NASSAU, BAHAMAS — A prominent housing developer said yesterday that the government’s plans to increase the level of exemption for first-time homebuyers from $250,000 to $300,000 were a “wow moment” for the industry.
Franon Wilson, President of Arawak Homes Ltd, said: “When we talk about one of the main drivers in the economy, construction is one of them. When you look at what the Prime Minister has done as outlined in his communication, everything related to real estate and construction is designed to clearly help thousands of Bahamians. For example, just increasing the exemption from $250,000- $300,000 alone is huge.”
Wilson said: “When the exemption was first introduced for $250,000 you could have gotten a nice sized home in Twynam on a lot 100×100 and still had some change left. Today, that’s pretty much a starting home in Carmichael on a 50×100 lot. Just that one move has made homeownership a lot more possible for many. As soon as you go one penny over $250,000 it puts you in another tax bracket. Given all that the PM outlined for real estate you really couldn’t ask for more. You just have to say wow.”
Yesterday, Prime Minister Philip Davis said: “For Bahamians who dream of home ownership, this dream can soon become a reality. Currently, concessions are available for persons who purchase a home for the first time. We are expanding these concessions so that people who purchase a home, or purchase land and construct their first home, or purchase a house and renovate it to be their first home, will receive the same level of concession.
“For those who are constructing or renovating their first home, we also are refunding up to $40,000 in cash for any VAT paid for construction services or materials purchased, once the occupancy certificate is provided within eighteen months of the commencement of construction.”
During his budget communication, Davis said: “We are also increasing the level of exemption for first home buyers from $250,000 to $300,000 and reducing VAT on property transfers below $1 million for individuals. We are increasing the real property tax exemption on owner-occupied properties from 250,000 to 300,00. We are also eliminating VAT on property transfers between joint tenants of the property.
“This is especially important to Bahamians who have inherited land jointly with siblings.”
