I hope your well.
One of the things I have had on my bucket list was to travel to the Bahamas. I was fortunate enough to do this a couple of months ago.
What an amazing place it is. The people are amazing and the country is so beautiful.
Does anyone have experience with purchasing property in the Caribbean or even better the Bahamas.
I would love to hear from you. Please share your experience and the process. I have been re-searching this arena for a while now but I know the best way to learn is from someone who has already been there and done it.
Please keep in mind that this would be a purchase for pleasure and not so much an investment even tho the numbers on some deals I have come across look very attractive.
Thanks for reading and have a great day.
Watch out for tax havens. They're on a few hit lists of late. Another Cyprus is not out of the question.
Cyprus was a tax haven that got caught in the cross hairs of some greedy sovereigns. EU/ECB made Cyprus take a significant haircut on Greece. A little over 12 months later it's broke and in need of help itself. The ECB and other EU countries (namely Germany) made their (Cyprus) banking system divy up much of its depositors hard earned in what was an uncharacteristic attack on depositor funds. A bit murky with Russian oligarchs and secret bank accounts etc but the lesson was in don't mess with the big boys.
Since then tax havens have moved into the cross hairs of sovereigns as potential honey pots to keep the global charade going. The Bahamas and surrounding tax havens are coming under more and more scrutiny as hideouts for dodgy money. Govt's globally are scratching for revenues and given most large corporates shield their earnings from sovereign tax regimes to minimise their tax burden they are increasingly being targeted to minimise this practice. There are trillions at stake.
The problem for tax havens like the Bahama's is that their economies are tiny in comparison to their banking system. France is already targeting several tax havens in the big money grab. Other's will almost certainly follow suit.
The risk is could the Bahamas become another Cyprus as desperate sovereigns chase shielded corporate tax profits and undeclared income.
There's a push by investigative journalists to expose tax havens that shield the rich and wealthy.
That's pushing the wealthy to move their wealth and hide it somewhere else.
The long and short of it is that while places like the Bahamas may seem like nice places to settle down and raise a family that might all change in the blink of an eye if some insolvent government looking for their next penny decides we want your money.
The problem with places like the Bahamas is they took a pounding during the last GFC. That suggests another financial event will invariably hurt the property market again. I suppose do you feel lucky
The shadow of the global recession hasn’t left the Bahamas. Though there are no official house price figures, house prices dropped by an estimated 30% to 40% from 2007 to 2010, and haven’t recovered yet, according to Treasure Cay Real Estate agent Everett Pinder.SeanWilsonParticipant@seanwilsonJoin Date: 2013Post Count: 26
It depends how much money you are talking about. Don't be TOO worried about prices of property if they have dropped sharply. If you are comfortable, the general rule is buy when the market is down. Obviously, no one knows where the bottom is exactly until its too late. So if its for pleasure, sure. Why not?
Just don't go dumping millions in there.engelorumora wrote:HI Freckle,
Thanks for that. I get you. Very intersting stuff. I guess the solution would be not to keep large funds in a their bank account then lol
You don't keep large amounts of funds anywhere these days. Todays investing environment is completely different compared to when I was your age. I didn't have to watch my back as much as I do now and you have to be much more aware of the wider implications around you. DD requires far more in depth research incorporating both national and global economics than it ever did in the past.
You might want to do some research on tax havens given your a US investor. There are legitimate uses for them within the US IRS system especially for non US citizens
Thanks for your comment Sean.
Agreed. Its good that the market is down lol
I wouldnt want to be buying if it was overpriced even tho it would be for pleasure its still in my blood to look for a good deal haha
Your comments are much appreciated. I have done quite a bit of research
It would be good to connect via Viber or Skype call sometime to discuss further.
Thanks and have a great day