The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A leading realtor yesterday said he had spoken to College of the Bahamas (COB) officials about establishing a real estate degree course at the institution, part of his plan to “change the status quo” and give the industry “the respect it deserves”.

Mario Carey, head of Mario Carey Realty, told Tribune Business he was attempting to form the Bahamas Real Estate Advisory Group (BRAG) in a bid to develop solutions to issues facing the industry, and get away from doing “business as usual”.

Adding that persons from “diverse” backgrounds had expressed interest in joining the Advisory Group, which was intended to serve as a forum for exchanging ideas and knowledge, Mr Carey said a real estate degree course - such as the one he was exploring with COB - would potentially give Bahamians the skills to enter a broad range of jobs the industry has to offer.

“I feel the way business is done, as normal, as usual, is not making things happen,” Mr Carey said of the rationale behind his drive to form the Advisory Group as a non-profit organisation.

“We need to change some policies. We need to change some taxation policies, lending policies, borrowing policies. We can’t go with the status quo. Unemployment is high, no one is lending money, we’re in a bad way, and it cannot be business as usual. Something has to give.”

Pointing out that no economy could achieve success without its real estate industry doing the same, Mr Carey said he felt the sector was already the ‘third pillar’ of the Bahamian economy behind tourism and financial services.

“We just need to keep pushing that,” he added. “The real estate sector of this country is important, but does not get the respect it deserves. Real estate is a thriving industry, but an afterthought for a lot of people, and that shouldn’t be the case.

“Real estate has too important a role in too many people’s lives. It’s one of the best ways to create wealth. Every time a property is sold, how many banks lend, how many contractors get work. It cannot be ignored.”

While the Advisory Group, and its potential recommendations for policy changes, were part of his plan, Mr Carey also disclosed to Tribune Business that he had discussed with COB officials the possibility of starting a real estate degree course at the college.

Indicating that the course’s qualifications could open numerous other real estate-related doors to Bahamians, he told Tribune Business: “There’s so much diversity in the real estate sector. It’s not just the selling and renting; there’s so many different parts to it.

“We lack the talent and resources to deal with resort development and management, REITS (real estate investment trusts) and understanding that dynamic.

“We have the licensing component now, but getting a degree course. If we can bring that to college level... I don’t see why COB cannot do it. Why not?

“It’s the long picture and sustainable employment, being able to properly train Bahamians and educate them in the world of real estate. It’s an open-wide industry and a lot of people make their wealth through real estate.”

“Bahamians have to understand the business of real estate. We have so much land to develop, and so many people wanting to come here, how do Bahamians benefit from it?”

When it came to the Advisory Group, Mr Carey said it would look at issues such as what to do with all the distressed properties held by banks, and for which there were few, if any, buyers.

He also questioned what the Bahamas could do to “level the playing field” for American real estate buyers against their European and Canadian counterparts. The former, if he acquired a property in the Bahamas, was still exposed to the US system of worldwide taxation, while the latter were not subject to home country tax authorities to the same extent if they moved their primary domiciles to the Bahamas.

“There’s been zero changes to a lot of things that could affect the industry, such as proper recording of sales data by the Registrar General’s Office,” Mr Carey told Tribune Business.

Collecting such data, and providing access to it, he added, would help realtors and banks to make better decisions, and advise their clients.

And he identified shoddy workmanship by contractors, and “rip offs” by that sector and suppliers, as another issue plaguing Bahamian real estate - one clients often had no recourse for.

“It’s a serious problem,” he added. “I live it, my clients live it, and I see it every day.”