Belize's Real Estate Market: Paradise Found Or A Pricey Prospect?

Belize offers a wide range of housing options, from luxurious beachside abodes to cosy cottages, and concrete homes to traditional wooden houses. Prices vary depending on style and location, with homes in popular expat or tourist communities such as San Pedro, Placencia, or Caye Caulker commanding higher rents.

For example, a two-bedroom apartment near the beach in San Pedro or Placencia will cost between $1,200 and $1,500 per month. In Cayo, a one-bedroom apartment on the water is $1,000 per month.

For those looking to buy, there are also plenty of options. Homes in Belize can be purchased for under $200,000, with prices for land starting from \$200 per acre outside of high-cost tourist areas. Concrete homes are becoming increasingly popular, with building costs similar to those of wooden houses.

Cost of utilities in Belize

The cost of utilities in Belize varies depending on usage and location. Here is a breakdown of the costs of different utilities:

Electricity

Electricity is one of the most expensive utilities in Belize, with a residential rate of $0.45 per kWh, although one source states $0.52 per kWh and another $0.22 per kWh. The cost of electricity can quickly add up, especially if you use air conditioning. A couple living in a 2-bedroom home without an air conditioner may pay around $50 per month, while those using air conditioning in both bedrooms may see their bill rise to $150 per month. To keep costs down, it is recommended to conserve electricity as much as possible.

Water

Water costs in Belize are relatively low. City water is inexpensive, and rainwater catchment is a common alternative. A couple can expect to pay between $20 and $50 per month for water. In Placencia, water is safe to drink straight from the tap and costs only $0.005 per gallon.

Internet

Internet costs in Belize are reasonable, with basic 20 Mbps service available for around $25 per month. Faster speeds are also available, with 80 Mbps costing around $60 and 150 Mbps costing around $100.

Phone

Most people in Belize rely on cell phones rather than landlines. 4G LTE coverage is good in populated areas but can be spotty in remote locations. Unlimited talk and text plans with data range from $28 per month for 8 GB of data to $78 per month for 66 GB. Combo plans for phone and internet can help reduce costs.

Cooking Gas

Belize uses butane as the sole cooking gas, with prices regulated by the government. However, local providers may not always stick to the guideline. Expect to pay $3 or more per gallon for cooking gas.

Cable TV

Cable TV in Belize is relatively affordable, costing around $30-$45 per month. This provides access to a wide range of channels, including HBO, Food Network, CNN, Fox News, and various sports channels.

Overall, while some utilities in Belize are more expensive than in North America or Europe, others, such as water, internet, phone, and cable TV, are far more reasonable. The cost of utilities in Belize can be managed by conserving electricity and shopping around for the best rates.

Belize real estate prices compared to other countries

Belize is a popular choice for prospective retirees and expatriates due to its low cost of property and housing. The country's real estate market has been booming, with property prices, especially in sought-after locations such as Ambergris Caye and Placencia, rising by double-digit figures annually over the past four years. Despite this surge, Belize's property prices are still considered inexpensive compared to other Caribbean countries.

In March 2020, the average asking price for a residential property in Belize was US$703,000, which is about 190% below the average Caribbean property price. Even the average price for luxury homes in Belize is less than US$1 million, while in some other Caribbean destinations, it can reach US$2 million.

Belize's real estate prices are also favourable when compared to countries like Costa Rica and Mexico, or coastal areas of Florida and California. For example, in Belize, you can find a simple rental house near the sea for under US$200 a month, whereas similar properties in the US would cost significantly more.

The country's status as the only English-speaking Central American country is also a significant advantage, making it more accessible to foreign investors. Additionally, Belize has progressive policies, and the government protects foreign investors, making it a secure choice for real estate investment.

The ease of purchasing property, similar contractual processes to those in first-world countries, and the use of English as the official language, all contribute to Belize's appeal for real estate investment.

In terms of specific locations within Belize, Ambergris Caye has the highest home prices, with oceanfront properties costing around US$1 million. However, in other areas, such as the Placencia Peninsula and nearby sites like Sitee River, residential properties are usually priced 40% lower than those on Ambergris Caye.

In conclusion, Belize offers affordable real estate options, especially when compared to other Caribbean countries and popular retirement destinations in the region. Its progressive nature, secure investment environment, and English-speaking population make it a desirable choice for those seeking property investments or retirement homes.

Pros and cons of living in Belize

Pros of Living in Belize

Belize is a beautiful country with a lot to offer those looking to relocate. Here are some of the pros of living in Belize:

• Adventure and Relaxation: Belize offers distinct and varied ways to live. You can choose a tranquil, laid-back beach lifestyle, a non-stop party life, or an off-the-grid life in the wild.
• English as the Official Language: As a former British colony, English is the official language of Belize, making it easy for expats to transition.
• Friendly and Welcoming Locals: Belizean people are known for their warmth and hospitality, and they are happy to welcome expats into their communities.
• Low Cost of Living: While not the lowest in the region, the cost of living in Belize is generally lower than in developed countries like the US. Expats can save money by living like locals, shopping at local markets, and eating local food.
• Natural Beauty: Belize boasts pristine cayes (islands), crystal clear seawater, and stunning beaches. The country is also home to lush jungles, tumbling rivers, and awe-inspiring rainforests.
• Ease of Transportation: In many popular retirement destinations in Belize, getting around is done on foot or by golf cart. Public transportation is also cheap and reliable, with several companies running routes throughout the country.
• Simple Life: Life in Belize is generally simpler than in more developed countries, which can be a refreshing change for expats.

Cons of Living in Belize

While Belize has a lot to offer, there are also some challenges to consider before relocating:

• Crime: Belize has a high crime rate, including violent crimes and sexual assaults. While most expats feel safe in tourist and expat areas, burglary and petty thefts are relatively common.
• Limited Access to Quality Healthcare: While healthcare in Belize is improving, access to advanced medical care is limited, especially in rural areas. Many expats travel to neighbouring countries like Mexico for more specialized treatment.
• Poor Road Conditions: The roads in Belize are in poor condition, which can make transportation challenging.
• High Humidity: The climate in Belize is very hot and humid, which can be uncomfortable for some people.
• Lack of Amenities: Belize may not have the same comforts and amenities as more developed countries, including a limited selection of products in local shops.
• High Cost of Food and Imported Items: The cost of food and imported items in Belize can be high, driving some residents to shop across the border in Mexico or Guatemala.
• Political Corruption: Belize has a higher level of political corruption than some expats may be accustomed to.
• Hurricanes: As a tropical destination, Belize is susceptible to hurricanes during the rainy season.

The cost of renting in Belize

For example, a two-bedroom apartment near the beach with air conditioning, located a few miles from town in San Pedro, will cost between $1,200 and $1,500 per month. In Placencia, a similar property would cost approximately the same, ranging from $1,200 to $1,500. Moving inland to Cayo, a one-bedroom apartment on the water with air conditioning and within walking distance to the town centre is $1,000 per month.

For those seeking a more luxurious lifestyle, Ambergris Caye, Belize's largest island, offers beachside residences. An unfinished concrete home in Ambergris Caye, located in the second row from the beach, is priced at $185,000. Alternatively, a fully furnished, custom-built, two-bedroom, one-bathroom Spanish-style home just steps away from the beach is also available.

For those on a tighter budget, it is possible to rent a pleasant house near the sea in small towns for $300 to $800 per month. Additionally, land can be purchased for as little as $200 per acre, and construction costs outside high-cost tourist areas are approximately $30 to $60 per square foot.

It is worth noting that rental prices can vary based on proximity to the beach or the town centre, with properties closer to these amenities typically commanding higher prices.

Buying land in Belize

Belize is known for its lush jungles, pristine beaches, and vibrant reefs, as well as its low property tax rates and strong property ownership rights, making it a popular investment destination, especially for foreign investors. Here are some key things to know about buying land in Belize:

No Citizenship or Residency Requirement

You do not need to be a citizen or resident of Belize to own land there. Foreigners have the same ownership rights as locals, and there are no restrictions on foreign property purchases. This sets Belize apart from other countries in Central America and the Caribbean, which often require permanent residency or citizenship for land ownership.

Low Property Taxes and Ownership Costs

Belize has incredibly low property tax rates, typically ranging from 1% to 1.5% of the assessed value of the property. Additionally, property assessments are usually only 10-30% of the property's actual resale or market value, making ownership costs very low. For example, property taxes for land around Belize Secret Beach start at $75 per year, while property taxes in Mahogany Bay are $108 per year.

Strong Property Ownership Rights

Belize has strong property ownership rights that allow for full foreign ownership. The country also does not recognize squatting rights and is pro-landlord, providing additional protection for offshore investments. When you buy land in Belize, you own it outright with a fee simple land title.

Easy Purchase Process

It is relatively easy to buy land in Belize, especially compared to other markets in the region. The first step is to submit an offer to the seller through a Belize real estate agent. Once the offer is accepted, the agreement goes to a Closing Company, which handles the due diligence, title search, and transfer of property. It is common for land purchases to be made through a corporation for tax advantages. An Escrow Agent handles the payment, and the Closing Company finalizes the documents and releases the funds to the seller.

Use of International Business Companies (IBCs)

It is common and advisable to purchase land in Belize through an International Business Company (IBC) or a Chapter 250 company. An IBC functions like an LLC in the US but operates in a foreign country. There is no stamp or transfer tax when a property is held in an IBC, and it provides additional layers of asset protection and improved liquidity when selling the property.

Financing Options

Financing options in Belize are more limited than in domestic markets, and most real estate transactions are cash sales. However, there are a few ways to obtain financing: local Belize financing through banks, offshore or domestic financing through international banks, or owner/seller/vendor financing. Owner/seller/vendor financing is the most common way for foreigners to acquire financing, and it is often easier to qualify and offers more favourable rates than local banks.

Closing Costs and Fees

When purchasing land in Belize, there are some minor fees and taxes, including closing costs, which are generally $1,000 to $1,500 or 1% of the property/land purchase price. Additionally, Belize charges an 8% stamp tax (title transfer fee) and attorney fees of 1-2%, which are not included in the listing price and should be factored into the budget.

Due Diligence and Understanding the Risks

While Belize offers many attractive opportunities for land investment, it is essential to conduct thorough due diligence before purchasing. Remember that Belize is a third-world country, and there may be risks associated with real estate scams, substandard building construction, invasion by squatters, vandalism, and natural disasters like hurricanes. It is recommended to use an accredited broker and a reputable lawyer to reduce these risks and ensure a satisfactory contract.

Frequently asked questions