If you have been keeping keen on the vacation rental market, you will have noticed the big heavyweights in the market like Homeaway, Airbnb, Trip Advisor, and others are fighting for a market share of what some market research analysts think the global vacation rental market will reach $150 + billion per annum by 2019, so where you make your first investment is important.
What these companies have in common is that they have noticed a decisive shift away from traditional hotel travel.
In The Bahamas, the People to People program was implemented many years ago, and here is what is offered.
Join People-To-People Experience Now
Our free program lets you experience Bahamian culture and cuisine as well as learn more about our history and develop long-lasting friendships with one of our many Bahamian ambassadors.
…………..Let us know which island(s) you would like to visit and what your interests are. …..we will enhance your vacation experience by sharing our way of life with you..SEE FULL DETAILS HERE
Today, renters are now experiencing this on their own terms.
The Vacation Rental market in the 700 islands & keys called The Bahamas, allows visitors to choose the island, location, home, villa, condo, or cottage of their choice. They are choosing remote locations a well as beachfront, canal front, golf course, and inland properties. The main draw for vacation renters is to seek a more authentic Bahamian experience that allows them to create their own itinerary, mingle with the locals through community and cultural events, and prepare their own meals if they so choose.
Favorable reviews and testimonies like the one below from a $60 per night room not on a beach, waterfront, or golf course in Freeport Bahamas by a visiting French couple, help drive new visitors to your vacation rental/s.SEE FULL REVIEW OF THIS PROPERTY HERE
One of 38 Reviews of this rental:
Great stay !!! Florian has greatly contributed: he picked us up at the port, taking the time to give us a little tour upon arrival, before leaving us on a simply sublime beach ….SEE FULL REVIEW OF THIS PROPERTY HERE.
It is nearly impossible for hotels to compete with these kinds of experiences. This rental has a 5 star rating in all of the six categories.
This review, ( January 2016) from a $350 per night beachfront 3 bed 2 bath cottage Freeport, Bahamas.
One of Six Reviews:
Our Host Jacquie made my whole family feel very welcome. She met us at the gate to let us into the gated community and lead us to the beautiful house. The entire gated community was very well….SEE FULL REVIEW HERE.
An excellent rating combined with a detailed description by guests is priceless MARKETING…!!!
After viewing all of the properties that have been rated by visitors, the average rating is 4.7 ( 5 STARS) with the lowest rating from any property was 4.0 star…!! With visitors determining the quality of your product, a five star rating across the board for Freeport-Grand Bahama means visitor arrivals will continue to grow and increase this market share.
Vacation rentals are gaining more traction globally not only for the local or native experiences but it is more cost effective, intimate, private and because of competition from competing properties, the service is usually impeccable. Any bad experiences and/or ratings by guests will negatively affect your ability to book guests.
Vacation rentals are fast becoming the “in thing”…postings on social media during their stay or the topic of conversation when back at work, with friends and family lamenting on the cool rental property they got a good deal on and their invaluable experiences.
Another reason for the fast paced growth of this industry globally, from an investment perspective, is the upsides of owning a vacation rental/s being an absentee owner. Owners can be a world away, yet through the advancement of the internet, reservations can be made, the on island property manager takes care of all things related to the property ( utilities, maintenance companies, maids, in house spa-, dial a chef) and monies are deposited to the owner’s account.
NUMBER OF INVESTORS EXPECTED TO GROW
Like most aspects of real estate, as vacation rentals become more popular with vacationers, they will also become more popular for owners/investors, who will react to the increased demand. Investors are always looking for handsome rental income, capital appreciations, and growth potential, and Freeport – Grand Bahama offers this.
So one would conclude that if you can snag a property or multiple properties while it’s a buyers market on Freeport -Grand Bahama, it’s best to do so now.
WHY INVEST IN A FREEPORT / LUCAYA VACATION RENTAL TODAY.
(1) It’s a BUYER’S MARKET and Finding a diverse inventory of available vacation rental options is not an issue. In Freeport, there is ample opportunity for you to make a profit on the buying end, enjoy the handsome rental income, and because of the growing global demand for vacation rentals, finding buyers for your property when demand becomes greater than supply will command another profit should you decide to sell.
As mentioned earlier, the closure of a few key hotels combined with the 2008 recession, has the local economy still rebounding. This has resulted in an increase of foreclosed properties on the market and one can find quality homes, villas, cottages, and condos at or below market value in all price ranges and diverse communities throughout the city in particular and the island in general.
I have included a variety of properties below for your perusal.
Should you want to get in on the ground floor or in this instance THE BASEMENT, a studio condo ( not on the waterfront) that needs some remodeling, the asking price is $15,000 ( unfurnished) comprising 480 sq ft or at $31.5 per sq ft. If the buyer injects another 10-15,000 to upgrade to industry standards and commands $65 per night, at only 50% occupancy the gross return for the first year is $11,000 or one third (33%)of your total investment…SEE LINK TO THIS AND MORE LISTINGS HERE. Conversely, a studio located in a beachfront condo project is asking $55,000 ( unfurnished). At $70 per night at 65 % occupancy, the gross income for the first year is $16,600 or close to30 % of your initial injection. SEE THE LINK TO MORE LISTINGS HERE.
BUILDING YOU OWN PROJECT
Should you want to purchase a beachfront, canal front, or golf course lot, building costs can range from $125 per sq ft on the low end and over $250 per sq ft on the high end and can be even higher depending on the quality and complexity of the finish. Businesses related to the construction industry are more than ready to supply you with all that you require and should the need arise, they can place special orders anywhere in the world.
SEE MORE LISTING HERE
FREEPORT TAX FREE ZONE
(2)Taxes: Owning a second home primarily because of the destination to be enjoyed by you, your family, and friends is awesome, however, if you are investing primarily for profit, it’s going to be hard to top this TAX FREE ZONE called Freeport, Lucaya. In Freeport, there are no property taxes, no taxes on income, capital gains, inheritance, distributions, and earnings. Additionally, should you want to purchase vacant land and build a villa, cottage, condo development, there are incentives and concessions offered depending on the size of your development. Additionally, having a BOND allows you to import all building and related materials duty free.
VACANT LAND FOR TOURISM DEVELOPMENT
(3) The abundance of and reasonably priced miles of virgin, powdery, white sandy beachfront lots and 20 miles of the bulkhead canal system is quite attractive for those who wish to build the development or vacation rental property of their dreams. Waterfront vacation rentals offer the ultimate in luxury vacationing and command handsome nightly income. Beach and Canal front homes attract a variety of vacationers including boating enthusiasts. Most of the canal systems are in close proximity to the beach, golf courses and just minutes from the city center, Port Lucaya resort area hotels, casino, and marketplace area.
CONCLUSION
The wealth or richness of Freeport Grand Bahama is its people who offer a unique culture on a unique island. This culture cannot be duplicated anywhere else in the world. A hotel on a beach, no matter where in the world, cannot compete with a culture that is complimented by a unique city and island.
Additional resources and information for concessions and incentives and related matters can be found at the links below.
(1) The Bahamas vacation plan and timeshare act- Provides duty-free concessions for building supplies for the construction of facilities.
(2)The hotel encouragement act – provides duty free entry of approved construction materials, furnishings, and fixtures for hotel development as well as provides for exemption/concession from real property tax for the first twenty years of operation of a hotel/resort.
(3) The Hawksbill Creek Agreement Act- Allows the Port Area that is the FREE TRADE ZONE of Freeport, Grand Bahama, freedom from all taxes until 2054.
(4) The Grand Bahama Port Authority
(5) International person landholding act
(6) Bahamas Investment Authority