Buying real estate in Belize
Real estate in Belize has become a popular area for investment. The decision of where to invest in foreign real estate can be intimidating and requires significant research. When investing abroad and buying overseas real estate, an investor has virtually endless options and destinations to choose from.
It can be challenging to evaluate which regions have peaked and which still have room for growth (especially from an investment perspective) when there are so many options and nations to consider. Typically, investors are seeking for homes with a profit margin.
It’s common knowledge among real estate investors that “location matters,” and it’s easy to understand why the Caribbean, South America, and Central America are such alluring locations.
The areas have some of the most stunning beaches in the world, a comfortable climate, and affordable housing. Offshore investing is beneficial due to all of these characteristics, although some locations have particular benefits. Many foreign investors are learning that there is a lot of untapped potential in Belize real estate and that the market is just getting started.
Here are the top five reasons why buying real estate in Belize is a smart move.
4 Motives to Invest in Belizean Real Estate
- Tourism in Belize is Increasing
If you want to make investments overseas and in another country’s market, you should look for a location that is growing and attracting more visitors because this will increase public awareness. Fortunately, Ambergris Caye and Belize are seeing an increase in travelers due to the country’s burgeoning tourism industry.
The reasons behind each investor’s real estate investment in Belize vary just a little. Some buyers and investors only want a tropical getaway or their very own slice of paradise. You can purchase a vacation home in Belize to spend time there or to build up savings for your golden years.
On the other side, one of the main reasons people invest in Belizean real estate is the tourism revenue produced by short-term and vacation rentals. Since there are many people interested in buying real estate as a way to profit, investors thinking about Belize typically analyze the cash flow and yield prospects. You should make an investment in a growing tourism sector if you want to turn your real estate into a passive income producer.
Over 500,000 overnight visitors to Belize arrived in 2019, bringing the country’s tourism to an all-time high. Belize’s tourism industry will have almost fully recovered by 2022 to pre-COVID levels. In 2022, Belize’s tourism sector was only 81% of its high. From 2010 through 2022, Belize’s tourism industry has grown by 14.6% year. This represents compounding growth year over year. Only a few of places on earth experience double-digit annual tourism growth. This shows the increase from last year.
Overall, Belize welcomed more guests in 2019 than in any prior year, both by air and by cruise ship. In 2022, the number of tourists we saw was almost as high as it was in 2019 (81% of peak pre-COVID tourism).
This may be partially explained by the large investments that the Belizean government and business community have made in regional infrastructure development projects. It is also strongly tied to the expansion of chain hotels in Belize, including the Four Seasons, Margaritaville, Wyndham, Hilton, and Marriott.
Belize’s tourism industry is expanding, which is good news for investors. The more rooms are rented and the higher the return on investment for holiday rentals, the more travelers there are.
In addition to having an average annual tourism growth rate of 14.6% over the preceding 12 years, Ambergris Caye, Belize’s top tourist destination, has seen the highest volume of tourism while also experiencing population expansion. After growing by 17% over the previous ten years, Ambergris Caye’s population has expanded by an average of 8% annually over the last five years.
A rapidly growing audience of potential renters who would look to rent a Belize vacation home for people who own Belize Real Estate and Ambergris Caye real estate is associated with increased awareness and tourism.
Not only are businesses wishing to consistently generate rental income from visitors perfect candidates for a booming tourist industry. Additionally, it is ideal for people who wish to raise the value of their home. A property’s resale value increases with both the number of visitors and the amount of return it generates. As Belize develops, real estate there will become more valuable and more expensive.
- Foreign investors actually own real estate
The bulk of the countries in the area, including Costa Rica, Panama, Mexico, and others, do not grant foreigners the same rights to own property as locals. The fact that ownership rights might be convoluted and a foreign investor may not actually own the property is one of the biggest worries when investing in real estate abroad.
In a few of places, you must be a citizen or a resident to buy and own real estate outright. For a foreign investor investing abroad, this may translate to less security and a riskier investment. It is usual for nations to need a leasehold or other type of trust before allowing a foreigner to own real estate.
An investor typically buys a “leasehold” for a specified number of years when buying real estate abroad. If you plan to leave the property to your children or other dependents in the future, this could be an issue.
None of these problems concern real estate or other property in Belize. One of the few jurisdictions under British Common Law that permits full foreign ownership and the possession of freehold real estate with a fee-simple title is Belize. In Belize, it is unusual to hear about problems with land ownership. A land title is granted to the rightful owner of a piece of property. Anyone can purchase real estate in Belize, including foreign investors. To own and invest, you do not need to be a citizen of Belize, possess citizenship, or reside there. You can truly own property if you’re a foreigner.
Even better, since leaseholds are practically nonexistent in Belize, buying real estate there as a foreigner gives you outright ownership of the property. An investor will feel more secure and at ease as a result. One of the best offshore markets for preserving capital is Belize. Belize also rejects the concept of squatter rights.
- Stability of the currency
When investing in foreign real estate, you want to make sure that your money is secure and that it increases in value by a stable currency. It is crucial to be sure the investment you are making will preserve its property value. Holding an asset in a volatile currency and investing in an area with high inflation are risks that should be taken seriously.
Assessing whether a country’s local currency fluctuates is crucial when making an international investment, as is staying away from countries with high levels of inflation or currency volatility.
The Belizean Dollar, the national currency of Belize, is pegged to the US dollar at a rate of 2:1. Due to our peg to the US dollar and the fact that almost all real estate transactions take place in US dollars, currency fluctuations are kept to a minimum in Belize.
Real estate in Belize Land For Sale is an asset that increases in value over time. You don’t need to be concerned about domestic currency inflation because you possess the property in a stable currency.
The US Dollar and the Belize Dollar are connected. Two Belize dollars are always equal to one US dollar. The majority of real estate transactions are made in US dollars, which makes them quite straightforward and easy. Since you possess the real estate asset in USD, its value won’t decrease due to market fluctuations or rapid currency inflation (like in Argentina or Venezuela).
The fact that Belize’s currency is pegged to the US dollar and that real estate deals are done in US dollars is a big plus, especially if you reside in the US or run your business in US dollars. Despite market fluctuations, Belize real estate values won’t decline because of worries about the exchange rate.
- Belize Real Estate and Property Taxes
Anywhere you own real estate, you have a cost of ownership called as “holding costs.” Anyone who has ever owned real estate anywhere in the world is aware of the ongoing costs that must be taken into account.
When making an international investment, keep in mind that home or property maintenance might be expensive and that property taxes can be high.
Property taxes in Belize are not too high. Your land’s undeveloped value determines how much you will pay in property and real estate taxes. A person’s home or improvements to their property have no impact on their property taxes.
Property taxes in Belize are consequently very low. Property taxes for canal-front residences are $108 a year, while they start at $75 a year for other off-beach homes on Ambergris Caye’s West Coast. One of the main benefits of owning real estate and property in Belize is the low cost of ownership due to Belize’s low tax regime.
The cost of owning a home in Belize is consistently lower than in many locations that are comparable, which lowers expenses and increases investment return.
