Home Buying Guide For Belize

Buying Property in Belize

Home Buying Guide For Belize

When buying in a foreign country you need to ask lots of questions.

Are you buying a home already built or do you plan on having one built for you? Either way you should know the contractor and checkout what he has built before. How long has he being building, who has he worked for, ect. Talk to people that used a contractor and see who would best fit your needs. See if they are happy.

Is this investment long term or short term?

Do you plan on occupying the property right away? Do you plan on renting it out?

Do you NEED to make income from your purchase right away? If so make sure that you know what you are getting yourself into. Not all investments are going to bring in the cash flow you might expect.

1. Evaluate-

Where are you coming from? What do you expect? How long do you plan on keeping your investment?

Just remember not all investments are going to make you a positive return on your money in the short term.

Are there children involved?

Are you still young and plan on working?

Are you ready to retire?

2. Capital-

Will you need a loan on this investment?

Do you have enough capital to invest without running low on funds? Don't forget to included closing cost which is 1 to 2%. There is a Stamp Duty Tax to the Government of Belize of 5% on the total purchase price after the deduction of the first US$10,000. Sometimes there could be other small fees so just make sure you understand everything you are paying for. For example, at closing the property taxes will be prorated. The fees for property tax is 1.5% and most property tax is based on 10 - 30% of the purchase price. The property taxes are due in April.

3. Shop Around-

Get to know the place, the people, and the way of life before you dive into a new adventure. San Pedro is pretty small so getting around and getting to know the lay of the land is pretty simple. Getting to know the people of San Pedro is very easy since most the people are very friendly. The way of life here is pretty simple. "No shirt, No Shoes, No Problem".

4. Negotiate -

If you have a good negotiator you should be able to find something you can afford and not be strapped for cash.

Once the negotiations are done, the paperwork is signed and turned in, escrow is disbursed the keys are yours.

Few things to think about:

A. If you plan on renting, just remember; buying has it's advantages:

1. It's yours and no one can tell you how to treat your investment.

2. You can customize, remodel, add on, fix it up the way you want it to be.

3. Instead of your money being put towards, all you money goes to your own investment not someone else's.

4. The money you have invested will come back to you in the end (equity),if you invest wisely.

5. Owning is cheaper than renting, more fun and flexible.

B. Find out things like:

1. What does your homeowners insurance cost vs. what it would cost here.

2. What will you use for transportation? We drive golf carts and our insurance is US$31.50 per year.

3. What do your bills run you per month? We live cheaper here than we ever did in the states.

4. How much does it cost you to live? You could find yourself saving money, having fun, living on an island and not having to worry about keeping up with the Jones. Who has the money these days to even try?