For many Americans, owning a home is an essential part of the “American dream” that conveys a number of economic benefits, such as the ability to accumulate wealth and access credit by building home equity, reduce housing costs through the mortgage interest deduction, and gain long-term savings over the cost of renting. Buying a home is such an exciting moment in one’s life and an accomplishment in itself. However, there’s even more value if you’re able to buy a second home. But can you imagine buying a second home in a destination with such potential like Belize? Pre-pandemic, Belize saw tremendous growth in tourism since 2011—a 96% increase, to be exact. As you can imagine, this included visitors who came on vacation, fell in love with the country, and kept coming back.
Now, some of those very same repeat visitors have made Belize their second home with what RE/MAX 1st Choice calls a Lifestyle Investment.
But before we get into what a Lifestyle Investment is, why do it in Belize? For starters, its a second home or vacation home that fits into your lifestyle. Uniquely, Belize offers:
- Undervalued beachfront properties, in comparison to other Caribbean and Central American destinations
- No Capital Gains Tax
- Very low Property Tax
- An easy-paced lifestyle (no freeways, no skyscrapers, and no mass development)
- Warm and friendly people
- Abundant self-produced agriculture
- A low population density
- Outdoor activities for a healthy and active lifestyle
- The second-largest barrier reef in the world
- Tax haven opportunities under the T-8
See why people fall in love with Belize? And that’s just skimming the surface of why people consider buying a second home or investment property in this Caribbean and Central American gem.
Essentially, a Lifestyle Investment is the purchase of a second home and using it part-time; for the rest of time, you essentially rent it out for the remainder of the year. While it’s not in personal use, renting your home is a great way to help offset expenses to pay for your investment. “We have many international homeowners that secure their properties in-between visits, and that’s ok too,” says RE/MAX 1st Choice Belize. Not to mention, there are many tax advantages of owning a second home, which is where consulting with a local CPA comes in handy; this way, you can see exactly what those are based on your home country and tax code.
And if you’ve been saving for retirement, you can buy property in Belize with your IRA. Though the most popular kinds of IRAs are traditional IRAs and Roth IRAs, you can roll it over penalty-free into a Self-Directed IRA or an eQRP (NOT the Belize retirement QRP) and buy a property with those funds instead of gambling with it in Wall Street. No matter which type of owner you chose to be for your second home, the main value is the quality time you spend here, slowing down to enjoy family, friends, and enjoying your life. Besides, that is the true value of owning a vacation home in Belize.
All photos (unless stated otherwise) and insights are courtesy of RE/MAX 1st Choice Belize. Get in touch to start planning your Lifetime Investment by owning a home in Belize here. RE/MAX 1st Choice has partnered with NuView IRA enabling our clients to purchase real estate as an investment inside their retirement account without incurring penalties or taxes – before their retirement age.