Investing in off-shore real estate in a Caribbean destination like Belize can be a great opportunity for both equity appreciation and cash flow. But there are things to be aware of before jumping in.
We decided that Ambergris Caye, Belize was indeed a place to hold some foreign real estate. For us, it checked all the boxes. There are probably 20 reasons to invest in Belize and at Secret Beach. Here are our top 5.
5 Reasons to buy Real Estate in Secret Beach.
1. Strong growth opportunity.
Belize and more specifically, Ambergris Caye, San Pedro, and Secret Beach are seeing amazing growth and have been for the last 20 years. However, it seems as though now things are really heating up. 2019 was the strongest year on record for the number of overnight and short term-guests visiting Belize according to the BTB (Belize Tourism Board).
Although the following year (2020) the country was hit hard by the pandemic. But they are recovering extremely well as travel restrictions are lifted and more people begin to travel again.
So far, it’s looking like 2022 will be a very strong year and I believe that they will soon return to record-breaking numbers of tourists arriving in Belize. Many of those visitors showed interest in the Secret Beach area as well.
While there is still an opportunity to buy land in Secret Beach at affordable prices, things are going up! Real estate is already breaking records with price appreciation in the double digits.
But, in a country with very little levered loans against real estate, should the world face an economic downturn, it’s likely that Belize will be less affected.
Belize also faces a supply/demand issue. There is currently more demand for overnight lodging than there are available rooms. This puts real estate investors and developers in a great position to create strong returns as demand continues to outstrip supply. Secret Beach is one of the hottest places to invest in real estate on the island as it offers much of what today’s travelers are looking for.
2. English-speaking country.
As a North American investor, I liked the idea that Belize’s official language was English. In fact, it’s the only Central American country where English is the official language. It is a former British colony and so the property rights and contracts (also written in English) were very similar to property rights in the US and elsewhere.
You will own your land with fee simple title and you can be assured that there is very little chance of having to face any government interference when it comes to your rights as a property owner.
Not to mention property taxes are extremely low.
3. No restrictions on foreign ownership.
The cost of ownership is relatively low, property taxes are low as mentioned above. Property insurance is affordable and covers “all perils.” Tax on rental income is very low. There are no capital gains or inheritance taxes. Fee simple title is available, and there is also no need for title insurance because the title is guaranteed by the government.
The country of Belize encourages foreign ownership of real estate and so they make it as friendly as possible to invest.
4. Ease of Travel.
There are more flights and more cruise ships traveling to Belize all the time. Travel routes are expanding rapidly throughout the world making it easier than ever to get to Belize.
The addition of travel routes is purely a reflection of the heightened demand that Belize is seeing. Secret Beach continues to be one of the most popular places for tourists to visit outside of San Pedro.
Travelers and real estate investors as well, want it to be easy to travel back and forth from home. With more routes being added all the time, the ease and accessibility of Belize are a tremendous added benefit for off-shore investors. This is also great for lifestyle investors who want to own rental real estate at Secret Beach and other areas of Belize, but also want to travel to the area and use the vacation homes on a part-time basis, then rent them out for income when not in use.
5. Business-friendly environment.
The government of Belize wants you to own a successful business that employs Belizeans. They offer competitive investment incentives, and an affordable, and productive labor force.
I have often been pleasantly surprised at how hard-working the people of Belize are. You may hear stories of people being on “island time.” While there is certainly a slower pace of life, the Belizean people are extremely hard-working and are thrilled to have opportunities for earning an honest income.
Ownership and currency regulations that exist in other countries are absent in Belize, making it a great place to do business. Companies may be fully owned by foreigners.
We are starting to see a lot of foreign-owned businesses popping up at Secret Beach as well. With the area being one of the fastest-growing in the region, we expect to see tremendous growth in new businesses at Secret Beach. It’s still early, but not too early. Almost anyone who gets involved at Secret Beach now will be glad they did.
Investing in real estate always comes with risk and uncertainty. Belize could be a great place for offshore diversification. However, you must consult your legal and tax professionals to understand how investing in real estate in a foreign country could affect you. Each person’s situation is different.
If you think investing in Secret Beach might be the right opportunity for you, feel free to connect with us here and we would be happy to share our experiences and challenges, and let you know what you might expect when it comes to investing in real estate at Secret Beach, Belize.