Dear International Living Reader,
The condo market in the Bahamas right now is depressed.
When the Bahamas decided early on to comply with the OECD's wishes to share tax information, several banks and trust companies immediately closed up shop and left. This caused an exodus of both people and money from the banks--and many clients who had set up residence in the Bahamas went with them. (Just to be clear, this exchange of tax and account information is not currently underway. The Bahamas only changed banking laws to accommodate the possibility of such an exchange. They have agreed to implement changes only when the rules are accepted by--and applied to--all OECD member countries and tax havens.)
As a result, there was a glut in the condo market, since many temporary residents who were offshore banking clients had purchased condos and then rented them out much of the year. I spoke with one Bahamian condo owner who used to enjoy a good occupancy rate at $1,500 per month. Now he has to lower the rent to $900 to get a tenant. This drop in rental prices was followed by a drop in sales prices.
Right now, for example, a nice semi-furnished one-bedroom, one-bath ranch-style condo in Nassau East costs $73,000 (contact H. G. Christie.) A one-bedroom condo in Nassau's famous Cable Beach (but not on the beach), lists for $99,000 (contact Jones Dixon & Associates, tel. (242) 322-6512.) And a fully-furnished two-bedroom townhouse in a gated community with a pool off Village Road costs $125,000 (contact Lightbourn Realty.)
Since the attacks of 9/11 however, both Nassau and the Out Islands have seen an increase in the demand for "real" second homes, homes that people actually intend to live in, at least part-time. John Christie (of H.G. Christie) has already seen an increase in the high-end market as a direct result of this "safe haven" effect.
Bottom line: the condo market in Nassau (and New Providence) is a good buy right now.
Lee Harrison
for International Living