The Bahamas are the perfect private paradise and homeowner's dream. Discover how to buy a slice of paradise with your name on it.
The Caribbean has a reputation for having a naturally stunning landscape throughout. Still, some countries like the Bahamas take the cake and more than live up to the reputation. For instance, Nations Online¹ describes the Bahamas as a "tourist's wet dream."
This small island nation is also an unmatched destination for Canadians looking to buy property in the Caribbean. Whether you wish to purchase a primary residence to escape the cold months or a rental property to cash in on the tourism popularity, you'll need to understand how the process works first.
The Bahamas is a Caribbean Islands Group located in the northwestern West Indies, southeast of the coast of Florida, USA, and north of Cuba. The archipelago comprises a whooping 700 islands and islets and over 2,000 cays (coral reefs).
Canadians exploring the option of buying property in the Bahamas might be interested in the following benefits.
More reasons to buy property in the Bahamas include a safe investment climate and short, direct international flights from Canada to major airports in the Bahamas.
Buying a Bahamian property is a unique experience, especially with so many location options to choose from. Generally, you can expect to follow some or all of these steps when buying Bahamas property.
It's best to travel around the Bahamas, research areas, and see different islands before you decide which location you like best. You can even try a short-term lease to see if you love island life.
Generally, the short and long-term costs of buying Bahamas real estate include Stamp Duty, VAT, real estate commission, property taxes⁴, legal fees, storm/flood/hurricane insurance, utilities and maintenance costs.
If you're a foreign investor, you can find a mortgage from a major Bahamian bank or fiduciary, though this can be expensive. It's usually better to work with a multinational bank like CIBC, which has a solid presence in the Bahamas and offers cross-border mortgages.
You may also need to meet with a licensed real estate agent to help you find your perfect property and make an offer. Additionally, it's recommended to work with a local lawyer to advise on the property transfer process and ensure all title documents are in order.
You might need a caretaker or property manager to oversee the upkeep of your property. They can check on the place, liaise with service providers, and stay on top of home care while you're not there.
The Commonwealth of The Bahamas uses the Bahamian Dollar (BSD), which is pegged to the US Dollar 1:1. Hence, the US currency is accepted for real estate transactions all over the Bahamas, meaning you'll have to convert Canadian dollars to US dollars.
This is where the USD/CAD exchange rate comes into play. When this exchange rate is less than competitive, you incur higher costs, especially on large payments, such as a property purchase. Therefore, to keep your costs low, it's crucial to find a more cost-effective way to transfer US dollars to a Bahamian bank account.
You can use the MTFX currency rate calculator to check the exchange rate before you transfer Canadian dollars to US dollars.
Changing Canadian dollars to US dollars is a requirement if you're buying Bahamas real estate. Finding the best exchange rates helps you make the most of your money. If you're wondering where to find the right foreign exchange service, you can start by ruling out the banks.
Banks may seem convenient, but you won't be thrilled by the poor exchange rates and expensive fees. In contrast, using a foreign exchange specialist service, such as MTFX, is one of the most cost-effective and efficient ways to make international money transfers.
A foreign exchange service like MTFX offers rates 3-5% lower than the banks because of its high volume and specialist operations. This means you can unlock savings of up to $5,000 when you transfer $100,000.
With MTFX, you not only get to save money with each transfer, but you also save time. The MTFX secure, online platform is accessible 24/7, so you can trade many trips to the bank for a few clicks in the comfort of your home or office.
Transferring money online also eliminates the risk of handling large sums of cash and gives you more control over the process. With an MTFX account, you can enjoy easy and efficient transfers that reflect these tech-savvy times.
As a foreign exchange specialist, MTFX can add more value to your property with:
Register your account with MTFX to send money from Canada to any destination bank account in the Bahamas today
Crucial factors include taxes, infrastructure, healthcare, weather concerns, and real estate forecasts.
Start by checking out popular areas like New Providence Island (Nassau), Paradise Island, The Exumas, The Abacos, Andros, Bimini and The Berry Islands.
You'll need to apply for the right visa to stay longer. Consideration of your application will be accelerated if you're a financially independent individual or investor with a Bahamian residence worth BSD $750,000.00.
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