The good news is that real estate costs less in Belize than it does in the U.S.,
Canada or Western Europe. To be sure, in a few prime areas you can spend hundreds
of thousands of dollars on North American-style luxury home, but you can also
buy raw land at prices not seen in the U.S. since the 1960s and in some areas
find a simple but pleasant rental house near the sea for under US$300 a month.
More good news: There are few restrictions on the purchase or use of real estate
by foreigners, legal documents are in English and follow English common law
traditions.
Shopping for Housing
Except for occasional ads in the San Pedro Sun on Ambergris Caye and
in Belize City newspapers, few properties are advertised for sale. Real estate
agencies do maintain listing brochures, and you can contact them to request
a copy. Many real estate brokers use the Internet as the primary way of presenting
listings and of getting prospective buyers. See the real estate agent listings
below for addresses of real estate Web sites in Belize. Even with the Internet,
however, you’ll miss three-fourths of available properties. To find out
what’s really for sale, you’ll have to spend time on the ground
in Belize. Most properties are for sale by owner, rather than being listed with
a broker. In many cases, you will see no sign or other indication that a property
is for sale. Just start asking around, and before long you’ll have more
deals being offered you than you can even begin to consider.
This goes double for rentals. It is rare to see a house advertised for rent
in a newspaper, except in San Pedro, and brokers handle only the most expensive
rentals. About the only way to find a house or apartment to rent is to spend
some time in the area where you wish to rent. Drive around and look for vacant
homes, or ask foreign residents or Belizeans for tips on what’s available.
Real Estate Brokers
In Belize, anyone can be a real estate broker. No license needed. No schooling,
no bonding, no continuing education. All you need is enough money to print business
cards, and, presto, you’re a broker. Selling real estate is a popular
first job for expats in Belize, and some do it on the side without a work permit.
Quite a few hoteliers, dive shop operators and taxi drivers peddle real estate
to tourists on the side. One of the best-known real estate guys in Placencia,
until he left to sail his boat around the Caribbean, was also the proprietor
and barkeep of one of the most popular bars on the peninsula.
Not surprisingly, the quality of agents varies. Some are professional and honest.
A few are out for a fast buck. Some are just not very knowledgeable. The ones
we’ve listed here are among the best we know about, but even so your mileage
may vary.
Real estate commissions in Belize are similar to those in the U.S. Agents typically
charge the seller 7 percent commission on residential property, and around 10
percent on raw land. Of course, rates are negotiable. Because many properties
are in remote areas, brokers often charge prospective buyers expenses for travel
and transportation incurred in connection with showing properties.
Selected Agents
These are some of the best real estate agents and companies in Belize:
Belize Land Consultants, P.O. Box 35, Corozal, tel. 501-423-1005,
fax 423-1006, e-mail blzland@btl.net www.consejoshores.com
Bill Wildman, a land surveyor, and wife Jenny, originally from England, developed
Consejo Shores near Corozal Town and also have more than 30 years of real estate
experience in Placencia and elsewhere in Belize. Bill and Jenny are nice folks,
well informed and straight shooters.
Emerald Futures Real Estate, 13 Cork Street, #7 (P.O. Box 1442),
Belize City, tel. 501-223-6559, fax 223-6087; e-mail realgem@btl.net
www.emeraldfutures.com Emerald
Futures has properties in most areas of the mainland. Owners Madeleine and John
Estephan were born and raised in Belize.
Regent Realty, Ltd., 81 N. Front St., Belize City; tel. 501-227-0090,
fax 227-2022; e-mail regent@btl.net www.regentrealtybelize.com
Regent Realty is a fairly new company associated with Regent Insurance Co.,
which is the largest Belize-based insurance company.
Southwind Properties, P.O. Box 1, San Pedro, tel. 501-226-2005,
fax 226-2331; e-mail southwind@starband.net
www.ambergriscaye.com/southwind
Specializes in property on Ambergris Caye. Southwind is also a real estate developer,
having done Belizean Shores and Coral Bay condos.
Sunrise Realty, #1 Barrier Reef Dr. (P.O. Box 236), San Pedro;
tel. 501-226-3737, fax 226-3379; e-mail info@sunrisebelize.com
www.sunrisebelize.com Brokers Chris
Berlin and Amanda Syme are San Pedro residents. They focus on properties on
Ambergris Caye.
Diane Campbell, San Pedro, Ambergris Caye, tel. 501-226-5203
or 501-226-2031; e-mail camp@btl.net Diane
is a former Californian who with her husband has built a number of homes on
Ambergris Caye, including the Los Encantos development. She is very well informed
about real estate on Ambergris Caye.
Few Restrictions on Ownership
Belize imposes few restrictions on ownership of land by nonnationals. Unlike
Mexico, which prohibits the direct ownership of land by foreigners on or near
the coast, in Belize foreigners can buy and hold beachfront real estate in exactly
the same way as Belizeans.
Formerly an alien landholder’s license was needed for purchases of 10
acres or more (or more than 1/2 acre within a town or city.) However, such a
license is no longer needed. The only limitations on ownership by foreign nationals
are these:
Government approval is required, from the Ministry of Natural Resources, before
the purchase of any island, regardless of size.
In a few coastal and caye areas such as Caye Caulker there are rules limiting
purchases by non-locals, and approval by the local village council or board
must be obtained in advance.
Real Estate Prices
Property prices vary greatly in Belize from one area to another. They generally
are highest in Belize City, on Ambergris Caye and in Placencia, and lowest in
remote rural areas. In large tracts, raw land is available in Belize for under
US$100 an acre, but for this price access may be poor and surveying costs may
exceed the cost of the land itself. Good agricultural land might range from
US$250 to $2,000 an acre, depending on quality and access. Home prices range
from under US$15,000 for a simple Belizean-style home in a small village to
US$500,000 or more for a luxury home on the beach in San Pedro. Finished, newer
homes typically sell for from US$40 to $80 per square foot, though of course
the location of the lot or land also is a major factor.
The condominium type of ownership is new to Belize, and most condos are on Ambergris
Caye. There are a few condos in Placencia and on Caye Caulker. Prices start
at around US$100,000 for a one-bedroom unit. Belize has a few timeshares, also
mostly on Ambergris Caye. These are generally not a good investment.
Property in Belize has appreciated over the past two decades, but by exactly
how much is more difficult to say. Real estate agents say that some beachfront
property in Placencia and elsewhere that was selling for under US$100 a front
foot in 1980 is now going for US$1,500 or more a foot. Real estate agents naturally
talk up the appreciation potential, but keep in mind that the Belize economy
is closely tied to the economy in the U.S. Should America’s economic machine
go into another tailspin, expect to see little if any growth in real estate
values in Belize.
Even with appreciation, real estate prices in Belize are still inexpensive by
the standards of the U.S. or most of Western Europe. That’s especially
true of beachfront prices. Waterfront lot prices on the Eastern seaboard of
the U.S. or in Florida rarely are less than US$100,000 to $250,000, and in places
like Hilton Head, S.C., or Ft. Lauderdale, Fla., can easily reach US$1 million
or more, whereas beachfront building lots on Belize’s Caribbean are still
available for US$35,000 to $100,000.
Precautions and Pitfalls
Most of the same rules of thumb that apply when looking for a home, land or
apartment in the United States or Canada also apply in Belize. But Belize also
has its own special situations:
Be prepared to get out and hunt. You’re not going to get a deal if you
only go to a real estate agent. Most properties in Belize aren’t listed
with brokers. You’ll need to go out and look for available properties.
Just start asking around, and you’ll soon have plenty of choices. In Belize,
money talks, and if you have the cash some people who have never considered
selling may decide it’s time to cash in.
Understand that the Belize real estate market is small and inefficient. Someone
e-mailed me to ask why a piece of property near Placencia was still on the market
three years after he had first seen it advertised. Was there something wrong
with the property? he asked. No, I told him, nothing wrong with the property.
It’s just Belize. The real estate marketplace in Belize is even more inefficient
than it is elsewhere. The pool of financially capable real estate buyers in
Belize is small, leaving many sellers dependent on foreign buyers.
There is little real estate classified advertising, and most properties are
sold or rented by word of mouth. No formal multiple listing services exist,
and many properties are for sale by owner. Thus, it’s not easy to find
out exactly what is on the market or what the prices are. There are few qualified
real estate agents, appraisers and surveyors. Mortgage financing is not easily
available for foreign buyers, further reducing the size of the buying pool and
requiring cash sales or owner financing.
All this means that prices for similar properties can be all over the board.
Also, the time to sell a property may be measured in years rather months. Which
is something to think about as you buy real estate, which you may someday want
to sell.
Negotiate. If you’re a good horse trader, you’ll
likely get a better deal in Belize than the guy who isn’t. Keep in mind
that in most parts of Belize there is far more available real estate than buyers
with cold cash; so don’t jump at the first deal that comes your way. Remember,
too, that in real estate you almost always make your money when you buy, not
when you sell.
The more you know, the better price you’ll get. A common
saying among expats in Belize is that the second house you buy or rent is twice
as large as the first and costs one-half as much. Spend as much time in Belize
as you can before you put any money in real estate.
Caveat emptor. Buyer beware applies as much in Belize as anywhere
else. Real estate agents in Belize aren’t licensed. That beachfront lot
that looks wonderful in the dry season may be under two feet of water in the
rainy season, and there are no laws in Belize that provide for you to get your
money back if the real estate agent didn’t provide full disclosure. In
addition, as soon as the word gets out that you’re in the market for a
place to live, everybody and his brother will tell you about this little piece
of property owned by a cousin of theirs. It may be a great deal, but look before
you leap.
In Belize, there are sometimes two prices: one price for locals and another
price for foreigners. The difference may only be a few dollars, but sometimes
the Belizean price may be one-half or less of the “rich foreigner”
price. From the expat’s point of view, this is unfair. From the Belizean
point of view, this is perfectly kosher and reflects the reality that Americans
(or Canadians or Europeans) make far more money for the same work as Belizeans
and can well afford to pay more. One way around this problem is to get a trusted
Belizean friend to find out the “local price” for you. Another is
spend enough time in the country to get a feel for the difference between the
Belizean price and the non-Belizean price, so that at least you can bargain
with your eyes open.
What You Get for Your Real Estate Dollar in Belize
Here’s a sampler of what you can expect to get for your money in Belize
in 2003-2004:
Under US$10,000
5 to 10 acres of farmland in Cayo or other rural area
Seaview (not seafront) lot in Corozal
Under US$25,000
Canal/lagoon lot in Placencia
Seaview lot on Ambergris Caye
Small Belizean-style two-bedroom home in village or rural area
20-acre farm with small basic dwelling in rural area
Under $50,000
Small beachfront lot on North Ambergris Caye
Beachfront lot in Placencia, Hopkins or Corozal
Pleasant small concrete home in Belmopan, Corozal or Cayo
Mennonite “prefab” small house on canal/lagoon lot in Placencia
(including lot)
Under US$100,000
50-acre farm with small dwelling and outbuildings in northern Belize, Cayo or
Toledo
Modern 1,000 square-foot home on waterfront in Corozal or Hopkins area
One-bedroom condo on Ambergris Caye or Caye Caulker
Small offshore island
Under $250,000
Two-bedroom condo on water on Ambergris Caye
Deluxe 2,000 square-foot home on nice lot in San Ignacio, Placencia or Corozal
150-acre farm with nice home, outbuildings and equipment in rural area
Under $500,000
Luxury 5,000 square-foot home on small estate in Cayo
Luxury 3,000 square-foot home on the beach on Ambergris Caye
1,000-acre farm with home, outbuildings and equipment in rural area
Fees and Costs of Purchase
Besides the cost of the property, you are likely to incur charges associated
with the purchase that total 12 to 15 percent of the purchase price. These include
the following:
Land title transfer fee, sometimes called stamp tax: Everyone in Belize pays
5 percent transfer tax; non-citizens pay an additional 5 percent tax, for a
total of 10 percent. This is being increased to 12%. This is usually paid
by the buyer, although of course this is negotiable. If you are a resident under
the Qualified Retired Persons incentive program, the 5 percent tax on non-citizens
is waived.
Attorney’s fee: For around 2 percent of the purchase price, the attorney
will draw up transfer documents and search the title.
Property taxes: Property taxes vary but are about 1% of the value of the undeveloped
land, payable annually on April 1. In Belize, property taxes outside cities
are based on land value rather than the developed value of the property, to
encourage development. Property taxes on homes and other developed land even
in cities are low. For example, the property tax on a nice four-bedroom North
American-style home would likely be in the range of US$100 to $200. There is
a 5% speculation tax on land of 300 acres or more, payable annually based on
the value of the land.
Registration and Title
There are three different real property title systems in Belize:
Registered Land Act system, in which application for transfer is made, and a
new Land Certificate is issued to the purchaser. Belize is gradually moving
to this system throughout the country, but at present it is not available everywhere.
Under this system, an application is made for title transfer and a new Certificate
of Title is issued to the grantee. Any existing “charges” will be
shown on the Land Register for that parcel of land. The owner holds a Certificate
of Title, and this, together with the relevant Land Register entries is the
proof of ownership.
Conveyance system, which involves the transfer of land by conveyance and registration.
This is the system used in much of the United States. In order to assure that
the seller actually owns the land, a title search must be made in the Lands
Unit in Belmopan to unearth the chain of title and to uncover any encumbrances
such as uncanceled mortgages. This search usually is done by an attorney. Unfortunately,
it is sometimes difficult or impossible to trace old conveyances with any degree
of certainty of results, due to the condition of the index books.
Torrens system, which involves a First Certificate of Title followed by Transfer
Certificates of Title. Unlike the Torrens system in use in parts of the U.S.
and elsewhere, the Belize systems is not backed up by a fund, which guarantees
title. Under this system, the uncanceled charges or encumbrances and the transfers
from the title are shown on the relevant Certificate, so no further search is
normally needed before the new Transfer Certificate of Title is issued, following
the application for transfer.
Which system you use depends on where your property is located. You won’t
have a choice. If for example your property is located in an area of Belize
where the Registered Land Act system is in place, such as around Belmopan or
in a planned subdivision, your property will be registered under that system.
Land in Belize is being put into this system area by area until eventually the
entire country will be included in it.
Title insurance is available in Belize, though most Belizeans buying property
don’t use it. Regent Insurance (tel. 501-227-3744 in Belize City) and
other insurance companies offer title insurance. Typically, title insurance
costs 1 percent of the purchase price.
Need for a Lawyer
In Belize, attorneys remain trusted advisors. They’re usually well-connected,
well-paid pillars of the community who wield real power. Fees are not all that
different from what you would pay in a small city in the U.S. A roster of attorneys
in Belize (see Real Estate For Sale and Wanted section of this Web site) reveals
the surnames of prominent families with histories in Belize going well back
into colonial times along with those of today’s political leaders including
Barrow, Young, Shoman, Musa, Courtenay and Godfrey. In any real estate transaction,
you should have your own Belize attorney. Typically the fee will be around 2
percent of the purchase price.
Financing
It is difficult for a non-resident to get a mortgage loan from a bank in Belize
for buying or building, so you should be prepared to pay cash or to get financing
through a loan from a non-Belize financial institution on your assets back home.
Acreage and building lots in Belize are often purchased on terms under an Agreement
for Sale or Contract for Deed whereby the seller keeps title to the property
until it has been paid for in full. Terms vary but can range from 10 percent
down with 10 years to pay at 10 percent simple interest per annum — about
the best deal you can hope for — to 50 percent down and three years to
pay at 12 to 14 percent.
Residential property may also have owner financing, although commonly the lowest
price will be for all-cash deals. Some owners of condos and homes in San Pedro
and elsewhere offer financing, typically with around 20 percent down.
For citizens and official permanent residents of Belize only, the Development
Finance Corporation, a financial institution owned by the government of Belize,
makes loans of US$2,500 to $50,000 or more for building or buying housing. Terms
are for up to 25 years at interest rates of 8 1/2 to 13 percent. The DFC also
has developed housing subdivisions near Belmopan, on Ambergris Caye, on the
Northern Highway in Belize District and in Corozal Town. These subdivisions
have new homes such as a small three-bedroom concrete house near Belmopan for
US$35,000 and a three-bedroom, two-bath home of 925 square feet at Ladyville
for about US$47,000. Financing is at 12 percent for up to 25 years. I’ve
visited a couple of these subdivisions and found most of the houses sitting
empty. Belizeans apparently don’t like the sterile way they look, with
the same houses repeated on street after street.
Real Estate Foreclosure Auctions
From time to time there are foreclosure auctions in Belize. They sell property
put up as security for bank or other financial institution loans. Usually these
are advertised in the weekly newspapers in Belize City. Foreigners can participate
in these auctions. There may be no particular problems in buying at a foreclosure
auction, other than those ordinarily associated with auctions, such as the fact
that among the savvy bidders may be local people who know more than you do about
the property and its value. However, in Belize sometimes the owners of the property
will still be in possession at the time of the auction. If so, you may face
a real problem getting the owners out. Before putting up your money, you may
want to consult with an attorney conversant with real estate property law (see
Appendix for a list of attorneys in Belize.)
Rentals
Rental levels in Belize also vary widely, being highest on Ambergris Caye and
in Belize City. In upscale areas of Belize City, you can expect to pay around
US$.80 to $1.50 per square foot per month, or about US$800 to $1,500 a month
for a 1,000 sq. ft. two-bedroom apartment. On Ambergris Caye, a one-bedroom
apartment goes for US$350 to $900 and a two-bedroom US$650 to $1,500. Elsewhere,
rentals are much lower. In rural areas and low-cost towns such as Corozal, you
can find a small house in a safe area for under US$250 a month and sometimes
for one-half that amount. We know of expats in Corozal who rent for under US$100
a month, and while their homes are not fancy they are comfortable, typically
of concrete block construction with a couple of small bedrooms, bath, a living
room and a kitchen with stove and refrigerator.
In all areas, North American-style housing with air conditioning, modern appliances,
security will be many times more expensive than a traditional Belize rental,
simple concrete or wood house, with only basic amenities and probably no appliances
except for a butane stove and a small fridge.
Short-Term Rentals
If you’re coming to Belize on a scouting expedition of a few weeks to
a few months, consider a short-term rental. Staying in a house or apartment
rather than in a hotel can help you decide if Belize is really for you. Unfortunately,
there are not a lot of short-term vacation rentals in Belize. Most of them are
concentrated on Ambergris Caye, but there are a few in other areas including
Placencia and Corozal. In most areas, however, you can find a hotel with housekeeping
facilities. (I’ve listed some short-term rental options in the “In
Detail” chapters below.)
Free Land?
You may have heard about a program of homesteading or otherwise getting free
land in Belize. Yes, there is such a program in place, but there are big catches:
First, you must be a Belizean citizen or have lived in the country as an official
resident for at least three years. Second, land is only available in certain
areas. Mainly it is small tracts or building lots. This is not the homesteading
hundreds of acres of prime farm land that you read about in the your American
history book. Third, you have to lease the land from the government, clear it
and actually construct a home. At that point, for a nominal amount you can buy
the property from the government, and you will get title. Given all the time
and red tape involved, and the low cost of land in Belize, it’s hardly
worth it to get a small piece of land worth a few hundred to a few thousand
dollars. Frankly, if the only reason you moved to Belize is to take advantage
of such a scheme, it’s unlikely you’ll have the financial resources
to make it in Belize long enough to qualify for the program.
However, I have talked with expats who have benefited indirectly from this program.
They bought land from Belizeans who had obtained the property through the government
program. For whatever reason, the Belizeans decided they didn’t want the
property but needed quick cash, so they sold the property to foreign buyers
at low prices.
Back to Live in Belize?
Belize First
Home Page