Investors Are Winning in Belize

Has the Federal Reserve gone too far?  At least one economist thinks so.  In its fight against inflation, the Fed has raised the federal funds rate multiple times since March of last year. 

Recently, interest rates were raised in July to the 5.25% to 5.5% range, and there’s a possibility the Fed could implement another hike in September, potentially driving mortgage rates even higher.  Therefore, the reasoning behind rate hikes is to increase financing costs for both consumers and businesses in order to throttle spending and soaring prices.  

The Fed’s monetary tightening policy has pushed mortgage rates to their highest level since 2001 — and they could keep going higher.

One economist is sounding the alarm. Specifically, “There’s a real issue as to whether we have broken the housing market,” Mohamed El-Erian, chief economic advisor at Allianz, told CNBC on Aug. 28. “When you go from record-low mortgage rates to levels we haven’t seen for almost 20 years, you destroy both the demand and supply.”

High mortgage rates and borrowing rates have clearly put a damper on home buying and real estate development and investing in the United States.  However, high mortgage and real estate loan rates have not deterred many ultra-wealthy investors who are constantly looking for opportunities when others see despair.  It’s what sets the ultra-wealthy apart from everyone else.  When everyone else zigs, the ultra-wealthy zag. 

Warren Buffett summed it up best when he said:

“Be fearful when others are greedy, and greedy when others are fearful.”   

Therefore, while everyone is up in arms and worried about interest rates and borrowing costs in the U.S., savvy ultra-wealthy investors are looking offshore for opportunities – where supply is plentiful, cash talks and alternative financing options exist. Wealthy investors are not afraid to take chances that others shun, but they like to mitigate their risks.

They will eliminate as many unknowns as they can so that in the end, they are investing in as much certainty as possible.

That is why so many wealthy investors are turning their investing gaze towards Belize. Besides alternative financing options, Belize is a pretty safe bet for investing for its growing popularity as a tourism and retirement hotspot.

As with any other real estate market, cash is king in Belize.  However, the feasibility of an investment is only as strong as the security of that investment.  And when it comes to security, Belize offers some of the most reassuring advantages of owning property of any offshore locale. 

For one, Belize treats foreigners purchasing land or property just like its own citizens – affording them the same rights as Belize citizens regarding property ownership. As an added bonus, there are no capital gains or inheritance taxes in Belize.  And this is all backed by a stable government based on the English system with English as the official language.  Its legal system is based on British common law – making real estate contracts accessible to English speaking foreigners.  As a result of all this, Belize has a stable, democratic government fostering a stable and balanced economy – giving investors peace of mind regarding their real estate acquisitions there.  

For real estate financing, Belize is unique. While local conventional bank financing is typically prohibitive for non-residents due to residency requirements, another form of financing has sprung up to meet the need of foreigners seeking real estate financing. This alternative financing source is owner financing (aka seller-carried) where the seller offers owner financing to the buyer of the property offered for sale, but rates and terms are typically more favorable than conventional financing available to residents.

Okay, so we have established that Belize offers an appealing real estate financing option in the form of seller financing, but what about Belize itself? Is it a good investment? Absolutely. Therefore, the data speaks for itself.

Belize is gaining popularity as a destination for both tourism and retirement – offering visitors and expats alike a balanced experience combining adventure and relaxation.

Prior to the pandemic, Belize was on the rise. Following the pandemic, it resumed its trajectory as an international hotspot. Belize saw record overnight guests in 2019 and tourism has rebounded close to pre-pandemic levels since last year.

It’s no wonder Belize is a hotspot.  It has so much to offer to so many different types of visitors.  With its pristine beaches, ancient Maya cities, a barrier reef second only to Australia’s and lush rainforests teeming with life, Belize offers an unparalleled experience.  Most importantly, it’s highly accessible.

Multiple airlines now offer direct flights to Belize:  

  • Alaska Airlines connects travelers from Seattle and Los Angeles;
  • American Airlines offers direct connectivity from Miami, Charlotte, and Dallas;
  • Delta Airlines connects Atlanta and Minneapolis;
  • JetBlue serves New Yorkers out of JFK; and
  • Southwest offers flights from Houston, Denver, Baltimore, and Washington.

Investors are finding success in Belize. It is both a growing investment destination with political and financial stability as well as a friendly and hospitable locale for foreign investors. Additionally, alternative financing like seller-carried financing presents an appealing option for investors seeking funding.