Long Caye Belize: A Tropical Paradise Worth Investing In?

Long Caye Island in Belize is a great option for those looking to buy property in a tropical paradise. The island, part of the Lighthouse Reef Atoll, offers world-renowned diving and fishing spots, including the famous Blue Hole, just a short boat ride away. With its eco-preserves and sustainable development guidelines, Long Caye is a nature lover's dream, boasting diverse flora and fauna, including rare and endangered species.

The island provides a unique opportunity to own a piece of paradise, with parcels ranging from $26,000 to $95,000, offering intimate neighbourhoods and quick access to beaches and amenities. You can build your dream home, a cozy cabin, or even a palace, with the freedom to choose your own builder and timeline.

Additionally, as Belize is part of the British Commonwealth, foreigners can own property outright, enjoying the same rights as citizens to freehold land ownership. With its natural beauty, convenient location, and favourable legal framework, Long Caye, Belize, is an attractive prospect for those seeking an international real estate investment.

Pros and cons of buying property on Long Caye, Belize

Pros of buying property on Long Caye, Belize:

• The entire island is an eco-preserve, and sustainable guidelines are in place to steer development away from destroying the natural beauty and wildlife.
• Belize is the only English-speaking country in Central America, and it has a longstanding democratic tradition.
• Foreigners can own property outright in Belize and have the same rights as Belizean citizens to freehold property ownership.
• Long Caye is a Caribbean island with a diverse range of flora and fauna, including some rare and endangered species.
• The island offers some of the best diving and fishing in the Western Hemisphere, with world-renowned dive sites such as Blue Hole and Half Moon Caye just a short boat ride away.
• The property could be a unique opportunity to acquire a new lifestyle, and it can be used as a vacation home or rented out when not in use.

Cons of buying property on Long Caye, Belize:

• The island is quite remote, located about 45 miles off the coast of Belize.
• There are no cars on Long Caye, so transportation is limited to golf carts, bikes, or walking.
• Building and maintaining a property on an island can be more expensive and logistically challenging than on the mainland.
• The property may be more susceptible to damage from natural disasters such as hurricanes or flooding.
• There may be limited access to amenities and services, and the cost of living on an island could be higher than on the mainland.

What to know before buying property in Belize

Foreign Ownership

Belize has made it easy for foreigners to buy property. Foreigners have the same rights as citizens to freehold property ownership and do not need any special waivers or permissions to own land, a residence, or investment properties.

Tax Breaks

Before purchasing property in Belize, it is worth finding out if you qualify for the Qualified Retired Persons (QRP) incentive program. If you are 45 or older and have a steady income, you may be able to benefit from special tax and investment incentives.

Language and Legal System

English is the official language in Belize, making it easy to conduct business. Belize's legal system is also based on English law, so the legal processes will be familiar.

Professional Support

Although the language and legal system are familiar, it is still advisable to seek professional support from a local realtor and attorney. They can help you find the best properties, prepare financial documents, and ensure the legal documentation is correct.

Financing

Local financing is available, but it is not recommended due to high-interest rates and short fixed terms. Most foreign transactions are cash purchases or financed offshore.

Taxes and Fees

Property taxes in Belize are extremely low. However, when purchasing property, the buyer must pay an 8% Stamp Duty (Title Transfer Fee) and closing costs of around 1-2%. There is also a Government Stamp Transfer Tax of 5% of the purchase price.

Environmental Regulations

Belize has strict environmental regulations, and there may be restrictions on what you can do with the land you purchase.

Location

When considering a property, it is worth noting that the first 66 feet from the high tide is public property, and all beaches are public access.

Due Diligence

As with any significant purchase, it is essential to do your research. Work with reputable local experts to ensure you are making a sound investment and protect yourself from scammers.

Financing options for buying property on Long Caye, Belize

If you're considering buying property on Long Caye, Belize, it's important to understand the financing options available to you. Here are some detailed insights into the different ways you can finance your purchase:

• Local Belize Financing: Local banks in Belize do offer financing for land and property purchases, but it can be challenging, especially for foreigners. Local banks usually have higher interest rates, ranging from 10-18% with fixed terms of only 12 months. The loan is typically closed and renewed at a new rate each year. Additionally, local financing is often conducted in Belize dollars, while most real estate transactions in Belize are done in US dollars, creating a potential currency mismatch. Local banks usually lend to Belize residents or citizens, so non-residents might find it more difficult to secure local financing.
• Offshore or Domestic Financing: If you're a non-resident, you can explore offshore financing options by borrowing US dollars through an international bank. Interest rates with international banks in Belize are typically higher than those in domestic markets, ranging from 12-18%. These banks often require a high degree of collateralization, such as a substantial down payment of around 50%. Alternatively, you can explore domestic financing options in your home country, such as a line of credit or refinancing your existing mortgage.
• Owner, Seller, or Vendor Financing: This is the most common way for foreigners to acquire financing for land in Belize. It is easier to find financing for land than for a home or condo. Belize property owners and developers often offer financing at more favourable rates than local banks, and it is generally easier to qualify for these loans. The interest rates through seller or vendor financing are often lower than those offered by local financial institutions. For example, you may be able to secure property around Secret Beach with a 20% down payment, or canal-front land in Mahogany Bay with a 25% down payment.
• Self-Directed IRA or 401K: Americans can use a Self-Directed IRA or 401K to purchase offshore investment property, including in Belize. This structure allows you to access capital for investment and benefit from reduced taxation on capital gains, resulting in higher profits. However, there are restrictions on how the property can be used, such as not being able to rent it out to family members.
• Bank Financing in Belize: Both local and international banks operate in Belize and offer various financial services, including mortgage loans. Banks in Belize provide mortgage loans for purchasing residential or commercial properties, but the eligibility criteria, interest rates, and loan terms can vary. To qualify for a mortgage loan, banks typically require applicants to have Belizean citizenship or residency status. International banks may lend to foreigners, but they often require a minimum down payment of 50%. It's important to research and compare multiple banks to find the most suitable option.

When considering financing options for buying property on Long Caye, Belize, it's essential to consult with a local real estate professional or financial expert who can guide you through the process and help you navigate the specific regulations and requirements.

The best neighbourhoods on Long Caye, Belize

Long Caye, Belize is a Caribbean island in the Lighthouse Reef Atoll, about 45 miles off the coast of Belize, Central America. It is approximately 650 acres, 2 1/4 miles long, and eight miles from the world-famous Belize Blue Hole. The island is known for its diverse coral reef ecosystems, marine life, and plant life, including rare and endangered species.

Loggerhead Neighbourhood

Loggerhead is the original "subdivision" of Long Caye, offering affordability and the opportunity to be creative with your dream home. The parcels in this neighbourhood range from 3,870 to 4,370 square feet in size and are priced at US$26,900. They are located within a two-minute walk of the western shore or the eastern main pier and offer easy access to the beach and community centre.

East Side Village & Main Pier

The East Side Village is just south of the Main Pier Commercial area and stretches from Egrat Pond to the Beachfront overlooking the Atoll and Half Moon Caye. This neighbourhood offers water views and easy access to the ocean and resort amenities. It is ideal for those who want to be close to nature, with active bird and wildlife populations in the surrounding jungles, mangroves, and shores.

North Beach

North Beach is the commercial heart of Long Caye, where you can find the Main Pier and Itza Resort, Restaurant, and Bar. This neighbourhood offers a great opportunity for those looking to open a business, with commercial parcel owners allowed to use 50% of their square footage for the footprint of the building. It is ideal for businesses such as B&Bs, spas, yoga and art studios, sundry shops, and beach bars.

Pirates Cove

Pirates Cove is nestled between Half Moon Lookout to the north and Coconut Point to the north, with a beautiful beach marking the eastern shore. This neighbourhood features internal ponds and multiple bird species, creating a peaceful and natural atmosphere.

Half Moon Lookout

Half Moon Lookout is the easternmost point of the Caye, offering beautiful views of Half Moon Caye and the turquoise waters of the Lighthouse Atoll. This neighbourhood is ideal for those seeking oceanfront or beachfront properties with easy access to the water and resort amenities.

Western Shore

The Western Shore is known for its stunning sunsets and calm waters. It is bordered by preserve land to the south and the interior jungle to the east, with scattered palms, buttonwood, zeracote, and orchids. It is a peaceful area, just a 5-10 minute walk from the Main Pier and Commercial centre of the Caye.

The natural beauty and wildlife of Long Caye, Belize

Long Caye, Belize is a tropical island of natural beauty and diverse wildlife. Located 40 miles off the coast of Belize, it is a haven for nature lovers and those seeking a private island paradise. The island boasts white sand beds and coconut trees, with clear blue waters offering a range of aquatic activities.

One of the main attractions of Long Caye is the nearby Great Blue Hole, a world-renowned dive site just 8-15 minutes away by boat. This natural wonder is the largest ocean sinkhole in the world and the only one visible from space. The surrounding Lighthouse Reef Atoll provides some of the finest and most diverse marine life on the planet, making it a diver's paradise. With 12 famed dive sites, including The Aquarium, Blue Hole, Half Moon Wall, and Long Caye Wall, you can explore breathtaking underwater landscapes and interact with a variety of marine creatures.

But Long Caye offers more than just incredible diving. The island is home to various wildlife species, including sea turtles that nest on its shores and hermit crabs that scavenge the beach at night. The Belize Audubon Society protects the nearby Half Moon Caye, a natural monument and home to the Red-Footed Booby Bird. Long Caye also serves as an essential rest stop for migratory birds, playing a crucial role in their long flights north and south.

The island promotes eco-tourism and sustainable development practices. The entire island is an Eco-preserve, and guidelines ensure that any construction respects and preserves the natural beauty and wildlife of the area. With a focus on environmental stewardship, Long Caye strives to bridge the gap between enjoying access to its natural wonders and conscientiously preserving them for future generations.

In addition to its ecological focus, Long Caye offers a range of activities for visitors and residents. Windsurfing, sailing, kayaking, and canoeing are popular choices, and the island is known for its excellent fishing spots. From spin fishing and fly fishing to deep-sea fishing for sailfish and marlin, anglers will find an abundance of game fish. For those who prefer to stay on land, ecological nature trails provide the opportunity to explore the island's pristine natural environment and observe its exotic flora and fauna.

Frequently asked questions