Belize: A Strategic Investment During These Uncertain Times

2020 Coronavirus & Recessions Impact on Belize Real Estate.

This presentation outlines the Belize real estate market and the effects of the 2020 Coronavirus and recessions in the US & Canada.

Find out about the Coronavirus in Belize and the precautions the country has taken to mitigate the pandemic. Learn how to leverage and diversify your investment portfolio during times of recession in Belize and how the Belize real estate market performs during times of economic struggles.

Transcript

1. Belize: A Strategic Investments in Uncertain Times
4. 0 Confirmed Cases Coronavirus in Belize as of March 18, 2020
8. Recessions are a natural part of any economy. They follow expansions, and vice versa. The real questions are when the recession hits, how long it lasts and how severe it is.
11. Investing in Real Estate vs. Stocks Most people are more familiar with real estate as an investment. A real estate investment is tangible, you can touch it (and live in it). It's easier to avoid fraud with real estate. Debt (leverage) is safer with real estate than stocks. Real estate has historically served as an effective inflation hedge. Income from rental, direct, flip and appreciation. Real Estate is a Tangible Investment that Hedges Against Inflation. Real estate is considered a more stable asset than stocks with more potential for long term growth. Real estate has a utility factor, meaning you can use it. Whether you buy a property to live or rent. Important Points:
12. Advantages of Real Estate vs. Stocks Stability: Real estate investments provide cash flow and can be a hedge against inflation. Return on Investment (ROI): Real estate is a market where you can buy low and sell high. Degree of Risk: Actively managed real estate provides better returns and lower risk than stock market investing. Tax Advantages & Investment Flexibility: Real estate investing provides unique tax advantages. In certain cases an individual can also leverage retirement plans like self directed IRA or an RRSP. Leverage: Real estate investors can use leverage to build wealth. Inflation Hedge: Inflation averages 3% annually. Home prices typically adjust up with inflation. Stocks don't have a built-in inflation adjustment. Control of Investment: With real estate, timing the market is possible and can lead to huge gains. The housing market is more stable and predictable than the stock market. Less Volatile: Real estate doesn't have the variance of the stock market. Creating a more consistent investment especially with clear title assett. 1. 2. 3. 4. 5. 6. 7. 8.
14. When to Buy Real Estate To yield the highest return from real estate value, you have to buy in the right place at the right time.
17. 90% of all Millionaires Become so Through Real Estate
18. Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate. ~ Andrew Carnegie
19. The Strategy Behind Buying Land The strategy is simple, invest while prices are still affordable, where there’s room for growth, buy land in the path of progress that will increase in value over time.
21. Why Belize? Stable Currency British Common Law Fee Simple Title & Full Foreign Ownership English Speaking Favourable Tax Environment Affordable Real Estate Low Population Density Limited Supply Rental Income Potential Easy Transaction Low Barrier to Entry Accessibility 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
22. The currency of Belize is tied to the US Dollar (USD), maintained at a 2:1 ratio. Unlike central banks in most countries, Belize maintains a very high reserve requirement of 24%, which means that for every dollar of the bank’s deposit liabilities, 76% is available to lend and 24% must be held in reserve. In Belize, most Real Estate is held, bought and sold in USD. This makes it a safer real estate investment as it is hedged against the US currency. Making it less susceptible to inflation and currency fluctuation. Stable Currency 1. =
23. 2. British Common Law Stability Consistency Safety Belize is practices British Common Law and is a fully democratic country. Belize has; Free Hold Interest, Clear Property Ownership Rights, Unencumbered Title & Fee Simple Title. This creates; 1. 2. 3.
24. 3. Foreign Ownership Belize has full foreign ownership and fee simple land title. Foreigners hold the same ownership rights as locals. Fee Simple: Complete form of ownership. Leasehold: Lease the land for a duration of time. Belize is Pro Foreign Investment!
25. 4. English Speaking Come to Belize and you'll hear familiar words of the English language. In fact, we are the only English language-speaking country in Central America.
26. 5. Tax Advantages No Estate Tax No Capital Gains Tax Bank Confidentiality & Secrecy Low Property Tax (1% to 1.5%) Retirement income is exempt from taxation Belizean International Business Corporations (IBC)
27. 6. Affordable Real Estate Even though real estate values are on the rise, property in Belize is still affordable. On Ambergris Caye, lots start at $35,000
28. 7. Population Density Low Population Density 390,353 (2019 Estimate) 37 people per square mile This is the lowest density in Latin America, and one of the lowest in the world, ranking 177th globally.
29. 8. Limited Supply Preserves Natural Beauty Limits Supply of Available/Developable Real Estate Belize has dedicated roughly 46 % of its territory to natural park and marine reserve. 2 Effects of This 1. 2.
30. 9. Rental Income Potential Long Term vs Short Term Rentals
32. Baby Boomer & Nightly Rental Rate Decrease in Available Nightly Rental Units Increase in Baby Boomers Relocating = Increase in Rental Rates & Occupancy Rates =
33. 10. Ease of Transactions Not only are the majority of Belize real estate deals done in USD, you can also hold a property in an IBC. An IBC is a company with limited liability that can be incorporated within 24 hours. The IBC is fully exempt from paying tax. Transferring a property in an IBC is easy as you are transferring the shares.
34. 11. Barrier to Entry Real Estate is Affordable Pro Foreign Investment QRP Programs Investment Residency Program Owning and Investing in Belize is Easy!
35. 12. Accessibility
36. What is the Belize Market Foundation Pillar? Exodus of Capital From the US & Canada ROI > ROI Return of Investment Return on Investment
37. Belize Land as an Investment The Aren't Making Anymore Low Overhead & Carrying Cost Protects Wealth & Asset Tangible Asset Less Volatility In an Appreciating Market, Where People Want to Be 1. 2. 3. 4. 5. 6.
38. Ambergris Caye in 2009 Sales Exceeded Any Year Prior Saw Most Appreciation to Date 1. 2. People were looking at alternative investments. Many people assume the real estate values in US & Canada effect the globe. When in reality, many markets, like Ambergris Caye, thrived. - John Turley Regional Owner RE/MAX Caribbean & Central America
39. Why RE/MAX? We Are #1 in the World Brand Power We Are International Trust & Reputable Technology & Training Recognition 1. 2. 3. 4. 5. 6.
40. "Buy land, they’re not making anymore of it." - Mark Twain "Don’t wait to buy land. Buy land and wait" - Will Roger
41. dustin@remaxbelizerealestate.com +1 (403) 604-4909 Email Phone