The Bahamas is a northwestern country of the West Indies. It is located in the north of Cuba, and from the southeast, it is situated 80km far from the coast of Florida which is in the USA.
The Caribbean island consists of more than 2000 coral reefs and 700 islets and islands approximately. But only 30 islands have people in them.
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Materials use for houses in the Bahamas
Most houses of the Bahamas were made up of stones. Timber was the material through which the doors, roofs, and windows were made.
Sadly decimated the island of Abaco was from the hearty pines. The homes of the Bahamas had attics and heights of two or three stories.
Those homes had trademark quoins and were shaped rectangular. As compared to South Florida, there are lower building standards than in the Bahamas.
$200 to $250 per square foot is the building cost of an average house in Abaco. $250 to $400 per square foot is the cost of a better house as compared to the average house.
House cost in the Bahamas
For wooden housing, you have to invest as low as $70 to $85 per square foot in the Bahamas. But a modern home is made up of roof framing with timber and concrete blocks. The cost of this current home would be approximately $110 to $160. So $150 to $250 is the cost of an average home in the Bahamas.
Custom home
In the Bahamas, there are so many experienced, trained experts specializing in costing and construction.
Compared to Europe and North America, the Bahamas has a very minuscule, fragmented, and remote house market. No production buildings and non modular buildings are there in the Bahamas virtually.
One-off build and design is the characteristic of most homes.
The average cost of a house In Bahamas
You have to customize your strategy of investment in properties. According to Christie, US$200 per square foot is the average cost of a high-end property for so many years.
The approximate cost of luxury homes in the Bahamas starts from US$1 million in 2018. The cost per square is typically ranging about $750 to $2000.
Anyway others adding elemement as library inside your house may increase the value of the house.
Cost of building a house on the island of the Bahamas
A modest home on the island which would be custom-made costs about $500 to $1000 per square foot. As compared to the mainland, the house on the island costs 30% more because the labor cost and supplies are more costly.
Rules for a foreigner to buy a house in the Bahamas
In the Bahamas, there is no restriction for the ownership of foreigners. But that depends upon the buyer’s objectives and preferences. For permanent residency and buying a property, a foreigner can put in an application to the Bahamian government.
Some people take this step because it helps them in tax advantages in their own countries.
The Bahamas law allows everyone who can financially support themselves and provides permanent residency and annual residency. However, if you need a permanent residency, you have to pay $500,000 or more to maintain and purchase a residence.
According to a new report, among all Caribbean communities, the Bahamas is the wealthiest country which is ranked by gross national income per capita. $21,300 is the income per capital of gross national income.
This report is according to the world development report of the world bank in 2014.
How much does it cost to buy an House in the Bahamas?
$1 million or more is the cost to buy a property on the island of the Bahamas. With an investment of $500,000, you can achieve permanent residency on the island. For modern bankers and real estate investment, there are freehold properties available for non-residents in the Bahamas.
The most expensive part of building a house in the Bahamas
Financial information
● In the process of home construction, farming is the most expensive part. Farming costs $28,000 approximately
● Landscaping costs $11,000
● Foundation costs $17,000
● Plumbing costs $11,000
● Electrical costs $10,000
● Doors and windows cost is $11,000
● Siding costs $9,000
● Countertop and cabinet costs $10,500
Build a house or buy a house
According to the latest news, if you want to buy an existing house, then the cost of a single-family house would be $225,000. A 2467 square feet house with a median size and more space costs about $103 per square foot for a new construction house. So the price is lower than the existing house.
Property tax in the Bahamas
For buying a property in the Bahamas, there are no restrictions. The immovable property act of 1981 is replaced by the landholding act of international persons in 1994. Through this act, the purchase of The Bahamians property becomes easier for foreigners.
The first Tax exemption is the occupied residential property of the owner is about $250,000. In the Bahamas, The rate of the occupied property is ¾ of 1% on the cost of $250,000 to $500,000.
Construction loan
If you want to build a new home, you can go for a construction loan. The loan constructions may last months until reaching years.
The loan becomes a mortgage when the construction is finished. A House loan is tricky as compared to a mortgage. Large down payment, credit scores, and proof of the project details are the requirements of a home loan.
Types of home construction loans:
● Construction to permanent loan
● A stand-alone construction loan
In most cases, both types of loans are included in the price of the land. You have to do a separate mortgage loan after finishing the construction with the stand-alone construction loan.
But in the case of construction to permanent loan, you don’t have to refinance the loan after the closing of construction. This loan process combines construction loans and mortgages.
Requirements for a construction loan
● At least 20% of down payment needs
● The credit score should be higher than 680
● The detail of the schedule and construction plan
Figure out the points before building a house in the Bahamas
● Identify the island, which is suitable for you
● Gain knowledge about the Bahamian culture, history, and landscape
● Getting around through bringing or buying a vehicle
● Search for renting
● Buying properties of Bahamas
● Building in the Bahamas
● Focus on establishing residency
● Make yourself financially strong
● Research about the health care aspects
● Collect the news about crime and safety of the location from the local people
Beachfront homes for sale in the Bahamas:
The houses at the New Providence Locations such as Cable beach near Nassau have approximately cost up to $300,000 to $400,000.
Process of buying a property in the Bahamas
The process of buying a property in the Bahamas is straightforward. If a buyer chooses a property according to his need and the seller agrees, the buyer has to read all the documents per local law.
If there are no legal issues, then there should be the signature of both the seller and the buyer in the agreement paper.
The purchase agreement outlines the payment term and the agreed cost with all the transactions. Including all fees and relevant taxes, the buyer should pay all the balance amounts.
Then the transaction would be completed.
Explore houses for sale in the Bahamas
You have to visit the online site containing the pieces of information of homes for sale in the Bahamas to find investment opportunities from the paradise island and Nassau to the Exumas.
To enjoy the full range of investment opportunities in the Bahamas, you have to contact some property sellers like 7th Heaven Properties, a property specialist of Caribbeans to buy a luxury house.
The cost to build a house in Nassau in the Bahamas
$150 to $250 per square foot is the cost of remodeling a house with a ballpark budget in the Suffolk or Nassau range. A free service matching vetted contractors with a house owner, according to Sweetan’s general contractor.
Building codes for the Bahamas
Building code incorporating modern standards is mandatory for the Bahamas. The country was the first Caribbean country in the commonwealth to have the code. In early 1970, the Bahamas building code was implemented. The use of this code is compulsory in construction and building design.
Conclusion
The Bahamas is one of the most sought of world destinations. By investing in real estate, you can grab an opportunity to buy a home in this beautiful land. You can’t get a better place than the Bahamas either full-time, part-time, or vacation home. The best locations are the beaches with breathtaking white and pink sand.
The Bahamas is the best choice to generate passive income by buying a home with a beautiful view. It is the best tourist destination in the Caribbean.
In 2019, there is a record for 1.78 million visitors. Through the vacation rental market, the house owners can a huge income by offering homes to the visitors.
Luxurious houses in paradise island, old fort bay, and Lyford Cay are more expensive from $20 million to $40 million approximately which are suitable for beach lovers.
