The Wealthy still favours property

High Net Worth Individuals globally still place property at the top of their investments lists, on average 35 percent of their assets.

The 4.4ha smallholding Piedmont wine farm situated at the foot of the Helderberg Mountain between Stellenbosch and Somerset West. Asking price R25 million.
According to the Knight Frank Wealth Report 2011, property remains close to HNWI with property accounting for 35 percent of their investment portfolios.

The report suggests that the only thing these wealthy individuals would rather put their money into besides property is their own businesses.

In South Africa, HNWI at the moment are holding back from investing in almost all kinds of assets including property, said Lanice Steward, managing director of Knight Frank’s South African associate, Anne Porter Properties.

“The favoured channels for investment are gold, commodities (especially coal, steel and platinum),” said Steward.

She said there is a trend among shrewd investors to build up their portfolios by buying repossessed properties. These properties often sell at 30 percent to 40 percent below their previous values hence the boom in the auction property market.

“SA investors should therefore follow the HNWI as stated in the report and keep significant chunk of assets in property.”

Steward explained that the report indicates a growing conservatism and risk-aversion among HNWI investors. They favour already successful property investments rather than trying riskier or unproven areas.

“South African equities are attracting good capital inflows because the returns are above average when compared to those of the world and can be quickly disposed of if the market sentiment changes.”

She said they remain confident that the appeal of property investments in locations such as Constantia and Stellenbosch in the Cape and Kloof in Kwa-Zulu Natal will continue to attract foreign buyers.

Asked about the future of residential property in South Africa, Steward said the first signs of market recovery are now evident. However, this will take time and they expect a slow improvement throughout 2012 with a return to normal trading conditions by mid-2013.

Wealthy individuals have a knack for lifestyle living. They like to buy vineyards where they can not only produce wines but enjoy a unique residential appeal to suit their status.

This wine farm located at the top of the Helshootge Pass is selling for R38 million.
Steward shares the sentiment adding that previously, four big wine estates in Stellenbosch were acquired by foreign investors. The prospects of secure residential developments on wine and olive estates still appear to be reasonable with slow but steady sales, she said.

“SA vineyards currently have an average price of US$80 000 per hectare,” said Steward.

Estate agents operating in Stellenbosch say wine estates are in demand thanks to the region’s fertile soil and renowned wines.

Pam Golding Properties (PGP) area manager Louise Varga said the wine industry has helped to create some of the most spectacular real estate in Stellenbosch.

“The cost of wine farms depend on location, the size of the farm and scale of the wine making operation,” said Varga.

As an example, she said a large scale farm of about 100ha with a state-of-the-art, high volume cellar can cost approximately R30 million. A small holding of under 5ha might also sell close to the same price.

“Pricing depends on the wine label prominence, the size of export contracts, the quality of water supply in the farm and adds-on such as a restaurant, wedding venue, conference centre and guesthouse elements.”

PGP has on its book a 49ha boutique winery on the Old Paarl Road in Stellenbosch with an established vineyard and orchards. The asking price is R23 million with features such as a restaurant, wedding venue, a small conference facility catering for up to 16 people, a deli and art gallery.

Buyers can also choose from a variety of stock in the Boland and Overberg regions with prices ranging between R4.85 million and R7.8 million for 4.5ha. Investors enjoy the lifestyle of a working farm contained within the safety and convenience of a secure estate.

Located on the Old Paarl and Kraaifontein in Stellenbosch, this wine farm is selling for R23 million.
The Knight Frank report shows demand for vineyards has gathered pace in the past five years. Wealthy vineyard owners fall into two groups – the majority of buyers looking for a holiday house with a few hectares of vines and those who want to produce wine on a larger scale.

The overall prices of vineyards will be affected by commercial vineyard land values in line with bulk wine prices. Furthermore, the report states that although areas producing the best quality wines experience less volatility, bulk wine prices moves are likely to affect the property value of boutique wineries.

According to the Knight Frank Vineyard Index, the Western Cape region in SA is ranked as a developed property market with good buildings, possibly Cape Dutch-style. A 20 to 30 ha of vineyards is valued at US$82 00/ha.

The priciest in the index being Bordeaux and the Dordogne France, classic chateau style featuring six bedrooms , 2 to 20ha priced at US$642 000/ha. – Denise Mhlanga

UK's most expensive flat sold for £135.4 million

The UK’s most expensive flat has been sold in London for £135.4 m.

Prices for a one-bedroom apartment at One Hyde Park start at £6 million Photo: BLOOMBERG

The buyer of “Flat a” at the One Hyde Park development is understood to be a Ukrainian who purchased the penthouse in cash in 2007.

The new owner is thought to be spending up to £60 million on interior work after receiving the apartment with bare walls and no amenities.

The Ukrainian used an offshore company called Water Property Holdings to buy the flat, which covers the top three floors in the Richard Rogers designed complex next to Knightsbridge.

The complex, built by a development group led by the Candy brothers, the upmarket property investors, has become the most expensive residential development with almost £1bn of sales transacted across 45 apartments.

The scheme finished in January and almost all the apartments have been bought through offshore trusts.The law firm used in the purchase is based in Russia and Ukraine. There is no mortgage linked to the property and the identity of the buyer is covered by confidentiality clauses with Project Grande (Guernsey) Limited, the developer.

SA property falls in global rankings

The rapid deceleration in house price growth in recent months has seen South Africa slip markedly in the global performance rankings.

UK-based Knight Frank’s latest Global House Price Index shows that South Africa ended the third quarter of 2010 in 22nd place, down from 6th position in the second quarter.

UK-based Knight Frank’s latest Global House Price Index released earlier this week shows that South Africa ended the third quarter of 2010 in 22nd place, down from 6th position in the second quarter. Knight Frank tracks price movements in 48 countries across the world.

According to the latest index, South Africa managed house price growth of an average 3% in the third quarter. That is significantly down from the 14,8% recorded in the second quarter (year-on-year).

However, it’s not only South Africa where the housing recovery has lost steam. Liam Bailey, head of residential research at Knight Frank, says a number of countries have even tipped back into negative growth in the past three months. A total of 14 mainly European countries saw negative growth in the third quarter after they had experienced several quarters of rising prices.

Bailey says there is a growing gap between the less debt-afflicted European economies of Austria, France and Finland who rank in the top 10 and their neighbours to the south and west of the continent like Greece, Spain and Ireland who rank in the bottom 10.

The world’s top performing housing market in the third quarter was Latvia in Eastern Europe with growth of 26,1%. Ireland ended the third quarter at the bottom of Knight Frank’s global house price rankings with negative growth of -14,8%. The report shows that in Dublin declines of up to 50% have been recorded over the past two years.

Bailey says although there is some good news in that for the first time since late 2008 prices are rising in each of the six world regions -- Asia-Pacific is up 9,9%, the Middle East 5,1%, North America 4,2%, South America 3,5%, Africa 3% and Europe 0,8% -- the headlines don’t tell the full story.

Says Bailey: “Digging into the data we can see that there are still considerable issues playing out across global housing markets. While a majority of countries are reporting positive annual growth, 56% saw prices fall in the third quarter of this year.”

Bailey notes there is growing evidence that the global housing recovery, which began in early 2009 following desperate conditions in 2007 and 2008, may just be beginning to run out of steam. Nearly 30% of countries that experienced strengthening conditions in early 2010 saw quarterly price growth turn negative in the third quarter. - Joan Muller

Time for a Rate Cut ?

Thu, 06 May 2010 08:05

Difficulties getting a bond have been cited as a good reason for a further drop in interest rates but the Reserve Bank has hinted the scope for further cuts is limited.

Rawson Properties chairman Bill Rawson says in his 39 years in property, “it has seldom been more difficult to get a bond”. He says the applicant has to show that over a period of at least six months his cash flow has been able to support an outlay equal to what he would pay on his bond.
“If, for example, he has been paying R6000 a month on rent and now wants to invest R10000 a month in a home, he will have to produce very substantial evidence that he will be under no pressure to pay the extra amount.

“Impressive assets invested elsewhere will not make his application more likely to succeed: the banks look only at cash flow. They also insist on a squeaky-clean, problem-free debt-paying record, even on minor accounts such as those for retail outlets.”

Reserve Bank governor Gill Marcus said recently that interest rates were likely to stay steady “for some time”, damping speculation of another cut this month.

Marcus warned analysts not to jump to conclusions based on February’s surprise fall in retail sales, which merely confirmed “the fragile nature” of consumer spending. “The scope for further easing is limited, and the repurchase rate is likely to remain stable for some time,” she said.

Before the Bank’s last policy meeting, Rawson says, nine out of 10 economists predicted a further cut was very unlikely, but were gratified when the Bank did, in fact, cut rates. “Now, with the rate already reduced by 5,5 percentage points since December 2008 and with prime at only 10 percent, it could be argued a further cut is not needed. In my view, however, it is absolutely essential. We need it not only to help the housing market move faster, but also to boost the economy as a whole.”

Statistics SA’s January and February figures, says Rawson, show that consumer spending was down 1,5 percent and until this begins to rise there can be no significant economic upturn.
“Many emerging middle-class people are carrying far too much debt but there is a growing appreciation in some sectors that this must be reduced, especially if you hope to become a homeowner. A drop in rates will help those paying off debts, particularly those on high higher-purchase rates.”

Low interest rates, he says, will encourage people to find investments other than equities and enhance the appeal of property.

“Every now and then one reads in the press that equities have performed better than property. What these surveys do not show you is that the returns on property are usually better than those on shares for the simple reason that the majority of property buyers are bonded: their actual capital outlay is fairly small but their rents or their profits on their sales are highly satisfactory as they relate to the total value of the property.”

A further good reason for a drop in the interest rate, Rawson, says, is that, in boosting the economy, it would boost job creation. “I strongly suspect the official unemployment figures are way below the real figures. In many rural areas people are starving. In Grahamstown, I am told, more than 60 percent of employable males are jobless. All the indicators, therefore, point to the May meeting - cutting the rate by a further half point, giving us the lowest interest rate in 40 years … ” and we certainly need it at this stage in SA’s economic recovery.”

Source: Business Day

100 reasons to smile

Thu, 28 May 2009 16:18

The Monetary Policy Committee of the SA Reserve Bank (SARB) has cut the repo rate by 100 basis points, Governor Tito Mboweni said on Thursday.

The repo rate now stands at 7.5 percent while prime has been reduced to 11 percent.

This is the SARB's fourth rate cut this year.

Mboweni said the SARB's most recent consumer price inflation forecast showed a relatively unchanged outcome for the near-term as compared to that presented to the previous meeting of the MPC.

"Over the longer term, there appears to be a moderate improvement," he added.

This forecast, Mboweni noted, was similar to the Reuters consensus forecast of private analysts who expected inflation to average 6.9 percent and 5.7 percent in 2009 and 2010 respectively.

Mboweni said the main upside risk to the inflation outlook came from cost-push pressures, in particular from electricity price increases.

"Eskom has applied to the National Energy Regulator of SA for a 34 percent interim increase in electricity tariffs, but there is still uncertainty about the final adjustment," he said.

A number of municipalities had already budgeted for significant electricity price increases in anticipation of higher Eskom tariffs, Mboweni noted.

According to the governor, in line with the less negative global outlook, there had been a moderate recovery in international oil prices.

"North Sea Brent crude oil has been trading at prices of around $60 per barrel during the past days, compared with an average of around $50 per barrel during April.

"These developments may result in a moderate increase in the domestic petrol price in June," he said.

The impact of the higher international prices on domestic petrol prices had been partly offset by exchange rate movements during the month, Mboweni said.

He added that food price inflation remained well above average inflation, and had been lagging the favourable developments at the producer price level and in the spot prices of agricultural commodities.

"Food price inflation measured 17.9 percent in August 2008 and has been moderating persistently, but slowly, since then," the governor said.

Sapa

Get used to the downswing, so that the upswing won’t give you Vertigo.....

Is it just me or is the world wallowing in the global economic crises? 

Every time you switch the channel to Sky / CNN or BBC you hear of unemployment, negative growth, repossessions, etc. Are things really that bad? And are we really approaching the worst recession since the 1980’s when the international community shunned us because of our political policies? The simple answer is unfortunately…………….………yes. 

Forecasts by Economists (here come the predictions) set our GDP growth………....sorry, our GDP decline to be in the region of -10% for 2009. And as pure economists, they always leave you with a ‘silver lining’…. but this may improve to -8% toward the end of the year. (What the hell does it matter when you’re looking at negative growth !!!)

In the property market, our commercial banks continued to restrict lending. This increased the average bank decline ratio (How many mortgage applications are declined after being submitted) to 60% !! As for deposits required to secure your property, the average deposit required was 24% compared to 16% last year. (If these figures don’t make you ill, then nothing will………)

With the potential for more interest rate cuts on the way, under such dire global and domestic economic conditions, it’s unlikely that reductions will even get the residential market out of bed. Let’s hope things improve, even though I have a sneaking suspicion that it’s going to get worse before it gets better. 

In conclusion, just a few words on this month’s election: 

Remember, that in our amazing democratic country, you the voter have the right to choose. No matter what the outcome, YOUR vote has power. So whatever your decision is, make sure that it’s based on what you believe to be right, as it not only affects you, but millions of South Africans worldwide. 

Property Review - Egypt

Egypt - The Land of the Pharoahs

Fast Facts

· GDP growth currently at 7%

· No capital gains or inheritance tax.

· Capital: Cairo

· Population: 80 million

· Currency: Egyptian Pound

Economic Overview

'I don't where to go first, the Pyramids of Giza or the Valley of the Kings? Why not do both and even add on a Red Sea scuba dive in Sharm El Sheikh'? Well, that depends on how much time you have? Oh.........about a week'

You might need a little longer than that, as you'd only be able to cover half of Cairo in a week J'

Officially, the Arab Republic of Egypt, is a country in North Africa that includes the Sinai Peninsula, a land bridge to Asia. It borders Libya to the west, Sudan to the south and the Gaza Strip and Israel to the east. The northern coast borders the Mediterranean Sea; the eastern coast borders the Red Sea.

Egypt declared its independence from Great Britain in 1922 and only became a Republic in 1953. Hosni Mubarak became Egypt's 4th President in 1981 since being declared a Republic and is currently serving his 5th term in office.

Under comprehensive economic reforms initiated in 1991, Egypt has relaxed many price controls, reduced subsidies, reduced inflation, cut taxes, and partially liberalized trade and investment. This has promoted a steady increase of GDP, as well as the annual growth rate. The Government of Egypt tamed inflation bringing it down from double-digit to a single digit..........Wanna see?! :)

And yes, I PROMISE that this graph is correct as the nosedive from 25% inflation in the late 1980's is truly incredible !! And just to top that, GDP is currently rising smartly by 7% per annum due to a successful diversification.

Egypt is currently, truly coming into its own and the emerging sectors such as IT Sector and the Investment Climate (yay !! :) are showing the way !!
The Egyptian IT sector has been growing significantly since it was separated from the transportation sector. The market for telecommunications market was officially deregulated since the beginning of 2006 according to the World Trade Organisation agreement.

The government established the Information Technology Industry Development Agency (ITIDA) as governmental entity. This agency aims at paving the way for the diffusion of the e-business services in Egypt, capitalizing on different mandates of the authority as activating the Egyptian e-signature law, and supporting an export-oriented IT sector in Egypt.

The Egyptian equity market is one of the most developed in the region with more than 633 listed companies. Market capitalization on the exchange doubled in 2005 from USD 47.2 billion to USD 93.5 billion, with turnover surging from USD 1.16 billion in January 2005 to USD 6 billion in January 2006.

Property Market Review

After years of only state-built housing, in the early 1990s the government allowed private housing projects. And guess what happened? Inexperienced companies jumped in and soon you had a massive oversupply which soon ended up with many Developers going bankrupt (Will they never learn?! : )

But now, the situation has changed.........WHY? (do I hear everyone shout !!)

Well, if you wait a second, I'll tell you........:

- Egypt offers excellent rental income returns.

- The Gulf is now exploding with new oil money, and sees Egypt as less risky than Lebanon or Jordan.

- Egypt has a rapidly-growing economy (remember the 7%?) with a fast-growing outsourcing sector.

- There is enormous European interest in Red Sea property.

The government initiated a managed float of the Egyptian Pound in January 2003, leading to a sharp drop in its value which has since recovered. And what happens when a currency weakens against international currencies, and you have a significant Expat Community? They start buying of course !!! And so did everyone else............

The passing of the Real Estate Finance Law in May 2001, created a mortgage market. (Can you believe that it took them this long??!!!) For the first time since the 1948 civil code, banks can now repossess properties and evict owners who default on loan repayments.

Total mortgage lending is expected to grow rapidly to LE 4 billion (US$690 million) by the end of 2007, as the Egyptian Company for Mortgage Refinancing (ECMR) begins operations. ECMR is likely to help lower interest rates, which have hitherto been an obstacle to lower income groups. Lending rates in the 12% - 14% range have discouraged housing purchases, but in turn increased rentals due to affordability.

Now, let's start at how we as 'Foreigners' can secure property in the Land of the Pharaohs:

Foreigners can buy property in Egypt, under Law No 230 of 1996. (Well, that's a start J) But, foreigners cannot buy more than two pieces of real-estate, and the purchase must have the approval of the Council of Ministers, which takes around two months.

Property in Sharm El Sheikh follows a different regime where foreign purchasers in cannot acquire freehold rights, but only 99 year leases. Foreign purchasers must therefore follow a procedure called a 'signature validity court verdict'.

The 'signature validity court verdict' method could well become the dominant route for foreigners, because it allows the foreigner to buy as many properties as he likes, rent them, and sell when he likes.

The following steps must be taken:

1. A 'negative' certificate for the property should be obtained from the government, stating that there are no mortgages, pledges, or any other sort of rights on the property registered to any other party.

2. The tax authorities must issue a certificate stating what taxes are due on the property.

3. A sale / usufruct contract should be drawn up.

- The validity of the sale depends on the terms of the contract.

- So it is essential for the purchaser to have a detailed contract, defining the property boundaries, the purchase price, the method of the acquisition of the rights of the previous owner, and the method of payment.

- The contract must be in Arabic, since Arabic is the only language recognized by the courts. (very NB !!)

4. Purchasers must issue a power of attorney to their lawyer so that he can act on their behalf, a procedure which requires the purchaser to obtain a multi-entry visa:

- Then the lawyer files a legal suit to obtain a court verdict certifying that the signature on the sale / usufruct contract truly belongs to the seller

(This is the 'signature validity court verdict').

- This suit will take between 6-8 months.

It's always very important to have a look at the transaction costs involved when making your purchase, and to give yourself an idea of the 'hidden costs' involved, have a look at this table:

Transaction Costs

- Registration Fee EGP500 - EGP2,000 buyer

- Legal Fees 3% buyer

- Real Estate Agent's Fee 2.75% - 3.30%

- Transfer Tax 2.50%

- Capital Gains Tax 2.50%

- Costs paid by buyer 3.10% - 4.00%

- Costs paid by seller 7.75% - 8.30%

- Roundtrip Transaction Costs 10.85% - 12.30%

Source: Global Property Guide

Now that you have had a look at the Purchase Procedure, let's have a look at what the results could be once you do decide to buy. Here is the graph of Rental Yields & Property Prices per Type of Unit for Cairo:

CAIRO - MAADI - Apartments

Size: 250 sq.m.

COST (US$)

136,000

YIELD (p.a.)

17.32%

CAIRO - MOHANDESSEEN - Apartments

Size: 250 sq.m.

COST (US$)

149,750

YIELD (p.a.)

8.01%

CAIRO - ZAMALEK - Apartments

Size: 250 sq.m.

COST (US$)

294,750

YIELD (p.a.)

6.84%

Source: Global Property Guide

So the question is: Would you buy in Maadi at 17% Rental Yield?

YES I would !!! :)

Therefore, the transaction costs in itself are not too expensive, but it's the Buying Process that needs VERY careful consederation.................as it gets pretty complicated !!

Conclusion

Although all the economic and property market indicators, correctly point to Egypt as a awesome viable investment destination, there is 1 thing that bothers me:

Egypt relies heavily on tourism.

The tourism sector suffered tremendously following terrorist attacks on tourists in Luxor in October 1997,Sharm al-Sheikh in July 2005, and the town of Dahab in Red Sea resort in April 2006. And therefore, any type of terrosist attack can upset the entire region, and bode badly for the investor.

Other than that, at properties priced starting at £19k, who'll NOT be buying?

(Sources: http://www.globalpropertyguide.com/ , http://www.wikipedia.org/ & Daily Telegraph)

Property Review - The Bahamas

The Bahamas - The Country of 700 Islands.

F ast Facts:

• 3rd Wealthiest Country in the Western Hemisphere.
  
• No income taxes are payable either by residents or non-residents.
  
• Capital = Nassau
  
• Population = 323,000
  
• Currency = Dollar

Economic Overview

Has everyone got their Pina Coladas ready? Everyone got one of those small umbrellas? A piece of pineapple and maybe some nutmeg sprinkled on top for full affect? J Ok? Great !!!

Now, take your first sip and think 'The Bahamas ' .........and you suddenly see yourself whisked away to a turquoise sea teeming with sealife and sandy beaches that stretch for miles. You sit in your gorgeous Villa, while being served a seafood cocktail of shrimp & crayfish, while feeling the sun bronze your limbs......... So.....you wanna go?

Although, tourism is a major player in keeping the economy afloat, it is not the only thing going for this island paradise:

• No income taxes, capital gains taxes, or inheritance taxes are payable either by residents or non-residents.
  
• The tenant laws are pro-Landlord and only properties valued at less than B$25,000 are subject to the Rent Control Act.
  
• The Economic and Political Environment is stable and the GDP per capita is among the highest in the Caribbean.
  
• Seasonal Property Rental Yields top 10 to 12% per season.

So enough talk about facts, let's look at a few graphs on the Economy :

1. Looking at the GDP per capita, there has been an increase from the early 1990's when GDB growth was a steady 3%.
   
2. The only blight in this steady GDP per capita growth was in the early 1990's when inflation reached a high of just over 6%
   
3. But even high inflation could not keep the tourists away as seen in Tourist Arrivals below:

Inflation has had a steady downward spiral since 1990 and this has therefore fuelled the growth of GDP.

Even though the economy relies heavily on the US Economy to ensure growth, tourist arrivals figures have remained steady since the early 1990's.

Property Market Review

So, even though the Bahamas relies heavily on the US Economy to ensure their growth, the property market is still very much in favour of investors.......

Here's why:

Foreigner restriction to buying Property?

There are no restrictions on Foreigners buying property:

The only exception is a permit from the Government before the transaction, if the property is an undeveloped land and is greater than five acres.

Are Rental Yields steady?

Yields are around 5% to 6% for properties located in the coastal areas of Nassau and other islands.

Rental yields are good in the gated communities because there are many expatriate accountants and lawyers.

Properties with seasonal rates have yields of 12% to 15% as Grand Bahamas is so close to the US , many commute backwards and forwards.

Is the Bahamas Law, Pro-Landlord or Pro-Tenant?

The Landord and Tenant act of the Bahamas is Pro-Landlord:

Rents can be freely agreed for long-term & short term tenancies.

The landlord must give the tenant proper notice of rent due and possible eviction for defaulting on rent.

If the tenant fails to pay the rent on time, the landlord can summon the local police and repossess the property.

Even though a court order is not necessary for tenant eviction, most landlords bring defaulting tenants to court and sue for uncollected rent.

How much tax will I pay on my property?

No income taxes, capital gains taxes, or inheritance taxes are payable either by residents or non-residents.

The maximum Property tax is 2% for properties worth more than US$500,000 (GBP: 250,000 , ZAR: R3,500,000)

As an investor, the only 'restriction' that the Bahamas poses is the buying costs involved in the purchasing process:

Registration Fees: The buyer must pay several fees for the property to be registered. These fees are minimal and are not expected to exceed 0.5% of property value.

Stamp Duty: Stamp Duty must be paid upon delivery of the property. Stamp Duty is typically split between buyer and seller.

1. Up to 20,000
   2%
   
   
2. 20,000.01 – 50,000
   4%
   
   
3. 50,000.01 – 100,000
   6%
   
   
4. 100,000.01 – 250,000
   8%
   
   
5. Over 250,000
   10%

Legal Fees: Each party pays for their own lawyer. Legal fees are determined according to the property’s value:

1. First 500,000
   2.5%
   
2. Next 500,000
   2.0%
   
3. Next 4,000,000
   1.0%
   
4. Over 5,000,000
   0.5%

Real Estate Agent's Fee: The real estate agents’ fees are set by The Bahamas Real Estate Association. The fees are determined as follows:

1. Undeveloped/ vacant land in all islands except Grand Bahama
   10%
   
2. Improved residential properties in the Out Islands
   8%
   
3. All types of property in Grand Bahama
   15%
   
4. Improved residential properties (homes, condominiums) in all other islands including New Providence (location of Nassau) 6%

Conclusion

At a glance, you might see the Bahamas as an unobtainable paradise, only reserved for the Rich and Powerful. Exclusively frequented by celebrities to escape the limelight and for us mere mortals to merely watch and hope.......

But in actual fact, the Bahamas is a place that has all the elements that results in investors going cross eyed: no income tax, pro-landlord law & good rental yields :)

(Sources: www.globalpropertyguide.com , www.wikipedia.org Reuters, www.absa.co.za & Daily Telegraph)