Are you ready to invest in Secret Beach, Belize?
Have you purchased land or are you thinking about purchasing land at Secret Beach? Maybe you’re ready to build your Caribbean getaway and you would like some guidance on how to get started?
Our goal is to help you make the most of your investment at Secret Beach.
Buying Land
We can help you identify land that is for sale and provide guidance on the process.
Secret Beach has a lot of potential for investing in land and construction projects. However, too many people buy their land sight unseen only to realize later that what they bought is not what they thought they were getting.
Ensure you are making the purchase that is right for you. Some good questions to ask are;
Question 1: Does the property have an actual road cut to it, or is it just surveyed for a road?
Oftentimes buyers will be shown a map of their land that looks to have road access, when in fact the map is only showing a proposed road, and the access to the lot has not yet been made. If that’s the case, be sure you are willing to wait the time it will take for an actual road to be built. (It could be a while!).
Question 2: What kind of preparation will the lot need before it’s build-ready?
Most buildable lots in and around Secret Beach will need some sort of site-work done to them before the construction can begin. How much work, will vary greatly.
Some lots are ready to go. They’ve been cleared and filled and can support a building project on day one. However, the majority will need at least some prep work.
Secret Beach is on a tropical island in Central America. There is a wet season and the water table is high. What looks dry part of the year can be underwater during the rainy season. Sometimes it’s hard to tell if it’s during the dry season but it’s likely that most lots in the Secret Beach area will require some backfill to ensure they are high and dry when the wet season arrives.
Many lots will also need to have trees and brush cleared so be sure to budget for this. Price will vary based on the size of your lot and how much vegetation is present.
Question 3: Will I have a clear title and will I have permission to build?
If you are buying your land outright with cash, be sure you are using a local and reputable title company or attorney to handle the closing. You will want to ensure that you are receiving a title (land certificate) that is free and clear of any liens or encumbrances.
If you are financing your land (which will most likely be seller financing) make sure that you have full rights and use of the land. Also, do a lien search through a title company and ensure that the title is free and clear.
Question 4: Who pays the stamp tax?
In Belize, there is a land transfer cost called a stamp tax. For foreigners, the stamp tax is 8% and for locals and Belize residents it’s 5%.
There are other ways to reduce stamp tax such as buying your property through a Belize Chapter 250 Corporation or an IBC (International Business Corp.) But that process is beyond the scope of this article.
What’s important to note is will you be paying the stamp tax at closing, or will it be paid at the satisfaction of lien (if financing)?
If you are financing your land and you intend to build first and pay off the note later, understand that you can be assessed your stamp tax of 8% at the value of the build rather than just the raw land.
If financing, try to pay the stamp tax upfront. This can be done, so be sure to ask your real estate agent or closing attorney.
Question 5: Are there any zoning restrictions?
Luckily, unlike many other areas throughout the world, Belize has almost no zoning restrictions. If you want to build a commercial property in a residential neighborhood, it’s likely that you would be able to and vise versa.
However, if you are planning on developing your land you will need to go through an approval process with the San Pedro Town Council and they will have the power to deny your project. It would behoove you to check with your contractor and the town council ahead of time to ensure that the project you are interested in building will not be a problem under the local guidelines.
Developing Your Land
If you are planning on building a home, or rental property, or even a hotel or condo development in Secret Beach, be aware that the Secret Beach area lacks utility connections.
All developments in the area are currently being developed off-grid. This means that you will need to take into consideration how you will arrange for power and running water. We discuss this at length in our blog post titled; “How to Build Off-Grid.”
Going Off-Grid
Most developments in Secret Beach run off of solar power systems and use rain catchment and containment cisterns for water needs.
Work with your contractor or construction consultant to ensure you are going to have adequate power and water for the project you are proposing.
Unfortunately, many people underpower their solar system capacity only to find out later that they need way more power than they thought they did.
Ensure your contractor is working with a reputable solar installer and that they are aware of exactly what your power needs will be. Usually, the biggest draw on your electricity will be an Air Conditioning system. Make sure all your components are spec’d out well in advance.
Hiring a Contractor or Project Manager
This goes without saying but also be sure you are hiring a reputable contractor to handle the work. There are countless horror stories of people hiring local workers who claim to be able to handle the job only to have them underperform at best, and at worst, simply run off with your money.
Don’t let this happen to you. Get references and referrals. Interview your builder and ask to see projects they have completed in the past. When it comes to construction, you want to minimize your risk as much as possible. The fewer surprises the better. For a full build consultation regarding how to set your budget, what to look for, and what to be aware of, check out our Belize Home Building Consultation Service.
Let Us Help You
We have been through the process of buying and developing land at Secret Beach. Let us use our experience to guide you through the process.
Let’s set up a quick chat to determine if we will be able to help you. Complete the form below and provide us as much information as you can about your goals when it comes to investing in Secret Beach, Belize.