Should You Invest?
Belize has shown strong, steady growth over the last nine years,
with an average rate of around 4% per annum, augmented by a healthy
rise in foreign direct investment into the country. Between
2002-2006 Belize saw a 134% increase in the amount of foreign funds
invested in-country. With a currency linked to the dollar and no
capital gains tax or inheritance, Belize offers excellent
investment potential.
- Strong, growing economy.
- Thriving tourism industry and Qualified Retired Persons
Incentive Act encouraging migration to the country.
- Straightforward purchase process.
- However, properties most in demand still only commanding yields
of around 4.5%.
- Standard of living is less than the UK, infrastructure of a
lower standard than in the UK.
- Transaction costs can amount to between 23% and 29%.
Rental Yields
Rental yields are flourishing as tourism increases. Although at
the moment average yields tend to be around the 4.5% mark, they are
set to rise further over then next few years as demand
increases.
Location
Type of
property |
size
(M2) |
Average
price
to buy
(US$) |
cost per
m2 to buy
(US$) |
average
price
to rent
(US$) |
cost per
m2 to rent
(US$) |
yield
(%) |
Ambergris Caye -
Houses |
|
|
|
|
|
|
| |
100 |
203,600 |
2,036 |
- |
- |
- |
| |
250 |
555,000 |
2,220 |
- |
- |
- |
Price History
In the exclusive, high-end areas of Belize, such as Ambergris
Caye, real estate prices are expressed in terms of frontage with
the actual depth of the property having little effect on the price.
According to globalpropertyguide.com four or five years ago prices
per frontage foot were between $1,000 to $1,500; they are now
reaching figures of US$4,000 to US$5,000. In San Pedro town centre
properties can fetch prices of around US$15,000 per square foot. It
is common for buyers to purchase a property with a relatively small
frontage and then building further back on the lot.
Prices vary across the rest of Belize, with residential rural
lots going for as little as US$5,000 whilst property on the beaches
of San Pedro selling for US$500,000. Prices for prime coastal real
estate almost doubled between 2005 to 2006.
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