Owning a vacation home on the Caribbean is a dream for many people and buying real estate in Belize is becoming a very popular way to achieve that dream. Whether you are interested in owning or building a small villa in Belize as a temporary getaway, or are interested in retiring or giving up the rat race altogether for a permanent move there, you are not alone. Nearly everyone who feels those warm tropical winds on their face daydreams of what it would be like to live there, but of course pulling it off is another story.
Don’t rush into anything
First things first - a single visit to Belize may be plenty inspiring, but it’s not enough information if you are actually considering moving there permanently. The simplicity and peacefulness of the tropical culture and setting is an excellent way to temporarily escape our stressful daily lives, but the reality of living in it 12 months each year can take its toll on many people. It’s not uncommon for someone to buy a house in Belize only to realize shortly after moving in that it’s not what they expected. Consider a long-term rental in Belize to be certain it suits you.
There is obviously property available all over the country, but the islands and beaches are the main draws for foreigners. With English as its official language, and a relatively stable and friendly government, Belize can be an excellent option for a vacation home or new permanent residence.
Get to know the market
Many people fear getting ripped off as a foreigner buying property, and there is definitely a reason to be cautious. Unlike most large countries, one does not need a license to sell real estate in Belize. Homes and properties can be listed by several people at once, sometimes at different prices with each. Con games aren’t too common, but it’s still important to know with whom you are dealing.
You won’t get the “local price” for a property, but the reality is you’ll be dealing in a parallel market and you wouldn’t want the sort of home most locals live in anyway. Incomes in Belize tend to be quite low, and living standards for the locals are probably not what you’ll want to trade your current lifestyle in for. Well-built homes will cost a lot more than the houses the locals tend to occupy.
Where to search listings
You can look at existing homes for sale in Belize. This is, of course, the easiest and safest option since the costs are obvious and the risks are relatively low. But many people who are certain about the move prefer to buy acreage in Belize to build their own home from scratch. This can be cheaper in the long run, but keep in mind you’ll likely have to pay to have the lot cleared and made ready for building. You can also buy an existing lot that is ready for a house. Sunshine Estates is one of the companies that lists property in Belize.
Ambergris Caye is popular with both vacationers and expatriates, and the smaller and funkier Caye Caulker is also the new home to many foreigners. Corozal is just over the border from Mexico in the north of the country, and it’s becoming a popular new home for foreigners as the proximity to both cultures has definite advantages for some people.
Wednesday, April 29, 2009
Monday, April 20, 2009
5 Reasons to visit Belize.
# 1 Diving/snorkeling
Regardless of your level of ability or physical condition, there's a place and mask for you in Belize. Diving around the atolls is world-class, excellent on the reef off Stann Creek and Toledo districts, and not bad even around the more-visited parts of the barrier reef such as near Ambergris Caye. Snorkeling is also excellent, though except from the cayes directly on the reef such as Tobacco, Goff's, and English, it requires a short boat ride to the reef.
# 2 Maya ruins
Belize was the heart of the Maya world, and today dozens of ruins can be visited without the hordes of tourists common in parts of Mexico.
# 3 Ecotravel: Birds, wildlife and nature
Most of Belize remains lightly populated by humans and untouched by developers, so it is a paradise for wild critters and birds. More than 500 species of birds have been spotted in Belize. Animals rare or extinct elsewhere still thrive in Belize's bush. Nature is still natural here. A surprising number of Belizeans have a real commitment to protecting the environment. In particular they have the largest jaguar reserve in the world.
# 4 Adventure
Belize is a great place for adventure, soft or otherwise. Come for hiking, canoeing, kayaking, windsurfing, and caving. Indeed, Belize offers some of the best spelunking anywhere, with huge cave systems, some yet unexplored, in the Maya Mountains and elsewhere.
# 5 Culture
No, not the kind you get from museums; Belize offers the visitors a laboratory of human culture, all in a small and accessible space. Belize is a truly multi-racial, multi-cultural, multi-lingual society. Far from perfect, but there are many pleasures, a trip to Belize can be an education. Come with your eyes, and mind, open.
Regardless of your level of ability or physical condition, there's a place and mask for you in Belize. Diving around the atolls is world-class, excellent on the reef off Stann Creek and Toledo districts, and not bad even around the more-visited parts of the barrier reef such as near Ambergris Caye. Snorkeling is also excellent, though except from the cayes directly on the reef such as Tobacco, Goff's, and English, it requires a short boat ride to the reef.
# 2 Maya ruins
Belize was the heart of the Maya world, and today dozens of ruins can be visited without the hordes of tourists common in parts of Mexico.
# 3 Ecotravel: Birds, wildlife and nature
Most of Belize remains lightly populated by humans and untouched by developers, so it is a paradise for wild critters and birds. More than 500 species of birds have been spotted in Belize. Animals rare or extinct elsewhere still thrive in Belize's bush. Nature is still natural here. A surprising number of Belizeans have a real commitment to protecting the environment. In particular they have the largest jaguar reserve in the world.
# 4 Adventure
Belize is a great place for adventure, soft or otherwise. Come for hiking, canoeing, kayaking, windsurfing, and caving. Indeed, Belize offers some of the best spelunking anywhere, with huge cave systems, some yet unexplored, in the Maya Mountains and elsewhere.
# 5 Culture
No, not the kind you get from museums; Belize offers the visitors a laboratory of human culture, all in a small and accessible space. Belize is a truly multi-racial, multi-cultural, multi-lingual society. Far from perfect, but there are many pleasures, a trip to Belize can be an education. Come with your eyes, and mind, open.
Friday, April 17, 2009
Belize: Your Tax Haven for Privacy and Profits
Today, when more governments are snooping on citizens and more courts are seizing property, Belize stands out as one of a dwindling number of safe tax havens where you can still ensure privacy and protect your assets.
In the early 1990s, the government of Belize consulted with professionals in Guernsey and several other top safe havens before drafting legislation that would enable Belize to achieve similar status.
Legislation included the International Business Companies Act, the Trusts Act, and the Offshore Banking Act, all of which have moved Belize to the forefront of the international financial service jurisdictions. Moreover, to attract retirees from other countries, Belize also adopted a "qualified permanent residence law," which allows retirees to enjoy a tax-free lifestyle.
Individuals and companies establishing themselves in Belize are finding a government committed to privacy and a no-tax system. These advantages, combined with an English-speaking population and laws similar to our own, make Belize one of the world's top tax havens--a truly safe locale for your money.
Income Tax in Belize
As a non-national, you will be charged income tax on income you generate in Belize. It's taxed at a rate of 25%. For residents, the first $10,000 in annual income is exempt, but, unfortunately, this exemption does not apply to non-residents. Since 2001, all foreign income is exempt from personal and business tax, as is all pension income. Qualified Retired Persons (QRPs) receive certain tax advantages.
IBCs
Even if you are not a QRP, the laws allow you to avoid income taxes altogether by transferring income and assets (though not real estate) into a Belizean International Business Corporation (IBC). Dividends to you from the IBC are not taxable.
Real Estate Tax in Belize
On the transfer of real estate, everyone in Belize pays a 5% transfer tax; non-citizens pay an additional 5%, for a total of 10%. This is usually paid by the buyer, but is negotiable. If you are a resident under the Qualified Retired Persons incentive program, the 5% on non-citizens is waived.
Property Taxes in Belize
Belize's property taxes vary but are between 1% and 1.5% of the value of the undeveloped land. In Belize, property taxes outside cities are based on land value rather than the developed value of the property, to encourage development. Property taxes on homes and other developed land even in cities are low. For example, the property tax on a four-bedroom U.S.-style home would likely be in the range of $100 to $200. There is no capital gains tax in Belize.
Check with you tax professional beofre making any financial decisions.
In the early 1990s, the government of Belize consulted with professionals in Guernsey and several other top safe havens before drafting legislation that would enable Belize to achieve similar status.
Legislation included the International Business Companies Act, the Trusts Act, and the Offshore Banking Act, all of which have moved Belize to the forefront of the international financial service jurisdictions. Moreover, to attract retirees from other countries, Belize also adopted a "qualified permanent residence law," which allows retirees to enjoy a tax-free lifestyle.
Individuals and companies establishing themselves in Belize are finding a government committed to privacy and a no-tax system. These advantages, combined with an English-speaking population and laws similar to our own, make Belize one of the world's top tax havens--a truly safe locale for your money.
Income Tax in Belize
As a non-national, you will be charged income tax on income you generate in Belize. It's taxed at a rate of 25%. For residents, the first $10,000 in annual income is exempt, but, unfortunately, this exemption does not apply to non-residents. Since 2001, all foreign income is exempt from personal and business tax, as is all pension income. Qualified Retired Persons (QRPs) receive certain tax advantages.
IBCs
Even if you are not a QRP, the laws allow you to avoid income taxes altogether by transferring income and assets (though not real estate) into a Belizean International Business Corporation (IBC). Dividends to you from the IBC are not taxable.
Real Estate Tax in Belize
On the transfer of real estate, everyone in Belize pays a 5% transfer tax; non-citizens pay an additional 5%, for a total of 10%. This is usually paid by the buyer, but is negotiable. If you are a resident under the Qualified Retired Persons incentive program, the 5% on non-citizens is waived.
Property Taxes in Belize
Belize's property taxes vary but are between 1% and 1.5% of the value of the undeveloped land. In Belize, property taxes outside cities are based on land value rather than the developed value of the property, to encourage development. Property taxes on homes and other developed land even in cities are low. For example, the property tax on a four-bedroom U.S.-style home would likely be in the range of $100 to $200. There is no capital gains tax in Belize.
Check with you tax professional beofre making any financial decisions.
"Why is my IRA losing money?"
It's a darn good question. Your IRA is a personal retirement account, so what the money gets invested in is under your control. If you gambled the money on equities that lost value, your IRA loses value. If you had a 401K, you'd be much more limited in what investments you can make, but you can lose money in a 401K just as quickly as in an IRA.
If you talk to most Americans about the stock market, you'll hear over and over again that the market returns 10% a year. For a while back in the late 90's, people liked planning on 12% or 15%, but 10% was the long term figure. The problem is twofold. First, I believe the really long term figure for total return is closer to 8%, and that included dividends, back in the day when all real stocks paid real dividends. That's just not the case anymore. The other problem is to get a long term average, you have to have a number of bad years after a number of good years.
So today, if you pull up a chart of the S&P 500, perhaps the most popular and most sensible holding in IRA's and 401Ks, you'll find that it's been returning about 4% a year over the last 10 years, maybe 5% with dividends thrown in. If you only go back as far as the summer of 200o, you'll find that the S&P 500 has just got back to break even with that date, ie, zero return. So it depends a little on the exact dates, but you can say pretty safely that bonds (think PIMCO) have outperformed stocks over the past ten years, which is a bit of a shocker.
The funny part is that many financial "experts" at large companies are frantically trying to persuade their employees to get their 401K investments out of low returning bond funds and put them into the stock market, since without a higher return, they won't have enough to fund retirement. Of course, those "experts" are stuck in the world of 1990's bubble returns, and don't think America can possible go the way of Japan. The Japanese market peaked in the late 1980's and is currently at around one third of that peak value. So, if your IRA or your 401K is losing money, you better study up on your options, but not stock options, which are one of the limitations on retirement accounts. The government wants you to loose your money through managed speculation, not personal hunches.
Although we are typically limited to stock market mutual funds in our 401k we do have choices with our IRAs. By putting your money in a self-directed you have much more freedom and you are able to invest in the following
If you talk to most Americans about the stock market, you'll hear over and over again that the market returns 10% a year. For a while back in the late 90's, people liked planning on 12% or 15%, but 10% was the long term figure. The problem is twofold. First, I believe the really long term figure for total return is closer to 8%, and that included dividends, back in the day when all real stocks paid real dividends. That's just not the case anymore. The other problem is to get a long term average, you have to have a number of bad years after a number of good years.
So today, if you pull up a chart of the S&P 500, perhaps the most popular and most sensible holding in IRA's and 401Ks, you'll find that it's been returning about 4% a year over the last 10 years, maybe 5% with dividends thrown in. If you only go back as far as the summer of 200o, you'll find that the S&P 500 has just got back to break even with that date, ie, zero return. So it depends a little on the exact dates, but you can say pretty safely that bonds (think PIMCO) have outperformed stocks over the past ten years, which is a bit of a shocker.
The funny part is that many financial "experts" at large companies are frantically trying to persuade their employees to get their 401K investments out of low returning bond funds and put them into the stock market, since without a higher return, they won't have enough to fund retirement. Of course, those "experts" are stuck in the world of 1990's bubble returns, and don't think America can possible go the way of Japan. The Japanese market peaked in the late 1980's and is currently at around one third of that peak value. So, if your IRA or your 401K is losing money, you better study up on your options, but not stock options, which are one of the limitations on retirement accounts. The government wants you to loose your money through managed speculation, not personal hunches.
Although we are typically limited to stock market mutual funds in our 401k we do have choices with our IRAs. By putting your money in a self-directed you have much more freedom and you are able to invest in the following
- Residential real estate—including apartments, single family homes, and duplexes
- Commercial real estate
- Undeveloped or raw land
- Real estate notes (mortgages and deeds of trusts)
- Promissory notes
- Private limited partnerships, limited liability companies, and C corporations
- Tax lien certificates
- Foreign currencies
- Oil and gas investments
- Publicly traded stocks, bonds, mutual funds
- Private stock offerings, private placements
- Judgments/structured settlements
- Gold bullion
- Car paper
- Factoring investments
- Accounts receivable
- Equipment leasing
Self Directed IRAs: The Secret to Creating True and Lasting Wealth
Tremendous Benefits When You Combine Retirement Plans with Your Knowledge
What makes a self directed IRA such a great wealth creation tool? The answer starts with you.
If you have knowledge, expertise, and success in certain investments, imagine the investment returns in a tax free environment. In addition to tax free profits, self directed IRAs provide large tax deductions, asset protection and estate planning benefits immediately to you!
What is a self-directed IRA?
A self-directed IRA is technically no different than any other IRA (or 401k). A self directed IRA is unique because of the available investment options.
Most IRA custodians only allow approved stocks, bonds, mutual funds and CDs. A truly self directed IRA custodian, such as Equity Trust, allows those types of investments in addition to real estate, notes, private placements, tax lien certificates and much more.
What are the benefits of a self-directed IRA?
In addition to the tremendous IRA benefits (tax-free profits, tax deductions, asset protection and estate planning), you are able to invest tax-free in investments that you know and understand, which through the power of compounding interest, will create true wealth for you and your family.
Why haven’t I heard of a self-directed IRA before?
While the concept of investing in real estate and other assets in retirement plans has been around for more than 30 years, the concept hasn’t received large attention because most custodians who offer IRAs (banks and brokerage firms) focus on mutual funds and CDs because they have vested financial interests in you selecting those investments from them.
Because the majority custodians focus on stocks and CDs there is a misperception that that is your only investment option for retirement plans, which is not the case.Can I be assured that self directed IRAs are allowed under IRA rules?
As long as you follow relevant rules the answer is yes.
There are specific rules regarding IRAs, and in particular, self directed IRAs that you should be familiar with to ensure compliance.
There are certain types of transactions that you can not perform through an IRA. Most importantly, the IRS prohibits “self dealing,” which are investments in which you or your family members of lineal descent have prior ownership. For more information, please see IRA rules section.
Are self directed IRAs for everyone?
Self directed IRAs are not for everyone, they are for those who want to create wealth using their knowledge of investments outside of stocks, bonds, and CDs
Subscribe to:
Posts (Atom)
