Published 4 December 2017
Buckie Got It, St. Kitts and Nevis News Source
Migration Insider editor agrees hurricane relief
option of CIP hurts St. Kitts and Nevis’ real estate
Basseterre, St. Kitts, December 4, 2017 – Editor of the Investment Migration Insider is on the same page as the St. Kitts-Nevis Labour Party (SKNLP) that Prime Minister Harris’ Hurricane Relief Fund, as an option of the Citizenship by Investment Programme hurts the real estate component.
After the Hurricane Relief Fund was unveiled, Leader of the Opposition, the Right Hon. Dr. Denzil L. Douglas in a statement issued on October 3, 2017 said: “This wrong-headed policy renders the Real Estate option worthless. It is the Real Estate option that provides jobs in construction and related field, and promotes the consumption of materials and transportation services. So many developers who have deeply invested in the Real Estate option woke up on September 23rd to learn that their investment to the tune of millions of dollars is now worth hardly anything. The anticipated time to recoup their investment in real estate has moved from one or two years on average to potentially ten years and over, if ever. Thousands of plumbers, carpenters, masons, electricians and others are now on the verge of losing their jobs, and potentially their properties that have been mortgaged to the bank. Prime Minister Harris is reckless and demonstrates little understanding of the interplay between the CIP and the local economy.”
Christian Henrik Nesheim, Founder and editor of Migration Insider. leading source of intelligence for the Citizenship and Residence by Investment Industry in an article captioned: All I Want for Christmas is a CIP Accord in the Caribbean: 5 Reasons to End the Price War,” said the current price war (started by St. Kitts and Nevis’ Prime Minister Dr. the Hon, Timothy Harris with the introduction of the Hurricane Relief Fund) “negatively impacts actual investment in private sector enterprise.”
“Lower contribution requirements make the real estate options relatively more expensive. Cash donations are a great source of up-front revenue, sure, but tracing the money’s impact on the real economy is not a straightforward task, particularly in those Caribbean nations where the government has full control of the funds and have a laid-back approach to transparency and to reporting how the contributions are distributed,” wrote Nesheim.
He said that the real estate development, on the other hand, “provides jobs – in construction, hospitality, and goods supply – and can lay the foundation for a durable expansion of the tourism sector.”
“Crucially, capital invested in real estate ends up in private hands rather than in the custody of (notoriously profligate) bureaucrats, which means the return on capital is potentially far greater,” said Nesheim.
Deputy Political Leader of the St. Kitts-Nevis Labour Party (SKNLP) and former deputy prime minister Dr. Earl Asim Martin said the introduction of the Hurricane Relief Fund signalled the death knell for the Real Estate option of the St. Kitts and Nevis Citizenship by Investment Programme.
He noted that the real estate option stands to suffer tremendously because persons seeking St. Kitts and Nevis Citizenship will prefer to spend US$150,000 under the Hurricane Relief Fund option to get four passports instead of investing US$400,000 to buy property under the Real Estate option.
“On September 23rd when the Hurricane Relief Fund option was introduced, it has serious implications for the Real Estate option. Serious implications for the livelihood of those who make a living from a robust construction industry of this federation,” Dr. Martin said on the weekly “Ask the Leader” programme on KYSS 102.5 FM.
“Construction of real estate will be affected as there will be a significant reduction in the purchase of cement, concrete, lumber and other material from S. L. Horsford, TDC, Builders Paradise and Nichols for the building of homes and condos. There are several spinoff effects,” said Dr. Martin, who added that the livelihood of thousands of plumbers, electricians, heavy equipment operators, sub contractors, carpenters, masons, skilled workmen and unskilled labourers will be jobless as construction is significantly reduced or grinds to a halt.
“The local food vendors who go from construction site to construction site daily to sell breakfast and lunch, other food and drinks to the workmen will see their income drastically red cued as well as the number of large construction sites under the Real Estate option dwindle or evaporate,” said Dr. Martin, a former minister of public works.
“These income earners will no longer be able to provide and sustain the quality of life for themselves and their families. They have invested in homes, vehicles and transportation and with mortgages to meet with the banks and other financial institutions,” he pointed out.
Photo 1 – Christian Henrik Nesheim
Photo 2 – Rt. Hon. Dr. Denzil L. Douglas
Photo 3 – Dr. Earl Asim Martin
