Burch: $1.5 Million Home a “Perfect Gift”
The Bermudian people have received “the perfect gift for Christmas” Government Senate Leader David Burch announced today [Dec 21] — a luxury $1.5 million Southampton property purchased by expatriates who had Bermudians “front” for them.
The house, “Laughing Waters”, will be added to the Bermuda Housing Corporation’s stock once a five-year, $10,000-per month lease with the foreign purchasers expires. In the meantime, the rent money will go into BHC funds and neither the overseas owners nor the Bermudians who fronted for them will be prosecuted said Senator Burch.
“The conveyance of this property to the Bermuda Housing Corporation has been facilitated through a negotiated short term lease to its former owner and in this unique case the yield to the people is an additional property through which this Government’s housing policy can be furthered,” said Sen. Burch, adding negotiations had been underway for two years. ”The rental proceeds will be used to support BHC’s overall housing plan.”
The Senator’s full statement appears below:
Everyone will be well aware of the efforts of this Government to address infractions to the Bermuda Immigration and Protection Act, 1956 — specifically the practice of fronting by Bermudians for the purchase of land for restricted persons.
I am not a fan of cliches but a modern term in wide use is perfect for today’s announcement: this is truly a ”win-win” situation for all concerned.
The enforcement of any law can be challenged and moreso when related to property ownership. Bermuda’s immigration laws are designed to protect the rights of Bermudians first. This protection extends to the purchase of land in our small island. Bermudian first-time homeowners should not be forced to compete with other resident or potentially resident groups for home ownership.
To protect Bermudians, the Department of Immigration has pursued this Government’s policy aimed at ending the practice of “fronting”; where trusts are used to purchase properties for people who otherwise would not be able to do so because of their immigration status.
With a revised deadline of December 31 for compliance, I am pleased to note that there has been a significant increase in applications for land licenses and Bermuda status. This means the message is getting through: do the right thing and all will be well.
The aim of this law is not purely punitive. This Government is prepared to be flexible, recognising that not every “fronting” arrangement has been designed to frustrate the law.
As such — with four days remaining before the anniversary of the birth of Jesus Christ — I am pleased to advise the public that after more than two years of negotiations with respect to one such property, the people of Bermuda are now the owners of a $1.5 million luxury property known as “Laughing Waters”. The addition of this property to the housing stock of the Bermuda Housing Corporation will provide the opportunity to continue to address the broad housing needs of Bermuda in an equally creative fashion.
The conveyance of this property to the Bermuda Housing Corporation has been facilitated through a negotiated short term lease to its former owner and in this unique case the yield to the people is an additional property through which this Government’s housing policy can be furthered. The rental proceeds will be used to support BHC’s overall housing plan.
Is this unconventional? Yes.
Is it unorthodox? For sure.
Is it worth it? Absolutely.
This Government welcomes those purchasers of high-end properties that have traditionally been available to non-Bermudians. In tourism developments and in properties generally, Bermuda remains an attractive prospect.
It is an important aspect of our economy to have high net-worth individuals feel welcome and at ease in Bermuda. That outlook has not changed but with that interest in Bermuda must come a healthy respect for our laws and an appreciation for the aspirations of everyday, working people and the cultural goal of home ownership. Following the rules can facilitate the “win-win” Bermuda needs.
In simple terms, the Bermudian people are the new owners of a $1.5 million property — at no cost to the Bermudian taxpayer. A perfect gift for Christmas.
$1.5m into the corruption pot more likely. Tax payers dont get too excited Burch will be living there in a couple years time.
Why would taxpayers be excited about this? Because the government is so good with finances? He is too funny sometimes
I (a Bermudian person)own the $1.5 million house?? When can I move in then??
As soon as you get a loan from the BIU/Housing Corporation………
You know, after a quick re-read of this article ( thank you Bernews) I realised ( in one of my lucid moments) that the irony of all this is the name. “Laughing Waters”.
Here we are sinking in debt, the tide of uncertanty rising, a flood of people leaving a sinking ship, the reef protection being withered away by Global House, tourists having to risk their lives sailing here in home built vessels and having to be rescued by the Bermuda Coast Guard ( US) and we have the Loot/Col saying Bermuda has…………
Sometimes I wonder what those letters mean after ones name.
OBE? Outta Bed Early?
JP? Jump Police?
ED?…………….Erectile Disfunction?
Um cunfoozed…….
Seriously, who has the money for purchase. Who has the money for rent.
Laughing Waters…..sounds like a man with a urinal problem……..ahhhhhhhhhhhhhhhhhhhhh relief…………
Perhaps Governmenet will do what the church does with money collected. Throw it up in the air and heaven keeps whatever it wants – what comes down is for the church.
LMAO!!! YOU ALL ARE KRACKING ME UP!!!!
A BUT DATS WAT GOVERNMENT DOES WASTE MONEY ALL DAY!!!
LOL!!!
sara = bwb (bitter w bermudian = funny
Bitter “white” bermudian I believe is what you meant to say Mr. Tigga…
Good to see you still haven’t learned the ability to debate in an intellectual and/or mature manner. Maybe in due time you can become a Senator too…
Samuel=owsc=obsessed with skin color
Yo Samuel…what a “bwb(bitter w bermudian=funny”. I get the “bitter” part. I get the “bermudian” part. Whats the “w”……stand for….
Winter?
Only you ignorant haters could call this a bad thing. Show me another Minister that has added to the Government’s assets at no cost, created a minor revenue stream of $10k a month that wasn’t forecast in the last Budget and has increased the potential housing stock for Bermudians. With this one transaction Burch has done more than the other 12 Ministers while they’re still figuring out where their departments are. 6 consecutive years with a clean bill of health from the Auditor General for the Bermuda Housing Corporation means there’s no safer place for this asset to reside. Put aside your hate and respect the work, the result and the benefit. After all, there isn’t a whole lot of it about in Cabinet these days.
Hmmmmm….
I agree with your sentiment as long as it works both ways. Especially when it comes to the Bermudian married to a non-Bermudian requirement.
I find it a little hypocritical to state that this legislation, as well as the Bermudian married to a non-Bermudian legislation, is to protect Bermuda’s lands from being scooped by foreigners while at the same time passing legislation which gives IB companies to buy up land zoned as tourism for lengthy leases. You have to admit it is kind of hypocritical and disadvantages Bermudians.
I actually appreciate the way Col. Burch is straight forward in conducting his business and I would vote for him, except for the fact that he does not like and/or want to tolerate people that look like me and does not have a problem expressing these intolerant views. But maybe that makes him the “guy” in your and many others eyes.
I don’t believe that this has somehow increased teh housing stock for Bermudians as no average Bermudian can afford a property that is $1.5mn.
“I agree with your sentiment as long as it works both ways. Especially when it comes to the Bermudian married to a non-Bermudian requirement.”
Sorry the rest of the post should have read after that sentence:
As it seems that certain politicians who are married to foreigners still own more than one Bermudian property. Guess it depends if the Govt classifies you as what they see to be a “true” Bermudian.
@ tied of nonsense, tigga? que?
Let me explain as to why I believe that the law allowing international corporations to acquire, at lengthy leases, is ultimately detrimental the Bermudian house owner.
Traditionally, in light of the ridiculous housing prices, the majority of Bermudians would purchase a house at an equally disturbing interest rate from a local bank and then rely on rental income from either the income producing part of the property (i.e. apartment) and/or renting out the property at ridiculous rental prices in order to cover the mortgage payments. Many, during the boom times up until 2008, ran to the banks to take advantage of the 100% financing which was being offered to residents and took on more than they can chew (i.e. USA subprime crisis). But they believed that the rental income would be consistent and thus they had no serious worries about losing their home through missed payments and ultimate foreclosures. It never (mass foreclosures and no expat money) happened here before and thus it was thought that it could never happen here. This is one of the reasons the Opposition noted that the economy is seriously overheating and was due for a severe downturn. Again such “nonsensical” talk was dismissed as fear mongering and attempts to undermine a black Govt (see how playing on racial emotions distracts from the truth of the matter and only makes things worse).
Then the crisis of 2008 hit coupled with the sometimes intolerant/hostile attitude by the powers that be towards foreigners and foreign corporations. Thus these companies and their employees started and continue to leave the island in droves. Unfortunately, for many Bermudian home owners they relied on these individuals to pay the outrageous rents they were receiving for the property which they purchased at seriously inflated prices back in the day. No average Bermudian, black or white, could afford to pay $2,200 for a simple one bedroom apartment. Well at least I know I couldn’t and still wouldn’t be able to. But those “nasty” foreign corporations and their employees (Bermudians and expats) could because most of their living expenses were being subsidized, or paid in full, by the employing corporation. So now without these individuals able to pay these rents the Bermudian homeowner began and continues to struggle to come up with additional monies to supplement their lost rental income in light of less expats. As a result some are working two or more jobs to keep the family homestead while others are forced to sell these properties at significant reductions just in order to stay afloat a decision which ultimately leaves them with negative equity and debt. Other Bermudian homeowners simply gave up the fight and the banks have now started foreclosure proceedings that are unprecedented for Bermuda. If you don’t believe me then ask your local banker on the trends of defaulting loans and subsequent foreclosures/litigation proceedings.
The Governments decision to allow international business to have access to fractional units built by local hoteliers only hurts the Bermudian homeowner even further. The decision to permit these acquisitions is simply a government attempt to save these multi-million dollar properties and their financial backers from going bankrupt. While it is a noble attempt to save the dismal tourist industry, it is conducted to the detriment of the local Bermudian homeowner as mentioned. That is because the legislation now has the unintended affect of diverting even more rental income, which is used to support local property owners, and placing these precious rental payments into these multi-million developments which are failing due to their poor business decisions. So in essence the Government is attempting to save the tourism industry by taking more money away from the people in order to provide “bail outs” for big business. This Govt has ultimately protected big business interests before the people’s interest (a claim constantly leveled at the UBP). That doesn’t sound like a route that a “party of the people” should take, and neither does raising taxes in the middle of a recession.
But maybe I am wrong. “Ignorant haters” usually are…
“Sam”,
It is good that you learned a little espanol as I hear it is very much needed in Cali. Good on you for immersing yourself in the local culture…
Well I love the comments that have been made some good laughs and some great points of view. I would like to say that Mr. Burch is doing a commendable job by being one of the few if not the only upright politician with a clean bill of health in his portifolio also.
Now for what I want to get out, IB was and is still part of the problem when it comes to the housing problem here on the island as they have the liquid cash to front a years rent up to secure a property and keep it and at a high rate of rent at that, but what about these realestate firms that have shown up in the last 10 years that have manipulated the market and increased the sale prices and rents to the point it has made it virtually impossible to keep up with paying.
Who has gone after them to find out how they calculate the sale pricing of a particular property to buy, or rent?
I remember when one weeks pay check would cover most of your living expeses. In todays eyes you need 2 jobs and work 18 hour days just to make ends meet.
So I hope that people take stock of what the digilent politicians are doing and stop hating and let them do there jobs and if you have a problem with his comments and how they run there portfolios remember they (the politicians) work for the people not the other way around.
Hope all of you have a great festive season and thank you for aloowing me to post my comments.
I really want to know which upstanding law firm on the island was the one that allowed the conveyance of the property to go through in the first place without checking their due diligence first! Surley they should be charged with breaking one or two of Bermuda’s property laws here and their licence taken away and also which Bank was invloved in this sale as well…or is this all hush, hush as well Mr. Burch!? That would be a real Christmas gift!!!
I see that the ex-pat has been punished….they had to forfeit their property and rightfully so. It is against the law. I have not heard about any punishment for the Bermudian fronter? Why not? Is he/she not equally accountable for breaking the law or is it a Bermudian vs ExPat thing? Even the title of the RG column says “Expats hand over fronting property” as if the expats are the only ones to blame in this scenario. Dangerous road to go down when you vilify only the ExPat, but sounds just about right for the PLP. Fronter must have been someone’s Aceboy.
TON, please explain, quite interested
I think Burch & All bermudians that now own this house should give it to the Uighurs. Then they would be set for life. Maybe Burch could occupy one of the large rooms, for ZBM so he will not have to follow the camera crew around every day. Heaven forbid if he didn’t see himself on the 7 o’clock news each day. That makes him furious.