PP Guide No.1: Where to Start?
Well let me start by saying, congratulations. You are about to taste the achievement only a minority ever achieve. I always thought that home ownership is something that should be promoted,
awarded and recognized, especially in this generation. If you have had the ability to save, delay gratify and sacrifice for this extended period of time that requires a hearty handclap, you deserve an icon award, a column in the paper you are on your way. From the beginning of time land was the prized commodity. One of the innumerable things God gave man was land and from that moment on land has been a marker of achievement. Anyway I think I said enough about that, I’ll save the rest for when you actually close the deal, so many people get right to the cusp of achievement and “fumble the ball” they don’t actually ever do the deal even though everything else is lined up. But that’s not you, you didn’t save an go without for this long to not do this you are ready so lets jump int these “ducks.” Not quite sure where the statement about ducks cam from but the cliché statement get your ducks in a row means to get things in order. So let me tell you how you can do that. Here’s the simple list of things you need to buy property.
You'll obviously need some money, anywhere from 12% to 20% percent of the purchase price. This scale can vary from person to person, but most people who don’t work at the bank or whose parents aren’t using the equity from their home to finance their first purchase, this probably applies to you. You more often than not need 10% down on the purchase price of the home and very often you can get away with 5% down with an indemnity on the remaining 5%. I’ll digress for a moment an indemnity means that the bank will insure the difference of the required 10%. This facility allows you to purchase with less money out of pocket.
You’ll need the exact amount of your purchase in life insurance, this ensures the bank gets paid in the event you don’t do it first, they will never lose. And so if you are purchasing property for $300k, you need a policy that covers you for that much. The bank in turn puts a lien on that policy so that they are paid if you die prior to full payment.
There are taxes associated with the purchase of property in The Bahamas you’ll have to pay and hear they are if you are buying property over $100K. You’ll have to pay stamp tax and legal fees above and beyond the actual purchase price. But let’s break this down so you have a real estimation of what you would need to pay. $100,000 (purchase price) $5,000 (10% is the total but its share between buyer and seller) $2,500 (2.5% legal fees on conveyance) $300 (12% that’s the value added tax on that first fee) $2,500 (2.5% legal fees on mortgage) $300 (12% that’s the value added tax on the second fee) $1,500 (1%-1.5% bank commitment fee & miscellaneous charges)
So after it’s all said and done you’ve paid $22,100 for a purchase of $100,000, that number goes up the more you spend and you’ll need to have this money upfront.
Job Letter: You need a job letter to confirm your worth lending money to and for the bank to determine how much they could lend you. Debt Story: You need to give the bank a snapshot of what going on with you debt-wise, what you’re owing to any formal establishment. Cars, furniture, consumer debt of any kind. Passport: Obviously they need these details of who you are, that includes NIB, Passport, Voter’s Card and the like. Well there you have it, use this as your guide to get your ducks in a row. We have created a printable list which you can click here to download and use this as your guiding light. Remember though this is the first step to finding your perfect property and achieving this amazing goal. Step 2 is the process is “How to find the Perfect Property” click here to go there now.