Carey: Trump presidency could mean more luxury property sales

Wed, Jan 4th 2017, 11:01 AM

The Donald Trump presidency could boost the sale of luxury properties in The Bahamas, as the incoming president's plan to cut taxes will increase disposable income for Americans, prominent realtor Mario Carey told Guardian Business recently.
Carey, owner of Mario Carey Realty (MCR), who has begun to position himself to take advantage of this expected increase in Americans' disposable income by expanding his Better Homes and Gardens franchise, is excited about the prospects of Trump's tax cuts on the real estate sector of The Bahamas.
"Most of my circle of high net worth clients feel that we're going to get a lot of business from the fact that he's in power," Carey said.
"And, most people look for real estate as an investment. Real estate is tied to any nation's wealth and people's lifestyle."
The real estate market is said to have been the cause of the 2008 global financial meltdown, a testament to the power that a healthy mortgage portfolio has for even the biggest banks in the world.
Locally, non-performing mortgages have become a huge problem for banks. Government has had to consider mortgage relief plans and was forced to bail out Bank of The Bahamas.
In the U.S., President-elect Trump plans to slash income tax rates and force big companies to bring manufacturing jobs back into the country by enforcing tax penalties. While the latter is possibly foreboding for big business, Trump's plan could see more people vacationing via their disposable incomes and, according to Carey, purchasing more real estate in The Bahamas.
Trump's tax plan, according to his website www.donaldjtrump.com, calls for: "Reduced taxes across the board, especially for working and middle income Americans who will receive a massive tax reduction.
"To ensure the rich will pay their fair share, but no one will pay so much that it destroys jobs or undermines our ability to compete.
"The elimination of special interest loopholes, to make our business tax rate more competitive to keep jobs in America, create new opportunities and revitalize our economy."
It still remains to be seen if the Bahamas government will carry out the proposed hike of the country's residency incentive from $500,000 to $1 million for second-home buyers, a move that has the real estate industry raising eyebrows.
Meantime, Carey has begun the expansion of his Better Homes and Gardens team by taking the franchise first to Harbour Island - a veritable playground for the rich and famous in The Bahamas.
Better Homes and Gardens' central web portal receives 40 million hits per month, which trickles down to properties listed for The Bahamas, according to Carey. He has seen a 30 percent boost in inquiries since adding the Better Homes and Gardens franchise to his company.
He said Better Homes and Gardens affords him access to training initiatives for realtors in his company that they would not have gotten otherwise, a move that will likely prepare him and his team for an upswing in the country's luxury home market.

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