire a rental property management service, especially if you live abroad. Here’s a list of some of the services usually covered.
If you rent out your property you’ll need to consider management costs. It will save repairs and maintenance, screening tenants, collecting rent, determining lease terms, paying bills, and finding tenants.
If you don’t plan on short-term rentals go for an estate management service instead. They will include monthly inspections, needed repairs, provide housekeeping, and pick up mail and deliveries.
5. Rely on the Experts
As you can see, buying investment property in the Bahamas entails many factors to consider. That’s why it’s crucial to work with a reputable real estate agency. They can knowledgeably guide you through finding the best property for you and all of the local regulations and regulations, expenses, and paperwork.
It’s a complex process and you don’t want to proceed without the guidance of a real estate agency.