How to find your dream home in Belize
Real Estate admin  

How to find your dream home in Belize

Buying property in Belize is not as simple a task as might be initially expected!

First of all, real estate agents as we know them do not exist! The real estate brokers out there are likely to be unlicensed, unregulated, and certainly not trained or insured.

Secondly, most (and I mean most) of the properties for sale are not advertised!

But as property prices remain affordable, the quality of available properties is attractive, the weather is beautiful, the people are welcoming, the quality of life is incredible, and the opportunities in Belize are abundant, more and more people need know HOW they can achieve their dream. house in Belize.

This article should cover the tips, tricks, and important points for your consideration, and go some way towards helping you locate and purchase your ideal real estate property in Belize!

First part: house search.

As mentioned, many properties that are for sale are often not advertised.

Sure, there are occasional ads in the San Pedro Sun or Belize City newspapers and there are a few real estate agents who keep up-to-date listings, either available on demand or through their websites, but seriously, most properties that are for sale are not advertised – and I’m talking about at least three quarters.

The only way to find out what is really available is to travel to Belize and spend time there among the locals and expats.

You see, properties that are for sale are usually offered by their owners, and they often choose to bypass the middleman: the real estate broker. So, with no middlemen and no signage, the only way you’ll learn about what’s on the market is to meet the locals and expats in the particular areas you’re interested in, and word of mouth you can start hearing about. what is actually available.

As soon as word gets out that it’s on the market, chances are you’ll be inundated and have more properties and deals to choose from than you can handle! Be prepared and do not accept the first opportunity that comes your way!

Second Part: Real Estate Brokers.

Because anyone in Belize can be a real estate broker, the quality you come across will vary greatly!

So be warned: no license, no insurance, no experience, no training is required to become a real estate agent: so what you’ll typically find are expats, hoteliers, shop owners, and taxi drivers as real estate agents. .

Yes, there ARE some professional agents who are honest and knowledgeable and whose agency business is legitimate, but there are also those who make a quick killing selling anything and everything to unsuspecting tourists.

Listen to the experiences of others and if a trusted advisor recommends someone, all the better.

If you buy through an agent, commissions in Belize are typically 7% on residential property and around 10% on land transactions, at the seller’s expense: and in some cases, as a buyer, you may be charged to view the property if it is remote. and requires the disbursement of travel expenses. Make sure you know what charges you may be responsible for up front.

Third Part: Property Prices.

Despite a steady 20-year appreciation in Belize real estate prices, property remains attractively priced, especially when comparing similar real estate prices for sale in the United States or Western Europe.

There are still plenty of deals available in this beautiful Central American country. But it’s not so much what you know as who you know when it comes to getting the best deal for your money.

There’s a common sentiment among the expat community in Belize – something like “the second house you buy or rent is twice as big as the first and costs half as much” – so don’t part with your money until you’re totally there! sure you know what you’re doing!

Get ready to spend time in Belize and get ready to spend time meeting and making friends with local people, any influential lawyers and business people and also the local expat community. It is through these people that you will find the best real estate at the best prices.

Another point worth considering is that Belize is a country where there are two prices: the local price and the foreign price. Yes, from an expat point of view this is unfair. But from the local point of view, the ‘rich’ foreigner who is paid much more for his work in his country than a Belizean in Belize for the same work, can simply afford to pay the higher price.

One way around this is to ask a Belizean friend to ask the price and negotiate for you! Easy!

And yes, negotiation is key: property prices vary wildly from region to region, city to city, and provider to provider. There really is no set valuation structure that someone can base the price of a property or land on.

This means that it is difficult to say exactly how much real estate is worth and how much property prices have actually increased in recent years. It is even more difficult to say what a real estate investor in Belize could expect year after year in terms of the appreciation of any real estate asset. So much so that the saying “you almost always make your money when you buy, not when you sell” goes doubly true in Belize.

As a very general guide to property prices, they are highest in Belize City, Ambergris Caye and Placencia, and lowest in more remote rural areas.

House prices range from $15,000 for a basic traditional home in a small, undeveloped town to $500,000 and up for luxury beachfront villas in, say, San Pedro.

Any agent or vendor you speak to is likely to talk about the possible returns on an investment in property or land in Belize, this is only natural! But what you need to keep in mind is that:-

a) the economy of this country is tied to the US economy and

b) the time it takes to sell a property in Belize can be very long and drawn out (I mean years, not weeks or months) which is something to keep in mind when considering buying a property that you someday want/need to resell

This shouldn’t necessarily put you off; After all, you can still buy a lot more for your dollar, pound, or euro in Belize than you can in the US, UK, Mediterranean region, or Western Europe, but it’s important to take a realistic view. of the real estate market in any country in which you are considering investing or moving. That way you walk in with your eyes wide open…it’s always better to be a smart shopper!

Part Four: Foreign Property.

The Belizean authorities are open to foreign investment and indeed welcome it, meaning that they place very few restrictions when it comes to foreign ownership of real estate in their country.

In Belize, it is even possible for non-nationals to freely purchase prime beachfront property. There used to be a license requirement for a foreigner to purchase land larger than 10 acres or 1/2 acre in a major town or city, but this requirement has been revoked.

The only rules and restrictions are:-

The foreign purchase of any island must have the approval of the Government through the Ministry of Natural Resources.

In certain coastal and key protected areas, the purchase of land and property by non-locals must be approved by the local village council.

Fifth Part: Legal and Financial Considerations.

I always suggest that people seek qualified legal advice when it comes to such a large and far-reaching undertaking like buying real estate!

Belize is no exception!

In fact, in Belize, lawyers are generally seen as well-connected and trusted pillars of the community with real power. And their fees are typically around 2% of the purchase price…this should cover title searches and drafting of transfer documents.

In terms of allowing you to fulfill your real estate dreams, the responsibility is going to fall on you! It is extremely difficult for non-residents to obtain mortgages from banks in Belize, therefore most buyers are either in a position to pay cash for their purchase or have financing from a financial source outside of Belize.

However, some new developments with mortgages attached by the developer are emerging; real estate developers are often the first to notice a potentially untapped market.

Basically, the terms that are currently available to buyers of such properties are:

The developer retains title to the property until the buyer has fully paid for the property.

The buyer makes a 10% down payment and the remainder is repaid over 10 years at 10% simple interest per year.

Terms will, of course, vary from this to say 50% up front and the remainder payable over three to five years at 12 to 15% interest.

However, keep in mind that the best prices will be for cash offers.

You’ll need to factor in an additional 12-15% on top of the purchase price for fees and costs.

It has the property title transfer fee which is also known as “stamp duty”. This is a mandatory 5% for each purchaser, regardless of their nationality, with an additional 5% payable by non-Belize citizens, making 10% in total.

Apparently this will increase to 12% in the near future.

If you have become a resident of Belize through the Retiree Incentive Program, you are exempt from the 5% second stamp duty for non-citizens.

Then you should have your lawyer’s fees, which will be around 2% of the purchase price.

Finally, you will have property taxes that actually vary from area to area based on the type of land or property purchased. In general, expect to pay around 1% per year of the value of undeveloped land…but talk to your attorney for more exact figures related to the property or land you’re interested in buying.

Leave A Comment