Real Estate Division “Applauds” Licence Change

February 24, 2013

The Bermuda Chamber of Commerce’s Real Estate Division is “applauding” the Minister of Finance for his decision to slash the licensing fees for Non-Bermudian and PRCs purchasing local properties.

In Friday’s [Feb 22] Budget statement, Finance Minister Bob Richards revealed that licence fees for non-Bermudians purchasing property will be lowered in a bid to boost jobs, the construction industry, and customs duties.

License fees will be reduced from 25% to 8% for those purchasing Bermuda homes, lowered from 18% to 6% for purchasing condominiums, and fees will be reduced to 4% for Permanent Resident’s Certificate holders.

Divisional Chair Dale Young of Young Properties stated: “The trickledown effect of the Minster’s decision to reduce licensing fee for PRC property purchases from 25% for homes, 18% for condos, to 4% should have a huge impact on our local economy.

“The substantial reduction in the licensing fees for both PRCs and non-Bermudians, is sure to stimulate sales and in doing so will create job opportunities for many Bermudians.

“Houses which have been on the market for months, if not years may finally be sold and with each purchase there is an opportunity for a Bermudian to benefit, either directly through new construction or maintenance contracts or indirectly through the infusion of capital into the market place. When Bermudians have more money, they spend more money and everyone benefits.”

The Chamber said “often when Bermudians think of PRCs they think of highly paid white collar workers, but as Ms. Young points out there are many teachers, landscapers, beauticians and other blue collar employees with Permanent Resident Certificates and now they are one step closer to home ownership.”

Ms. Young concluded by noting; “Bermudians need only connect the dots to see the positive impact this decision will have on our economy and we applaud the Minster for listening and responding to our industry.”

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Comments (8)

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  1. johnny says:

    Will this trickle down effect encourage employers to raise wages, or business owners to drop prices, because if not how does the average Bermudian benefit from this.

  2. Ty says:

    @johnny – I thought about that also….but… (fingers corssed)

    I see employment opportunities for the locals..ie-renovations/construction.. I see funds being pumped into the retail sector..ie-furnishings/groceries. I see our national debt starting a reduction..ie-monies coming in. and the list continues. The only way employers can increase wages is if money is coming in. We all have to swallow our pride sometime and realise that these are needed in order for us all to prosper. The sad part is we (bermudians) want everything to happen overnight…. Not possible. The name of the game right now is PATIENCE. Do we have it???????

  3. Ty says:

    typo… fingers crossed

  4. The Kid says:

    So guys, why dont you show some faith and commitment and knock your commission rate down from 5% to 4.45% just for the period that the Government is taking their’s down

  5. M.P. MOUNTBATTEN JP says:

    Attention greedy landlords who voted for the OBA .. If you’ve only ever rented to expat PRC,s , then be ready to lose a tenant . The OBA have paid you back in spades suckers . Oh , and don’t expect to get another expat in your place for quite a while yet .

  6. Alvin Williams says:

    Another anti-Bermudian policy put in place by the anti-Bermudian OBA government. sure it is going to benifit those construction firms who like to employ those low wage earning migrant workers. Mean while Bermudians will remain unemployed. Long term Bermudian children will see thier furture propect of owning a piece of the rock increasingly deminish as the non-Bermudian will have long ago had an advantage in buying up Bermudian real estate in our very small country. By the time our children would have come of age even the British wellfare state will have close it’s doors.Pity my belove country whose national resources are about to be sold to the foreigner.

  7. Ty says:

    @Alvin… I hear what ya saying, but it all comes down to educating your kids NOW to scrimp and save.. Remember the key word in your comment is “KIDS”. Teach them NOW that you don’t need to have the latest $1500.00 phone and then can’t afford to pay the bill or rely on Mom and Dad to pay it for them.. Teach them NOW that the minute a new trend in clothes is out that they have to an entire wardrobe overhaul. Teach them NOW to get up in the morning and make a sandwich – fruit and drink for lunch instead of giving them $20 per day to get what they want. It’s called SACRIFICE.. But first and foremost teach them NOW to stay in school until it is time for them to finish. Education is the key if you wish to prosper in the future. Those days of having things HANDED to you have been over for quite a while now. We all have to do for ourselves.

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