The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamians were yesterday urged to “think like foreign buyers”, both when it came to decision-making speed and realising that this nation’s real estate was competitively priced compared to major international markets.

Jason Kinsale, the principal behind the Sanford Drive-based Balmoral project, admitted he was “extremely concerned” about the state of the Bahamian real estate market when compared to foreign buyers eyeing this nation.

Weighed down by “negativity” associated with Value-Added Tax (VAT) and job security concerns, Mr Kinsale said Bahamians were in danger of missing out on real estate opportunities that were being snapped up by foreigners who did not have these worries.

And he joined private sector calls for a drop in Bahamian interest rates, pointing out that foreign buyers able to access overseas mortgage financing enjoyed a “huge” advantage from lower monthly repayments.

Mr Kinsale, who is now developing the One Cable Beach condo complex, said: “This is a real opportunity for Bahamians to take advantage of.

“There’s a lot of Bahamians that can afford the product, and it’s a matter of us having the same sense of urgency as the foreign buyer.”

One Cable Beach’s prices range from in the $750,000s for a one-bed unit to $3 million for the penthouse, which has already been sold.

Mr Kinsale urged Bahamians to realise they faced global competition in the local real estate market, and that they had to adopt the mindset of foreign buyers.

“I think we’re competing in the global market now,” he told Tribune Business. “As Bahamians, we have to think about the price comparisons with Miami and New York. It’s relatively cheap.”

The Balmoral principal said high-end real estate in Nassau typically cost around $550 per square foot, while the comparisons for Miami were “easily” $800 per square foot, plus $1,500 for New York.

“The person comparing, sitting in another country, looking at Nassau on the beach, is saying: ‘Hey, the Bahamas is a bargain’,” Mr Kinsale explained.

“That’s the way we have to think. It’s the perception of the foreign buyer. That’s the way we have to think.”

He added: “I see the foreign market being extremely strong. I’m extremely concerned about the Bahamian market. I don’t see that changing any time soon.

“A whole lot of negativity that the Bahamian buyer is concerned about, jobs and VAT, the foreign buyer doesn’t have those same concerns. We’re selling to millions now, not several thousand locals. I don’t know where it’s going.”

Mr Kinsale, meanwhile, backed calls that have been led by the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) for local interest rates to be reduced and brought into line with their international counterparts.

While Bahamian borrowing rates for mortgages had come down as low as 6.75 per cent, foreign buyers were able to access financing at rates as low as 3.5 per cent.

“That makes a huge difference in monthly payments,” Mr Kinsale told Tribune Business. “We’ve got to get interest rates down for local Bahamians.”