The Property Banks Buyers Guide to Belize
There are few restrictions applied to
international purchasers and because the legal system in Belize is
based on British common law the entire property buying process is
relatively transparent and easy to navigate.
These facts add to the attraction and appeal of an already highly
desirable real estate market.
There is no visa, permission or license requirement for an
individual to take freehold title to land or property in Belize upon
purchase therefore a buying decision can be made and executed
quickly which suits many investors who want to simply invest in
parcels of land or real estate developments without fuss. This
restricts the amount of time an individual has to spend on the
buying process which in turn cuts down stress and costs
significantly.
Despite all of these positive factors, when it comes to the purchase
process Belize is not a country of exception and our universal
advice still stands - independent legal assistance should be sought
and secured before proceeding to purchase so that an investor’s best
interests are protected.
In Belize many of the properties and parcels of land available for
sale to an investor go unadvertised. There is not a strong culture
of real estate marketing or property promotion so it can be useful
to secure the services of a realtor or estate agent. However, estate
agents in Belize are unregulated and need not possess any formal
qualifications or licenses to trade and operate. This of course
means that there is a gulf between the good and the bad and the
majority of overseas investors seeking real estate investment
opportunities in Belize do so through a personally recommended agent
or lawyer.
Nowadays the only restrictions that apply to non-Belizeans wishing
to purchase are a government approval requirement via the Ministry
of Natural Resources if anyone wants to purchase an island and in
some of the cayes approval by the local council has to be sought by
overseas buyers.
In terms of the actual real estate market in Belize it is affordable
but relatively immature, its lack of sophistication is a bonus in
terms of the property prices currently payable but it also means
that you have to hunt quite hard and negotiate well when it comes to
finding the perfect investment and securing it. As with many
emerging property markets worldwide you will find in Belize that
there are two prices for everything from property and land to cars
and groceries - a local price and a rich foreigner price - therefore
the more time you spend in Belize getting to know people the less
you will pay for your real estate investments in real terms.
Once you have found a property and negotiated a price it is usual to
sign a preliminary contract and pay a deposit of up to 10% of the
final purchase price. The contract you sign will be conditional to
the satisfactory completion of land and title searches. Once
everything has been checked and no problems have been found the
final contract will be signed either by the investor or his lawyer
if he has been granter power of attorney and the final balance will
be transferable and title deeds will be transferred.
In terms of fees and costs associated with the property buying
process in Belize it’s wise to budget for an additional 20% which
will cover the land title transfer fee or stamp duty which has
recently increased to 15% for foreigners, lawyers’ costs and
property taxes. Those who require finance to purchase property in
Belize should secure a mortgage outside of the country as
non-Belizean residents find it very difficult to get a mortgage from
a bank locally in Belize.