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Belize A Bargain Say Experts
March 24, 2010Article by Ray Withers
Much of the Belize real estate currently for sale on the international market looks to be grossly undervalued, experts have stated. Tourism growth outstripping availability of holiday accommodation is presenting the opportunity for some really impressive rental yields and solid capital appreciation, a spokesperson for international property investment consultancy Property Frontiers has said.
“There is a shortage of luxury quality developments in Belize, especially luxury villas in the rain-forested areas, many of which are protected from development. Because of the air of exclusivity rental rates are higher, whilst property prices are currently very low, in our eyes disproportionately low, and therefore property looks undervalued,” said David Cox, director of the firm. Cox then explained the potential rental yields offered by top-quality Belize real estate , he said:
“Take our Cayo District Reserve development for instance, you can buy a half-acre land-plot on the development for £20k, and have a 1 bedroom villa built for a further £59.9k, total £79,900 for a luxury 1 bedroom villa, set within a rainforest nature reserve just 20 mins from the capital city.
“That is $120,000 based on current exchange rates. According to various rental sites, similar properties are currently renting for $200-$400 per day. If you give that 30% occupancy at the mid-price $300, then that is $36,500 per year. You do the math. Those figures are only loose, for a start occupancy might be higher, and you may rent it out for less at times like this, but you can see the potential for amazing gross yields.”
Cox went on to say that the Cayo District reserve is a truly unique development, which could easily fetch an even higher rental rate.
One is forced to agree with him. Cayo District is a 100% carbon neutral development built round a small central boutique hotel.
Buyers can simply buy a half-acre land plot and then choose whether to have one of the pre-designed villas built on their plot or not. Those who decide to built benefit from becoming part of the hotel inventory, meaning their units are serviced and managed as part of the hotel. The nature reserve is 730 acres of lush tropical rainforest, with plenty of exotic wildlife to observe. The hotel will also have facilities including a pool, spa and gym.
On top of that you have the benefits of Belize, which come from it being an former British colony: English as the first language, first rate health service, stable economy and government and trustworthy judicial system — corruption in Belize is low compared to most countries in Latin America.