By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
A top realtor yesterday hailed as “a positive move” the Government’s decision to increase the permanent residency investment threshold to $1 million, saying this would help to redefine the type of clientele the Bahmaas attracts.
Mario Carey, founder of Mario Carey Realty (MCR), was responding after Hope Strachan, minister of financial services, told a Higgs & Johnson seminar that Cabinet had given permission to double the threshold from its current $500,000.
Mrs Strachan stated: “This threshold is no longer achieving the intended objective, which is to attract high net worth individuals to our country and to support the real estate market in a tangible way, while maintaing the integrity and profile of the Bahamas as a premier financial centre.”
Mr Carey said the move could be a positive for the Bahamas. “I think it’s a positive move, a good move, because I think it redefines the type of clientele that we get here in the Bahamas,” he said.
“We always want to try and attract the best clientele we can. Maybe we get more quality than quantity.”
Mr Carey added: “What we have seen in the past typically is that when the threshold has been increased, property values moved in a direction that complemented that.
“If you had a threshold of $450,000 and you then put it at $500,000, you were able to get that because it helped you to qualify. We will see some properties that may be on the threshold, and where they may be able to increase the value because of the added benefit of getting permanent residency. I think it’s a good move.”
Mrs Strachan also said that Cabinet has agreed to the introduction of a tax residency certificate for individuals and corporations.
“The qualifying criteria being a minimum stay of 90 days in the Bahamas for certain classes of high net worth individuals,” she explained.
“These amendments are in response to the clarion call by the industry to bring resolution to some of the long-standing nagging issues which adversely affect the quality of the service being rendered in the sector.
“They are also being instituted as stimulus measures of the industry to fill service gaps often capitalised upon by our competitors.”
Mrs Strachan added: “It is wise to expand our portfolio given that that there is no intention now, or in the near future, for the Bahamas to implement an economic citizenship programme. An increase in the fee structure for residency certificates is also to be implemented very shortly.”
Comments
The_Oracle 7 years, 5 months ago
Won't raise the level, it will eliminate the bottom feeders we have been getting. (along with a few bona fides, granted) But they "know the right people" right? Every action has an intended consequence, something our Governments are brilliant at. Then you have the actual consequences, which they never thought about. For every action there is an equal and opposite reaction. Elect idiots, end up as we are. Elect thieves, treasury is empty.
TalRussell 7 years, 5 months ago
Comrade Mario as would any other realtor be advocating for a immigration policy whereby foreigners who want Permanent Residency in The Bahamaland can qualify to apply to obtain it simply by investing in Bahamaland's Real Property.
You can buy property and also qualify for the package immigration deal of being granted a permit to work in the Bahamaland.
Ever wonder why its not the nation's Pig Farmers who are advocating alongside the nation's Realtors for foreigners obtaining Permanent Residency via a $500,000 as it now stands investment?
killemwitdakno 7 years, 5 months ago
When have permanent residents been a problem?
ohdrap4 7 years, 5 months ago
anyone remember Harald Furhman and his boycott the bahamas RV tour in the US? lol
More recently, Peter Nygard ....
No, the permanent residents have never been a problem lol.
banker 7 years, 5 months ago
I love that fact that Harald Furham used to stalk politicians, and blindside them with petitions and declarations right in the church pews. It was hilarious comic relief.
Well_mudda_take_sic 7 years, 5 months ago
This is not going to help us any. As of the end of 2015 there were nearly 100 million (100,000,000) Red China citizens who were multi-millionaires. Can you imagine what will happen to us if only 1% of them decide to buy Bahamian citizenship!!!!
sylesq 7 years, 5 months ago
So you have to have a million dollars to reside in the Bahamas? Totally eliminates persons with good character, ethics and morals who may not be that wealthy. (bottomfeeders?) But that's what this government is all about isn't it? Bring the money in at all costs.
asiseeit 7 years, 5 months ago
So how much does becoming a paper Bahamian with a passport cost these days?
TalRussell 7 years, 5 months ago
Comrades! I heard of about one them Investor Permanent Residents, who a big shot Realtor had quickly sold a Triplex to. And, with Residency in hand he rented out the 3 apartments to natives but not before jacking up the rent per unit by $175 per month.
Wait, there's more. The same Investor Permanent Resident, took the Immigration Department up on its sweet Package Deal that also allows the Investor Permanent Resident to engage in work and should he decide so to do, he can go out and buy a cheap Truck/Van, a Lawn Mower, Couple Garden Rakes and a Wheel Barrel - then run to printer Pierre Dupchee to print up 300 Lawn & Garden Services Sales Solicitation Flyers and...overnight this new Investor Permanent Resident is legally allowed to open a small business competing against old Uncle Joe's Lawn Mower Service, that he operates from the back his bicycle.
banker 7 years, 5 months ago
Why would I hire a permanent resident when I get better work from "my hyshun"?
observer2 7 years, 5 months ago
Excellent point Tal. In the US there is no such thing as Permanent Residency just because you bought a house. The purchase of a home adds no value to the economy, in actuality it adds additional strain on an already bankrupted government.
Think of it this way: BEC, Water and Sewerage, National Insurance, the Hospital, Police, Ministry of Works, the public schools etc are all providing services to these foreign permanent residents and the government is loosing $1 billion dollars a year through increased debt providing these services, then these new residents are actually being subsidized by the government and we are loosing more money than is coming in.
Most of these foreigners then bring in Haitian, Jamaican, Filipino and Peruvian labor who also utilize government services and add additional strain to the economy. Thus increasing the debt even more. Also, they bring in all their supplies on their yachts and its questionable if they are declaring for customs.
Currently in many public schools the vast majority of the students are Haitian. The Haitians in Abaco are working for the foreigners but we as Bahamians are paying for their education.
In Abaco there are rich foreigners and Haitians, middle class Bahamians are disappearing.
We need to get rid of economic permanent residency and try to build our country the old fashioned way. Through hard work.
ohdrap4 7 years, 5 months ago
However, since the average foreigners who buy homes here do pay their bills. It is the big foreign investors, now even including the "Chinese" from Bahamar and the select politicians who do not pay their bills.
observer2 7 years, 5 months ago
Ohdrap4. Regardless of weather the foreigners pay their bills or not, BEC is still loosing money to the tune of $20 million a year. I am a poor Bahamian paying my light bill of $100 a month, the rich foreigner living in Lyford Cay is paying his monthly light bill of $10,000 a month. He is using 100 times more electricity a month. Therefore he is contributing and causing 100 times more of the BEC losses of $20 million a year than I am because he is using so much electricity. We ignorant Bahamian BEC, we own the government, we own the national debt, we own BEC's debt which is to the larger extent being caused by foreigner using so much power.
Look at Baha Mar's light bill of $1 million a month. Who is paying BEC for all the diesel to keep their lights on? We the Bahamian people.
Add up the electrical usage of Lyford Cay, Old Fort Bay, Albany, Ocean Club, Bakers Bay, Baha Mar etc. and compare it to the electricity usage of poor Bahamians, you will see that BEC is mostly just here to service foreigners and is racking up $20 million in losses, $450 million of debt and $500 million for a new energy efficient gas plant just to keep their rich lights on, not mines.
To add insult to injury the Government after 100 years now says we can't run BEC so we have to pay foreigner $10 million a year to manage the company. How much more stupid are we going to get?
So through our simple minded policy of wanting foreigners to build $1 million dollar energy inefficient homes is not only bad for global warming its bankrupting average Bahamians who have to work to subsidize their life styles.
The more money the government shells out to BEC the less it has for education and healthcare. But the foreigners don't care. They fly out on their jets for healthcare and their kids Ivy League boarding schools abroad.
These tax exiles don't pay tax in their developed home country and they don't pay income tax to our simple minded Bahamian government who don't understand that this foreign investment is driving us broke.
happyfly 7 years, 5 months ago
These god damn nincompoops running this country just have to ruin everything they touch. Foreign investors want stability and consistency. Waking up one day and deciding to double the cost of PR is just going to send another wave of potential foreign investors to Panama or some other jurisdiction. Anyone that thinks this country is doing well enough right now to raise the bar for foreign investors to qualify for residency !? You are out of your mind ?! And you are a damn fool if all you got to worry about is some apartment owner raising the rent $170 while your elected representatives are selling the entire future of this country off to the Chinese. You wait till the PRC comes back and raises the rent on all of us brother
TalRussell 7 years, 5 months ago
Comrade Happyfly, despite the naysayers with political axes to grind, we have an unbelievably prosperous county that have always been welcoming to many peoples from far and wide. We must all dig into remaining 100% optimistic for, and about we Bahamaland!
observer2 7 years, 5 months ago
Tal, it maybe a prosperous country for you but have you walked through Bain Town recently? Many people's electricity is off as they can't afford it, a lot of people don't have running water in their homes, they use public water dispensers in the road, garbage is everywhere, most of the young women have babies and are single mothers, most of the young men don't have jobs, recreational drug use abounds, web-shops are everywhere along with bar rooms. Gambling addition is running high. The youth are unskilled.
So Tal, it maybe properous for you but many of your fellow Bahamians are hurting. And hurting badly.
TalRussell 7 years, 5 months ago
Comrade Observer2, We are too prosperous a nation to afford the shame of the visible poverty popping up in our communities.
The real shame lies in the vast disparity between the 10% of have lots things nd the 90% of those struggling to find the little things to make ends meet.
I say we are prosperous enough of a nation to 'guarantee' every worker a 38 hour work week livable income of $456. The crime would drop overnight. Outside toilets would move back inside the homes. Lights would be turned back on and stay on in every home. Every stove's pot would have regular 10lb chickens to cook and all the ovens would have a 20lb beef roasts in the baking pans.
Comrades it's not that we are not a prosperous nation. The real problem is we continue to elect politicians with no vision towards ensuring the peoples economic futures be as prosperous as their elected MP's.
Just you go read the MP's Financial Disclosures and you will see where some once very money broke people all of a sudden got wealthy after they became elected to the Peoples House of Assembly.
banker 7 years, 5 months ago
My clients who fall into the HNWI category who can afford the real estate are leaving the Bahamas, as is my job. The biggest complaint that I hear from people packing their bags and money, is that the quality of life is much lower than anywhere else. I hear specific complaints of paying $15 at Balduccinos for a hunk of cheese that is made a few miles from their old home and sells for just over £1.50 back there. They complain that there is nothing to do here -- no cultural events, shopping sucks, the movies suck, the malls are a joke and that life is too small for millionaires here. It is not safe to jog or bike on the streets and carriage ways. I constantly hear how good the 360 restaurants in the Cayman Islands are. The restaurants here are too high dollar for the quality of food, and the Atlantis/PI scene is made to pick your pocket. The import duty on luxury cars coupled to the potholes in the road and the lack of factory authorised repair depots make them a money pit. They may be rich, but they een stupid rich. A million dollar house here is not worth a million.
A tax haven is just not enough now to keep the HNWI's. You have to have a quality of life that we can't produce. This will not be good news for the real estate business.
observer2 7 years, 5 months ago
Banker I couldn't agree with you more. As a Bahamian I enjoy going to the movies once a week. This week R&D did not bring in any new movies despite the critically acclaimed movie "Arrival" being released in the US. This happens every week.
Then when you go to the movies many of the seats are broken, the electric signs in the hallway for each movie don't work there is nothing healthy to eat, they don't turn down the lights properly, many times the sound or the picture is messed up and nobody is even looking to fix it, many of the movie previews are not shown before the movies. etc. etc.
Also, due to crime you dare not got to the movies too late at night.
ohdrap4 7 years, 5 months ago
I have not been to the movies since 1995. that was at RND on Prince Charles Drive.
Why would a millionaire go to the movies at the Mall of Marathon?
Malls in Florida are also in decline because of Amazon. The specialty products I buy would actually be much more expensive in boutiques in the mall rather than on Amazon. for the time being, before they devalue, I use the couriers.
However, the Bahamas has never been known for gastronomy, and for the life of me, I could not fathom someone who came here because of the cuisine. Bahamians, even on special occasions, only want to eat five piece of chicken , macaroni and cheese, stew conch crack conch, rice and blackeye peas.
Honestman 7 years, 5 months ago
Listen, if the PLP get re-elected next year you can start giving away permanent residency for free!
TalRussell 7 years, 5 months ago
My questions to Comrade Realtor Mario Carey are: If the kind of country you want is one where Foreign Owners of Real Property (RP), shouldn't have to pay a 35% income tax on the increased value originating from the proceeds RP, if and when property is resold/transferred?
Is Mario also in agreement with the existing Immigration Policy that actually allows those granted a Permanent Residency Certificate to also list on their application and be granted Permanent Residency, for their spouses and under 18 years old children?
What about Permanent Residents being granted the automatic right to freely engage in any type of work, or to work for whomever they want to work for - all without ever having to apply to the Immigration Department for a Work Permit?
Should there not be a monthly $300 Permanent Residency Fee administered to cover the many FREE taxpayers paid services provided to their real property, personal self and family members?
Better still Comrade Mario, why don't we just cancel all existing Permanent Residency Certificates, and do away completely with issuing PR certificates?
sheeprunner12 7 years, 5 months ago
Is $1 million based on PLP government QS/spending practices????????? ......... that means a foreigner who buys a two bedroom townhouse from one of the numbers boys qualifies to be a Bahamian???? ....... a million dollars means nothing to this PLP government
ohdrap4 7 years, 5 months ago
On paper, the offer is an annual residency card without the right to work when you get a house. This card can be revoked.
At the moment it is not a million, it is one half of that.
That is not to say that more generous offers are not or have not been made. (remember Ana Nicole?)
TalRussell 7 years, 5 months ago
Comrades! My interpretation of the current immigration policy for a Bahamaland Permanent Residence Certificate is as follow:
Bahamaland Permanent Residency Certificate (without the right to work): This certificate allows a non – citizen to live in The Bahamaland, but it does not permit them to be employed in The Bahamaland. Minimum investment for this accelerated consideration for Permanent Residency Certificate status is $250,000.00.
Bahamaland Permanent Residence Certificate (with the right to work) Again, as previously stated, a non – citizen holding this certificate will be allowed to live and be work in The Bahamaland.. Minimum investment for this accelerated consideration for Permanent Residency Certificate status is $500,000.00. Also, I see nothing once a $500,000 Bahamaland Permanent Residency Certificate is issued to prevent the spouses and children under 18, from obtaining gainful employment?
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