For sophisticated investors, offshore investing is gaining more and more appeal as a way to hedge against domestic volatility, diversify cash flow, and provide asset protection. Along with the rise of Airbnb, Vrba, and other vacation rentals, a growing trend has also been to throw offshore vacation rentals into the mix of other offshore commercial and cash-flowing properties in a portfolio.
Investing in vacation properties, particularly waterfront properties, can be a lucrative endeavor. The rise in popularity of over-water bungalows in particular has also caught the attention of investors looking to capitalize on this trend.
One location in particular has drawn both tourist and investor interest: the Maldives, an island country in South Asia in the Indian Ocean. The turquoise water surrounding the Maldives makes the Maldives a popular destination for tourists looking to take in snorkeling, diving, fishing, sailing, chilling on the beach, or just relaxing in an overwater bungalow.
The rise in popularity of the Maldives has attracted considerable investor attention looking to cash in on the rise of its tourism industry.
The Maldives is an appealing option for investors, but there’s a closer destination with water and beaches to match the Maldives, and you don’t have to take an 18-hour flight to get there. Moreover, the appeal of offshore investment in this destination is far more appealing, in my opinion, than in the Maldives.
This offshore investment destination? Belize.
If you’re interested in investing in an offshore waterfront destination without the high cost, distance, and logistical complexities of investing in a destination like the Maldives, then you should consider Belize.
For Americans looking to dive into offshore investments surrounded by turquoise waters, there are few closer, more convenient, and more practical locations than Belize. Conveniently located, Belize is as close as a two-hour flight away, with direct flights offered by American, Delta, United, Alaska, Sun Country, Southwest, JetBlue, and Frontier Airlines from Dallas, Houston, Fort Lauderdale, Miami, Atlanta, Los Angeles, and even Chicago.
The appeal of offshore investing in Belize extends beyond its beauty and convenience. It boasts other advantages that other vacation destinations have a hard time matching:
Financing.
Savvy investors looking to leverage their capital across multiple properties instead of sinking all their cash into a single property are often shut out of the local financing market because of residency requirements. However, this should not be a deterrent in Belize. That’s because the most pervasive form of real estate financing available in Belize is owner-financing, which is available to everyone, not just locals.
Affordability.
Compared to other high-profile beach and island destinations like the Maldives or Tahiti, Belize offers more affordable real estate options. The cost of acquiring property in Belize is generally lower, which can result in a better ROI for investors. This affordability extends to the cost of living and construction, allowing investors to invest in luxurious waterfront, beachfront, and over-water properties at a fraction of the cost.
Room for Growth.
The market in Belize is far from saturated with room to grow in all types of segments, from ground-up development opportunities to ready-to-build lots and even over-water bungalows.
Booming Tourism.
The booming tourism in Belize ensures that your investment will grow along with this increasing interest in Belize as a vacation destination. In 2023, Belize experienced impressive tourism growth, with the number of hosted tourists increasing by 25% compared to the previous year, reaching a total of 464,717 visitors.
Peace of Mind.
When investing in Belize, you’ll have the peace of mind of investing in a locale that boasts English as the official language, a stable government and legal system based on the English system of government and common law, a stable economy with the exchange rate of the Belize dollar fixed to the U.S. dollar at 2:1, and friendly locals.
If you’re looking to invest offshore to diversify your portfolio, insulate your income, hedge against domestic volatility and unrest, and protect your assets, you don’t have to look far.
If you’re looking to cash in on vacation and resort properties popular with tourists, why invest in far-away locations with so many unknowns to contend with? Why travel 18 hours to invest in the Maldives or Tahiti when a locale can be as close as a two-hour flight away in the U.S.?
Why not consider Belize, which, in my book, offers a more complete package and more affordable investment opportunities than other locations?