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DESTINATION FOCUS BELIZE www.opp.org.uk
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JULY 2009
To date, international buyers currently the coast with of_f -shore islands running
International agents and Belize
account for around 40% of real estate the price gamut from $50,000 USD to Brokers and agents in Belize are motivated to form relationships with
Y
sales in Belize. six digits or more. Yet, to much of the
international agents. They are af_f_i liated with Belize’s two real estate
“Belize has traditionally been a global real estate sector, Belize remains
associations and also work in conjunction with NAR bilateral agreements.
vacation spot for US and Canadians and, an of_f -the-radar paradise that has never
Historical rates of commission are 10% (5-6% on development projects and
by proportion, a much larger number of really become headline news. Only one
high priced listings). Belize has a British-based legal system with English the
INDUSTR
of_f_i cial language. Visitors from EU member countries don’t require a visa and
Canadians than US,” says Mike Cobb at project has grabbed the international
there are 2-hour f_l ights from 4 US cities (connecting with Europe). There is also
ECI. “However, the new QRP retirement headlines, Ambergris Caye.
growing interest from investors in Asia (especially Taiwan), Israel and Europe.
law serves retirees from all over the “This twenty-f_i ve miles stretch was
world so we’re seeing greater inf_l uxes used as a trading post during the Mayan
from further af_i eld.” period,” Withers adds. “Today Ambergris well,” says Cobb. “Unlike many real estate
More work needs to be done to put is the area’s most developed island, markets, it never had a huge bubble in
Belize on the map for international featuring a number of resorts as well pricing. So as prices never really spiked,
retirees, however, according to Cobb. as world-class water sports, f_i shing, they have not fallen by much.”
“Belize just kind of slipped through snorkelling and scuba diving.” Yet, conversely, a recent prime-
PEOPLE
the cracks as a popular retirement and position property was sold for around
real estate ownership destination,” he Finance in Belize 15% over and above its asking price – a
admits. “In the last 2-3 years, just as Belize’s small mortgage market makes symptom of Belize’s palm-scattered
the downturn hit, we had started to it almost impossible for non-resident lifestyle appeal that outweighs all the
see Belize get some traction. Prices buyers to secure f_i nancing for property contagious impacts of a global f_i nancial
never really spiked and so they have purchases from a local lender. At best, meltdown. And with a f_i xed currency of
not fallen dramatically. A property in the maximum loan-to-value (LTV) ratio two Belizean dollars for every U.S. dollar,
Why should international agents
The Cayes is priced about 1/4 or 1/3 of is 70%, with a 20 year term period, Belize remains a good-value option
consider Belize property sales?
TION
a comparable home or condo in Turks and rates of 4% - 5%. However, as the – with beachfront real estate still very
The whole world has taken a hit, but
we expect prices in Belize to remain
with mainland Belize around half the nation’s ultra-conservative banking much a hot ticket.
resilient under pressure. Large tracts
price of a comparable home or condo in system is at pains to point out, it has Overall, most agents will readily admit
of land remain af_f ordable and good
Costa Rica.” yet to lose a private bank to failure. that sales volumes are down across the
value by international standards. In
DESTINA
To meet the demand, the Association But many property agents are f_i nding board, be it in the exclusive high-end
the last 40 years, a large proportion
of Real Estate Brokers of Belize (AREBB) it trickier to hold values steady as the area of Ambergris Caye or the island’s
of real estate sales have been to
has upped its prof_i le considerably credit-crunch continues to tighten southern coastal area. Yet with global investors and second-homers.
as generous government incentives its grip. After years of price increases, Caribbean views and properties on the Great opportunities undoubtedly
began attracting resort developers and Belize’s housing market stalled in 2008 market from the late $US200’s, sales may
remain. Commissions in Belize are
tourist infrastructure projects along – with estimated drops of 50% in some have slowed in Belize but they remain
normally around 6 to 10% depend-
the coast. Belize City, the capital until places, according to Coldwell Banker. af_f ordable – an attractive prospect to
ing on the size and type of the sale.
1970, is a crowded commercial hub. “Actually, with no huge inventory of North America and European retirees
Co-brokered sales are shared on a
50:50 basis. Referrals are 25% to the
In contrast, Belmopan and its 7,000 product, prices in Belize have held up with assets.
referring broker.
residents, is the smallest capital in the
BUSINESS
Ruth McCulloch Neal, President, Belize
world. Second-homers and expatriates Belize has traditionally been a vacation spot for US and
National Association of Realtors
favour the coastal stretch around the Canadians and, by proportion, a much larger number of
Placencia Peninsula where, according to Canadians than US. However, the new QRP retirement law
the Global Property Guide, rental yields serves retirees from all over the world so we’re seeing greater
range from 4% to 4.5%. Everything from inf_l uxes from further af_i eld.
apartments and villas are sold along Mike Cobb, ECI
OPER
VEL
DE
What attracts international buyers
to Belize?
As the only English speaking country
in Central America, Belize has real
appeal with international buyers.
Over 60 f_l ights a week connect with
the US and, with a real possibility of
future direct schedules to the UK,
economic growth opportunities are
TING
very attractive. Belize also remains
largely undeveloped - so there are
ARKE lots of opportunities to put money
M
to work.
Brian Burgan, Sales Manager at Sueno
del Mar, Ambergris Caye
Shore thing
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Rental yields on the coast around the Placencia Peninsula range from 4% to 4.5% according to Global Property Guide
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