Following Demand Will Lead You To Belize

The Belize Tourism Board recently reported stellar tourism numbers for Q1 2024. From January through March of 2024, Belize saw a 29.7% increase in overnight arrivals compared to the same period in 2023 and an increase of 17.5% compared to the benchmark pre-COVID year 2019.

As stated by the Minister of Tourism and Diaspora Relations, Hon. Anthony Mahler, “we are projecting approximately eleven percent growth for Belize in 2024. Sparing some details, the big picture is that our sustainable tourism ethos, pristine natural resources, and diverse cultures have been fundamental in achieving these successes.”

Investing In Demand

One of the principal tenets of investing is to invest in demand. While the average investor chases hype, sophisticated and ultra-wealthy investors chase demand. While the crowd chases shiny objects, sophisticated investors invest in goods and services that have or will have robust and lasting demand.

Understanding supply and demand is crucial for any investor. As demand for a product or service increases and supply remains constant or shrinks, prices rise, benefiting those who own the asset. This principle holds true for real estate, particularly in markets experiencing high and growing demand with limited supply.

Based on this principle of investing in demand, the numbers point to Belize as an ideal place for savvy investors to drop capital. The numbers don’t lie, and the numbers point to Belize as the place to invest based on the confluence of two major factors: 

  • The availability of investment-grade land; and

  • Convenient financing options for acquisitions.

Belize Rising

As reported by the Belize Tourism Board, the country is experiencing a surge in tourism, making its real estate market particularly attractive. The tourism numbers are encouraging, but they don’t paint the full picture of the attractiveness of Belizean real estate. 

That’s because it’s not just tourists that are drawn to the country’s natural beauty, rich culture, and welcoming environment. Expats and retiring baby boomers are also drawn to Belize for its relatively lower cost of living, which makes their dollar stretch. This tourism and relocation boom translates to increased demand for vacation and rental properties, making investments in these properties attractive to investors seeking consistent cash flow along with reliable growth.

Seller-Financing: Belize’s Secret Weapon

One of the most compelling aspects of investing in Belizean land is the availability of seller financing, which is an established and reliable financing option for foreigners who don’t qualify for local conventional mortgage lending. 

Seller financing offers several advantages for the eager real estate investor:

  • Lower Barriers to Entry: Traditional mortgages often require substantial down payments and rigorous credit checks. Seller financing offers more flexible terms, making it accessible to a wider range of investors.

  • Speed and Simplicity: Transactions can be completed more quickly without the bureaucratic hurdles of bank loans, allowing investors to capitalize on opportunities promptly.

  • Negotiable Terms: Buyers and sellers can negotiate terms that are mutually beneficial, such as lower interest rates, extended payment periods, or balloon payments.

  • Higher Returns for Sellers: Sellers providing financing can earn interest on the loan amount in addition to the property sale price, resulting in higher overall returns.

The Economic Case for Belizean Real Estate

In the current global economic environment, Belizean real estate offers a compelling argument for parking your investment capital. As inflation erodes the purchasing power of cash, tangible assets such as land that hold the potential to develop into vacation or multi-family properties become increasingly attractive, especially in the midst of inflation and economic uncertainty.

Investing in demand is a proven strategy for success.

If you’re into chasing demand, I highly recommend Belize, where Belizean real estate is buoyed by a thriving tourism industry and attractive seller-financing options.

An investment into any fund managed by Belize Asset Management, LLC may not be suitable for all investors; this investment opportunity is only available to accredited investors. Please read the PPM and the attachments before making an investment decision. As with any investment, there exists a risk of loss. The information contained herein is for general information purposes only and does not discuss the risks associated with real estate investments in general or with respect to an investment in the Fund. These risks can be significant and can result in, among other things, the Fund not realizing its objectives, including the payment of the preferred return and other cash distributions to investors, and may also result in the loss of all or a portion of an investor’s invested capital. Please refer to the PPM for a more thorough discussion of the risks related to an investment in the Fund. The information contained herein may constitute “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” or words of similar comportment. Forward-looking statements by their nature address matters that are, to different degrees, uncertain and actual results could differ materially from those presented. This is neither an offer to sell nor a solicitation of an offer to buy any security, which can be made only by a Confidential Private Placement Memorandum (PPM). Securities offered will only be offered by the officers and directors of the general partners of in accordance with and pursuant to available exemptions from the registration requirements of applicable securities laws. However, the Fund has reserved the right to engage registered broker/dealers in connection with the offering. All statements made and description of documents referred to herein are qualified in their entirety by reference to the PPM. Neither the Fund nor any of its affiliates provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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