During his national address on Monday, Prime Minister, the Hon. Philip Davis announced tax relief measures for Bahamians including on non-prepared food and real property tax.
According to the Prime Minister owner occupied duplexes and triplexes will now qualify for residential exemption and concessions for first time homeowners will be expanded.
Bahamas Real Estate Association President, Carla Sweeting spoke with ZNS News on Tuesday about the impact of the new tax initiatives on the local housing market. She said, “I think that’s a significant move in that a lot of times people will not want to do down the road of buying a duplex or a triplex because they won’t get the exemption being a first time buyer. My understanding now is that currently they only get half the exemption if they live in a unit whether it be a duplex or a triplex.”
Sweeting said first time buyers will benefit most from the relief. “Certainly in the economy that we’re in now a lot of people are looking to get into multifamily properties because they can live in a unit and they other units can be what I consider a mortgage helper.”
When asked whether the new tax announcement will affect the cost of rent Sweeting said the Prime Minister would have to provide clarity on if there will be full exemption on the annual real property tax for first time homebuyers or will it only affect the portion they occupy.
