The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Real Estate Association (BREA) has recommended to the Government that it reduce Stamp Duty on property deals by 2 percentage points “across the board”, taking the rates back to where they were before the 2010-2011 Budget.

Franon Wilson, BREA’s 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.

“That’s one of the things we recommended, yes,” Mr Wilson said, when asked by Tribune Business whether BREA had recommended that all Stamp Duty rates be reduced by two percentage points.

“One of the things we did invite the Government to consider was reducing that across the board, as what it would do for the $250,000-plus category it would do for all others as well.

“We’re grateful that at least one group will see a benefit, but that same excitement that group over $250,000 has would be shared locally with everyone else/.”

Still, Mr Wilson said BREA and its members welcomed “anything to reduce the cost of home ownership” and stimulate activity in the market.

Stamp Duty is effectively a one-time cost imposed on real estate transactions, and Mr Wilson said the cut in the top rate would boost activity in middle class Bahamian communities such as Twynam Heights.

The revised Stamp Duty structure involves a 4 per cent rate on property valued at $20,000 or less; 6 per cent for property valued between $20,000 and $50,000; 8 per cent for property valued at between $50,001 and $100,000; and 10 per cent for holdings greater than $100,000.

Mike Lightbourn, head of Coldwell Banker Lightbourn Realty, said that any Stamp Duty reduction was welcome, but the real estate industry needed to remember that the Government had to raise revenues somewhere.

Noting that the Government had given up much in Stamp Duty with the exemptions for first-time buyers on properties worth up to $500,000, Mr Lightbourn added: “The less taxes the better, but that’s one of the sources of revenue. Any time you don’t have to pay Stamp Duty, it all helps.”

William Wong, head of William Wong & Associates, said the Government should follow BREA’s recommendation and reduce Stamp Duty rates across all price brackets.

“I’m hoping they will take a look at it and make the necessary changes,” Mr Wong said.