Honduras

Honduras is a, mostly third-world, Spanish, Central American country with a bounty of natural beauty and treasures but a somewhat unstable political and economic status. In 2009, there was a military coup of sorts which temporarily (?) ousted the left-wing Presidente Zelaya. Honduras is roughly 43,000 square miles in size and populated by just under 8 million. Spanish is nearly the exclusive language with English more commonly encountered in the Bay Islands (Roatan, etc.) area where American tourists and property ownership is much more common. La Ceiba also seems to see more English encountered.

Access to Honduras is pretty good, as it is with much of Central America. Numerous flights from North America arrive into La Ceiba International

The Bay Islands - including Roatan, Guanaja, Utila, Morat, Barbarata, Helene and Cayons Cochinos - were Honduras' first big draw. The world-renowned snorkeling and scuba diving put Honduras on the tourism map. Roatan is far and away the most developed and touristed of the islands even receiving substantial cruise ship visitation. Mainland beaches east of La Ceiba are very nice and much less visited than those on Roatan.

map of Honduras

Real estate process: Buyers should employ an escrow agent (attorney or abogado) to verify the title to property, ensure that there are no title defects or the like. Title insurance remains available and is a good idea, even with a notario closing the transaction. The agent will assist the buyer in entering into the bill of sale, which a notario (notary) will close and record title to. Transfer and stamp taxes should be appoximately 2% with a further 3% to the attorney and 1-2% for the notario [total fees of 6-8%]. Foreigners are allowed to buy up to 3,000 square meters of land personally and larger parcels if purchased through a Honduran company (usually set-up for this purpose). The cost to establish a Honduran company is between $1-2,000 and is performed by an abogado (lawyer). Upon formation of the company, you retain full ownership and control of the company's operations and receive all rights of a Honduran citizen. When buying land, there is generally a three-year requirement to begin building. Property taxes are quite low at this time.

Agents tend to specialize, either in mainland listings (usually located in La Ceiba) or Bay Islands listings (usually located on Roatan). Agents charge a hefty 10% commission, usually paid by the seller. There is, as usual, no MLS system and there are numerous agents available, each with generally small numbers of listings. Financing is rare and usually matures within one to three years.

Value - mainland parcels are very inexpensive when compared to oceanview or beachfront parcels in most of the Caribbean basin (or the world for that matter). It is very common to see beachfront parcels with 100-200' of frontage for less than $120,000 US, some as low as $30-40,000. Paved roads and utilities access are generally available in many of these areas (though primitive by North American or European standards). Contrast this to Roatan where a fairly typical current listing for a 0.4 acre lot with 100' of beachfront is $400,000, though more remote locations see beachfront as low as $165,000 for 100 feet of frontage (still far more expensive than the mainland). Grocery stores and restaurants are available, though there may be a boat ride (frequent mode of transportation) or car trip of 20-30 minutes from your location. Roatan is 34 miles long and the other Bay Islands considerably smaller. Most developments and infrastructure are located on Roatan, though buy and holders may choose a smaller island and play the waiting game in hopes of greater appreciation if the development boom resumes and engulfs the neighboring islands. We might recommend the same long-term thinking on the mainland in the areas near La Ceiba, as access is a bit easier and money goes much further with very nice beaches in the area.