Sales of Bermuda homes to non-Bermudians is on the rise yet realtor and mortgage lender, Bermuda Home, has again complained that government taxes foreign buyers of local property too heavily.

And the firm's chief executive doubts the viability of plans to develop the base lands, if the tax is not changed.

President and CEO, Arthur Haycock, has previously expressed concern over the high level of the licence fee paid by non-Bermudian purchasers of local real estate, a fee increased a year ago from 20 percent of the purchase price to 22 percent.

Mr. Haycock said this week in a letter to shareholders: "We continue to believe a tax of this magnitude sends a very negative message to potential purchasers from overseas who are interested in residing in Bermuda.

"Not only is it difficult to justify this tax to potential buyers but it adversely affects the ability of the present owners to sell their properties at a fair price and in a reasonable time.

"It must be remembered that this tax is in addition to high legal costs, stamp duties on the conveyance as well as annual property taxes of at least $6,194 per annum for houses with the minimum ARV of $43,800.'' Mr. Haycock said the real estate division of the Bermuda Chamber of Commerce has made representations to the Ministry of Finance over the tax and Bermuda Home hopes the Minister will seriously consider the issue in the preparation of next month's new budget.

He said, "We believe it is in the community's and government's interests to reduce this tax to a more acceptable level. We might add that unless there is some change in this tax structure, we have serious doubts of the viability of the development plans for the bases.'' Meanwhile, Bermuda Home's earnings projections for the second half of the year are expected to exceed results for the first half of the year, although earnings are not expected to equal those of last year.

Mr. Haycock said that while third quarter figures have not yet been finalised, the quarter is expected to yield satisfactory results, based on preliminary numbers.

Consumer and personal lending activity is up this year. The seven million dollars of new loans granted by January exceeded last year's figure and is above budget.

Some 80 percent of loan applications are being approved and loan delinquencies are at the lowest level in over three years.

Mr. Haycock said that it is "indicative of the improving economic circumstances of many Bermudians and the success our lenders are having in working with delinquent customers.'' BUSINESS BUC TAXES TAX