On February 19, 2006, the New York Times reported that Bahamas real estate in Eleuthera is becoming a hot topic. That made me curious...
I'm a European home owner in Eleuthera and I was wondering what the reason might be that the NYT came to this conclusion. So I decided to talk to Matt Simon, an investor and developer who is building a condo resort in Central Eleuthera.
Matt also wrote a step-by-step e-book on how to buy and sell Bahamas real estate. Here is my interview with him about that book. He updated it in early 2010.
This is Matt Simon.
For an interview with him
about his Eleuthera condo project,
click on his image above.
Interviewer: Matt, you could have decided to invest and develop your condo resort anywhere in the Caribbean. Why did you buy Bahamas real estate in Eleuthera for your condo resort?
Matt Simon: I bought land in the Bahamas because I believe there is substantial appreciation on the horizon. First, the vacation-home market is going to accelerate as boomers enter their peak earning and pre-retirement years.
Second, buying real estate overseas and in the Bahamas in particular is a new phenomenon made possible by the Internet, email and telecommunications advances, among other things. This trend of doing business globaly will definitely accelerate in the years ahead.
So these two trends - an increase in vacation-home buying and the globalization of vacation-home buying - are converging to drive up prices in the Caribbean markets.
The Bahamas is an easy place to visit, to live, and to buy real estate. English is the official language, American currency is accepted, and real estate laws are like those in the U.S.
The country is politically stable and free of the crushing poverty of some Caribbean islands. Best of all, the Bahamas are close to the U.S., which makes it convenient for Americans. These are the factors I took into consideration when I made the decision to invest in real estate in the Bahamas.
Within the Bahamas I chose real estate in Eleuthera because it has great natural beauty and spectacular beaches. It's safe and friendly.
From an investment standpoint, Eleuthera is also at a good place in the development cycle. The infrastructure is in place, yet there are no major resorts completed, as there are in Abaco and Exuma. This leaves more room for appreciation as the island develops and becomes better known.
Matt Simon: At the moment (2007/2008), the U.S. is going through a recession and a real estate slump. That will pass, as it always does, and vacation-home buyers who are on the sidelines will get back into the market, driving up prices. I decided to invest on that expectation.
Eleuthera has almost no inventory, so it hasn't been affected by the recession the way Florida has. And this island has a dedicated fan base who wouldn't buy anywhere else.
Interviewer: Thanks Matt, for sharing your outlook on the Bahamas' real estate future in Eleuthera.
By the way, Matthew Simon has written an easy-to-read and step-by-step ebook entitled How to Buy and Sell Real Estate in The Bahamas. Click here to read my interview with him about his updated version of 2010.
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