Now is the Time to Invest in Bahamas Real Estate!

In spite of the real estate fiasco in the U.S. that has affected our local economy (among other factors), Bahamas home ownership still remains the bedrock of financial security.

Home ownership is even more attractive now that the Central Bank of the Bahamas has reduced the discount rate by 75 basis points to 4.50 percent. This is the rate at which the Central Bank lends to the local banks.

With more realistic Bahamas real estate prices on stream, this is an excellent time to shop around and see what the banks have to offer.

Having a long-term investment that provides the satisfaction and pride of ownership beats just about anything else you can do, either with your savings or the money you are spending on rent.

When the Bahamas real estate market exploded several years ago, prices rose sharply. Although prices remain fairly high in Nassau because of the larger number of potential buyers, the global recession has forced some homeowners to reduce the price tag on homes that were overpriced in the first place.

Bahamians who haven't owned a home before should contact their BREA agent to ask about government's stamp duty tax exemption for first time buyers. Anyone who qualifies for this exemption may be able to enjoy the double benefit of lower interest rates and an exemption.

Bahamas real estate transactions are unlike any other financial transaction. The demand and desire for homeownership doesn't expire like other flashy investment instruments. The inherent value of a stock can be calculated by a formula of company profits, earnings ratios, performance history, fund managers, and so on.

However, a home's value is ultimately determined by what a buyer is willing to pay for it. With a density of over 2900 persons per square mile on New Providence and an increasing population on this island, prices only have one way to go with occasional bumps in the road.

Honestly, there's hardly been a better time to make your move.