March 3, 2009 — NASSAU, BAHAMAS — The idea of investing in real estate amidst the current economic conditions might make even the most seasoned investor squirm, but Bahamas islands real estate continues to be a good investment opportunity.

In the U.S., the economy is in a slump, market prices are sinking and banks are not offering good interest rates on monies. However, principal broker of Island Living Real Estate, Rachel Pinder, points to the overall history of real estate investments, which tends to rise despite housing market cycles.

Barring unusual circumstances, buyers who invest in Bahamas islands real estate will see an increase in the value of the property within the next five to 10 years, said Pinder. In addition, a declining market allows a bigger margin for an experienced broker to negotiate prices for their investor, which means a larger long-term profit.

Here are some suggestions to consider from a real estate broker’s perspective when making an investment purchase in Bahamas property during a market decline.

Bahamas Property Investment Opportunity
The Bahamas has become increasingly friendly to foreign investors to purchase Bahamas property, Pinder said. The International Persons Landholding Act grants foreigners automatic approval to purchase residential property if it is less than five acres on any single island in The Bahamas. Exclusions include property consisting of more than half the land area of a cay, a small island, and property owning a marina or airport.

The IPLA also exempts foreigners from having to pay real property tax for up to two years as long as the land purchased is undeveloped and the investor begins developing it during that two-year period.

Scrutinize the Market
Researching the market is essential to making a profitable purchase, Pinder said. When purchasing Bahamas islands real estate, buyers should observe the neighborhood, take into consideration how much utilities cost, look at transportation access to and from the island and investigate comparably priced properties.

Investors should call property management companies and leasing offices within subdivisions and apartment complexes to get information about current trends in housing.

Brush Up On History
When investors purchase Bahamas property that is currently being rented, they should ask about the seller about the rental history. A strong rental history boosts confidence, whereas property that has sat vacant for several months indicates rentals in the area are down. Doing research about the history of and potential for re-sale of the property is often helpful in making a wise investment.

Get In Early
“When making an investment in Bahamas real estate, it is always best to get in at the beginning of a project and speak with a local realtor to make sure the developer has a good record in keeping development promises,” Pinder said.

Evaluate Past Developments
Seeing what a developer has done in the past, instead of assuming, will always pay off for potential investors in Bahamas property, said Pinder. Request to see specific examples of the developer’s prior projects to determine whether endeavors have been successes or failures.

“The time to get involved as a real estate investor in Bahamas property is now,” said Pinder.

Learn More
For additional information about investing in Bahamas property, please visit Island Living’s Web site: www.islandlivingrealestate.com, or call them for a consultation: 1-242-322-7979/80.

About Island Living Real Estate
Island Living Real Estate has more than 25 years of experience in real estate sales and rentals throughout the Bahamas. Island Living’s main office is located in one of Nassau’s oldest historic buildings on Bay Street, named “Red Roofs.” Red Roofs was built in 1896 and has been home to various families, a Gourmet Deli and now Island Living.

We don’t just help you get the keys to your new home…We give you the keys to your new life. Welcome home!

© 2009 Sinai Marketing and Island Living Real Estate. Authorization to post is granted, with the stipulation that Sinai Marketing is credited as sole source. Linking to other sites from this article is strictly prohibited, with the exception of herein imbedded links.

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