Travels to Beach Destinations

People are searching long and far for good beachfront deals on real estate.  There is so much evidence of this on the web. 

Belize has no laws regulating the licensing of real estate practitioners, and as prices have skyrocketed, so, too have the number of people calling themselves real estate brokers. “Ninety percent of the real estate people you’ll deal with in Belize are upstanding and good at what they do,” said Mr. Buettner. “Unfortunately, a small portion get a bad reputation.”

Ms. Rose suggests that foreigners steer clear of blueprints and buy an existing house — “because you know it’s there,” she said. Similarly Lisa Shoman, a corporate and civil lawyer who handles real estate deals, advises that agents be chosen based on their membership in one of two real estate associations: the Belize National Association of Realtors or the Association of Real Estate Brokers of Belize.

Taxes and fees are the same for foreigners and Belize citizens. All real estate transactions have a stamp tax, which is 5 percent of the purchase price, minus $10,000. (For example, the buyer of a $100,000 home would pay tax on $90,000 of it.) Legal fees range from 1 to 2 percent of the purchase price. Filing fees are approximately $15.   Beachfront is always more expensive.

Mr. Buettner recommends buying a title opinion, which costs approximately $250 and verifies the history of a property’s ownership. He also suggests a resurvey of property by a licensed surveyor (costing from a few hundred dollars to approximately $1,000) as well as a mechanical and structural inspection ($100 to $500).

Mortgage rates reach as high as 17 percent; the majority of foreign buyers either pay in cash or obtain financing in their home country, said Chris Burkey, owner-broker of Advantage Realty.

The government of Belize is currently considering an act that aims to regulate the real estate industry.

Nicaragua

People have been investing in real estate in this country for the last several years.  The thing about Nicaragua beachfront real estate is that it is fee simple, and very cheap.  There are Americans and Canadians, not to mention some Europeans currently exploring the market.  The thing about Nicaragua is it is the safest country in Central America and sits right next door to the old hot spot Costa Rica.  Keep an eye on Nicaragua!

Thailand

Unlike in most western markets, Thai property is not propelled by the availability of debt finance. Nor are maximum mortgages the norm. Thai banks also have a strict approval policy, he said.

He added that the Thai banking industry learned a very hard lesson in 1997 and – both in project financing and domestic mortgages – prudence has since been the order of the day.

Unlike many foreign counterparts, Thai banks have stayed away from structured finance and concentrated on unadventurous domestic business, with property loans rarely reaching 70% of the banks’ own valuations, he said.

Mr Simister added that foreign buying has been 100% in cash, as purchasing a condominium under the foreign quota requires buyers to show they have brought in funds from abroad covering the full purchase price.

“Thai real estate developed in the last five years has been a cash-driven market,” he said.

Though optimistic, Mr Simister said his company had seen fewer launches and a lack of products for sale in some areas of Bangkok and Phuket.

“We expect this situation to continue for another 18 months,” he said. “More importantly, with the bulk of products under construction having sold well, we see no chance of a market crash.”

He said committed buyers continue to make serious property searches at its Phuket and Koh Samui offices but are finding almost no new high-end products.

So venture out and explore.  Sometimes the best place to buy real estate can be in a far out destination that you might never have considered.