Changes in Bermuda breathe new life into the Bermuda housing market
Good news for the Bermuda housing market! The Bermuda Immigration
and Protection Amendment Act 2015 was just approved by the House of Assembly on 29 May 2015 increasing opportunities for non-Bermudians to purchase property in Bermuda.
This is positive news for homebuyers and sellers alike - as well as the Bermuda economy as a whole!
This is positive news for homebuyers and sellers alike - as well as the Bermuda economy as a whole!
We hope that this will lead to increased real estate sales
and associated consumer spending which will stimulate the economy at the higher
end of the property market. The housing market has certainly suffered in recent
years and the Act can only serve to help open up the market.
Here is a breakdown of the Act and how it has changed the previous
laws and what this means for ‘restricted persons’ (permanent resident
certificate holders and non-Bermudians):
Purchasing houses
PRC holders:
PRC holders will be able to purchase any house they wish. The ARV for PRC
holders to purchase properties in Bermuda has now been lowered from $63,600 to
nil.
This eases property ownership
limitations on permanent residents by allowing them to own, or otherwise have a
beneficial interest in, two properties instead of one. Apartments attached to
these properties are not treated as separate accommodations, which means that PRCs
can buy or own houses with apartments attached. They can also now rent them out
without needing to seek permission from the Bermuda Government.
Non-Bermudians:
The residential ARV threshold for non-Bermudians has been lowered from $177,000
to $153,000 – these homes this would likely equate to an asking price of at
least $3million. This opens up over 150 additional residential properties
(excluding condominiums) into the market. This would place
an additional 160 residential units back into the Restricted Persons market,
and the new percentage of available residential stock would be 3.7%.
Purchasing condos
PRC holders:
Previously, PRC holders could purchase any condominium (except where it is a
tourist accommodation or hotel residence) provided it had been privately
developed. The new law does not change this.
The license fee payable by PRCs
is 4% of the value of the property. This will increase to 6% on October 1, 2015.
Non-Bermudians:
The new law enables all non-Bermudians eligible to purchase any condominium
with an ARV of at least $32,400, as long as it has been privately developed.
Under the new Law, the license
fee payable by a non-Bermudian is unchanged at 6% of the value of the property,
increasing to 8% as of the October 1, 2015.
Tourist accommodation and hotel residences
Previous regulations have been
repealed meaning that properties which meet the basic requirements to be
considered tourist accommodation or hotel residences (primarily that the
property be situated within the grounds of a hotel) are now eligible for
purchase by PRC holders and non-Bermudians.
The 90 day and 120 day occupancy
limits of license holders, their families and guests in tourist accommodations have
also been removed, so that those holding licenses would get up to 6 months
annually. “Clause 16 amends the Bermuda Immigration
and Protection (Tourist Accommodation and Hotel Residences) Regulations 2010 to
remove restrictions on occupancy of tourist accommodation.” I think the RG got it wrong
Territorial restrictions
The total area of land in Bermuda
that can be owned by PRC holders and non-Bermudians remains the same – limited
to 2,500 acres.
If you would like to see more about this or updates on properties currently available for purchase in Bermuda visit my website www.bda4sale.com or check out our Cranfields Property Facebook Page for updates about Open Houses and properties currently for sale.
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