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A misguided decision

February 22, 2012

Dear Sir,

How fitting that the Government announced, virtually in the same breath, that their borrowings have increased, that the current account deficit at March 31, 2011 was $276 million, that the present PSSF is unsustainable, but hey, they are increasing the ARV threshold for non-Bermudian property buyers to $177,000, thereby reducing the properties for sale to 249. This is another blatant example of how this Government knows only how to spend, not how to generate income. It could be quickly remedied, and this is how:

Non-Bermudians pay a transfer fee of 25 percent on houses. Let’s assume that the average purchase price is $7 million, i.e. generating a fee of $1.75 million per house (plus another five percent or so stamp duty and five percent realty fee). As the average length of ownership for non-Bermudians is only about five years, why not make 400 properties available to them. Do the maths and you will realise that the increased revenues would be quite substantial. As we know, non-Bermudians tend to hire housekeepers, gardeners, pool services and legal services. The multiplier effect on the economy would be substantial. And think how many extra consultants the Government could now afford to hire ... or they could reduce the current account deficit.

FRIEND OF BALANCED BUDGETS

City of Hamilton

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Published February 24, 2012 at 1:00 am (Updated February 24, 2012 at 7:53 am)

A misguided decision

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