Belize Real Estate

The basics/background - Belize is the only Central/South American country where English is the official language (though in many areas, particularly nearer the Guatemalan and Mexican borders, Spanish is prevalent). The reason for this distinction is that, prior to 1981, Belize was a British territory, known as "British Honduras." Belize is bordered by Mexico to the north, Guatemala to the west and south and Honduras nearby to the southeast. The primary tourist area of Belize is Ambergris Caye, an island at the northeastern most corner. This island lies just to the south of the "Mayan Riviera" of Mexico - just follow the coastline in Mexico south from Cancun, passed Playa del Carmen and on south to the border. Physically, Belize itself is quite small, occupying an area about the size of Massachusetts. It is roughly 180 miles long (north to south) and less than 70 miles wide (east to west) at its widest point with an additional 200+ small islands (usually referred to as "Cayes" pronounced "keys") scattered throughout the Caribbean on its eastern flank. The mainland is composed of mountains rising to 3,000 feet, swamplands and rainforests, river bottoms, coastal areas and numerous islands that vary in size from tiny to the largest - at some 25 miles long, Ambergris Caye. Population is estimated at less than 300,000 people. The Belizean dollar is tied to the US Dollar at two dollars Belize per US Dollar. The largest city is the mainland town of Belize City, located on the eastern coast about 30 minutes by taxi from the country's international airport. The capital of Belize is Belmopan, located near the geographic center (relocated for hurricane reasons - yes hurricanes are a factor in Belize). The calling code is 501 and electricity is of the US 110-volt variety. Telephone service is fairly good throughout Belize, a legacy of the former British government and cell phone service is improving (though there is basically only one service provider for each). Belize is in the central standard time zone (same as US central through the winter and US mountain during daylight savings time, which they do not observe).

Accessibility/Getting there - Belize is a two to three-hour plane ride from various airports in the US, including Houston (via Continental or TACA Air), Atlanta (Delta), Miami (American Airlines), Charlotte (US Air) and Dallas (American Airlines). Seasonally or at various times, there is service from other airports (Newark, Canada, etc. as well as prospective service from LAX on Delta in mid-2007 and plans for direct flights from Europe in a few years - pending airport expansion efforts now underway and projected through 2015). Most tourists head straight for Ambergris Caye upon arrival at Belize International - either via air on Tropic Air or Maya Air or via taxi to Belize City then on by boat. Others range from Belize City, one of the smaller Cayes or, in a few cases, smaller mainland towns like Placencia or Dangriga.

Desirability for investment - Much like other Caribbean destinations, Belize's appeal to prospective real estate investors can be largely tied to the same appeal it holds to tourists, namely: weather, scenery and Caribbean Sea activities. While most Central American countries also have oceanfront property, clear and wildlife-filled waters and generally tropical weather, Belize has a few other notable advantages unique to itself. Primary among these are: the second largest barrier reef system in the world (to the Australian Great Barrier Reef); the largest atoll in the western hemisphere – Turneffe, dry areas to the north, upward of 200 islands, many bone-fishing "flats" considered to be among the best in the world, etc.. As stated earlier, Belize has the unique distinction of having English as its primary language unlike its other Central American neighbors, a significant advantage. It, along with Guatemala and Mexico, are the historic centers of Mayan population and, consequently, abound with numerous Mayan temples, ruins and archaeological sites, the majority of which are still believed to be buried by jungle undergrowth and awaiting re-discovery. Other recreational past-times for tourists (and prospective owners) are cave systems (and famous cave tubing), rainforest and river and other jungle/nature tours (60% of Belize’s tropical forests are “protected”) to spot elusive jaguars, and more common caimans, howler monkeys, toucans, parrots, and numerous other wildlife. Diving, snorkeling, sea kayaking and other trips along the coasts and in the cayes are also frequent draws to spot all manner of sharks (including whale sharks), rays, manatees, large bonefish (e.g., permit and tarpon) and many others. Bird-watchers also frequent Belize as it is home to almost 600 known species. The government is quite stable as is their currency, though they are currently undergoing some of the typical growing pains of countries which have only been sovereign for some 20-30 years.

Location: WITH MAPS OF CARIBBEAN AND AREA

Belize's location

Belize

Investment Appeal:

OVERVIEW OF THE MAINLAND AND THE CAYES

For some reason we have yet to fully comprehend, a tremendous amount of interest and money have flooded into the Ambergris Caye area and northern Belizean mainland over the last two years. While some local real estate agents speculate that the 2005 hurricane damage to the Mexican coastline to its north seems to have been largely responsible, we feel there must be other factors, including the dramatic rise in prices in Costa Rica to the south - a similarly destination in terms of eco-tourism, diving, naturalism, and the like. To give some perspective on the rapid price-appreciation on Ambergris Caye, in 2005, one of our editors had looked at a 2+ acre parcel with 220' of beachfront on the west side of the Caye some 4 miles north of "the cut" (which used to delineate the end of San Pedro town). At that time, it was priced at $220,000. By April of 2006, the same parcel was for sale for over $2 million. Central Belize is growing at a more moderate rate, but still robustly. The coastal cities of Dangriga and Placencia are the primary areas of this recent growth – and the quality of accommodations and developments continues to improve there. The furthest south points, including the Punta Gorda (“PG”) area, have been slower to develop. We feel this is primarily due to its location farther from the more reachable areas around Belize City and the fact that the southern areas receive a great deal more rain (and humidity) than the rest of the country. Please note the surprising fact that despite the small size of the country there are large variations in weather conditions. The Corozal district to the far north receives 40-60 inches of rain a year, while the furthest points south in the Toledo district may receive over 200 inches! The rainy season is generally June through November, with sporadic rains the rest of the year. Temperatures are fairly consistent, but will range from the upper 70s through the “winter” to the 90s during warmer months. This can be coupled with humidity averaging as high as 85% in southern areas like Punta Gorda. There is even considerable variation in the breezes, humidity and temperature between the Cayes. Belize, like all of the Caribbean, has a “high season” that translates to the coldest months in the US – December through April. There is growing tourism during the rest of the year, but investment decisions should be made against the backdrop of the seasonality of visitors and the climatological variations by area and season.

**A note on infrastructure – public electricity is available around towns, but less so in more rural areas. People tend to use generators, solar panels, butane gas or wind-chargers there. Water is typically captured rain water held in cisterns or the like, though cities have city water supplies. **

The tax and land use landscape of Belize:

There are few restrictions in foreign ownership of land in Belize. One notable exception historically was on ownership of islands larger than 8-10 acres, though this appears not to be a problem anymore.

Several changes have occurred with Belize's transfer tax rates over the last few years. Prior to 2005, when demand was low, transfer taxes were 5% of the value of the purchase. With the rapid rise in demand, the government stamp duties for non-Belizeans were quickly raised to 10% and then 15% by 2006. Fortunately, by September of 2006, the government woke-up to the chilling effect of these fees and the stamp duty was reduced back to 5% for non-Belizeans purchasing property.

Belize has no capital gains tax.

There are annual property taxes but they tend to be quite reasonable… for example, the average taxes on Caye Caulker are between $45-300 US Dollars per year. Figure on roughly 1 to 1 1/2% a year outside of Belize City, Belmopan and San Pedro on Ambergris.

RENTAL

Rental of properties is difficult to generalize… Caribbean rules apply. There is a high season of about four months and a big drop-off to the off-season. Costs and rates tend to be much cheaper than in most of the Caribbean (particularly the islands). Management or caretaker services, housekeeping, carrying costs, etc. are all pretty low here.

OWNERSHIP AND TITLE INFORMATION

Ownership is freehold and subject to few restrictions. The process will generally be an offer coupled with funds equal to around 1% of the purchase price. If accepted, further down payment to 10% will be expected. A reputable attorney should be used to verify that the title is clear and ownership unencumbered. *There have been some instances of fraudulent transfers in the past. Better safe than sorry. Seek references and follow-up on them when choosing a broker and a closing/title attorney.* Attorneys charge anywhere from 1 to 4% for handling these duties through closing. The balance of the purchase price will be paid and the title transferred upon satisfactory title review (it may take about a month for title to be issued to you).

It is good to have copies of your passport pages (all) and passport photos of yourself (perhaps, 8), letters of credit or good standing from banks, etc. available when transacting any form of business in Belize. This will assist in setting-up bank accounts, starting businesses and the like.

If you move significant household goods to your new home, there may be hefty duties levied on those items. It is best to simply buy what you need in Belize. One notable exception is if you are moving to Belize under one of the government’s incentive programs – e.g., the retirement program. Under that program, if you are “retiring” to Belize, you should be able to bring cars, boats, planes, household goods, etc. in duty-free. Many hoops must be jumped-through – verification of income, no criminal record, clear medical record, etc., but it might be worthwhile.

DIFFERENCES FROM ONE AREA TO ANOTHER - "NEIGHBORHOODS"

There are six districts in Belize (from North to South):

Corozal (Corozal town and many retirement planned communities)

Orange Walk

Belize (Belize City, airports)

Cayo and the Mountain Pine Ridge

Stann Creek (Dangriga and Placencia)

Toledo (Punta Gorda)

Please bear in mind that there are few traditional “beaches” in Belize, at least not of the kind you might be accustomed to on many of the islands of the Caribbean or Florida. Most sand deposits are made on the leeside of the cayes (the inland side) and on the mainland. The Caribbean facing side of the cayes tends to have shallow sand bars, usually comprised of sand pirated from the leeside of the islands. On Ambergris Caye, the Caribbean (eastern) side of the island is dotted with docks and various commercial operations, making it feel a bit more like Key West or parts of Mexico. If true beachfront is your target, we suggest looking on the mainland or one of the smaller cayes.

In the Corozal, Orange Walk, Belize, Cayo, Stann Creek and Toledo districts of Belize, it is possible to buy “ranches,” farms, riverfront, mountain-view lots and even parcels with distinctive and unusual features such as Mayan ruins, caves, rainforest, small mountains and the like on your land. Recent listings include parcels over 1,000 acres in size with all the above-mentioned amenities/features. Some celebrities, like Francis Ford Coppola, purchased large lodges in the interior.

Representative listings:

Like most of the Caribbean basin, Belize is without a MLS system to help in your search for properties. In higher demand areas like Ambergris Caye or Belize City, there are ten to twenty different agencies, which will each have their own listings. In smaller cities and more remote areas, you will find most information simply by word of mouth. Other investors, locals, city officials (formal or informal) and the like are often your best sources of information. Please note when reviewing the below listings, domestic airlines fly to Ambergris Caye, Caye Caulker, Dangriga, Placencia and Punta Gorda only. All other cities and cayes are serviced by car or boat (e.g., San Ignacio town is on the Guatemalan border approximately 2 hours by car from Belize City and Turneffe Atoll is an hour-plus boat ride from Belize City or one of the air-serviced Cayes).

Land (varies widely by area, samples below are representative of a wide cross-section) (all prices below in US Dollars)

Ambergris Caye:

3.2 acre lot (approximately 300’ of beach frontage by 460’+ deep) in Mexico Rocks area (approx. 7 miles north of San Pedro town) with full road and electricity access - asking $1.8 million.

¼ acre lot (75’ x 125’) just north of San Pedro with full access to all utilities – asking $375k.

1 acre (96’ x 440’) 2.5 miles north of San Pedro with road and electric access – asking $500k.

¼ acre lots in San Pedro, non-beachfront –asking $55,000.

Other Cayes:

60’ x 80’ Caye Caulker lot, 3^rd row in from the beach - asking $45,000.

4 acre beachfront on Caye Caulker with 240’ of beachfront - asking $425k.

16 acres (entire peninsula) on Turneffe Island, with no utilities - asking $400k.

5 acres on Blackbird Caye with no utilities - asking $149k.

Placencia:

½ acre parcel a few minutes walk from the beach (with existing home and storeroom) - asking $225,000.

Dangriga:

5 acre island in this area, with existing lodge and business – asking $1.8 million.

Punta Gorda:

12 acres in Punta Negra - asking $250,000.

Other inland properties:

Corozal area – 7 ½ acres - asking $110,000.

Land in Cayo district (unknown size) with Mayan ruins on property - asking $90,000.

500 acres in Stann Creek district, with rivers, caves, a citrus farm, etc. – asking $700,000.

San Ignacio area – 11.6 acres in mountains – asking $90,000.

Villas/Houses

Ambergris Caye:

5000’ sf estate on 95’ of beachfront - asking $1.7 million.

1,220 sf, two-bedroom, two-bath house on 1/8 acre with 50’ of beachfront – asking $325,000.

Houses here range from $150k on the lagoon or several rows in from water to over $4 million for beachfront, ultra-luxury.

Belize City – Four-bedroom, two and one-half bathroom in – asking $325,000.

Corozal - Two-bedroom house – asking $130,000.

Placencia – Two-bedoom villas pre-construction from $250-450,000.

2,000 sf home on 166’ of beachfront – asking $250,000.

Punta Gorda/Toledo district – we found homes for sale from $80,000.

Condominiums

Ambergris Caye:

Quite luxurious 1,500 sf, two-bedroom, two-bath unit on ground floor, approximately 1.5 miles north of San Pedro town – asking $478,500.

One-bedroom, one-bathroom, beachfront – asking $160,000.

There are numerous condos – either built or pre-construction, ranging in price from $150-800,000 either in San Pedro town, south or north of town as far as 7 miles.

Corozal – riverfront condominiums from $150k.

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