risks associated with investing in property in Belize
Many investors are looking for ways to re-direct their hard earned savings into real estate that can generate income as well as provide appreciation. Belize is an excellent location for income property investment due to a growing tourist industry and competitive prices. But, like any investment there are risks associated with buying Investment Property Belize.
One of the main concerns is that it is not a “cash” market, meaning that you have to finance your purchase with bank loans. This can be a risky proposition because of the high interest rates and terms that banks typically offer. The good news is that there are a number of private financing options available in Belize to help ease this concern.
Another concern is the fact that it is a hurricane-prone country, although there have been very few major hurricanes to date in Belize. This can cause serious damage to homes and other structures, requiring costly repairs. However, this issue is easily mitigated by doing a thorough property inspection and selecting a home in an area that has not been impacted by previous storms.
What are the risks associated with investing in property in Belize?
A final concern is that there are some unscrupulous real estate brokers and agents who can take advantage of people new to the market. It is important to do your research and select a qualified attorney and reputable real estate agent to work with. Using recommendations from other expats who have purchased property in Belize is a great way to find a reputable team to work with.
Despite these potential risks, investing in property in Belize can be a smart move for those who value low government intervention and privacy. There is also a strong international community in Belize that supports foreign investment. In addition, the fact that the Belize dollar is pegged to the US Dollar means that your investment will be protected against currency fluctuation and inflation.
The cost of property in Belize varies considerably by location, reflecting the popularity of different cities and towns with locals and tourists alike. But even the most popular destinations compare favorably to other Caribbean and Central American locations. Additionally, rental properties in highly desirable locations can generate a significant return on investment.
It is also worth noting that there are no capital gains taxes in Belize, so if you sell your property at a profit it will remain all of yours. This makes the country an attractive choice for investors seeking a more stable investment than those in more traditional, first world markets where property values can be subject to volatile, uncontrollable fluctuations.
