Analysis of Belize Real Estate Growth Potential
The Mayan influence and a colonial past make the culture of Belize colorful and interesting. In addition of rich history, natural beauty and gorgeous beaches are definitely a tourism magnet for this country. Thanks to a stable government and spur of economic activities, Belize has become an attractive real estate destination in the recent times.
Nearly over a decade, Belize has maintained a strong economic growth. Over the past nine years, Belize economy has developed at a rate of 4% per annum. During this period there has been a surge in foreign direct investment and real estate is an important sector to get benefited by this surge in investment. The currency in the country is based on US dollar. To add to that, real estate investors are exempted from any capital gains tax or inheritance tax. All these together contribute to the real estate investment potentials of the country.
Benefits for real estate investors
- Steady economic growth over the past few years
- A major tourist destination- the country experiences a year long tourist influx, which accounts for the growth in the tourism related real estate in the country.
- Year round rental yields - At present the rental yields from investment property are around 4.5%. A hike is predicted in the coming years with the increase in the demands.
- Qualified Retired Persons Incentive Act encourages migration to the country.
- The property buying process is pretty straight forward with minimum red tape.
In Belize prices are mostly expressed in terms of frontage. Let first take up the case of Ambergris Caye, which is an upscale area in Belize. Even four or five years ago, you could have bought properties in this area for a $1,000 to $1,500 per frontage foot.
Now you have to cough up US$4,000 to US$5,000 for the same property. In the town of San Pedro, centre properties will cost you prices around US$15,000 per square foot.
Between the span of 2005 and 2006 alone, there was almost 50% hike on the prices of the coastal properties. To make most out of your investment, you can purchase a property with a relatively small frontage and then expand the structure on the back.
In Belize, property prices greatly vary with areas. If you are tight on budget, look for rural properties which can be available for as little as US$5,000. Among the most prized properties in this country are the beach properties of San Pedro. Here the property prices start at US$500,000.
If you are considering international real estate investment, Belize can give you the best value for money. To take advantage of the lower prices and high capital growth potentials, hit the Belize real estate market right now.
