With an idyllic year-round climate, warm turquoise waters that lap onto champagne-pink beaches, limitless recreational opportunities and distinctly beautiful island architecture, Bermuda has long been a destination for those who dream big.
Blissfully located some 640 miles off the coast of North Carolina in the warm waters of the Atlantic Ocean, the island remains easily accessible by commercial and private jets from both Europe and North and South America.
Nonstop flights from London take six hours. And it's less than two hours to Bermuda from New York, and just over two hours from Miami.
Amongst the privileged overseas property owners who've taken advantage of such inviting logistics by buying a piece of Bermudian real estate are Ross Perot, Michael Douglas and Catherine Zeta-Jones, Michael Bloomberg and former Italian Prime Minister Silvio Berlusconi.
And for more and more overseas investors, Bermuda's relatively stable and healthy real estate market offers an attractive opportunity to buy into paradise.
"Our real estate market in Bermuda has not had the same slump that the North American market has had, and that's huge," says Buddy Rego, president of Rego Sotheby's International Realty, the island's oldest real estate company, which specialises in the luxury market.
"In real terms — looking at the average price of Bermuda real estate vis-à-vis the rest of the world, and in particular the American market — I don't think that in the U.S. they are in the position to say that their real estate values in 2006 or 2007 have only declined by 3.5 percent," says Rego.
That's the case in Bermuda, he says, referring to Bermuda's relatively minimal real estate decline as a marked contrast to the plunge of the American real estate market.
Rego says this shows Bermuda boasts a buoyancy and resilience that other markets lack. And the fact that this island's real estate market has historically weathered the storm better than the stateside market, he says, can be attributed to myriad factors.
"To start, there's the simple law of supply and demand," says Rego, explaining that a government policy implemented in 2005 mandated that non-Bermudians are only eligible to buy property on the island from other non-Bermudians, automatically restricting the number of houses on the market that are available to overseas buyers. According to the law, Bermudians are permitted to buy property on the island from any seller, regardless of nationality, but they may only sell property to other Bermudians.
By restricting non-Bermudians to purchasing properties at the higher end of the market, the policy's goal is to keep homeownership within reach for the average Bermudian, Rego says. Also, given the limited number of homes available for purchase by non-Bermudian buyers, owning real estate in Bermuda automatically has evolved into an even more exclusive privilege.
If the policy weren't in effect, he says, there would be at least twice as many homes available to potential non-Bermudian buyers at any given time — further saturating the market with options for overseas buyers, and hence creating more competition for sellers.
"The policy has clearly created a two-tiered system," says Rego, adding that, as of press time, there are only 12 or 13 homes for sale on the island that are available to non-Bermudian buyers.
"So those homeowners can feel pretty good about the intrinsic value of their property," he says. "If you're a non-Bermudian selling your house for just the right price on the island, it should sell, and we have a demand in Bermuda for just that."
Rego, who was born in Bermuda, also credits the fact that his country has weathered the real estate storm better than the U.S. to the island's very strong economy, largely buoyed by the international insurance and business interests located here. The success of Bermuda businesses, he says, has permeated all aspects of life on the island.
"There was a time when a Bermudian buying a $6 million home here was unheard of, and now they're doing it," says Rego, noting that in 2007, of all the properties on the market that could have been bought by non-Bermudians, a whopping 90 percent were sold to Bermudians.
"That's evidence that the resilience of the Bermudian economy has done well for Bermudians," he says. "Despite inflation or recessionary pressure — Bermudians have generally been doing quite well."
And that last nod to the native economy is somewhat of an understatement.
Bermuda has the third-highest per capita income in the world. And the island's reputation as the safest in the tropics only enhances its appeal for foreign buyers.
"Bermuda is considered a very safe place to live," says Rego. "When you step off the plane here, you have the immediate sense that it's not a run-down Caribbean island. People always ask, 'Where's the poverty?'"
"In Bermuda, the air is very clean. It's a very well-organised island and far more staid than Jamaica or the Bahamas," he says.
"We have a temperate climate, so the weather is fantastic; there's fantastic golf here and you can be outdoors all year-round," says Rego. "There's theatre, fantastic restaurants, nightclubs, yacht clubs, cultural clubs — it's a very social place."
Obvious lifestyle lures aside, it comes as no surprise that Bermuda's healthy economy, paired with a weakened U.S. dollar and American housing market, is generating considerable interest from foreign investors looking to grab their share of the island's luxury real estate holdings.
Properties in Bermuda, for the most part, have held their value in recent years, says Rego.
"It's good value to hold Bermuda real estate, which hasn't suffered the downward pressure that the U.S. market has endured," he says.
"If you're an insurance executive with an international company here and you're looking to rent a $5 million or $6 million house during your stay, that could be $25,000 per month," says Rego, "So you might think about buying in Bermuda as opposed to paying rent if you have long-term goals to be here, kids in school, etc."
And when you can afford to buy in, there's fair reason to have confidence in Bermuda's economy.
"When you put $2 million into a property, you want to know that it's going to be worth at least that two years from now, and the answer in Bermuda seems to be an overwhelming, 'Yes.'"
Indeed, as of December 2007, $2 million was the average price for a condominium available for purchase by non-Bermudians. Says Rego, "We're not selling condos for $199,999 — the traveller to Bermuda is generally more affluent than you would get in other nations." The entry-level price to buy a freestanding home on the island is currently $4.8 million, he says.
The fact that Bermuda's currency is pegged to the U.S. dollar has made the country more and more appealing to Europeans of late, says Rego. "We definitely have interest from European buyers," he says. "You get a lot of bang for your buck here now, certainly in the luxury market, due to the sterling and Euro power over recent years."
Tax advantages exist for people from many European countries who choose to domicile in Bermuda, too, says Rego.
Whilst Americans are stuck with their income tax structure no matter where they live in the world, it's not all bad news for those earning U.S. dollars.
The option of fractional ownerships of condominiums in Bermuda is an appealing platform for American investors looking to buy into the real estate market, says Rego, with nearly 100 percent of buyers in the island's fractional ownership niche hailing from the U.S.
"That's the diversity of the real estate product in Bermuda," says Rego. "You can come to Bermuda with the ability to own a freehold, freestanding house… you buy a whole interest in a condo… or you can get in with a fractional interest in a condominium."
Rego explains how fractional ownership works. "Typically, with these condos, the ownership is split 10 ways," he says, "and each owner gets about five weeks a year, which is allocated on a lottery system."
People who use vacation homes often don't even manage to find the time to enjoy them for five weeks per year, adds Rego, making the option of partial ownership all the more appealing.
"Fractional ownership makes a lot of sense for someone who plans to be in Bermuda only about a month a year," he says, adding that rental pools for condos aren't an option in Bermuda.
"We don't have condos here where you have full ownership, and you lease it back when you're not there through a rental pool," says Rego. "If you go to Turks and Caicos, it's nothing but these condo-hotels, but here in Bermuda they have not built things this way — there are no developments that have been built with the intent to rent out condos here."
Currently, there are four developments in Bermuda open for fractional ownership, with prices ranging from $175,000 to $445,000 for one- to four-bedroom condominiums. This price point, says Rego, is attractive to people who want to experience extended vacations in Bermuda, but don't want the multimillion-dollar price tag of full ownership.
Bermuda's four fractional ownership residence clubs are The Reefs Club (adjacent to the famed island hotel, The Reefs); Tucker's Point Club in Tucker's Town; the Newstead Belmont Hills Golf Resort & Spa, located on Hamilton Harbour; and Ariel Sands Residence Club Hotel and Spa in Devonshire, which is currently under construction.
"The beauty of fractional ownership in these communities is that, most likely, the condos will rarely ever be 100 percent occupied," says Rego. "So even though you have an allocated amount of time that you sign on for, you also have the opportunity — on short notice and subject to availability — to spend more time at the property."
"In Bermuda, fractional ownership is the most affordable way to get involved in home ownership," he says, "and it's the only way to get a good address for $350,000."
While fractional ownership means just that, buying into Bermuda's exclusive real estate market at any level naturally allows owners to realise the overall market's appreciation when it comes time to sell.
For potential fractional owners, it's important to remember that all condominiums have condo fees that cover such things as landscaping, outdoor electricity and fractional refurbishments. Buyers are advised to inquire about these costs early in the purchasing process.
Further stabilising Bermuda's housing market is the fact that the island's neighbourhoods are all long-established locales. "There's no such thing as a new area in Bermuda," says Rego. "The island is 21 square miles, and there isn't a lot of open land — so we have very well-established residential areas that have been that way for decades."
"Typically, Tucker's Town is well-known as being a high-end area, but nothing gets hot and cold here," he says. All of Bermuda's neighbourhoods are highly desirable places to live.
Other factors that non-Bermudian buyers should keep in mind, according to Rego, include the fact that they may only buy land with existing buildings on it. Non-Bermudians are not permitted to buy just a piece of land on the island. Once the property is purchased, however, tearing down an existing building to construct a new home is permitted, says Rego, and happens often. Additionally, home ownership does not entitle non-Bermudians to any of the privileges of citizenship, such as voting on the island and the right to work in Bermuda.
Potential buyers should also be aware that a one-time license fee, not included in the listing price of the home or condo, applies to each purchase.
"Whilst there are no taxes or fees that the government applies to the sale of property here — no capital gains tax or transfer fee, for example," says Rego, "there is a license fee, which is essentially a license to own the land."
If you're considering buying a house, factor in 22 percent of the price of the home for the license fee. The fee for condos, which also applies to fractional ownership, is 15 percent.
The license fee applies only to non-Bermudian buyers. And you can consider it just part of the price you pay for a stake in Bermuda's sublime sun, sea and sand surrounds. Once you're in, of course, you can breathe easy knowing you've invested in one of the most beautiful and desirable destinations on the planet.
"From the lifestyle point of view, Bermuda is a fantastic family environment for a home buyer," says Rego. "Whether that person is working here in an offshore company or looking to invest in a vacation home."
"Bermuda is very eclectic. It's not an island of 65,000 Bermudians; it's composed of people from all around the world," says Rego. "And there's a very international flair to the place because of the mix of people here."
Want to own property in Bermuda? Here are the real estate agents and professional services you need to make your first move:
Coldwell Banker Bermuda Realty is Bermuda's largest full-service real estate company, offering services in residential and commercial sales and rentals, vacation rentals, property management, appraisals, land surveying, auctioneering and international referrals. Coldwell Banker Bermuda Realty prides itself on professional delivery to meet all your real estate needs. Affiliated with the world-renowned Coldwell Banker Corporation since 1998, the firm ranks in the top 6 percent of the global network, which includes more than 120,000 real estate professionals in 42 countries and territories around the world.
Kitson & Company Ltd.
The Kitson Building
5 Reid Street, Hamilton
Tel: 441-295-2525
Fax: 441-295-0814
E-mail: realestate@kitson.bm
Website: kitson.bm
Kitson & Company is Bermuda's oldest internationally known real estate firm specializing in the management, selling, long-term and holiday rentals of Bermuda's finer residences. Kitson & Company has also become pre-eminent in the field of leasing, selling and managing commercial properties. Professional staff skilled in each particular aspect of the real estate market will personally assist you with their expert advice. Kitson & Company is an active member of the Real Estate Division of the Bermuda Chamber of Commerce.
Rego Sotheby's International Realty
91 Reid Street East, Hamilton
Tel: 441-292-3921
Fax: 441-295-7464
Website: regosothebysrealty.com
Rego Sotheby's International Realty has been a major provider of real estate services in Bermuda since 1949, handling all aspects of sales, rentals, property management, auctions and valuations, which are prepared by the company's valuation professionals. Rego Sotheby's International Realty offers the luxury residential market a high standard of expertise. Rego Sotheby's International Realty belongs to the United States National Association of Realtors and the Bermuda Chamber of Commerce Real Estate Division.
Nestled on the top of Rose Hill, with spectacular views of St. George's harbour, is The St. George's Club, Bermuda's premier cottage colony and vacation ownership resort. One- and two-bedroom cottages in the Bermuda architectural style. Beautifully manicured gardens, three swimming pools, tennis courts, restaurant and bar, cycle livery, on-site grocery adjacent to golf and pink-sand beaches. Overlooking the Town of St. George — a UNESCO World Heritage Site — and its pristine harbour.
DID YOU KNOW? Architects in Bermuda must be Bermudian or work for a Bermudian architectural firm.
DID YOU KNOW? Until recently, houses in Bermuda were identified only by names. Now they are issued numbers.
Bermuda is our specialty ~ Excellence is our promise. Individuals, Honeymoons, Family Trips, Weddings, or Groups -- let Bermuda Travel, the best Bermuda Specialist, plan your trip today!
Make your Bermuda trip even more memorable with dolphins! Dolphin Quest offers fun, interactive dolphin encounter programs for all. Book your adventure today!
Have a fun-filled vacation with a cycle from Oleander. If you can ride a bicycle, you can easily ride an Oleander scooter. See all of Bermuda...reserve one today!
ExperienceBermuda.com The official web site of the
Bermuda Hotel Association. Copyright 2003/08, HCP/Aboard Publishing, a division of Aboard Publishing, Inc., and subsidiary of The McClatchy Company.
"In real terms — looking at the average price of Bermuda real estate vis-à-vis the rest of the world, and in particular the American market — I don't think that in the U.S. they are in the position to say that their real estate values in 2006 or 2007 have only declined by 3.5 percent," says Rego.
If the policy weren't in effect, he says, there would be at least twice as many homes available to potential non-Bermudian buyers at any given time — further saturating the market with options for overseas buyers, and hence creating more competition for sellers.
Bermuda has the third-highest per capita income in the world. And the island's reputation as the safest in the tropics only enhances its appeal for foreign buyers.
"If you're an insurance executive with an international company here and you're looking to rent a $5 million or $6 million house during your stay, that could be $25,000 per month," says Rego, "So you might think about buying in Bermuda as opposed to paying rent if you have long-term goals to be here, kids in school, etc."
Whilst Americans are stuck with their income tax structure no matter where they live in the world, it's not all bad news for those earning U.S. dollars.
Currently, there are four developments in Bermuda open for fractional ownership, with prices ranging from $175,000 to $445,000 for one- to four-bedroom condominiums. This price point, says Rego, is attractive to people who want to experience extended vacations in Bermuda, but don't want the multimillion-dollar price tag of full ownership.
Potential buyers should also be aware that a one-time license fee, not included in the listing price of the home or condo, applies to each purchase.
Coldwell Banker Bermuda Realty 
Kitson & Company Ltd.
Rego Sotheby's International Realty 
The St. George's Club 
Bermuda is our specialty ~ Excellence is our promise. Individuals, Honeymoons, Family Trips, Weddings, or Groups -- let Bermuda Travel, the best Bermuda Specialist, plan your trip today!
Make your Bermuda trip even more memorable with dolphins! Dolphin Quest offers fun, interactive dolphin encounter programs for all. Book your adventure today!
Have a fun-filled vacation with a cycle from Oleander. If you can ride a bicycle, you can easily ride an Oleander scooter. See all of Bermuda...reserve one today! 
