This is your year I can feel it in my bones, your year for real estate ownership, your year for real independence, but to get started you have to know how to get there.
Step 1 is knowing how much money you need to buy Bahamas real estate in 2023. As the average price of real estate in Nassau is continually rising we will use an example purchase of $300,000.00
Downpayment A down-payment represents your personal stake in the real estate purchase. While banks requirements vary some institutions may take as little as 5% down. eg.$300,000.00 x 5% = $15,000.00
Legal Fees As a purchaser you will need a lawyer who on on your bank's list of approved attorney's. Talk to your agent about this as you want to be sure you chose an attorney who has a stellar reputation and track record. On your's and the bank's behalf they will offer you services related to your conveyance (the transfer of title from one entity to another) and your mortgage (the document detailing your loan repayment to the lender) Each of these services (mortgage & conveyance) could cost as much as 2.5% but in some cases are negotiated. eg. $300,000.00 x 5% = $15,000.00
Value Added Tax A number of changes has happened in Bahamas real estate changing closing costs expenses on the purchase and sale of real estate. Only a few years ago what used used to be called a stamp tax is now a value added tax rated on the conveyance amount. In addition since 2022 the VAT is on an adjusted sliding scale which I have included here for your consideration. 0 - 100k pays 2.5% 100k - 300k pays 4% 300k - 500k pays 6% 500k - 700k pays 8% 700k -1M pays 9% 1M + pays 10% This fee is customarily shared between buyer and seller evenly so that means that you'll need to pay half of the category your purchase falls under. eg. $300,000.00 x 3% = $9,000.00
Miscellaneous But wait, there's more.... There are associated costs like the optional inspection, contractor visits and quotes (if building or renovating) then there are mandatory costs like, property appraisal, commitment fee (a 1% bank administrative fee incurred after your mortgage is approved) The number for this category can vary greatly but an average number for safety is around 1.5% of the purchase. eg. $300,000.00 x 1.5% = $4,500.00
The grand total to purchase real estate for $300,000.00 is 2023 is $43,500.00 in savings.
Keep in mind that the bank wants to see these fund on your account as a part of the qualification process.
Also note that we have developed great relationships with every professional involved in the real estate process and are able to get our clients deep discounts on some services, reach out to me for recommendations. With our connections the purchaser in this example could potentially save more than $6,000.00, yes six thousand dollars! And you can too!
I hope this information helps, if you have been prequalified, have your savings in place, and now just need to find the right property send me a whats app with the text "I Ready" by clicking here to whatsapp me now