Cognitive dissonance

So let me get this straight:

...the Government wants to remove the 60/40 ownership rule in the telecommunication industry - allowing 100% foreign ownership of ISPs, phone, cable companies etc. and likely killing the small local firms, but removed the ability of Bermudians to sell their qualifying high-end homes to non-Bermudians.

Talk about cognitive dissonance.

Here's an idea: forget telecommunications.

How's about we invite foreign banks in to provide mortgages (I know, they can't secure the loan as foreign businesses can't own property - HSBC/Bank of Bermuda excluded)? Maybe then we'll see the end of extortionate 8-plus percent mortgages, putting home ownership within reach of a few more Bermudians.

An example:

The standard retail 30 year mortgage rate here is around 8.25%, while in the US it's running around 5.75% for a 30 year mortgage (and the banks are borrowing at the same rate).

On a 30 year $1,000,000 mortgage that's a difference of about $1,600 a month. That helps.

| More

Archives