The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

REDUCING the Stamp Duty on property deals across the board would generate greater buyer interest and help property sales “tremendously” according to a local developer.

The government has reduced the stamp duty percentage from 12 per cent to 10 per cent for homes sold for over $250,000. Tennyson Wells, lead developer behind South Seas and Lyford Hills told Tribune Business that the reduction was directed to a very narrow segment of the market.

“The government seems to be headed in the right direction, they’re making the right moves and if they would reduce the stamp duty across the board I think that would help tremendously. If that happens I believe we will see more interest. I think the move they made initially to reduce the stamp duty by two per cent on conveyances valued over $250,000 was directed to a very narrow segment of the market. They should do it two per cent across the board or may be three per cent. You could sell more land and they would get more revenue like that.”

Mr Wells added: “If they reduce it say between 7 per cent between $100,000 and $250,000, 6 per cent between $50,000 and $100,000 it would make a lot of difference in terms of people being able to qualify in the long term. There would be more sales and they would be able to get more revenue.”

Mr Wells said that he was optimistic that business in the property/housing market would begin to pick up in 2013. Referring to his open developments Mr Wells said: “In Lyford Hills we are in the process of doing the water feature and we are putting in the fill now for the Club House. We started that about two to three weeks ago. That’s what we are working on right now. We have received more telephones but I can’t say that anything has materially changed. People are building interest I believe for what will happen next year. I think there will be a pick up next year.”

Franon Wilson, The Bahamas Real Estate Association (BREA) President, confirmed in a recent interview with Tribune Business that the Association had recommended to the Christie administration that it look beyond the cut in the top Stamp Duty rate, from 12 per cent to 10 per cent, which it brought in with the 2012-2013 Budget and look to cut the Stamp Duty across the board.