Budget for BEC's Abaco plant balloons by $20m
By INDERIA SAUNDERS ~ Guardian Business Reporter ~ Inderia@nasguard.com:
The government appears to have revised upward by $20m its budget for a new BEC plant in Abaco, with the minister responsible yesterday confirming the projected price tag stands at $90m.
According to State Minister for Utilities Phenton Neymour, the money would come out of the $211m loan for the Bahamas Electricity Corporation tabled in the House of Assembly last week.
"We're building (the) facility in Abaco for approximately $90m," said Neymour, a guest speaker at the Chamber of Commerce's annual Meet the Ministers forum. "We expect to be finished with that in January."
Also included in the loan funds was a $30m new plant in Hatchet Bay, Eleuthera, as well as a Bimini plant expansion and takeover of Inagua's plant.
Yesterday's announcement of a bump-up in costs for the Abaco plant reflects a $20m difference in price from Neymour's earlier estimations.
As late as February 2009, he told Guardian Business that the government's focus was now on building that $70 million new plant meant to meet the expanding needs of the Abacos, the country's third center of commerce and site of an increasing number of resorts.
He also confirmed the Marubeni group of Tokyo has expressed interest in purchasing BEC's Abaco plant once its replacement was erected, at the same time dismissing reports a sale is, in fact, in the works.
"Marubeni has visited Abaco, to my knowledge, with a team from the (Bahamas Electricity Corporation)," he said then, speaking to source reports that, that company sharing a majority stake in Grand Bahama Power is looking to expand its presence in this market with the acquisition. "As you know, Abaco has had some challenges particularly in 2006/2007 where we had to supplement the current operation significantly, but [a sale of the old plant] has not been determined and has not been confirmed."
Given that Abaco had a growing economy, the island is attractive to power generators looking to grow their business outside of their own home markets. Taking over the existing BEC plant would allow a private entity to win some of the islands' resort business, given developers while keen to establish their own water treatment plants have generally resisted constructing their own power plants. Neymour asserted in an earlier interview that government was seriously considering a review of the original BEC Abaco contract for the plant to make an allowance for private sector participation in the new facility.
"We have had a preliminary view and preliminary look at how private sector participation could assist in improving operations in Abaco at the new plant," said Neymour. "We haven't determined the structure of such an agreement at this time.
"But we feel that it may be in great benefit to BEC to have it reviewed as to whether we can have private sector participation in operating that facility."
~Your Abaco Real Estate Agent
Mailin Sands
Monday, June 29, 2009
Monday, June 15, 2009
Coldwell Banker- FINALIST!
Congrats to Coldwell Banker for being one of the finalist for the 2009 Inman Innovator Awards, Media category!
Coldwell Banker recently launched its own channel on Youtube.com called Coldwell Banker on Location where you can find videos of listed properties, articles on Green Home Improvements, How to do your own home inspection and much much more!
Coldwell Banker recently launched its own channel on Youtube.com called Coldwell Banker on Location where you can find videos of listed properties, articles on Green Home Improvements, How to do your own home inspection and much much more!
Thursday, June 4, 2009
BREA's 50th Anniversary
The Bahamas Real Estate Association celebrated it's 50th Anniversary recently. An awards Banquet was held recognizing some of those who have been in the real estate business for a long time. Our very own Anne Albury of Treasure Cay was among the ones who was honored for her hard work and contributions to Abaco real estate industry. Congrats Anne!
The Prime Minister The Right Honorable Hubert A. Ingraham addressed all those in attendance. I have copied his speech below. He spoke mainly about the property taxes and thought you may be interested to see what he had to say.
Address by
Rt. Hon. Hubert A. Ingraham
Prime Minister
50th Anniversary Banquet of
The Bahamas Real Estate Association
Friday, 29 May, 2009
Ladies and Gentlemen:
I am pleased to join you to mark the 50th anniversary of the establishment of The Bahamas Real Estate Association (BREA). This is a significant landmark in the history of BREA and speaks to the strength and resilience of your association.
Land development, and hence land sales, were central to our national development long before we came to be an independent country. For many years real estate agents and brokers were not regulated.
The need to regulate and manage land sales resulted in the formation of your association. And, it was not until 1995, at the behest of many of your founders, that realtors became a legally regulated profession in The Bahamas.
Similarly, the sale of land to foreigners was not regulated. It was not until the passage of the Immovable Property (Acquisition by Foreign Persons) Act of 1983 (remember that!) that land sales to non- Bahamians became legally regulated. For several years prior the sale of land to foreign persons was controlled by policy as opposed to by law.
A famous French philosopher once said, “The right of property is the most sacred of all rights of citizenship.”
Most Bahamians, I believe, share that belief. Certainly, my Government is of the view that land ownership and home ownership are effective means of economic empowerment; it is one of the best sources of financial security and independence for most people.
Not only is a home likely to be the largest purchase most people make in a lifetime, it is also likely to be the most important asset most people will ever own.
The work that real estate agents and brokers do is very important; it is not to be taken lightly. The advice and guidance that you provide to your clients is meant to assist them in making informed and, hopefully, correct decisions; for example, not to over-extend themselves financially and risk losing it all.
Doubtless you have an interest and a duty to safeguard the interests of both sellers and buyers of real property and to protect the reputation of honest realtors against unethical and unprincipled fraudsters.
Land development is good business in The Bahamas. Bahamian real estate has long been, and continues to be, highly sought after in both the domestic and international markets.
A vibrant real estate sector is crucial to a healthy and vibrant construction sector; both are important indicators of a healthy and growing economy.
Many of you will have lived through the ups and downs of the real estate market and remember periods of time when nothing seemed to move -- whether at the top, the bottom or the middle of the market. Fortunately, the extremes recently experienced in North America, have not been typical in our country where property and home prices are relatively more stable, though high.
It is with the recognition of this fact that the Government has worked with those in the business of real estate to strengthen the industry. Notwithstanding complaints from time to time, I believe that we have long banished the cumbersome and costly practices associated with the dreaded Immovable Property Act.
This has been especially important for the luxury real estate market which has thrived particularly since the enactment of the International Persons Landholding Act in 1993. At the same time we discontinued the discriminatory practice that required international persons acquiring land in The Bahamas to pay a higher rate of Stamp Duty than that paid by Bahamian citizens.
Last year we again took action meant to support the expansion of home-ownership, and hence of your industry, when we amended the Real Property Tax Act and the Stamp Act to exempt first time home-owners from the payment of stamp tax on the acquisition of a residence with a combined value (purchase and mortgage) of up to $500,000. This exemption applies to both purchaser and vendor and has a potential savings of $50,000.
Since last July 641 first-time home-owners have enjoyed this saving in connection with the acquisition of residences with a total value of $57 million. The Government gave up some $2.3 million in stamp tax revenues on those transactions. Additionally, some $814,000 was waived by the Government on mortgages totalling $86 million in connection with the purchase of first homes.
The amended Acts also exempted first-time home-owners from the payment of real property tax for the first five years of home-ownership.
We are taking additional action this year to further reduce the cost of home-ownership, reduce real property tax rates and extend the $250,000 owner-occupied exemption across the board to all home-owners, Bahamian and foreign, regardless of the period of occupancy in the residence by the owner.
My Government would like to have a low residential real property tax regime.
We believe that we ought to have a low real property tax residential rate. And, we believe it is possible to do this if, in fact, people declared the real value of their homes and paid the taxes due thereon.
I am aware that a new hew and cry has come from your sector associated with the removal by my Government last year of a four- year concession which capped real property tax payable on residential real property at $35,000 per annum.
You would be aware that it is an open secret in our society that most persons in The Bahamas pay real property taxes based on a value of their homes which is much less than the market value.
Indeed, some luxury homes bought 30 years ago, substantially renovated and even expanded, have on many occasions continued to pay on the value established at the time of original purchase or construction. I must say that this is also true of many other owner-occupied homes.
In many cases it is only the more recent sale of such properties at sums that dwarf the original purchase price which has brought the serious under-valuation of real properties in The Bahamas forcefully to the attention of the Chief Valuation Officer.
Some home-owners today, pay real property tax on the basis of the value of the vacant land upon which they have built premises but failed to register the construction and its value with the Valuation Department. Still others have never registered their property for real property tax purposes at all.
Such persons usually give by way of explanation that they have never received a bill from the Valuation Department notwithstanding that the Real Property Tax Act requires that a property owner declare and register his/her property for tax purposes.
In some cases such tax delinquents seek to poison the air when they are discovered by the Valuation Department and assessed their proper real property taxes. They some declare outrage at the dramatic increase in their tax bill! It is as true today as tomorrow or at any time – honesty is the best policy.
Ladies and Gentlemen:
The Bahamas offers an unbeatable combination of good weather, pristine beaches, excellent leisure time activity and, in general, available land – particularly outside New Providence.
Notwithstanding the dire conditions prevailing in the global economy and the consequential serious downturn in our own economy, international interests in Bahamian real property remains high.
I have found the noise in the market surrounding the imposition and removal of the residential real property tax cap interesting. I thought you might find the record of real property tax payments for that category of property owner of interest.
Prior to 2003 and the introduction of the cap, 17 owner-occupied properties paid annual real property taxes in excess of $35,000 in the amount of $1.1 million.
During the four-year period 2003-07 when the cap was in place, 57 such properties paid taxes of $35,000 per annum in the amount of $2 million.
Since the removal of the cap in July, 2007, 68 such properties have paid taxes in excess of $35,000 per annum in the amount of $4.1 million.
Can it be that we should design a special tax rate to accommodate 57 or 68 home-owners among the thousands of home-owners in the country; and to accommodate only the wealthiest home-owners?
Still, it is in the interest of all of us that we increase the compliance of home-owners in the payment of real property taxes owed across the board. And so I welcome your suggestions and offer some for your consideration.
We believe that, as opposed to the use of caps at the upper end of the real estate tax bracket and or revaluation by the Chief Valuation Officer, it would be infinitely fairer if we were to zone The Bahamas for real property tax purposes, determining property value for real property tax purposes on the basis of the square footage of improvements plus the value of the land, for example. Then we would not have to rely on sale prices to determine the value of real estate for real property tax purposes.
We must be able to agree that a 3,000-square-foot residence in Cooper’s Town, Abaco, would not have the same value as a residence of the same size in Lyford Cay in New Providence. A similar analogy might be made with regard to the value of land at Ocean Club Estates on Paradise Island, for example, versus similarly-sized property in Winton or in the Grove, West Bay Street.
We might also consider that the real property tax value will be calculated on say, 75% of a residence’s sale price. Either or all of these suggestions could provide certainty and stability as to tax liabilities for purchasers of real property in our country.
And, we may also set out the circumstances or conditions which will trigger or result in an increase in the value of properties in an orderly fashion so that tax increases are not unexpected or dramatic in nature.
Or, we might agree that foreign second-home-owners might be permitted to retain a residential designation for real property tax purposes even when their residences are not occupied by the owner for a minimum of nine months of the year, notwithstanding its use for short-term rentals to visitors. For such a concession we might require that such residences become subject to the payment of an occupancy tax when occupied by persons other than their owners or members of their immediate family in line with the occupancy room tax paid by hotels.
I believe that many things can be accomplished to the mutual benefit of the Government and its interest in safeguarding its revenue base, and yourselves with an interest in growing your clientele. But you must talk with us, and not at us, if we are to accomplish what we all seek – better for more Bahamians.
Ladies and Gentlemen:
As we do our part to support your industry and to develop and implement new efficient processes, I call upon your industry to play its part.
I take this opportunity to advise that my Government is proceeding with the preparation of a new Town Planning Act which we expect to post on the Ministry of Environment website next month so as to garner the views and recommendations of the general public. We solicit and welcome your input and comment on the draft legislation.
I particularly draw your attention to provisions concerning development of new subdivisions, developments on and near wetlands or along our coastline; provisions regulating construction setbacks from the high water mark or sand dune as might be appropriate. I suggest that you discuss the draft legislation amongst yourselves and with your clients. All comments received prior to mid-September will be considered.
Ladies and Gentlemen:
Alongside my Government’s commitment to the economic development of our country and its responsibility to protect the public revenue is a determination to ensure that such development is a part of a larger national planning process which secures other key national goals such as environmental sustainability and the preservation of our rich Bahamian culture.
Unchecked development, resulting in the destruction of both our natural and built heritage is also bad for business and the long-term viability of The Bahamas because it is that heritage which makes our country a destination for visitors from around the world, including second-home owners.
More importantly, policies welcoming foreign investment and long-term residents are but part of a broader land policy which must also safeguard access to our coastline, sea and beaches for Bahamians and further safeguard access to affordable land for generations of Bahamians for residential and commercial purposes thereby ensuring the protection of that “most sacred of all rights of citizenship”.
We could no more sell the buildings which house our Parliament or Supreme Court or dispose of Clifford Park than we can sell off endless amounts of land to non-Bahamians, forever alienating the natural patrimony which is integral to who we are as a people, integral to our sense of place and identity, integral to our future as a sovereign nation.
I firmly believe that it is the responsibility of the Government to integrate the economic and social aspects of national development, never losing sight of long-term goals in pursuit of short-term interests.
This is what has guided my previous and present administrations as we doubled the size of the national park system, and it will guide my Government’s land use policies to ensure that Bahamians have access to their land in order to pursue their dreams and ambitions and those of their children and grandchildren.
Again, congratulations on this very important anniversary. I extend very best wishes for the continued success of your industry and hence of our Bahamas.
Thank you.
The Prime Minister The Right Honorable Hubert A. Ingraham addressed all those in attendance. I have copied his speech below. He spoke mainly about the property taxes and thought you may be interested to see what he had to say.
Address by
Rt. Hon. Hubert A. Ingraham
Prime Minister
50th Anniversary Banquet of
The Bahamas Real Estate Association
Friday, 29 May, 2009
Ladies and Gentlemen:
I am pleased to join you to mark the 50th anniversary of the establishment of The Bahamas Real Estate Association (BREA). This is a significant landmark in the history of BREA and speaks to the strength and resilience of your association.
Land development, and hence land sales, were central to our national development long before we came to be an independent country. For many years real estate agents and brokers were not regulated.
The need to regulate and manage land sales resulted in the formation of your association. And, it was not until 1995, at the behest of many of your founders, that realtors became a legally regulated profession in The Bahamas.
Similarly, the sale of land to foreigners was not regulated. It was not until the passage of the Immovable Property (Acquisition by Foreign Persons) Act of 1983 (remember that!) that land sales to non- Bahamians became legally regulated. For several years prior the sale of land to foreign persons was controlled by policy as opposed to by law.
A famous French philosopher once said, “The right of property is the most sacred of all rights of citizenship.”
Most Bahamians, I believe, share that belief. Certainly, my Government is of the view that land ownership and home ownership are effective means of economic empowerment; it is one of the best sources of financial security and independence for most people.
Not only is a home likely to be the largest purchase most people make in a lifetime, it is also likely to be the most important asset most people will ever own.
The work that real estate agents and brokers do is very important; it is not to be taken lightly. The advice and guidance that you provide to your clients is meant to assist them in making informed and, hopefully, correct decisions; for example, not to over-extend themselves financially and risk losing it all.
Doubtless you have an interest and a duty to safeguard the interests of both sellers and buyers of real property and to protect the reputation of honest realtors against unethical and unprincipled fraudsters.
Land development is good business in The Bahamas. Bahamian real estate has long been, and continues to be, highly sought after in both the domestic and international markets.
A vibrant real estate sector is crucial to a healthy and vibrant construction sector; both are important indicators of a healthy and growing economy.
Many of you will have lived through the ups and downs of the real estate market and remember periods of time when nothing seemed to move -- whether at the top, the bottom or the middle of the market. Fortunately, the extremes recently experienced in North America, have not been typical in our country where property and home prices are relatively more stable, though high.
It is with the recognition of this fact that the Government has worked with those in the business of real estate to strengthen the industry. Notwithstanding complaints from time to time, I believe that we have long banished the cumbersome and costly practices associated with the dreaded Immovable Property Act.
This has been especially important for the luxury real estate market which has thrived particularly since the enactment of the International Persons Landholding Act in 1993. At the same time we discontinued the discriminatory practice that required international persons acquiring land in The Bahamas to pay a higher rate of Stamp Duty than that paid by Bahamian citizens.
Last year we again took action meant to support the expansion of home-ownership, and hence of your industry, when we amended the Real Property Tax Act and the Stamp Act to exempt first time home-owners from the payment of stamp tax on the acquisition of a residence with a combined value (purchase and mortgage) of up to $500,000. This exemption applies to both purchaser and vendor and has a potential savings of $50,000.
Since last July 641 first-time home-owners have enjoyed this saving in connection with the acquisition of residences with a total value of $57 million. The Government gave up some $2.3 million in stamp tax revenues on those transactions. Additionally, some $814,000 was waived by the Government on mortgages totalling $86 million in connection with the purchase of first homes.
The amended Acts also exempted first-time home-owners from the payment of real property tax for the first five years of home-ownership.
We are taking additional action this year to further reduce the cost of home-ownership, reduce real property tax rates and extend the $250,000 owner-occupied exemption across the board to all home-owners, Bahamian and foreign, regardless of the period of occupancy in the residence by the owner.
My Government would like to have a low residential real property tax regime.
We believe that we ought to have a low real property tax residential rate. And, we believe it is possible to do this if, in fact, people declared the real value of their homes and paid the taxes due thereon.
I am aware that a new hew and cry has come from your sector associated with the removal by my Government last year of a four- year concession which capped real property tax payable on residential real property at $35,000 per annum.
You would be aware that it is an open secret in our society that most persons in The Bahamas pay real property taxes based on a value of their homes which is much less than the market value.
Indeed, some luxury homes bought 30 years ago, substantially renovated and even expanded, have on many occasions continued to pay on the value established at the time of original purchase or construction. I must say that this is also true of many other owner-occupied homes.
In many cases it is only the more recent sale of such properties at sums that dwarf the original purchase price which has brought the serious under-valuation of real properties in The Bahamas forcefully to the attention of the Chief Valuation Officer.
Some home-owners today, pay real property tax on the basis of the value of the vacant land upon which they have built premises but failed to register the construction and its value with the Valuation Department. Still others have never registered their property for real property tax purposes at all.
Such persons usually give by way of explanation that they have never received a bill from the Valuation Department notwithstanding that the Real Property Tax Act requires that a property owner declare and register his/her property for tax purposes.
In some cases such tax delinquents seek to poison the air when they are discovered by the Valuation Department and assessed their proper real property taxes. They some declare outrage at the dramatic increase in their tax bill! It is as true today as tomorrow or at any time – honesty is the best policy.
Ladies and Gentlemen:
The Bahamas offers an unbeatable combination of good weather, pristine beaches, excellent leisure time activity and, in general, available land – particularly outside New Providence.
Notwithstanding the dire conditions prevailing in the global economy and the consequential serious downturn in our own economy, international interests in Bahamian real property remains high.
I have found the noise in the market surrounding the imposition and removal of the residential real property tax cap interesting. I thought you might find the record of real property tax payments for that category of property owner of interest.
Prior to 2003 and the introduction of the cap, 17 owner-occupied properties paid annual real property taxes in excess of $35,000 in the amount of $1.1 million.
During the four-year period 2003-07 when the cap was in place, 57 such properties paid taxes of $35,000 per annum in the amount of $2 million.
Since the removal of the cap in July, 2007, 68 such properties have paid taxes in excess of $35,000 per annum in the amount of $4.1 million.
Can it be that we should design a special tax rate to accommodate 57 or 68 home-owners among the thousands of home-owners in the country; and to accommodate only the wealthiest home-owners?
Still, it is in the interest of all of us that we increase the compliance of home-owners in the payment of real property taxes owed across the board. And so I welcome your suggestions and offer some for your consideration.
We believe that, as opposed to the use of caps at the upper end of the real estate tax bracket and or revaluation by the Chief Valuation Officer, it would be infinitely fairer if we were to zone The Bahamas for real property tax purposes, determining property value for real property tax purposes on the basis of the square footage of improvements plus the value of the land, for example. Then we would not have to rely on sale prices to determine the value of real estate for real property tax purposes.
We must be able to agree that a 3,000-square-foot residence in Cooper’s Town, Abaco, would not have the same value as a residence of the same size in Lyford Cay in New Providence. A similar analogy might be made with regard to the value of land at Ocean Club Estates on Paradise Island, for example, versus similarly-sized property in Winton or in the Grove, West Bay Street.
We might also consider that the real property tax value will be calculated on say, 75% of a residence’s sale price. Either or all of these suggestions could provide certainty and stability as to tax liabilities for purchasers of real property in our country.
And, we may also set out the circumstances or conditions which will trigger or result in an increase in the value of properties in an orderly fashion so that tax increases are not unexpected or dramatic in nature.
Or, we might agree that foreign second-home-owners might be permitted to retain a residential designation for real property tax purposes even when their residences are not occupied by the owner for a minimum of nine months of the year, notwithstanding its use for short-term rentals to visitors. For such a concession we might require that such residences become subject to the payment of an occupancy tax when occupied by persons other than their owners or members of their immediate family in line with the occupancy room tax paid by hotels.
I believe that many things can be accomplished to the mutual benefit of the Government and its interest in safeguarding its revenue base, and yourselves with an interest in growing your clientele. But you must talk with us, and not at us, if we are to accomplish what we all seek – better for more Bahamians.
Ladies and Gentlemen:
As we do our part to support your industry and to develop and implement new efficient processes, I call upon your industry to play its part.
I take this opportunity to advise that my Government is proceeding with the preparation of a new Town Planning Act which we expect to post on the Ministry of Environment website next month so as to garner the views and recommendations of the general public. We solicit and welcome your input and comment on the draft legislation.
I particularly draw your attention to provisions concerning development of new subdivisions, developments on and near wetlands or along our coastline; provisions regulating construction setbacks from the high water mark or sand dune as might be appropriate. I suggest that you discuss the draft legislation amongst yourselves and with your clients. All comments received prior to mid-September will be considered.
Ladies and Gentlemen:
Alongside my Government’s commitment to the economic development of our country and its responsibility to protect the public revenue is a determination to ensure that such development is a part of a larger national planning process which secures other key national goals such as environmental sustainability and the preservation of our rich Bahamian culture.
Unchecked development, resulting in the destruction of both our natural and built heritage is also bad for business and the long-term viability of The Bahamas because it is that heritage which makes our country a destination for visitors from around the world, including second-home owners.
More importantly, policies welcoming foreign investment and long-term residents are but part of a broader land policy which must also safeguard access to our coastline, sea and beaches for Bahamians and further safeguard access to affordable land for generations of Bahamians for residential and commercial purposes thereby ensuring the protection of that “most sacred of all rights of citizenship”.
We could no more sell the buildings which house our Parliament or Supreme Court or dispose of Clifford Park than we can sell off endless amounts of land to non-Bahamians, forever alienating the natural patrimony which is integral to who we are as a people, integral to our sense of place and identity, integral to our future as a sovereign nation.
I firmly believe that it is the responsibility of the Government to integrate the economic and social aspects of national development, never losing sight of long-term goals in pursuit of short-term interests.
This is what has guided my previous and present administrations as we doubled the size of the national park system, and it will guide my Government’s land use policies to ensure that Bahamians have access to their land in order to pursue their dreams and ambitions and those of their children and grandchildren.
Again, congratulations on this very important anniversary. I extend very best wishes for the continued success of your industry and hence of our Bahamas.
Thank you.
Tuesday, June 2, 2009
Priced to Sell!
Good Day Everyone,
Summer Place has had a price reduction. The owners are ready to sell! Copy and paste the below link in your browser to see this home in Man-O-War Cay!
http://www.realestateinabaco.com/Summer-Place-REDUCED-PRICE-FOR-QUICK-SALE-a74187.html
Summer Place has had a price reduction. The owners are ready to sell! Copy and paste the below link in your browser to see this home in Man-O-War Cay!
http://www.realestateinabaco.com/Summer-Place-REDUCED-PRICE-FOR-QUICK-SALE-a74187.html
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