by hadminEntering the real estate market in Belize can be daunting. To ease your journey, we’ve compiled the crucial facts you need to know as you begin your exploration. We are dedicated to ensuring you are well-informed about the market before making any purchases. Enjoy your reading!
1. Absence of a Multiple Listing Service (MLS)
Belize does not have a centralized MLS. Therefore, working with an experienced real estate agent familiar with the area is highly beneficial. They have the local knowledge to uncover available properties that might not be easily found otherwise.
2. Real Estate Agents and Licensing
In Belize, real estate agents are not required to be licensed. However, they must have a valid work permit or be a Belizean resident or citizen. Note that an international brokerage brand does not guarantee that an agent is a certified Realtor® or has extensive experience.
3. Pricing in United States Dollars (USD)
Real estate transactions in Belize are conducted in USD, simplifying the process for international buyers.
4. Additional Buyer Fees
– **Title Transfer Fee (Stamp Tax)**: An 8% fee on the purchase price, which is not included in the advertised price.
– **Closing Attorney Fees**: Typically around 2% of the purchase price for due diligence and closing processes.
– **Total Additional Costs**: Expect to add roughly 10% on top of the purchase price to cover closing fees.
5. Title Transfer Timeline
Receiving the physical title can take 12-18 months. Your closing attorney will provide an Instruction Tracking (LRS) number once payment is made and documents are filed with the Lands Department, ensuring your transaction is underway.
6. Cost of Real Estate
Real estate in Belize is relatively expensive compared to other Central American countries. While there may be affordable options inland, prime beachfront properties are significantly pricier. As of May 2024, the average price for a 2-bedroom beachfront condo is $436,523, excluding closing costs.
7. Financing Options for Foreigners
Traditional long-term bank financing is not available for foreigners in Belize. Seller financing is an option, usually requiring 50% down, with terms of 3-5 years and interest rates between 8-10%.
8. Seller Financing Terms
When utilizing seller financing, the seller generally retains the title until the property is fully paid off.
9. Property Valuation
Properties in Belize are not typically evaluated based on “price per square foot.” Various factors, including location, accessibility, land costs, construction quality, and features, influence pricing.
10. Coastal Property Maintenance
Coastal properties are subject to damage from salty air, which can accelerate the corrosion of appliances and electronics. For example, air conditioning units may need replacement every 3-5 years, even with regular maintenance.
11. Rental Management Fees
Rental management fees in Belize range from 30-50%, but these companies provide extensive services, including marketing, housekeeping, concierge services, and tax payments. The focus should be on occupancy and average daily rates rather than the fee percentage alone. Review the rental management agreement before purchasing.
12. Investor Visa Eligibility
Investing $250,000 or more in real estate (without financing) can qualify you for a temporary investor visa, although this visa does not lead to citizenship.
Additional Tip: Construction Costs on Ambergris Caye
Building a high-quality North American standard home on Ambergris Caye costs about $220-240 USD per square foot. Ultra-luxury homes can cost $250-300 USD per square foot. Many materials are imported, adding to the overall expense.