How to Finance Your Property in Belize
Are you considering investing in a second home or holiday property in Belize? Belize is one of the most beautiful countries in the world with stunning beaches, friendly locals, stable government and a growing economy.
Investing in a property in Belize is a good idea as it’s going to pay off handsomely for you over years to come, as the value of current properties is relatively low and has seen and is forecasted for significant growth. Belize has one of the most affordable property markets in this part of the world, and the government has done its bit to attract property investors by providing them with excellent incentives such as no taxes on any property purchase by qualified seniors or retirees.
This makes Belize a great place to retire to. It also helps that there are a number of great options for financing your property in Belize.
Here’s what you should know.
Use Funds from a Self-Directed IRA Account
One of the best ways to invest in Belize real estate is to take advantage of some of the rules of the IRS that allow contributions made to a self-directed IRA account to be used to buy property, even outside the United States. However, if you were to use the funds from a self-directed IRA account to buy property in Belize, please note that while the house can be rented to others, you cannot rent it to members of your own family (apart from your siblings).
Also, any rental income made from an offshore property in Belize can be deferred and made tax free as long as it has been purchased from Roth IRA funds. This means you can collect hundreds of thousands of dollars on rental income on the property over many years and need to worry about the taxes only when distributing the property to yourself.
One of the best ways of financing in Belize is owner financing, where the seller offers owner financing to anyone who wants to buy the property off them. This means the seller gets paid in installments, with the down payment set at 30% to 40%. The rest of the money has to be paid by the homebuyer to the seller over 5 to 10 years, at an interest of 5% to 10%. The terms of the contract are set during the negotiation process.
Seek Financing Back Home
You could finance your property purchase in Belize by seeking out financing from back home in the United States, Canada, Europe, or wherever you’re from. You shouldn’t find it difficult to get a bank to agree to finance the purchase of the property if you’re from the U.S., provided you have a good credit score.
These are three easy and efficient methods for financing the purchase of a property in Belize. Make no mistake – investing in Belize property is a smart move which will make you a lot of money over the years, in rental income and as a big profit when you sell the house in the future.
For more great advice on buying property in Belize, do get in touch with WILL MITCHELL of REMAX Belize Secret Beach. Will has helped several people find their dream home in Belize. Call +501 607 0303 for more information about Belize Real Estate.