Belize is also famous for its friendly attitude toward foreigners who want to invest in the country. As a matter of fact, the majority of all transactions occur when one or both parties are off the island. However, each purchase has its advantages and its downsides, so you have to be conversant with the risks of buying a property in Belize.
Bank interest rates typically range from 10-18% interest with fixed terms of one year. The banks provide you 60-80 percent of the purchase price of the property. Remember that many banks in Belize offer more than one type of real estate loan.
A lawyer will typically charge 2% of the selling price with a minimum charge of $600. This fee is based on evaluation and not necessarily the purchase price. The property transfer taxes in the Belize real estate market are set at 5%. Your attorney usually pays this payment as part of their obligation. Fortunately, the first $10,000 of the purchase price is tax-free.
With its low cost of living, property taxes of 15-35 USD per year, Belize is an investment paradise. Although there is no way to avoid or lower the mandatory fees, you can protect yourself from paying more in a couple of ways.
You should perform due diligence when buying a property in Belize as there have been highly publicized cases of land title fraud. Forged signatures in transfer deeds, false witnesses, and identity theft are common types of land title fraud.
The real estate market in Belize is awash with con artists. Foreigners, especially Americans, have lost vast sums while trying to acquire property in the country. Similarly, many fraudulent companies prepare fake property ownership documents and try to trick unsuspecting Americans.
The Central American country of Belize has become very popular among Americans who want to buy property overseas. The prospect of low taxes and high returns is too tempting to ignore. As a result, several investment agencies have sprung up in Belize. Some are legitimate businesses trying to introduce American investors into the Belizean real estate market. Unfortunately, others have ulterior motives.
For instance, owning a beachfront property means that you get to wake up every morning to a fantastic view and fresh breezes coming off the Caribbean Sea. Beachfront properties include a private area of beach, and easy access to the water. While many beachfront homes are more secluded, there are also condominium communities located along the shoreline for those who want more of a community feel.
If your intention is to move to Belize, whether for retirement or a change in lifestyle, then your focus will be different than if you were looking for an investment property that you would rent out throughout the year.
Whatever you have in mind, it helps to know a bit about the market and what steps are involved with making a real estate purchase. Here are seven of the most common questions people have about buying residential or commercial property in Belize.
Remember that the internet makes it much easier to take virtual tours of homes and other properties. By working through a registered agency, you can go on one of those tours, ask questions about the property itself, the location, and anything else related to a possible purchase.
In the event that you do need to finance the purchase, there is more than one option open to you. Some owners are willing to work out the terms for financing the property. Your lawyer can review the terms of purchase and ensure they are in full compliance with current laws. As with any financing arrangement, you would need to make the payments on time and would receive full ownership once the debt is settled in full.
Your legal counsel can also review all of the documents related to the sale. That includes the financial transactions, the registration of the new record of ownership, and even ensuring that you understand how and when property taxes must be paid.
Several factors will influence how long it takes to close the sale. The type of property will have some impact since there are matters to address with commercial properties that usually do not relate to purchasing residential properties. If a bank or other public holiday takes place while the sale is in progress, that could delay things by a few days.
Your lawyer can provide an idea of the amount of property taxes involved. This is often based on historical data, as well as information about current property values in the immediate area. While there may be a slight variance from one year to the next, you can expect the property taxes to remain affordable.
Canadian buyers will likely also be struck by the closing cost. As Lyons points out, property taxes in Belize are one of the biggest differences. Where in Canada, homeowners pay a monthly tax, in Belize they collect what is called a "stamp tax" or "stamp duty." The stamp tax is about eight per cent of the home and land value and is collected up front. After that is paid, the cost of owning property falls to about US$50 per year, Lyons explains.
Many signs point toward Belizian property as a good investment. Some professionals say property prices rose 30-to-40 per cent between 2015 and 2017, but it can be a difficult number to nail down as there are no official house price figures. The region was hit hard by the global economic crisis, with values falling by as much as 30 percent, but 2012 saw a rebound that continues today.
Lyons suggests that people be open-minded about where they live. Many people are fixated on buying on an island, but there are many other options and climates, including islands, beaches, mountains, and jungle.
The alleged scheme took in more than $100 million, marketing lots in what supposedly would become a luxury development in Central America known by several names, including Sanctuary Belize, Sanctuary Bay, and The Reserve. According to the FTC, the defendants duped consumers into buying Sanctuary Belize lots by falsely promising that the development would include luxury amenities and be completed soon, and that the value of the lots would rapidly appreciate.
To aid its lawsuit, the FTC is seeking information from consumers who have done business with the defendants or bought property in Sanctuary Belize. Over the course of the alleged scheme, the defendants have used other names in marketing the development, including Global Property Alliance, Buy Belize, Buy International, Eco Futures, Sittee River Wildlife Reserve, Sanctuary Bay, The Reserve, and The Marina at the Reserve.
Belize is one of the nations that allows non-citizens to own property. That makes it ideal to invest in offshore real estate and possibly become an expat eventually. It is necessary to establish financial accounts with a bank within the country before you can receive a mortgage, but opening an offshore bank account is a solid financial strategy on its own.
The long-range plan may be to retire in Belize. In the meantime, what will be done with the property? You do want to use it for vacations and possibly getting away for a few days. The rest of the time, it would be great to offer it for temporary rental.
Once you have an idea of the type of dwelling you want, engage the services of a local real estate professional. You may want to hire a real estate lawyer who can help you navigate the legal aspects of becoming a property owner.
Visit the Belizean bank and look into your options for obtaining a mortgage. These steps will ensure that when you find the right property, it will be easy to move forward with the purchase without any delays.
While Jason pointed out that he had yet to find a property in Belize that met all his criteria for investment, Mike responded that there are two different kinds of real estate investors. The first, like Jason, want any property they buy to cash flow positive from day one. Alternatively, some investors are looking for appreciation, which requires buying at the lowest price possible and hoping the value goes up.
There are a few situations where buying a property in Belize might make sense. If you want to relocate to the area and need a place to live, of course buying makes sense. You also might consider the purchase option if you plan to spend time in the country frequently and can rent it out during vacant stretches to offset mortgage costs.
Often derided as a blight on humanity in the United States, you might have to wrap your mind around the idea that, in Central America, the condo association could be your best friend. Think of it as a private government that exerts at least some interest in protecting the value of your property.
The Buyer is responsible for the title search and for the property transfer and any other related costs. A lawyer normally charges 2% of the selling price with a minimum charge and other expenses but Buyers have the option of also using a closing agent (contact us if you need a closing agent). Note that when purchasing real estate from a resident that you need to obtain Central Bank of Belize prior notice.
With all of these benefits on offer, we figured it was worth exploring Belize. (At the very least, we'd have a nice vacation!) So we researched and narrowed down our likely property buying zones to a few key locations in Belize, including Ambergris Caye.
They bought the property (as an abandoned farm) and slowly developed it into a thriving lodge business. Their 5-year-old son attended the local school, and they found it to be a wonderful place for their adventurous family.
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