NASSAU, Bahamas — While calling it a good thing that the government is seeking to assist homeowners, Arawak Homes President Franon Wilson said Prime Minister Dr. Hubert Minnis’ plan to sell property in western New Providence for $50,000 per lot does not help enough people, The Nassau Guardian reported on Friday, March 26.
The prime minister tabled a resolution in the House of Assembly on Wednesday night for the government to develop 83 acres of land, located north of John F. Kennedy Drive, between Prospect Ridge and the Ministry of Public Works, geared toward young professionals. The development would benefit about 150 applicants, with parcels measuring approximately 95×100 feet.
Wilson said the biggest challenge people have is coming up with the down payment and closing costs of purchasing a property and if the government wanted to help more people, it would have addressed that issue.
“Part of that closing cost is the government tax. Once you cross a line, the government is telling you that your path to home ownership is significantly harder,” he said in an interview with Guardian Business.
“Anytime someone is assisting in homeownership, to me that’s a good thing,” Wilson added. “With that said, I think there are different ways to go about doing it. I think that what I would have preferred to see was an avenue that everyone in The Bahamas was able to benefit from. For example, you have the first-time homeowner’s exemption and as a result of that, a slew of people have been able to own their own homes as a result of that policy, because as a first-time homeowner you don’t have to pay that stamp duty (government tax).”
The government has made several amendments to the Stamp Act since 2018. As it stands, conveyances, mortgages, long-term leases and other real property transactions attract value-added tax of 2.5 percent for properties valued under $100,000 and 10 percent for properties over $100,000. First-time homeowners are exempt from paying taxes on real estate transactions valued below $250,000.
Wilson suggested it may be more beneficial to cap the exemption for first-time homebuyers, so that they can continue to benefit beyond that threshold. See complete story in The Nassau Guardian at https://thenassauguardian.com/pms-83-acre-residential-plan-isnt-enough-says-developer/
