Top Myths About Buying a Home in the Bahamas: Debunking Common Real Estate Misconceptions

Many people are confused by misconceptions about purchasing a home in the Bahamas. Hi, I'm Glenn Ferguson. I'm a Bahamas real estate agent and residency consultant. I’ve helped countless individuals and families navigate the process of buying property here. To help clear up some of the confusion, I’m here to debunk some of the most common myths about buying a home in the Bahamas.

If you have any more questions or are ready to start your property search, ASK Glenn about buying property in the Bahamas. 

Here are the Top Myths about buying a home in the Bahamas debunked...

Myth #1: You Need to Be a Bahamian Citizen to Buy Property

One of the biggest misconceptions is that only Bahamian citizens can own property in the Bahamas. This is not true.

• Fact: Non-Bahamians are allowed to purchase property in the Bahamas. However, if you're purchasing property valued over $400,000 (USD), you will need approval from the Bahamas Investment Authority. Once approved, you’ll be able to buy the property.

Additionally, if you're buying property for investment purposes or to live here long-term, various visa options are available, such as the Permanent Residency Program.

Myth #2: The Process is Complicated and Slow

Many people assume that buying a property in the Bahamas is a long and drawn-out process. While there is paperwork involved, the process is relatively simple.

• Fact: The buying process can be completed in as little as 30 days, especially if all documentation is in order. As your real estate agent and Bahamas residency consultant, I can assist with the necessary paperwork and guide you through the process to ensure everything moves smoothly.

Myth #3: Foreigners Are Not Allowed to Own Beachfront Property

A common misconception is that foreign buyers cannot own beachfront property in the Bahamas.

• Fact: Foreign buyers can indeed own beachfront properties in the Bahamas, provided they meet the same requirements set for other real estate purchases. The $400,000 minimum property value rule applies, and you’ll need approval from the Bahamas Investment Authority. That said, beachfront properties are highly sought after, so be prepared for competition!

Myth #4: You Don’t Need a Local Lawyer

Some people believe that they don’t need a lawyer when purchasing property in the Bahamas.

• Fact: While it’s possible to buy property without a lawyer, it’s highly recommended that you have one. A local real estate attorney will help you navigate the legal framework, handle any title issues, and ensure all the necessary contracts and documents are in order. I can provide you with recommendations for reputable lawyers to ensure your purchase goes smoothly.

Myth #5: You Have to Pay a High Annual Property Tax

Many prospective buyers worry about high annual property taxes in the Bahamas.

• Fact: Property taxes in the Bahamas are relatively low compared to many other countries. For residential property, the tax rate is typically around 1% of the property’s assessed value. There may be exemptions or reductions for primary residences under certain conditions, and I can help guide you through these details.

Myth #6: You Need to Be Rich to Buy a Home in the Bahamas

A popular myth is that buying a home in the Bahamas is only for the ultra-wealthy.

• Fact: While the Bahamas is home to many luxury properties, there are also plenty of affordable homes and investment opportunities. Properties in the $200,000 - $400,000 range are available, and financing options are often accessible for both Bahamians and non-Bahamians.

Myth #7: Buying Property in the Bahamas Automatically Grants You Residency

Many people assume that purchasing property in the Bahamas automatically grants them the right to live there permanently.

• Fact: While buying property in the Bahamas makes you eligible for certain residency options (like the Permanent Residency Program), it does not automatically grant you residency. However, if you plan on living in the Bahamas for extended periods, I can help you navigate the residency application process, which involves submitting the required documentation and meeting certain financial requirements.

Myth #8: The Bahamas Doesn’t Have Mortgage Options for Foreign Buyers

Another myth is that foreigners cannot secure mortgages for property in the Bahamas.

• Fact: Non-Bahamians can obtain mortgages in the Bahamas, though typically at a slightly higher interest rate than for Bahamian citizens. Many local banks offer mortgage products for foreign buyers. The down payment is generally around 40-50% of the property’s value, and I can connect you with banks and lenders who specialize in foreign buyers.

Myth #9: There Are No Property Value Gains or Real Estate Growth

Some believe that real estate in the Bahamas doesn’t appreciate or that there’s no potential for property value gains.

• Fact: The Bahamas real estate market has shown steady growth, particularly in desirable areas like Nassau, Paradise Island, and the Exumas. While property prices can fluctuate depending on the area, many buyers have seen long-term capital appreciation in their investments. The market also benefits from a steady flow of tourists and international buyers looking for vacation homes and investment properties.

Myth #10: All Properties in the Bahamas Are Subject to the Same Laws

Many assume that property laws in the Bahamas are uniform for all types of real estate.

• Fact: There are different regulations and restrictions based on the type of property being purchased. For instance, there are stricter guidelines for commercial real estate and luxury developments than for residential homes. Understanding the zoning laws, land use regulations, and property restrictions is crucial, and I can help you navigate these details.

Get Expert Help With Your Bahamas Property Purchase

Whether you’re looking for a luxury beachfront estate, a vacation home, or an investment property, the Bahamas offers excellent opportunities. As your real estate agent and residency consultant, I’m here to help guide you through the buying process, debunk myths, and ensure a smooth transaction.

If you have any more questions or are ready to start your property search, ASK Glenn about buying property in the Bahamas. I look forward to helping you make the Bahamas your new home!