Yahoo Finance What You Should Know Before Retiring in Belize
Belize is a small country that offers diverse lifestyle choices. Before thinking about buying a home of your own in this English-speaking Shangri-la, ask yourself this critical question: What are your objectives?
[See: 10 Affordable Places to Retire Overseas in 2016.]
In Belize, you could invest in a condo on the beach, a home in a planned community, a house in a local town or a piece of land in the country. Each purchase has its advantages and its downsides. Choosing one over another is all about what you're looking to accomplish. Are you shopping for a place to live or for long-term appreciation? Do you intend to use the property full time yourself or only part time with the hope of renting it out otherwise?
Deciding that you'd like to own a beach condo in Belize leads to more decisions. This little country has a long mainland coast and many cayes offshore. This means lots of beach choices, and all beaches are not created equal. Some Belize beaches are Robinson Crusoe-style. Others are rowdy and noisy with lots of nightlife and tourists. Picking one over another for your retirement comes down to what you're looking for. Do you want privacy or company, solitude or parties?
If it's privacy and security, peace and quiet that you seek, consider a home in a planned community. These are relatively new to Belize. Most are being built to North American standards, meaning you won't have the quirkiness of a Belizean home, such as lights that turn on when you push the switch down or bathrooms plumbed for cold water only.
You probably wouldn't have Belizean neighbors either. This could be a plus or a minus for you. In addition, planned communities are outside the towns for the most part, meaning that, while you'll be safe and secure behind the guarded gate, you'll also be a drive from shopping and restaurants. A drive at night in this country can be an adventure because the roads are basic, often dirt and almost always unlit.
A home in a planned community also means fees. Monthly homeowner association fees support the upkeep of community amenities and services. These can range from $150 to $300 per month, which is something to keep in mind when doing your budgeting.
[See: How to Prepare for Retirement Overseas.]
A home in town can be the most convenient option and also the most affordable. The trade-off is that, with rare exceptions, houses in Belizean towns are local Belizean houses. You may have to search for a while to find one that will be comfortable for you. Not only is a local-style house in town more affordable than a new house in a planned community, but it also comes without a monthly HOA fee.
If you do consider buying something local in town, understand that zoning doesn't exist in this country. If you buy or rent a big house in a nice part of town with a vacant piece of land next door, it's not out of the question that, a year later, say, someone could buy that piece of land and build a disco or a car repair shop on it.
How can you know how much you should pay for the kind of property you're interested in buying? You have to compare apples with apples, and that's not easy in this market. You want to consider the cost of a condo or house on a per-square-foot basis, but you also have to pay attention to what's included in the square feet. It's like asking, "How much does a bag of groceries cost?" It depends on what's in the bag.
In Belize somebody might tell you he can build you a house for $80 per square foot, but you can't let the conversation end there. Ask what's included in those square feet. You might be surprised to learn that that per-square-foot price doesn't include windows, for example, or plumbing or cabinets. You generally don't expect a house to come with appliances, but most of us don't think of a water heater as an appliance.
If you're looking for rental income, focus on San Pedro or Placencia. These are Belize's highest trafficked tourist destinations. If you are looking for appreciation, focus on Cayo and Corozal. These are the fastest-growing districts in this country.
Another option could be to build your own house. In this case you should know about the Central Building Authority. This is a relatively new government agency that is putting building standards in place. Pay close attention to the building codes you must adhere to.
[See: 10 Retirement Hot Spots in the U.S.]
One more thing you should know: There are no escrow companies in Belize, and you can't take escrow for granted. It's not typically part of the buying process. You can insist on it, but you'll have to set it up yourself. You can do this through your attorney.
Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group.
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