Investments in Caribbean real estate, such as Belize, can provide both cash flow and equity appreciation. There are a few things you should know before investing.
Ambergris Caye in Belize seemed like a good place to invest in foreign property. It checked all of our boxes. Secret Beach and Belize offer at least 20 reasons for investing. Here are the top five.
Secret Beach Real Estate: 5 reasons to consider buying.
1. Strong growth opportunity.
Belize, more specifically Ambergris Caye Real Estate and Secret Beach, have seen incredible growth over the past 20 years. It seems that things are heating up now. According to the (Belize Tourism Board), 2019 was the best year ever for the number overnight and short-term guests visiting Belize.
The pandemic hit the country hard the next year (2020). They are doing extremely well now that travel restrictions have been lifted and people are starting to travel again.
It looks like 2022 is going to be a strong year. I think that the number of tourists will return soon to record levels. Many of these visitors also showed interest in Secret Beach.
Secret Beach is still a great place to purchase land at an affordable price, but things are on the rise! The price of real estate has already surpassed all previous records.
Belize is less likely to be affected by an economic recession if it has very few loans secured against real estate.
Belize is also facing a problem of supply and demand. There are currently more people looking for accommodation than there is available. Real estate developers and investors are in a good position to make a profit as the demand for lodging continues to exceed supply. Secret Beach offers many of the features that today's tourists are seeking.
2. English-speaking country.
As an investor from North America, I was attracted to the fact that English is Belize's official tongue. It's actually the only Central American nation where English is an official language. The country was a British colony, so its property rights (also written in English), and contracts were similar to those in the US.
With a fee simple title, you will be able to own your property and there are very few chances that the government may interfere with your rights.
The property tax is extremely low.
3. No restrictions on foreign ownership
As mentioned above, the cost of property ownership is low. Property taxes are also low. The cost of property insurance is low and it covers "all perils". Taxes on rental income are very low. No capital gains or inheritance tax. There is a fee simple title available. Title insurance is not required because the title has been guaranteed by the government.
Belize is a friendly place to invest in real estate.
4. Easy Travel.
Belize is getting more and more popular for cruises. The number of travel routes is increasing rapidly around the globe, Belize Land For Sale.
Belize's increased demand for travel is the sole reason behind the addition of new routes. Secret Beach is still one of the top tourist destinations outside of San Pedro.
Both travelers and real estate investors want to travel easily back and forth between their homes. Belize's accessibility and ease of travel are huge benefits for investors who live offshore. Lifestyle investors can also benefit from this. They may want to purchase rental property at Secret Beach or other areas in Belize but use them part-time and then rent them for income.
5. Business-friendly environment.
Belize's government wants you to have a successful business and employ Belizeans. The government of Belize offers competitive incentives for investment and a productive and affordable labor force.
I've been surprised by how hardworking Belizeans are. It's common to hear people talk about living on "island-time." Although there are certainly slower times, Belizeans are hard workers and love the opportunity to earn an honest income.
Belize is a great business location because it does not have the currency and ownership regulations found in other countries. Foreigners can own 100% of a company.
Secret Beach is also seeing a number of businesses owned by foreigners. Secret Beach is expected to grow rapidly, as it's one of the fastest growing areas in the entire region. It's not yet too late, but it is still early. Anyone who joins Secret Beach will probably be happy they did.
Real estate investing is always fraught with uncertainty and risk. Belize is a good place to diversify offshore. Consult your tax and legal professionals to learn how real estate investments in foreign countries could affect you. Every person has a unique situation.