President of the Bahamas Real Estate Association (BREA) Franon Wilson is calling the government's decision to grant a five-year extension to first-time homeowners "phenomenal".

"By extending the exemption for five years, that's significant. When you look at the impact that will have, that's significant because it will bring consistency. It shows that the government is willing to go as far as they can go to help the real estate market continue its growth, while remaining financially prudent," he told Guardian Business.

 Wilson believes it puts first-time buyers in a better position to buy property, which will undoubtedly bring an economic boost to those working in the country's real estate sector.

"The reality is to know that you will have that exemption continue for the next five years. Now, we hope that people who were considering to buy property still do so and not procrastinate and say that I have five more years to wait. The main thing is the government has extended it... They have listened to feedback from both lawyers and members of BREA."

During his presentation of the 2013/2014 budget communication last month, Prime Minister Perry Christie told parliamentarians that the stamp tax exemption granted to first-time homeowners will be extended for an additional five years, to June 2018 and within the $500,000 cap flexibility will be permitted as to the proportions allocated to the conveyance and the mortgage.

 In the past, Wilson stressed to The Guardian that the stamp duty exemption for first-time buyers has been "crucial" to the country's real estate industry. He is once again advising Bahamians to purchase real estate now. "If you are a first-time home owner, you are exempted from having to pay stamp duty. As a result, you are able to save thousands of dollars. In some cases, that could be up to $20,000. That is a lot of money. Now is the time to take advantage of such great savings," he explained.

"It is the reason why many people have been able to own their own homes. It was truly a remarkable piece of legislation when it was first brought out for the first time.

 "Right now, I would encourage people who are on the fence about purchasing real estate to move forward, because the fact of the matter there is no guarantee that it's going to be renewed. When you are talking about first-time home owners exemption that would be a huge incentive to own a home."

According to Wilson, the stamp duty is calculated on a sliding scale that depends on the piece of real estate that is bought and where that falls on the scale.

"There is a sliding scale of up to 10 percent on whatever you're purchasing," he noted. Wilson also applauded the government's decision to reduce stamp duty from 12 to 10 percent, adding that industry colleagues are starting to see the benefits.

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