The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A top realtor yesterday urged the Government to be "a little more creative" with permanent residency by using it to stimulate economic activity on depressed Bahamian islands.

George Damianos, Damianos Sotheby's International Realty's president, told Tribune Business that the Bahamas should not adopt a 'one size fits all' approach in increasing the permanent residency investment threshold from $500,000 to $750,000.

Instead, Mr Damianos suggested that the current $500,000 threshold be reduced for islands such as Grand Bahama that were badly in need of economic stimulus.

He added that the $1.5 million threshold for 'fast track' permanent residency processing could also be reduced as a means to incentivise wealthy foreigners to invest throughout the Bahamas, rather than funneling them all to New Providence and locations such as Abaco, Harbour Island and Exuma.

Mr Damianos added that he would also "have gone the other way" and increased permanent residency fees, rather than the value of the investment or real estate purchase.

He suggested that the Bahamas could "safely double" the permanent residency fee from $10,000 to $20,000, given that this would rate as a mere blip for high net worth foreigners acquiring local properties.

While conceding that the proposed increase to $750,000 was unlikely to have "a great impact" on the second home market, Mr Damianos told Tribune Business: "I do think the Government should be a little more creative in their thinking because there are areas of the Bahamas that are struggling and need a little bit of stimulus.

"You take a place like Grand Bahama that's in the doldrums, in a recession or depression. We're thinking of New Providence and Paradise Island when we're bumping the residency threshold to $750,000, and the 'fast track' threshold to $1.5 million.

"If we're thinking of trying to stimulate Grand Bahama, why not think of a separate programme and lower it [the residency threshold] from $500,000 to $350,000 there, and from $1.5 million to $600,000. Why not push some of these investors, and people investing for economic residency, to other areas rather than New Providence?"

Brent Symonette, the Cabinet minister with responsibility for Immigration, told the Nassau Conference on Wednesday that the Cabinet had agreed in principle to increase the permanent residency threshold from $500,000 to $750,000.

No indication was given on when this policy will be implemented, but Mr Symonette added that the Minnis administration wanted to reinstate the 'fast track' where foreigners making real estate investments worth $1.5 million or more have their applications processed within 21 days.

However, Mr Damianos reiterated: "These broad brush strokes saying that $750,000 and $1.5 million are the new marks is not creative thinking. How many people are buying a $1.5 million home in Cat Island to get their residency fast tracked?"

He suggested that a policy of lowering, rather than increasing, the permanent residency qualification could also be applied to struggling Family Island economies, not just Grand Bahama.

Spreading wealthy foreign buyers throughout the Bahamas could also distribute economic activity more evenly, given that the spending generated by their presence will create jobs and boost businesses.

Mr Damianos also argued that the Government should have focused on increasing permanent residency fees, rather than raise the qualification bar.

"I would have gone the other way," he told Tribune Business. "To increase revenues I would have increased the cost of permanent residency rather than raising the entry threshold.

"I would say the Government could safely double the permanent residency fee from $10,000 to $20,000 for a wealthy person that wants to become a resident.

"I think they're looking at the wrong fee," Mr Damianos continued. "Maybe they have some reason for thinking this way, but I would be thinking of generating more revenue for the Immigration Department, the Treasury, and can we get more of these permanent residents that add to our economy. They don't detract; they take anything from us.

"What is the significant difference for the Government from raising it from $500,000 to $750,000? What does that accomplish for the Government? What does that accomplish for the country? A guy coming here for permanent residency is worth millions. He's not scraping by and coming here for a home."

Mr Damianos conceded that "I may be shooting myself in the foot" through his suggestions, given that Damianos Sotheby's International Realty does not currently have a significant presence on Grand Bahama. However, he argued that the Bahamas could not afford for that island and its economy to fail.

"A big thrust of our company is New Providence, but I'm a Bahamian and I love the country," he told Tribune Business. "If the Government can be creative, I would welcome it and be excited to see if they can stimulate Grand Bahama.

"I don't want to see Grand Bahama bare and go down into a ghost town."