Buying Luxury Property in Belize as a Rental Investment
Why Buy or Invest in Property in Belize?
Belize is an English speaking country, which is also its official language, which means making legal, financial, and daily transactions more straightforward for most international investors and buyers.
The currency used in Belize is the Dollar (BZD), which is pegged to the US Dollar at a stable rate (2 BZD = 1 USD), and US dollars are widely accepted throughout the country.
For investors and buyers in Belize real estate, the annual property taxes are it is noted is low, even for high-end properties, which can be ideal to generate the most income from rentals, plus there is the advantage of no capital gains tax in Belize, which again benefits real estate investors.
Belize benefits from a growing tourism sector, particularly in the eco-friendly and and marine based tourism sectors, which can result in higher vacation rental income for luxury beachfront and jungle properties.
Belize offers a Qualified Retired Persons Program (QRP) that provides tax exemptions and residency benefits to retirees who meet simple criteria, as well as no inheritance tax, estate tax, or capital gains tax.
Belize is a world-famous location for its natural beauty and eco-friendly reputation, has the second-largest barrier reef in the world, lush jungles, Mayan ruins, and abundant marine life.
To obtain a title to a property in Belize it is typically done via a fee simple, similar to the U.S., Canada, and the UK. A 'fee simple' refers to the most secure and common form of property ownership, granting the owner full and absolute rights to the land and any structures on it. This means you own the property outright, with the ability to use, sell, lease, or transfer it as you see fit, similar to ownership in the US and Canada.
Buying a luxury rental property as an investment involves a combination of traditional real estate fundamentals and the unique considerations that come with high-end properties.
As an investor are the aims cash flow, appreciation, or mixture of both that is the expected result, and is this investment short-term rental long-term lease.
The property may be used personally as well as being an investment for part of the year which is termed a hybrid investment, and this will depend of the net-worth of the individual, and how much personal usage is being considered.
A luxury property that is to be used as a rental property, has to be located in desirable areas for it to appeal, areas such as those with waterviews, seclusion, night-life and recreation activities.
Those with a high-income are often the types to look for a luxury rental in tourism or executive relocation market.
When investing, due diligence is essential in any investment transaction, tax rates, and any local regulations should be reviewed etc. Hiring a real estate attorney is an essential part of the purchase process to ensure all legal paperwork is handled properly.
