Shock waves were recently sent through the Bahamas real estate market when the government announced an across the board 2% increase in the Government Stamp Tax payable on real property conveyances (transfer of title). Not only were buyers and sellers jolted but the Realtors were screaming bloody murder, everyone left feeling like property purchases just got that much more difficult to achieve! I must say, I too was a little taken back when I heard the announcement and the news festered in me for a number of days......then the "light" came on.
Short term memory loss isn't exclusive to certain substance abuses. The market, as a whole, has seemed to forgotten that property prices have corrected 10, 20 and even 30% in some instances. Where does that leave things? If you are not mathematically inclined, let me assist. On average, if the market has corrected (dropped) by 20% and the cost to do business has increased by 2%, then you are still left in a very positive position, 18%, for when the market gets back to normal. Translation: now is not the time to be sitting on the sidelines waiting for a further dip, now is the time to get your 18%!!
So, you see, although it would seem that the increase in the cost of doing business may, on the surface, seem like a disaster, you must always look on the "bright side"! Is the glass half empty or half full? It's your call!