The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

POTENTIAL first-time home buyers were yesterday urged to “act now” and capitalise on the first-time buyer Stamp Duty exemption, the Bahamas Real Estate Association’s (BREA) president telling Tribune Business: “There is no guarantee it would be in place tomorrow”.

Franon Wilson said potential homeowners/buyers should not take the exemption for granted. The exemption, which ends on June 30, 2013, relieves first-time purchasers of properties valued at under $500,000 from paying Stamp Duty, and has enabled many Bahamians to realise their home ownership dreams.

Minister of State for Finance, Michael Halkitis, recently told Tribune Business: “We have to look at the whole issue and make sure it’s being effective, and see if there are any changes we need to make - whether with the limits or rate, and we will make a determination.

“The objective was to make it more affordable for people to afford their homes, and we think it has been successful. We just have to work out a couple of tweaks, and then the Government will make a decision. I can’t say now what that will be.”

But Mr Wilson said: “The exemption continues to play a huge role in people owning their own home. The Government is considering whether to continue it, and it is certainly something BREA would like to see continue because of the amount of people it has benefitted, and the amount of things it has brought about.

“I would encourage anyone on the fence or considering owning their own home not to take it for granted and act now, because there is no guarantee it will be in place tomorrow.”

Mr Wilson also noted that BREA and the Bar Association’s real estate committee were working together on proposed reforms to the first-time buyer exemptions processes and interpretation.

“When it first began, at $250,000 it was intended initially to cover middle income individuals. Over time property prices continued to increase and it was moved to $500,000 to catch the same group of people,” Mr Wilson added.

“Some people are of the view that if I go and buy a vacant property for $500,000 they should get it as well. There are some who are of the view that if you can buy a vacant lot for $500,000 this isn’t for you. In the amendments, what we seek is to clarify the wording and to ensure that everyone understands who this is intended to help.”