Buying a House in The Bahamas – The Ultimate Guide
We put together this guide for investors considering buying a house in The Bahamas.
Whether you are thinking of purchasing property in The Bahamas primarily as a full-time or vacation home for personal use or as an investment with the potential to generate extra income, this guide is designed to cover all aspects of acquiring a house from finding homes for sale in The Bahamas through to the details of the purchase process.
The ultimate guide to buying a house in The Bahamas
Contents
Is Buying a House in The Bahamas a Good Idea?
How Much Does it Cost to Buy a House in The Bahamas?
Can Foreigners Own Houses in The Bahamas?
Where are the Best Places to Buy a House in The Bahamas?
How Do you Buy a House in The Bahamas?
Getting a Mortgage in The Bahamas
Investment Opportunities – Explore House for Sale in The Bahamas
Is Buying a House in The Bahamas a Good Idea?
Investing in real estate in The Bahamas offers buyers the opportunity to own a home in one of the world’s most sought after destinations.
For buyers looking for either a part-time, full-time or vacation home in sunnier climes, you can’t get much better than The Bahamas. The archipelago has breathtaking pink and white sound beaches which are widely recognized as among the best in the world. The glittering turquoise ocean waters off shore are perfect for snorkeling, diving, fishing, sailing and water sports from kayaking to water skiing. Entertainment options on land are equally diverse from some of the region’s best golf courses to a wide variety of dining, shopping and nightlife.
Thinking of living in The Bahamas? Buying a house also provides a route to obtaining residency for individuals looking to move overseas or retire in The Bahamas. Buyers investing over US $750,000 in Bahamas real estate are eligible to apply for permanent residency while those investing over $1,500,000 qualify for Accelerated Consideration for a Permanent Residence certificate.
For investors looking to buy a house with a view to generating passive income, The Bahamas is also an excellent choice. The country is one of the Caribbean’s top tourist destinations, which has experienced steady growth in recent years, rising to a record 1.78 million stopover visitors in 2019. The strength of tourism in The Bahamas generates major demand for accommodation, offering home owners the opportunity to earn significant income via the vacation rental market.
With The Bahamas real estate market in an upward trajectory, home owners can also be expected to be able to look forward to rising property values in the most sought-after areas of the island chain.
How Much Does it Cost to Buy a House in The Bahamas?
The cost of houses in The Bahamas varies according to various factors such as location, size and perceived value.
Prices range from approximately US £150,000 to $200,000 for a smaller villa or cottage in the quieter Out Islands such as Eleuthera, Exuma and Bimini up to US $20 to $40 million dollars for the most luxurious houses in highly exclusive communities in Lyford Cay, Paradise Island and Old Fort Bay.
Beachfront homes for sale in The Bahamas typically start at US $300,000 to US $400,000 in locations such as Cable Beach near Nassau on New Providence.
Can Foreigners Own a House in The Bahamas?
Yes, foreign nationals can buy houses in The Bahamas and the Government of The Bahamas welcomes foreign investment.
There are no restrictions on foreign buyers owning a house in The Bahamas and foreign buyers enjoy the same rights as Bahamian citizens, including the right to buy homes for sale on the beach.
Unlike in many other countries in the Caribbean and Central America, foreign buyers are not required to obtain any kind of license or permit in order to purchase property in The Bahamas except in the case of those buying over 2 acres, purchasing with the intent to rent out the property or purchasing for commercial development.
Where are the Best Places to Buy a House in The Bahamas?
That depends very much on your personal preferences and objectives.
For beach lovers who want to be close to the action, Paradise Island and beaches close to Nassau on New Providence such as Cable Beach are very popular choices.
For those in search of luxury homes for sale in The Bahamas, be sure to take a look at Lyford Cay, Old Fort Bay, Albany and Paradise Island, all of which have developed unassailable reputations for exclusivity and refined luxury.
Buyers in search of a quieter destination surrounded by peace and tranquility, look no further than the Eleuthera and the idyllic Exumas.
For more details, please read our guide to the best places to buy property in The Bahamas.
How Do you Buy a House in The Bahamas?
Buying property in The Bahamas is a relatively straight-forward process. Below we have outlined the typical process.
Once a buyer has found a property he/she wishes to purchase and an offer to purchase has been accepted by the seller, we would recommend that the buyer engage a reliable local law firm to ensure the title documents are in order.
Assuming there are no legal issues, the law firm will draw up a purchase agreement which must be signed by both the buyer and the seller.
The purchase agreement will outline the details of the transaction including the agreed price and payment terms. The buyer will typically be required to make payment of a 10% deposit to secure the property.
The transaction is completed when the buyer makes payment of the balance of the purchase price and all relevant taxes and fees.
For more detail on the purchase process, please see our guide to buying property in The Bahamas.
Getting a Mortgage in The Bahamas?
It is possible to buy a house in The Bahamas with cash or a mortgage, however, please note that, in the case of new construction houses, cash buyers – in particular those paying up front – may benefit from a discount on the asking price.
Several reputable local banks offer mortgages to residents and foreign buyers. Banks may lend you up to 60% of the property’s value.
As you would expect at home, upon receipt of your application the financial institution will conduct typical checks to assess your suitability for a mortgage.
Should your application be approved, you should expect interest rates to be a little higher than in the USA, Canada or Europe. Mortgage terms tend to be in the region of 15 to 20 years.
Investment Opportunities – Explore Houses for Sale in The Bahamas
Ready to begin your search for houses for sale in The Bahamas?
To find investment opportunities from across the island chain from Nassau and Paradise Island to the Exumas, explore homes for sale in The Bahamas on our website.
Please note that our website only showcases a sample of the houses and villas available.
Contact 7th Heaven Properties, the Luxury Caribbean Property Specialist, to explore the full range of investment opportunities in The Bahamas.