Buying property in Belize is not as simple a task as you might initially expect!

First of all, real estate agents as we know them don’t exist! The real estate brokers out there are likely unlicensed, unregulated, and certainly untrained and uninsured.

Second, most (and I mean most) properties for sale are not advertised!

But with property prices remaining affordable, the quality of available properties attractive, the weather beautiful, the people welcoming, the quality of life incredible, and the opportunities in Belize 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 Belize real estate!

First part: search for a house.

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 some real estate agents who keep up-to-date listings, either available by request 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 local people and expats.

You see, the properties that are for sale are usually offered by their owners, and they often choose to skip the middleman: the real estate broker. So, without middlemen or signs, the only way you’ll learn about what’s on the market is to meet locals and expats in the particular areas you’re interested in, and by word of mouth you can start hearing about it. 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 offers to choose from than you can handle! Get ready and don’t jump at 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: you don’t need a license, insurance, experience or training to become a real estate agent: so what you’ll usually find are expats, hoteliers, shop owners and taxi drivers acting as real estate agents. .

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

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

If buying through an agent, commissions in Belize are typically 7% on residential properties and around 10% on land transactions, paid by the seller: and in some cases, as a buyer, you may be charged to view the property if remote. and requires the disbursement of travel expenses. Make sure you are aware of the charges you may be responsible for up front.

Third Part: Property Prices.

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

There are still many offers 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 is a common sentiment among the expat community in Belize – something along the lines of “the second house you buy or rent is twice the size of the first one and costs half as much” – so don’t part with your money until you are fully satisfied! sure you know what you’re doing!

Prepare to spend time in Belize and be prepared to invest time in meeting and befriending the local people, any influential lawyers and business people and also the local expatriate 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 point of view of a local, the ‘rich’ foreigner who is paid much more for his work in his country than a Belizean in Belize for the same work, may simply pay the higher price.

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

And yes, bargaining 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 risen 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” applies doubly in Belize.

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

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

Any agent or vendor you talk to is likely to talk about the potential 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 linked 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 may one day want/need to resell

This shouldn’t necessarily discourage you; After all, you can still buy a lot more for your dollar, pound, or euro in Belize than you can in the US, UK, the Mediterranean region, or Western Europe, but it’s important to take a realistic view. of the property market in whatever country you are considering investing in or relocating to. 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, and indeed accept, foreign investment, which means they place very few restrictions on 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 repealed.

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

Part Five: Legal and Financial Considerations.

I always suggest that people seek qualified legal advice when dealing with an undertaking as large and far-reaching as buying real estate!

Belize is no exception!

In fact, in Belize, lawyers are generally considered to be trusted and well-connected 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 enabling you to fulfill your real estate dreams, the onus is going to fall on you! It is extremely difficult for non-residents to obtain mortgages from banks in Belize, therefore most buyers are able 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 paid in full for the property.

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

Terms of course will 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 will need to factor in an additional 12 – 15% on top of the purchase price for fees and costs.

You have the title transfer fee which is also known as “stamp tax”. This is a mandatory 5% for every buyer, regardless of their nationality, with an additional 5% payable by non-Belizean citizens, making a total of 10%.

This will apparently 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 about 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 are interested in purchasing.