It is among the only a few countries which allow foreigners the same rights as citizens with regard to land ownership and tenure as well as rights to the beach aren’t a problem to get.
An unnoticed benefit for those who are looking for a chance to buy Belize real estate is the fact it is that the country does not impose Capital Gains Tax. Therefore, if you purchase the land and sell it at an attractive profit and pay the Capital Gains Tax – all profits are yours to keep. Condos are an increasing portion of the market for real estate, and the nation has modern laws to deal with this type of property ownership , based on the well-known strata principle that is used in the first world countries.
Real Estate – Some Basic Tips
There are many reasons to visit Belize one of the most important to potential retirees or expatriates than the comparatively affordable cost of properties and housing. Sure, you can invest an enormous amount of money on luxurious North American developments. You can also buy raw land for less than the prices previously seen before in U.S. since the 1960s and in certain areas, you can you can find a basic but comfortable property near the ocean for less than US$200. A month.
Just like everywhere else in the world locally Belize frauds in real estate exist. Beware of slick lawyers, real estate agents or anyone who is making an aggressive pitch. Don’t be afraid to leave and take your time when you are dealing with any real estate deal. Don’t be influenced by the person who the agent for real estate is. The majority of people who represent real estate who work in Belize originate who are from North American who have literally bought over this industry from Belizeans. You might be more at ease with someone similar to you, has the same appearance, and speaks as you, and most likely comes from the same country as you.
It is highly recommended to complete all land transactions in real estate with an accredited Belize realtor as well as an ethical Belize attorney at-law. It is essential to make sure that the Title Search is conducted at the Government Land Registry and that the property you purchase is unaffected and free of any judgements, liens and encumbrances. A title search performed by an attorney in your area is not going to cost less than U.S. $250.
One of the most effective ways to avoid getting ripped off and to get a better deal is to locate who owns the house that you are interested in, and eliminate the middleman, which is the agent who is selling the property. You can accomplish this by looking around the property and speaking to neighbors, possibly supported by your driver. You can then hire a Belize lawyer or professional to handle your title search. Negotiate and buy directly with the property owner. Just like any other occupation, you will find corrupt lawyers in Belize. As well, there are real estate brokers who are scams particularly in the segment of luxury real estate. Ask for recommendations, ask around. Prices for purchasing a property through an attorney in the local area vary between 2 and 5 percent of the value of the property. A real estate agent can be more expensive and is representing the owner and himself in order to obtain a premium cost and commission.
The most popular method of owning real estate is via Title Free and Clear, whether as an individual as well as through an corporate entity. The property is secured by either a credit union or bank. The titles, Free and Clear are issued for land as well as condominiums. Condominiums can be purchased with the “Strata” title. The process of purchasing a home is easy – the process to complete the purchase is typically between 30 and 90 days.
Belize Strata Titles
The Strata Titles Registration Act, Chapter 196 of the Laws of Belize governs the registration of condominium titles in Belize. This law permits developers to build condominiums in Belize and issue freehold titles to every unit constructed in those strata developments.
Condominiums in the Caribbean like those found in large countries, are not likely to be tall, multi-story towers that are used by nationals as their primary residences instead, rather modest two to four-storey structures that are used by vacationing foreigners. The concept is designed to combine the benefits of living in a co-operative apartment with the benefits of owning a home. These strata developments are typically found in the islands in San Pedro Ambergris Caye, Hopkins and Placencia. Modern developments are seeing the growth of larger luxury condominiums for the wealthy. A few owners lease their homes all year round to pay their mortgages to earn an income.
When the Strata application, names of the different units are transferred to the Developer under its name. Then, anyone who buys a unit becomes a member in the Corporation (commonly called by the United States as the “Homeowner’s Association”). This Corporation is then given the responsibility and power to oversee, maintain and maintain the common areas of Development in accordance with the provisions in the By-Laws that are registered.
Real Estate Financing
Foreigners can borrow loans through U.S. dollars from local offshore banks. The maximum amount you are able to get is 60 to eighty percent of the worth that the home is worth. Rates range from 8.5 percent to 12%. Foreigners who purchase property pay in cash with their own funds or take out loans in their countries of origin where rates of interest are less. The advantage of financing your purchase through a local lender can be that your bank has internal lawyers to safeguard the loan portfolio.
Another method of buying real estate is by owner financing, where the seller offers a part of financing to the buyer. conditions are flexible, however an owner-financed purchase typically will require the buyer to pay 30% in cash and the seller finance the remainder at a rate of 6-8 percent over the five or ten-year time. If you’re purchasing the property to invest in or the future retirement home, you may engage a property management service to lease your home while you are out of the country, and let tenants cover the majority part of the cost for the purchase.
Taxes on property in Belize are extremely affordable. A condo or house that is worth U.S. $250,000 on Ambergris Caye for instance, is subject to one annual tax on property that is less than U.S. $375.00. Some smart investors prefer for investing in properties in rural regions where taxes are incredibly low.
How low? How low? Washington D.C. Library of Congress employee, known locally by the name of Four Dollar Charlie has recently revealed the details of his year-end Belize income tax returns. The annual property tax was paid on his mansion retreat in Succotz located near Belize’s western border that is popular for American expats who don’t like having a property in the Maya village, as they can afford it and affordable – costs him U.S. $8.00 per year. Yes, we’re not exaggerating eight U.S. Dollars per year.
RE/MAX Belize Real Estate
Mahogany Bay Village, San Pedro, Belize