Cost of Buying Bahamas Real Estate 2023
In 2022 the PLP Government budget announcements brought some exciting change to the cost associated with buying real estate in the Bahamas. These welcomed changes made the purchase of real estate a bit easier for buyers with value added tax fees on conveyance amount be rated on a sliding scale.
While this is exciting news and shrinks the cost of acquisition slightly there are still a number of other costs to consider when purchasing.
Downpayment | 5-10 Percent This takes the property off the market and represents the portion your financial institution won't finance. A number of institutions minimum downpayment is 10% and it appears at the moment the only institutions using a 5% downpayment requirement is
Legal Fees | 5 Percent
Your attorney who needs to be on the list of your chosen bank will provide you with two services both of which costs about 2.5% plus vat totalling 5.5% when paired together. That five percent does not include some minor charges like copies and disbursements costs.
Appraisal & Commitment Fee | 1.5% You will need to obtain an appraisal report from a firm that is on your banks list, this could usually cost about $500 not including vat depending on the size of the house. After your mortgage is approved the bank will call you in to make a payment for your commitment fee which is about 1% of the purchase price.
In an example of a home purchase of $300,000.00
Downpayment | 5% - $15,000
Value Added Tax | 3% - $9,000
Legal Fees | 5.5% - 16,500
Miscellaneous | 1.5% $4,500
You will need about $45,000.00 in savings to be able to make this purchase happen. Now keep in mind that these numbers can change slightly depending on a number of factors but these give you a general feeling of where you will need to be in savings for a local purchase in 2023.
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