Belize is emerging as a significant player in the overseas real estate market. The country has an economy growing at approximately 20% annually and new tax incentives to boot. When compared to the U.S., Belize offers more benefits for home and property buying.
Risks Of Buying Property In Belize
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.
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.
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.
Another option to purchase real estate is through owner financing where the seller provides part financing for the buyer, Conditions are flexible but an owner financed transaction usually sees the buyer putting down 30% cash and the owner finances the balance at rates of between 6 to 8 per cent over a five or ten year period. If you are buying property as an investment or future retirement home, you can hire a property management company to rent out your property when you are out of the country and pretty much have tenants pay for most of the cost of the purchase.
Foreign nationals have the freedom to buy property in Belize, even without stepping foot in the country. There is also no capital gains tax, while property taxes will not take too much out of your budget. Not only that, prices for real estate are relatively cheaper in comparison to Costa Rica, Mexico, and certain areas of Florida. Though this situation may sound tempting, there is more than what meets the eye. There are different reasons why buying property in Belize is not the best investment there is.
Evaluating a property in terms of how it was built is applicable wherever you are in the world. However, this becomes even more important when buying one outside of your place of residence, especially if you come from a developed country. You would need the prudence and right informants to exactly know how the property came to be, without being told just flowery words. This is because government regulatory procedures may not always be strictly implemented. As such, construction companies have leeway to skip a few standards.
Generally, it's good to put eyeballs on the property before buying. To be thorough, we recommend visiting Belize and touring areas like Ambergris Caye, San Ignacio, San Pedro, Corozal, Placencia and to get a feel of the whole country. It's best to use an accredited broker since the real estate industry in Belize is unregulated.
A reputable lawyer is an important factor in helping your purchase go smoothly. They'll help you understand the basics of ownership, such as the tax implications and obligations that come with purchasing international property. They'll also handle the legal aspect of the buying process and ensure a satisfactory contract overall.
The cost of buying property overseas typically includes mortgage fees, money transfer fees, legal fees, insurance costs, service fees and utility costs. Factor in all relevant costs to prepare a workable budget.
If you're transferring a large amount of money into a foreign bank account, unfavorable exchange rates will increase costs. Since buying property is a substantial investment, you need competitive exchange rates that can spin you more money.
If you have any questions about Belize Real Estate, buying property for investment message us. If you want more information on investing abroad or banking in Belize, contact Luigi Wewege.
1. Why did you choose Belize?I had heard how beautiful Belize was from many people and finally made my first trip there and fell in love with it! After looking around and checking out market prices I believed it was a great time to invest in property there! Beautiful weather all year around/great beaches/good snorkeling/diving/fishing and reef! People are lovely in Belize! Mode of transportation on the Island of San Pedro is a golf cart and I love that!! Quaint Place!!!
2. What property did you purchase and why? We purchased a Penthouse and Ambergris Caye just across the lagoon from town of San Pedro Last year and then this year I bought 110 lots 3.5 Kilometers from the town of San Pedro. I believe Belize Real Estate is going to increase drastically in the next few years!! When people finally visit Belize they will know that they have found paradise!
3. How do you plan to use your property?Spend time there in the winter months and also make it a rental income property in my absence. 110 lots I will sit on until price goes up and then make a profit ! I am even considering building a few rental income properties to rent out. They do not make any more land like this in Paradise so now is the time to buy before it all gets bought up !!
4. How was your buying experience with John Turley and Dennis Kay? I have known and been dealing with John and Dennis now for 2 years !!! I have nothing but praise to say about them! John handled most of my transactions and worked harder for me after the sale than trying to just grab the commission and run!!! He followed through and assisted me 150 % !! His recommendation was excellent and John and Dennis are tied to good honest developers!! They do what the say and say what they mean!! 100 % honest!
5. Would you recommend Belize to your family and friends?Absolutely and do that every day !! I even tell everyone that do not know about it !! It is Heaven on earth!!
6. Would you recommend working through John Turley and/or Dennis Kay to your family and friends?
Like any other investment, buying real estate in Florida has many advantages as well as risks. Let's take a look at the key reasons why Americans and foreigners invest in local properties and the potential pitfalls they may face upon completion of a real estate transaction.
Buying property is always a stressful process and can be even more so when purchasing in a foreign country. However, Belize is part of the British Commonwealth with a legal system that shares the same British common law as does Canada and the United States. However, there are five basic things that every buyer must know before they begin that process of buying their dream property in Belize:
A foreigner can own property outright in Belize and has the same rights as a Belizean citizen to freehold property ownership. Since the Alien Landholding Act was abolished in 2001 there are no licenses, permits, special permissions or conditions needed for a foreigner to take title to freehold land in Belize.It is always advisable to have professional legal advice when purchasing property although you will often be told the opposite. There are experienced and reputable paralegals who will be familiar with the title history of local properties and they can often finalize a purchase. However, there can be important issues concerning how best to take title which can impact your closing costs and potentially impact how you sell your property. Don't take any risks, obtain qualified local, legal representation.Title insurance is very prevalent in the US and increasingly so in Canada but is not so common in Belize. However, Belize is one of the few Central American countries that in fact does offer title insurance through one of the major American providers, Stewart Title. It is important to note that the Government of Belize guarantees most Belizean titles while your local lawyer can provide a title opinion which makes property purchase as secure regarding your title as in the USA and Canada Closing costs in Belize are very straight forward. Since there is no capital gains tax associated with the purchase and sale of real estate, the Government assesses a 5% stamp tax on the declared purchase price of the property at the time of transfer of title. However, there is an additional tax of 5% for foreigners and persons who have resided in Belize for less than 3 years. It is important to fully review and understand your options prior to completing the sale to insure you take title to your Belizean property that best serves your particular circumstances. Closing fees to your lawyer or paralegal should be budgeted at a minimum of $500 - $1500. Local financing, although available, would not be a recommended course of action. The majority of foreign property transactions is either cash or otherwise financed offshore. Belizean interest rates are typically much higher than you will be used to in your home markets with fixed terms of only twelve months and only issued in Belizean dollars. At the end of every year the loan is closed out and then renewed at the current interest rate. A more reasonable alternative may be to borrow through an offshore banking institution and, as always, professional advice is very important.
Common sense needs to prevail when contemplating buying property in any foreign jurisdiction and that should begin by retaining an advisor who is on your side and not compromised by acting for the seller as well. Begin by following the above five factors and you will go a long way to making this an exciting and joyful experience.
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