Locals missing out on property in Bahamas to overseas buyers

Overseas buyers and cash rich
investors are purchasing affordable property in the Bahamas denying locals the
chance to buy.  That’s the opinion
of a local developer who claims that half of buyers at a recently unveiled
Bahamian property project were foreigners.

Foreign buyers shutting out locals for Bahamas property

Jason Kinsale claims that 50 per
cent of buyers at the new Balmoral project in western New Providence were from
Canada, meaning that local buyers are missing out on the chance to buy
affordable, gated accommodation.

Kinsale told Tribune Business that his typical buyer was now a cash purchaser
rather than a local with a 10 per cent deposit and a mortgage. 

He said: “They [foreign investors]
know it’s a good price and feel more confident. Whereas that 10 per cent down
buyer may be afraid they will lose their jobs, and are gripped by fear, but a
year from now they may not be able to afford to get into The Balmoral,
Sandyport or a community of their choice.

“I think our Bahamian buyers have
to take a little more risk, or they will get left behind. They may miss out. I
think we’ve all come to the conclusion that prices in western New Providence
are not going down. A modest increase of 2 to 3 per cent, and that’s another
$10,000 that they’ve got to find. That’s the reality of the environment we’re
in.”

The developer also expressed
concern that a further influx of foreign buyers – including the Chinese – would
have a major impact on property in the Bahamas.

He added: “We don’t have this
infinite supply of product. Sandyport is close to being sold out, Nautica is
sold out. There’s not this endless supply.”

There is also concern that even
young Bahamian professionals are unable to afford property on the island.  “Young professionals are just unable to
purchase anything right now. If you look at young professionals they’re
doctors, lawyers, accountants, but they’re not always making a lot of money.
They have valuable training and education, but are not at the peak of their
career yet; it takes a little while to get there.”