On the eastern coast of Central America lies a small piece of paradise known to many as Belize. With its pristine beaches, tropical rainforests and blue Caribbean Seas, Belize is more than just a vacation spot, to many expats Belize is known as home. Most of the foreign home buyers in Belize come from the United States and Canada. Being a former British Colony, Belize is the only country in Central America whose official language is English.

Real Estate Market Overview

During the real estate crisis in 2008, the home prices in Belize dropped nearly 25% but recently have rebounded quite nicely. Ambergris Caye and Placencia in Southern Belize continue to be the popular areas for foreign home buyers, according to Michel Chebat, a real estate lawyer with M.H. Chebat & Company.

The highest priced homes in Belize can be found at Ambergris Caye. Typical 2-4 bedroom, oceanfront homes cost roughly $1 million while a typical oceanfront condo would set you back nearly $500,000. If you are looking to buy inland, the home prices are substantially less than an oceanfront home and are sold for typically close to $200,000.

Placencia is beautiful, winding little peninsula in the Caribbean Sea located in southern Belize. Many second-home buyers are scouting out Placencia and other small areas in southern Belize such as the city of Hopkins. Home prices are nearly 40% lower in Placencia than in Ambergris Caye. Oceanfront lots range from $150,000 to $250,000, building costs start at around $100 a square foot and construction costs can go up to $175 a square foot depending on the luxuries, like hardwood floors and tile for example, according to Dan Dunbar, one of the owners of CPC Real Estate Solutions, a brokerage located in southern Belize.

Basics of Buying Real Estate in Belize

There are no restriction on foreign home buyers in Belize. It is recommended, as when purchasing any international real estate, that you hire a lawyer to represent you. A lawyer will typically run 1 1/2% to 2% of the price of the home. The interest rates in Belize are rather high, so most of the real estate transactions are made with cash. According to Michel Chebet, however, some of the home buyers are taking advantage of owner financing which can offer lower interest rates than a commercial bank.

One of the hazards of purchasing any real estate on the Caribbean is Hurricanes. Building codes in Belize were pretty lax up until 4-5 years ago, so make sure that as a potential home buyer, if you are considering purchasing an older home that you get an extra thorough inspection.