Dear Heather: Just before the children had Easter break, I heard they were changing the ARV thresholds and some other things regarding PRCs and non-Bermudians buying property in Bermuda. What do they have planned and what is the current status on this? — PRC

Dear PRC: You are absolutely correct. The Bermuda Immigration and Protection Amendment Act 2015 was recently passed by the Senate and will be discussed further and hopefully approved by the House of Assembly sometime next month and will likely become law soon after that.

For you as a PRC, you were previously eligible to purchase a freehold property with a single ARV over $63,000. The new proposal suggests that PRC holders will shortly be able to purchase a stand-alone home in Bermuda with no restrictions on the level of the ARV (clarity is still required whether homes with multiple assessment numbers will be permitted) and any condo, providing it is not in a Government-sponsored complex (which is the same as before). The current licence fee of four per cent is to be increased after September 30, 2015 to six per cent. Also, it is likely that PRC holders will be able to purchase up to two properties. They may also rent out their property, and it is possible that they may not have to acquire a permit which was previously required.

For non-Bermudian purchasers, it has been proposed that the ARV threshold be $153,000 instead of the existing $177,000, and they also can potentially hold two properties. The licencing fee of eight per cent to be increased to 12.5 per cent after September 30, 2015.

Non-Bermudian purchasers wishing to buy a condo will likely be able to purchase any condominium which has been privately developed, ie not in a Government-sponsored complex, as long as the ARV is over $32,400. Licencing duty of six per cent is to be increased to eight per cent after September 30, 2015.

What does this mean in terms of supply and demand in the market place?

Firstly, there is incentive for non-Bermudians and PRCs to buy before October 2015, as the licence fee will increase thereafter. More condominiums will be available to non-Bermudians which is a good thing as, for many sellers, this segment of the market has been challenging due to lack of demand. One of the most interesting things is that many of the new city units which are currently very popular as rentals by non-Bermudians will also be available for non-Bermudians to purchase. We estimate half a dozen or so properties that are currently for sale, having an ARV of $153,000 to $177,000, will become available for sale to non-Bermudians under the new Act, although we would anticipate more properties in this price bracket coming onto the market. Activity in the $2,500,000 to $3,500,000 range has increased, which is encouraging for potential sellers of property in this category.

• Heather Chilvers is among Coldwell Banker Bermuda Realty’s leading sales representatives. She has been working in real estate for 25 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332-1793. All questions will be treated confidentially.