The cost to buy Bahamas Real Estate

Real Estate in Nassau Bahamas is expensive and it is a major accomplishment to achieve it's ownership. I wanted to let you know how much money you will likely need saved to be able to close on a real estate transaction.

In this article we show you how you'll need to have about $40,000.00 in savings to buy real estate at $250,000.00

So using $250,000 purchase price as an example let's get started.

Down Payment The first fee you would need to pay is your downpayment this is usually 5% but can be as high as 10% of the purchase price.

5% = $12,500.00

Value Added Tax

The next fee associated with the purchase is value added tax that may vary depending on the price of the transaction. If your purchase is over $100,000 the vat on the purchase would be 10%, total if it's under it would be 2.5% total. Note that both these numbers are customarily shared between buyer and seller which means based on our example you would need to come up with 5% of the purchase price for VAT.

5% = $12,500.00 | sub-total $25,000.00

Legal Fees

The last expense associated with the real estate purchase is your legal representation. You will need a lawyer on your banks list to represent you in the purchase. The lawyer will charge you for two services both of which ate subject to VAT. He will charge you for legal services on the conveyance and on the mortgage. Each of these services are charged at 2.5% of the purchase price plus VAT.

There are occasions where attorney's may negotiate their fees legal services

5% = $12,500.00 | sub-total $37,500.00

Miscellaneous

There are some additional fees to be paid to close on a transaction like appraisal fees, commitment fee to the bank after the loan is approved, inspection costs, to name a few that may come up to 1.5% of the total purchase.

1.5% = $3,750.00 | total $41,250.00

So there you have it to buy real estate at $250,000.00 you will need approximately $40,000 in liquid saving to make it happen.

There's an easy way to calculate this. You can multiply your purchase price by 13% -15% to see how much you much need to have in savings