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By Keith Archibald Forbes (see About Us) exclusively for Bermuda Online
To refer by email to this webfile, please use "bermuda-online.org/homes" as your Subject
There are no regulations limiting
non-Bermudians who
retire or work here and what type of property they may lease or rent, but
there are very strict regulations in the sale to them of real estate.
Unlike Bermudians who can legally acquire any property regardless of price if they can afford it, those who are not Bermuda citizens (in other words, non-Bermudians) may own only one residential property. It is either a single family dwelling or a condominium priced for non locals as well. They may select only Bermuda's 200 or so most expensive single family properties - luxury homes with an Annual Rentable Value (ARV) of US$153,000 a year or more - from among the more than 20,000 residences, or from an expensive condominium - with an ARV of US$32,500 or more.
In general, single family dwellings with price tags of less than US$5.5 million may be sold to Bermudians only, not foreign nationals. Properties in this range include those over 3,000 square feet, 3 bedrooms, 2.5 bathrooms, living room, lounge, dining room, utility room and garage, on more than 0.25 acre of land with a protected mooring and nice views Only condominiums are exempted.
In
addition to the purchase price of a home or condominium that qualifies for sale
to non-Bermudians, they now (from March 2008) pay a very heavy (25%, was
22%) Bermuda Government upfront
purchase taxes on homes and 18% (was 15%) per cent for condominiums.
The fee for sale of fractional units is 18 per cent on the second
disposition of such units. The fee for the first-time sale of such units
is 10 per cent. Plus, there are heavy Bermuda Government stamp duty charged on sale or
re-sale of all homes owned by Bermudians and non-Bermudians; legal fees involved;
and recurring real estate
or property taxes, referred to as Land Taxes. By American and Canadian
standards, Land Taxes, paid on homes and condominiums twice a year, are very high. They compare in cost to Council
Taxes in the UK.
Uniquely in Bermuda, Land Taxes do not include Water or Waste Water/Sewage. Neither are piped in or out via a central system. Costs of water and disposal of waste water and sewage from cesspits is the separate responsibility of the home or condominium owner or tenant or both. On December 1, 2008 it was reported that the average price in Bermuda in 2008 for a modest 2 bedroom single family house without water views was $1.65 million. More than a third of families’ spending in Bermuda is now going on housing — nearly double that of the US. Statistics show 34 percent of household consumption went on housing — dwarfing the amount spent on education (4 percent), clothing (3 percent), healthcare (5 percent) and food and drink (14 percent). The corresponding figure for housing in America is just 18 percent.
That translates into a 30-year mortgage of more than $11,400 a month at current interest rates — assuming the buyer has paid out a five percent deposit of $80,000. While the escalating price of free-standing homes is moving them further out of the reach of middle-income Bermudians, realtors say locals are showing increasing interest in condominiums as a more affordable option for a home.
In many countries around the world - but not yet in Bermuda (although this will change later - good title to piece of real estate is determined by reference to a central land registry which records the owners of all land in a particular jurisdiction. Once an owner is registered, the land registry provides you with a certificate of title - or title deed - that describes the land owned in accordance with an accurate plan.
A system of land registration in Bermuda is planned but has not yet taken
effect. The
present lack of such a system to protect
land owners means that a Bermuda lawyer must be retained to research the history of the
property to insure than a third party does not have a claim. Every time a piece of real
estate in Bermuda changes hands it is recorded in a Deed of Conveyance or a mortgage
(see separate headings).
Each such document will attract a significant amount of Bermuda Government stamp duty.
Until April 1, 2000 - but no longer - a Bermudian spouse would have to buy a property first and then voluntarily convey it into the joint names of the Bermudian and non-Bermudian spouse. (It resulted in the payment of additional legal fees and stamp duty on the value of the 50 percent share of the property). But currently, any non-Bermudian acquiring a property with a Bermudian spouse will pay a license fee exceeding US$1,200. The format of the application for a non-Bermudian alone or one married to and living with a Bermudian is set out in law, so a lawyer is advised. It requires all involved as new purchasers to provide a current marriage certificate, two references and a separate bank reference.
For overseas buyers, once a property has been selected, an application for a license to purchase is made to the Bermuda Government's Ministry of Home Affairs and Public Safety. Your realtor will assist in this. An "Acquisition of Land" advertisement issued in the Official Gazette of Bermuda will say that "Notice is hereby given that (the full name of the applicant), a citizen of (whichever applies) is applying to the Minister of Labour, Home Affairs and Public Safety for sanction to acquire a leasehold interest in or the freehold of a particular property (by name, acreage if relevant, unit number and Parish) - and if relevant, in joint tenancy with a Bermudian parent or sibling or spouse.
When approved, fees payable by restricted persons (non-Bermudians) include:
One of the conditions is that any alien - not a Bermudian - may only use the property as a private residence, not for any other purpose. It may not be rented out or sub-divided or internally divided to create more dwelling units unless specific permission is obtained from the Minister of Home Affairs and Public Safety. Additional conditions may apply if any property in the name of a non-Bermudian and Bermudian spouse ever becomes vested solely in the name of the non-Bermudian or his or her heirs and successors who are not deemed to be Bermudian.
Restrictions apply to non-nationals in other ways. They will be allowed to own only one automobile (private car) per household. This latter law applies to Bermudians as well. See Bermuda Transportation for Residents.
The Annual Rentable Value (ARV) of single-family dwelling houses and condominium units has no relationship to market prices.
They are for Land Tax purposes only, as described below. Land taxes on these properties are payable at their specific ARV rates in the Land Tax schedule.
Bermuda never has snow, but does have very high humidity for eight months a year. In 2005, the number of dwellings reached 29,850 in its mere 20.75 square miles, compared to 16,100 exactly 30 years ago. Non-Bermudians should know in advance that buying real estate in Bermuda - with its only 21 square miles in total land area and one of the highest population densities in the world with over 3,400 people per square mile - does NOT entitle them to
or extended residence
or give them permission to work in Bermuda.
All these issues are entirely separate.
Home ownership will normally give you the right to reside in Bermuda once a document called a residency permit is acquired via a Bermuda lawyer, but this does not give you the right to sub-develop (this will be refused).
The only way to acquire Bermuda citizenship is to marry and live with a Bermudian of the opposite sex for at least 10 trouble-free and non-controversial years. Only marriages - not partnerships - are valid for this purpose.
Most non-Bermudian home and condominium owners are American, Asian, Australian, British (from the UK) or Europeans. There are no known tax benefits in those countries for their nationals who buy homes in Bermuda.
Non-Bermudian buyers are permitted to buy only selected properties in Bermuda: houses or condominiums currently owned by a non - Bermudian with an assessed 'ARV' (annual rental value - our land tax base) over $153,000 and approved condominiums with an ARV over 32,400. They are prohibited from buying undeveloped land.
Buying
a single-family home or condominium in Bermuda,
with its only 13,000 acres in total and an average of 3,400 people per square
mile in the most affluent country in the world, is far more costly for Europeans
than buying one in, say, Spain or the Canary Islands or Italy, France or Greece
or anywhere in the Caribbean or Florida. Only in Bermuda are there so many
restrictions and exclusions. In contrast, in all the other tax havens - such as
the Bahamas, Cayman Islands, etc - and international business centers, there are
no such restrictions.
Also, the cost of living is far higher than in any of these places.
Nothing is cheap in Bermuda; not fuel (petrol, gas); not electricity; not automobiles or other transport; not property taxes; not alcohol, not anything. But for those who can afford it, the rewards can be many. Bermuda is in a mid Atlantic setting of green foliage, pink coral beaches and golf courses, less than two hours away by air from North America and seven from Europe.
Government has made conditions progressively tougher for non-Bermudians. Labour and Immigration Ministers have said the move was necessary because 37 percent of the Island's residential properties were owned by non-Bermudians.
Only a series of specified units will be eligible to be held or bought by non-Bermudians, according to the Bermuda Immigration and Protection (Designation of Eligible Condominium Units) Regulations 2007.
Regulations on the issuing of licenses over letting properties were also reviewed.
The law states the Minister may not issue a permit to a non-Bermudian to rent out a unit unless the person who is to rent the land is Bermudian or is ordinarily resident on the Island. Non-Bermudians who own the unit jointly with their Bermudian spouse will be exempt from this rule.
The Bermuda Immigration and Protection (Land Holding
Charges) Regulations 2007 states that non-Bermudian land-owners will pay fees of up to 22 percent the value of their land.
Tough laws tabled by Government see jail terms of up to five years and million dollar fines for foreigners or trustees who buy land without approval, to crack down on fronting trusts illegally buying land for non-Bermudians.
Non-Bermudians can still buy homes with annual rental values (ARVs) above $153,000 – but only from non-Bermudians. Condominiums can also be bought by non-Bermudians but only from other non-Bermudians.
Based upon June 2009 market rates the cost of building a home with traditional residential Bermuda construction is $270 per square foot. This excludes the cost of the land.
The average purchase price for a single family 2-3 bedroom detached dwelling house for non-Bermudians is US$2.8 million. For Bermudians - who can buy less expensive properties - it has soared to over $1.45 million in June 2009, of average size 0.25 acre. In comparison, in the USA in June 2009 the median price of an existing home was $195,300.
In Bermuda, condominiums now have about 60% of the total 2009 housing market. The average price of a condo in June 2009 is now about $800,000. The standard Bermuda price now for real estate is now a standard $1.6 million an acre, for undeveloped or re-developed land, without a house or utilities. Housing is on average at least four hundred percent more than in the USA, and Canada, 300% more than in the UK.
Overall, only 42% of all Bermudians own their own homes - the lowest rate in all the developed countries.
| Under 30 | 30-39 | 40-49 | 50-64 | 65+ | Total | |
| Own house or condominium with mortgage | 7.1% | 19.5% | 29.42% | 27.41% | 11.4% | 21.1% |
| Own without mortgage | 2.1% | 5.6% | 12.1% | 31.1% | 60% | 22.8% |
| Rent | 85.9% | 71.0% | 55.1% | 37.9% | 23.0% | 51.9% |
| Rent free | 4.8% | 3.9% | 3.4% | 3.7% | 5.5% | 4.1% |
| Not stated | 0.0% | 0.1% | 0.2% | 0.2% | 0.2% | 0.1% |
Source: 2000 Bermuda Census (last available figures)
30-year mortgages are now available to qualified persons from the local banks at interest rates totaling about 9 percent per annum (7 percent plus finder's fee). Bermuda banks require a household to make in excess of $12,000 a month to meet average 30 year mortgage payments. Plus, they need a $250,000 down payment, as a bank will not lend more than 85% of the appraised value of the property. Thus a far greater number of Bermudians than non-Bermudians in other countries are not able to afford home ownership. The number of households that can afford to buy the average Bermuda property is 5,064 of the 19,505 households in Bermuda making over $108,000 a year.
The Bermuda Housing Corporation has built several thousand properties which it has sold to Bermudian families. The original idea was to provide subsidized housing to Bermuda's lower income families. But by international standards of subsidized housing costs, these are extremely expensive.
How to find your property, including a site plan of any outbuildings, if you know the full home address including house number, street and parish. On a Bermuda Government Geographical Information Technical Committee and Works and Engineering, Land and Survey Division mapping website.
The legislation when a Bermuda property owner dies, and the procedure, formalities, executor, executrix, objections, etc.
Go to Bermuda Laws, search for Administration of Estates Act 1974, to print it out.
Local banks use independent appraisers to establish the value of a property for mortgage, valuation and other purposes. If done at the request of a bank for a mortgage on an average Bermuda home valued at $500,000 the fee will generally be from $300-$500.
See under Architecture. Architects in Bermuda must be registered under the Architects Registration Act 1969. In March 2004, more than 70 architects were registered.
Each single family home and/or apartment has a 9-digit number, after the owner has received a Certificate of Use and Occupancy Permit (Completion Certificate). The owner of each valuation unit - a self-contained (with its own entrance, electricity meters, permit to own a car, etc) apartment or unit in the same building and/or any other building - will also have a (separate) number. Each 9-digit number is unique, no two are the same. The digits are, in this order, Parish number (2 digits); sequential number (4 digits); Split Digit (1 digit); Re-use Digit (1 digit); Check Digit (1 digit).
Persons who do not own but rent apartments in someone's house should always be given and make a point of knowing the separate assessment number of the apartment. This is for their own protection. If it does not have its own assessment number, the person or persons renting will not be able to own a car or have a separate electricity account and may also encounter further difficulties. For example, when the owner or owners of apartments who have not bothered to arrange to have their apartments given their own assessment number, but allow their tenant or tenants to have a car anyway, both they and their tenants are breaking the law and can be prosecuted, also with the likelihood that the car will be impounded or have to be sold. All responsible home owners, owners of apartments and real estate agents know this. There are also other potential problems. For example, when an adjacent or neighboring house - which may or may not be owned by a relative or friend - is used, with permission of the homeowner, for parking of any car used illegally or moped or scooter or all of them, that person too becomes contingently liable, plus also liable themselves or via their insurance companies for any damage caused by any means whatsoever to the car or moped or scooter while parked on the property. It is not right anyway for any tenant to have to park any vehicle in an adjacent or neighboring property because the owner of the property where the tenant is living does not have space in his or her own garage or driveway for the tenant's car and/or moped or scooter. Whenever a tenant parks regularly in any adjacent or neighboring property, he or she or they should always offer in writing to indemnify the property owner fully against all damage to the vehicle or vehicle or property caused by the vehicle or vehicles. Failure to so by a quality tenant could render withdrawal of parking permission or worse.
Bermuda Immigration and Protection Amendment Act 2007
Provisions include clamping down on the practice of "fronting", where a Bermudian illegally fronts a trust to buy and hold land on behalf of non-Bermudians.
Both a guide and specification document for contractors and home owners alike on all matters concerning traditional residential construction. Rigidly enforced, partially to ensure homes can withstand major storms. Individuals and entities wishing to bring new building products into Bermuda must first contact the Senior Building Inspector of the Department of Planning of the Bermuda Government to determine if the product meets local standards. Recently, innovative construction alternatives have included faux roof slate - imported - to replace or repair Bermuda slate and known as Dura Slate - steel frame dwellings and faux lumber (PVC) to replace or improve or with a better price than the local product.
If you are buying or selling a single family home, make sure the boundaries are staked and that the stakes can be identified. If they are not staked, a surveyor should be consulted to do so.
The Bermuda Police Service issues reminders to the public to be sure to lock their homes before they leave for any length of time. There are numerous reports of break-ins at homes after they are left unlocked. Police tell the public to secure all windows and doors before leaving to prevent being victims of burglary. Thieves needing to fuel their drug habits are some of the nastiest and often the most violent or destructive burglars.
See Bermuda Immigration and Protection Acts. Some non-Bermudian residents with unblemished continuous residence have been in Bermuda for periods exceeding 20 and 30 years yet have not been given citizenship. It means they are not not allowed to vote, or to register to vote, in any election after they become 18 years old, even when they have been model residents for years. Those in this category are mostly from the USA, Britain, Canada, Caribbean and Europe, but some are from Africa, Asia, Australia, New Zealand, Philippines and elsewhere. Without citizenship, persons also cannot buy any real estate as Bermudians can if they can afford it; are limited to the top 5 percent of property in assessed value and a particular kind and type of property only and must pay a substantial purchase tax on top of other taxes; cannot obtain any local scholarships from any organization; if of employable age are not allowed to take any employment but are limited to the kind of employment on a Work Permit approved by the Immigration authority of the Bermuda Government; and may not under any circumstances be an executor or executrix of any Bermudian-owned property not in the top 5% of Annual Rental Value. Their attorneys are required to tell them this and would-be executors are expected to know this. They should also check with the Bermuda Government to see if it is permitted or not for them to benefit in any way financially from any Bermudian-held estate. They may only be executors of Bermuda property which is presently in non-Bermudian hands and as such is in the top 5% in Annual Rental Value. Nor are they - or any other non-Bermudian - allowed to be sole owners of a business in the local marketplace. They are limited to a maximum 40% holding in shares and management and are prohibited from employing any ruse that will enable them to overcome this restriction.
They include a Stamp Duty charged on a sliding scale. It is 2 ½ % of the first $100,000; 3% of the next $400,000; 4% of the next $500,000; 5% thereafter. It is is usually payable by the Vendor and the Purchaser in equal shares.
Purely as a guide:
| Property value | Stamp duty applicable |
| $700,000 | $22,500 |
| $800,000 | $26,500 |
| $900,000 | $30,500 |
| $1 million | $34,500 |
| $1.5 million | $59,500 |
| $2 million | $89,500 |
| $3 million | $149,500 |
For non-Bermudians, the length of time will be determined by how long it takes the Department of Immigration to process an application for a License to Acquire Property. This can range from 6 weeks to nine months. Sales contracts usually specify that the closing take place within a set time from the date of the grant of the License. A License to Acquire Property is required for non-Bermudians wishing to buy a home in Bermuda. The government charges a fee of 22% of the price of a house (or 15% if you are buying a condo) for this license, if it is granted. The review process is designed to determine that you are financially independent and not an 'undesirable.' Personal and financial references are required and will involve some research. Your local lawyer will guide you.
A conveyance deed is a document, with considerable stamp duties involved, that in Bermuda conveys legal title to the owner, if mortgage-free, or if with a mortgage, to the lender with whom the deed is lodged and with the mortgage recorded in the Book of Mortgages at the Registrar General's Office. When a mortgage is repaid, a re-conveyance deed certifies that the property is no longer encumbered, with the bank asking the owner for the name of his or her attorney. The re-conveyance makes it clear that the debt is repaid. The legal cost of a re-conveyance is less than the cost of a conveyance, with stamp duty payable by the owner based on the original mortgage loan amount. The attorney will also arrange for the mortgage to be marked as satisfied in the Registrar Genera's Office. Those who do not get a re-conveyance risk having major problems when they decide to sell.
Non-Bermudians may only buy condominiums with an ARV of $32,400 or higher, meaning a price of at least $700,000 . Note that in some cases, long leases - up to 999 years apply - not freehold. Whether a condo is freehold or leasehold - and if so for how long - should always be confirmed. Prices - in US or Bermuda dollars - exclude all premium taxes for non-nationals, regular taxes and utilities. Purely as a comparison, a 3 bedroom 2 bath condo in a nice area near Toronto, Canada, was sold in March 2001 for Canadian $185,000.
In 2006, a new 7-acre development near Elbow Beach Hotel with 87 rental homes when completed, was opened. Residents at plush Fritholme Gardens enjoy a private recreation centre, heated pool, two play areas, a nature walk and private beach access. The Elbow Beach Properties' project is being built in three phases. The first, completed, consists of five executive 3,580 square feet individual villas with three to four bedrooms and 15 two-bedroom, 1,700 square feet townhouses. In late 2006, monthly rents started at $5,000 and $6,000 for the townhouses, and up to $10,000 for the executive villas. Officials behind the Paget development said unlike most hotel and residential projects the resort's units were not for sale. Attending the opening was Ayed Al Jeaid, chief executive officer of Makshaff Services, which owns Elbow Beach Properties including the hotel.
There are strict development guidelines and rules. Development & Planning changes must be publicized before approval or otherwise. Bermuda's Department of Planning ultimately determines what can and cannot be done by way of development. Guidelines and specifications are set out in written form. Permission is routinely denied for anything which falls within these specifications and with the right guidance may well be permitted to do certain projects which fall beyond that scope, if in the public interest to make such exceptions. Those considering any development should consult an architect experienced and successful in dealing with the Planning Department.
All additions, alterations, conversions, conversions, extensions, improvements, etc, must be made to the Bermuda Government's Department of Planning, 3rd Floor, Government Administration Building, 30 Parliament Street, Hamilton. The applied-for changes will be advertised in the Official Gazette by Parish with the full name and address of the applicant in each Parish and the changes sought, with a Plan Reference number. Any person wishing to object must do so within 14 days of the date of publication of the relevant notice. Objections must be written, in letter format, stating any interest which the objector may have, with names and full addresses and with a concise statement of the grounds of the objection. For further details, see the Development and Planning (Applications Procedure) Rules 1997.
Everything depends on the reliability of this. When outages occur from gale force winds because only relatively few homes and streets have underground electricity, electric water pumps do not work and consumers cannot access the water. Some homes have - and many more need - portable generators (see separate heading). A serious disadvantage is if the property needs major electrical work. It could involve months of stress and strain in high humidity. All this is at a very high local cost compared to North America and Britain.
Whether buying or renting, an apartment of any size or house with a garage is essential for a car or moped or scooter. Those without one should be avoided because vehicles not stored in them just do not stand up to Bermuda's salt-laden air, constant winter gales and periodic hurricanes. Do not leave your vehicle outside at night without being garaged. Even rust-proofing is only partly effective for garaged vehicles.
For home owners who do not wish to do this themselves, they can employ a gardener from $30 an hour or a gardening contractor which will quote for year-round maintenance.
Especially after Hurricane Fabian on September 5, 2003, when virtually all Bermuda homes were without electricity for periods ranging from days to three weeks, portable generators are an absolute "must" for all who own homes and many who rent homes or apartments. There is a very high Bermuda Government Customs Duty rate on them, exceeding 30%. If bought locally, they can retail for over $2,000. If bought and imported privately, from places such as Home Depot (enter "generators" in the search prompt) in Florida or New York, they will still cost more than $950 after transportation delivery and Customs duty. As most homes in Bermuda are of limited acreage (one third or less) and are close together, the noise of a generator can be very stressful, so should be plugged in only during the day.
But not be employed, for which a separate Work Permit is required by any non-Bermudian.
More than 90% of all Bermuda private homes do not yet have all these features, yet about 15% of all Bermuda residents are seniors, some very frail and liable to fall.
Not for everyone and with some disadvantages, but for those who like to live on boats, the pros outweigh the cons. It is a viable alternative to the huge cost of buying or renting land-based housing in Bermuda. But space is at a premium at places such as the marina in Dockyard, where a waiting list has been created. Other places include Ely's Harbor, Mangrove Bay, Jew's Bay, St. David's and St. George's Harbor. The cost of a mooring and what comes with it can be crucial. Costs from from $85,000 for a 10' by 35' Vagabond but expect to pay at least $160,000 if you want guests to sleep over. Users require strict compliance with local marine and environmental laws.
Especially for non-Bermudians on a Work Permit, they should be avoided like the plague as a potential source of trouble and expense. An illegal apartment is one that has not passed the tests of the Bermuda Plan 1992 Planning statement and has one or more of the following faults:
The Bermuda Government's Land Valuation Officer is now referred to as the Director of Land Valuation, under the Land Valuation (Reorganization) Bill 2002.
In the USA, a typical suburban homeowner pays about $4,000 a year in taxes for a three or four bedroom two bathroom house, with water rights and sewage disposal coming from a municipal authority at a very low price compared to Bermudian costs. The rate in Bermuda for a similar size house is much higher, except that Bermudian home owners over 65 qualify for exemption or a rebate. Unlike in all metropolitan areas overseas, the taxes paid by homeowners in Bermuda do not include access to a municipal or local water supply or sewage disposal.
Those who complain about their taxes can try complaining to this Bermuda Government body, appointed under the Land Valuation & Tax Act 1967 and shown in alphabetical order in Bermuda Government Boards.
Usually, the Land Tax on Private Dwellings on rented properties is paid by landlords, not tenants. But it is not uncommon for many local landlords to include the Land Tax in the sum they ask for rentals.
The Bermuda Government is finally - years after it was first mooted - planning a land title registration bill in 2009 as it seeks to simplify the process of buying, selling and mortgaging land
The Department of Land, Buildings and Surveys will introduce a system of land title registration. It will provide a definitive record of ownership and other rights and interests in land such as mortgages and rights of way. There will be a functioning Land Title Registration Office. A new IT system will record the information as well as provide comprehensive details of all land Government holds. Work continues on the online mapping access giving access on address, location and other data layers. Surveyors would be working major mapping projects this year including a new area survey which will produce new larger scale aerial photos of the whole island. In time the new aerial map will be publicly available to the whole community to be used as the basis of decision-making, planning and project work across the island.Homes with lawns of their own are fortunate in one way, but keep their homeowners or renters busy in another. In drought conditions, which can be frequent in the summer months, it is not advisable to use chemicals to control weeds or even pest and diseases unless the plants are well irrigated and then only in the cool of the day. A "good" lawn should be virtually weed-free, of good colour with little or no thatch and of one grass type. Selecting the right grass type for the specific area will save future headaches with less maintenance problems to deal with. Mixed type lawns can be troublesome not only from a patchwork appearance but also with weed control as chemical control for one type of grass may adversely affect another type. Common Bermuda grass seed is sown at a rate of two to three pounds per thousand square feet, sow in two directions to obtain a more equal coverage. St. Augustine plugs are planted at four inches to six inches apart and are best installed in spring. As temperatures rise, they will, when maintained properly, in-fill quickly. Warm season grasses are St. Augustine and variety Floratem, a chinch bug resistant strain; Bermuda grasses and their hybrids and Zoysia. St. Augustine grass is not always advisable as it is subject to attack by chinch bug which will devastate a lawn in a short period of time given the right conditions. Many homeowners prefer to let landscaping companies handle their lawn mowing and maintenance.
If you lease instead of own an apartment or condominium or home, note carefully that you will not rent by the month but will lease for a specific, mutually-agreed time. Leases are legal and breakage of a lease should not be attempted without risk of a severe penalty. If an employer, not a professional newcomer employee, signs a lease, great care should be taken by the employee not to put the employer at risk. The employee will still be liable to the employer for payment of utilities, conduct and care and interior maintenance of the leased property.
The Waste and Litter Control Act 1987and its penalties may apply, but only if the litter from yours or another person's rented or leased or owned apartment or condominium or house is visible from a public place, for example, from a main road or estate road, park, etc. This type of litter should always be reported first to the Bermuda Government's Department of Works and Engineering for investigation.
The Book of Mortgages at the Registrar General's Office will have details of all conveyances where mortgages are involved and all re-conveyances satisfying the mortgage. Bermuda banks are now willing to lend approved buyers up to 80 percent of the appraised value of a house. With an average mortgage of 20 years, persons who are loaned $400,000 for an average-priced $500,000 house will pay a variable rate from 7.25 percent plus fees. A household would need to earn at least $7,000 a month to qualify.
Organizations that provide mortgages include banks; Bermuda Savings & Loan, possibly some local (Bermudian) insurance companies; some law firm's trust departments. Some will lend to non-Bermudians. Terms range from 5-20 years
The website of any realtor in Bermuda will be shown here gladly as a free courtesy active link if it will reciprocate with a link back to Bermuda Online at www.bermuda-online.org.
Some non-Bermudian newcomers receive a housing allowance from their employers. It can pay all or some of the rental costs. Utilities are always extra. Newcomers are advised not to pay any more than 28% of their salary on accommodation if they do not receive a partially compensatory housing allowance.
In June 2009, with the world-wide (including in Bermuda) impact of the economic recession, the average price for renting a one-bedroom property was $2,215; $3,650 for a two-bedroom; and $5,650 for a three-bedroom. Location and scenery are among the most significant factors.
Non-Bermudian property owners are prohibited from buying 'investment' property or property intended primarily to earn rental income. While they may be given permission by the Immigration Department to rent under certain circumstances, this permission cannot be taken for granted and is generally not given for periods in excess of one year. (A tax of 10% is paid to the government on rental income earned by non-Bermudians).
All homes and apartments (flats) with an annual rental value (ARV) of less than $16,000 are subject to rent control. This has applied anew since August, 2000 with the Rent Increases (Domestic Premises) Control Amendment Act 2000. It updates the Rent Increases Domestic Premises) Control Act 1978. Before then, only homes built before 1983 and with an ARV of less than $9,900 were subject to the controls. The legislation increased the number of rental units affected by rent control from 3,600 to 13,300 or 48 percent of Bermuda's residential units. This is a good benefit for people who do not live in up-market houses or apartments and do not own their own homes. But it means that the minimum rent for a 2-bedroom apartment has risen sharply.
Landlords and tenants should be aware that a court action may result if the landlord of a rent-controlled property (house or apartment) shows a cynical disregard for the rights of a tenant. A common example of this is physical removal of the tenant or his possessions to re-let at a higher rent. Landlords should know that an order of a court is always required before a tenant may be lawfully dispossessed.
With drug addition rife and burglary and other ant0social crimes common, Bermuda is not a low-risk area.
The vendor is typically responsible for paying 50% of the stamp duties (see below) on a conveyance.
Sellers of properties in Bermuda need to produce title deeds going back at least 20 years. Title deeds must be kept in a safe place known to the owner at all times. Those who have a mortgage should expect the mortgage holder to retain possession until it is satisfied. Possession of a deed is required to mortgage or sell a property.
The Stamp Duties Amendment Act 2008, a revenue-raising act, changes the various rates of stamp duty payable on the conveyance or transfer of property and land on the Island. The new tiered rate structure from April 1 2008 is:
two percent on the first $100,000 or any part thereof;
three percent on the $400,000 or any part thereof;
four percent on the next $500,000 or any part thereof;
six percent on the next $500,000 where the value is more than $1 million but not exceeding $1.5 million, and
seven percent on any remaining value or amount.
Most first-time home purchasers seek properties valued at less than $1 million. Home buyers in this segment of the housing market will have the full benefit of the reduction in the rate from 2.5 per cent to two percent in the lowest tier. For properties that sell for more than $1 million the rate of stamp tax will be higher.
For Bermudians, the potential for subdivision will be governed by the zoning of the area. Non-Bermudians may not subdivide unless the portion subdivided is sold to a Bermudian and the portion retained has a qualifying ARV.
Only licensed surveyors are licensed under the Professional Surveyors Registration Act 1997. In March 2002, 21 were registered.
There are some, mostly at The St. George's Club. Prospective owners should make sure they know what the local laws and regulations are.
Note the lack of central heating in most Bermuda homes and apartments. Some Bermuda winter days and nights can be quite damp and chilly for non Bermudians accustomed to having seasonal central heating. Some homes have a fireplace, while others may have a ductless split heat pump system with reverse cycle heat during the winter and air conditioning during the summer. If not, electric heaters and separate air conditioning units for winter and summer comfort levels are available commercially.
Always best, when selling a home. Tenants who will continue in an apartment cannot be counted as vacant possession and could cause complications.
Unlike in North America, parts of Europe, etc. there is no way at present for anyone living either in Bermuda or abroad and is not a Bermuda Government official authorized to know or to ask, to establish via the Web who owns or co-owns any property in Bermuda or what its current value is or is estimated to be. The only thing possible via the Web to ascertain the address and land valuation taxation of a particular property by going to http://www.addresses.gov.bm.
Residential properties are typically zoned either Residential 1 or Residential 2. Residential 1 is higher density than Residential 2. Local realtors can be more specific. The current Bermuda Plan shows the present zoning for every part of the island.
Last Updated: July
1, 2009
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