Don’t Buy Property in Belize Until You’ve Read This!

Summary: Five critical factors that would be buyers of property in Belize need to consider before they purchase Belizean real estate

Belize has been a relatively popular destination for US baby boomers for a good few years - but this stunning Caribbean location has only just begun rising in appeal as far as British and European property hunters are concerned.  Accessibility once restricted the appeal of the location but as that is no longer the case, it’s becoming increasingly obvious to many people that Belize has so much to offer retirees, those in search of an exotic holiday home or even a property investment.

However, there are certain critical issues that a would be property buyer has to know before entering into a Belizean real estate transaction…in fact, don’t buy property in Belize until you’ve read this article because you will risk paying over the odds and buying badly if you go ahead without taking into consideration these five critical factors.

Number One – There are Two Prices for Everything in Belize

It’s the same in many countries in the world where so called rich foreigners come in and buy up property or take a luxurious vacation – there’s the local price and the foreign price.  Nowhere is this more true than in Belize where you will be perceived as having more money than sense a lot of the time!  Don’t take offence at this attitude, simply work it to your advantage and at least be aware of it when entering into negotiations.

Ideally you need to find out what the Belizean price is for a piece of property before you purchase it…otherwise you risk paying upwards of double the real asking price.  You can do this by asking around for opinion about the price for a piece of property in the area you’re interested in, or by finding helpful expats who have already bought property in Belize and built up their own trusted network of local associates.

Number Two – Don’t Forget the Hurricane Factor

Between June and November there are frequent and devastating hurricanes in Belize and it also suffers from some coastal flooding.  You need to know these facts before you buy and when someone tells you that you’re buying in a hurricane-free district you know that they are being liberal with the truth!  Take into account that your property could very well be damaged by a hurricane and then factor this in when you make a purchase decision.

Ways this information may affect your decision include – buying a cheaper property that you can regularly afford to repair, buying a more expensive, better built property or buying back from the coastline for example.

If you want to know what it’s like living through a hurricane and repairing damage to property etc., get down to Belize and find seasoned expats who have been through it a few times.  Ask them to recall the first time and to explain to you how you manage and how it actually becomes something you get used to!

Number Three – You Can’t Just Lock Up and Leave

If you buy a holiday home anywhere in the world you’re running a considerable risk if you lock it up and leave it…only to return once or twice a year.  After a bad storm it could be damaged and you might not know for six months – a pipe could burst, a family of animals could get in and take up residence!  All of these issues and many more besides need to be taken into consideration when you buy a property in Belize.

Not only does the country suffer devastating natural issues from hurricanes to floods, if you lock up and leave you may come back to a home stripped of all but the walls and windows or to a house now inhabited by someone else!  Both are scenarios that we have been told about and both are scenarios you have to guard against.

You need a good property manager on hand to take care of your home when you are not in it.  Their service should include weekly inspections plus extra inspections after any dramatic weather patterns.  You should also secure your belongings with bars on the windows and good locks on the doors.  You need decent insurance and you have to tell your provider that you will be leaving the property empty as this will affect your premiums.

Number Four – Currency Considerations

There are two currency considerations to consider – firstly when you buy in Belize and transfer the money to the vendor you need to secure against fluctuations in the valuation of your home currency and the Belizean or US dollar (depending on the currency you’re buying in).  Secondly, after you have bought real estate in Belize what happens if something negatively dramatic happens to the currency in which your home is valued?  You risk losing out financially as the value of your home will plummet accordingly.

While this is not something you can guard against it is a factor you need to be aware of as it may affect your purchase decision.

Number Five – What Happens if You Want to Sell?

In Belize the market you will be targeting if you want to resell your home is the expatriate or international purchasing market – there is little local demand for property for sale and where it exists they will not be paying the prices you’re likely to be asking if you decide to sell your home in Belize!

What this means is that if you ever have any intention of reselling in Belize you need to buy something that will be of appeal to others.  So, don’t go too far of the beaten track and remember that your penchant for alternative décor might not be to everyone’s taste!

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