By Jerry Roker
for Bahamas Press
I believe the time has arrived for us to consider levying a tax on foreign speculators flipping Bahamian real estate properties, helping to drive up home prices in The Bahamas.
Flipping, in my view, has played a significant role in putting the cost of a home out of the reach for many.
We know that flipping is not the main motivation among foreign investors, but it does exist.
Applying a flipping tax on foreign investors might be a step in the right direction.
It won’t solve the problem, but it might be an effective way to remove the most problematic element of foreign investment in Bahamian real estate.
Even though the real estate market is now a bit soft, a pretty penny could still be earned.
We seem to lack information on the level of foreign investment in the real estate markets, and have no numbers that peg the amount of flipping. A tax regime around the sale of homes owned by foreigners, would assist in determining the numbers. Where the home is being sold to a Bahamian, the seller can be exempted from this tax.