Your portfolio may seem diversified, but experts warn of potential threats within two years. Here’s one asset you need to add.

Offshore real estate can be a powerful tool for diversifying a portfolio. It offers hedging against currency fluctuations and, often, high appreciation rates. Plus, certain markets provide lifestyle perks, like access to tropical locations for vacation use or retirement.?

Everyone's doing it.

The offshore real estate market is experiencing significant growth, with approximately 40% of investors now considering it a central part of their portfolio. This trend is underpinned by several factors:

1. Portfolio Diversification: Offshore investments offer geographic and economic diversity, reducing reliance on a single country’s economic health. This strategy safeguards investors from localized economic downturns, political instability, or currency devaluation.
2. Rental Income Potential: Emerging markets, like Belize, often have high demand for vacation rentals due to their growing tourism industries. These markets provide an attractive income stream for property owners, especially in high-demand tourist hotspots. Platforms like Airbnb and Vrbo have made it easier to monetize properties abroad, encouraging investors to enter these markets.
3. Improved Regulatory Environments: Many emerging markets have implemented investor protection policies, including clear land ownership laws, stronger title registration systems, and incentives for foreign investors. For instance, Belize’s legal framework, based on English common law, assures investors of property rights similar to those in North America. These improvements reduce the perceived risks of investing abroad, making offshore markets more attractive.
4. Strong Market Growth: Offshore real estate in emerging markets has grown at an 8.2% annual rate, outpacing many domestic markets. This growth is fueled by economic development, infrastructure improvements, and rising global demand for leisure travel, particularly to tropical destinations like Belize, Costa Rica, and the Caribbean islands.

More people than ever are going off-shore.

Cross-border investors are becoming a driving force in the global real estate market, accounting for 20% of global commercial real estate transactions by value, with even higher activity in key regions. Several factors explain this surge:

• Globalization of Investment Opportunities: Technological advancements and increased connectivity have made it easier for investors to identify and access opportunities across borders. Platforms offering market data, legal resources, and property listings empower investors to make informed decisions.
• Appeal of Emerging Markets: Many emerging markets offer higher growth potential compared to mature markets. For instance, regions in Latin America, Southeast Asia, and parts of Africa have experienced substantial property value increases due to rising populations, urbanization, and growing middle classes. Belize is breaking growth records every year.?
• Favorable Exchange Rates: In some cases, weaker local currencies against the investor’s home currency provide significant purchasing power. This currency advantage allows investors to acquire high-value properties at relatively lower costs.
• Tax Benefits and Incentives: Offshore real estate often comes with attractive tax structures, such as low or no capital gains tax, tax breaks for foreign investors, or income tax exemptions for rental properties. Belize, for example, does not impose capital gains tax, allowing investors to maximize profits.
• Post-Pandemic Travel Boom: The COVID-19 pandemic significantly reshaped global travel and tourism. With travel restrictions easing, many regions have seen record-breaking tourist arrivals, driving demand for accommodations and short-term rentals. Investors recognize this opportunity and are actively pursuing properties in high-demand areas.
• Political and Economic Stability in Key Markets: Countries that offer political stability and investor-friendly environments have become magnets for cross-border activity. For example, Belize combines an investor-friendly government with a strong legal system and property rights protections, making it a top choice for offshore investors.

Why This Trend is Likely to Continue

The rising interest in offshore real estate and record-breaking cross-border activity reflect broader shifts in investor behavior and global market dynamics:

Increased Wealth Globally: With the expansion of global wealth, particularly in emerging economies, more investors are seeking to diversify assets internationally.

Remote Work and Lifestyle Investments: The shift to remote work has enabled investors to prioritize lifestyle properties in desirable locations, which also serve as income-generating assets.

Sustainability and Niche Markets: Investors are increasingly drawn to eco-tourism and sustainable properties, which are abundant in markets like Belize. These assets cater to environmentally conscious travelers and align with global trends toward sustainability.

How To Pick a Market to Invest In?

Selecting the right market is all about aligning investment goals with regional potential. Here’s a framework to consider:

• Growth Potential: Look for emerging or steadily growing markets with solid tourist traffic or development plans. High-demand regions often yield better long-term returns.
• Stability and Regulations: Stability matters, so opt for countries with clear, investor-friendly property laws. Belize, for instance, stands out for its English-based legal system and property rights that mirror North American norms.
• Lifestyle and Accessibility: If personal use is part of the plan, choose a market that fits your lifestyle—whether it's beach life, jungle retreats, or cosmopolitan vibes.
• Cost and Entry Points: Some markets, like Belize, offer more affordable entry points with promising ROI than more established offshore hubs like Costa Rica or the Bahamas.

Choosing the right market for offshore real estate requires balancing financial objectives with lifestyle preferences and risk management. By focusing on factors like growth potential, stability, lifestyle alignment, and affordability, investors can make informed decisions.

Will it keep growing?

Investors should prioritize markets that demonstrate steady or emerging growth, often characterized by increased tourism, infrastructure expansion, or government support for foreign investment. In Ambergris Caye, Belize, for instance, the combination of proximity to the Great Barrier Reef and recent development projects, such as luxury resorts and improved roads, has driven demand for property. Over the past decade, property values have surged significantly, with some early investors seeing their initial investments double.

Belize is gaining popularity among American investors due to its proximity, affordability, and favorable conditions:

• Only a two-hour flight from major U.S. cities
• English as the official language
• Stable government and legal system based on English common law
• Fixed exchange rate of 2:1 with the U.S. dollar
• Booming tourism industry with 25% growth in 20231

One couple who purchased a waterfront lot in Secret Beach in 2015 found themselves sitting on a goldmine just a few years later. With enhanced accessibility and increased tourist traffic, they were able to sell a portion of their land at three times the original purchase price, underscoring the importance of entering markets with clear growth trajectories.

You can feel safe in a place like Belize

Stable markets with transparent legal frameworks and investor-friendly policies are critical for mitigating risks. Belize stands out with its English-based legal system, offering foreign investors full ownership rights over freehold properties. This clarity is particularly appealing when compared to other destinations where unclear title systems or restrictions on foreign ownership can lead to complications.

Belize is enhancing its reputation as a secure and inviting destination for offshore real estate investment, with encouraging trends in stability and investor protections:

Strengthening Stability: Belize has seen a remarkable improvement in its global rankings. According to the World Bank, the country’s stability index rose from 0.27 in 2021 to 0.43 in 2022. This places Belize above the global average, underscoring its progress.

Transparent Legal Framework: Belize’s English-based legal system provides a reliable foundation for property ownership. With full foreign ownership of properties, Belize offers investors a level of clarity and security that aligns with North American standards.

Investor-Friendly Policies: Belize continues to stand out for its openness to international investors. Foreign buyers can purchase property in most areas without restrictions, ensuring inclusivity and ease of entry.

These advancements highlight Belize’s dedication to providing a safe and stable environment for investment. With a foundation of trust and transparency, Belize is increasingly becoming a preferred choice for offshore real estate ventures.

A Canadian investor learned this lesson the hard way after encountering years of legal disputes over property in a neighboring Caribbean country. Seeking a safer alternative, he turned to Belize for his next venture, purchasing property in Ambergris Caye. The smooth transfer process, backed by clear title registration, restored his confidence in offshore investments and ensured his asset was secure.

The ultimate lifestyle and ease of travel

A market that aligns with personal lifestyle goals can add a layer of enjoyment to the investment. Whether it’s beachside relaxation, eco-tourism, or vibrant cultural experiences, accessibility and lifestyle appeal can make all the difference.?

Belize is a haven for those who appreciate natural beauty and outdoor exploration. From the turquoise waters of the Caribbean Sea to lush jungles and ancient Mayan ruins, the country offers a lifestyle centered around adventure and relaxation.

Coastal Living: Towns like San Pedro on Ambergris Caye boast pristine beaches, world-class diving spots, and vibrant marine life, offering a tropical lifestyle that’s hard to match.

Eco-Tourism Appeal: Inland destinations such as San Ignacio provide access to dense rainforests, waterfalls, and cave systems, ideal for investors who value serenity and eco-friendly living.

Many investors are drawn to Belize’s laid-back vibe, where life moves at a slower pace and natural beauty is part of everyday living. It’s not uncommon for investors to spend part of the year in their properties, enjoying the lifestyle while earning income during peak tourist seasons.

One entrepreneur from Chicago, seeking a retirement haven, chose Belize not only for its tropical allure but also for the QRP (Qualified Retired Persons) program, which granted her residency benefits. Her property, nestled near the turquoise waters of Secret Beach, became both a personal retreat and a lucrative rental during tourist season, blending practicality with personal satisfaction.

How much does it cost?

For many investors, affordability is a deciding factor when entering the offshore real estate market. It’s about finding a location that offers high potential for returns without requiring an overwhelming upfront investment. Belize stands out in this regard, with its competitive pricing and opportunities to enter the market at relatively low costs compared to more established destinations.

Affordable rates with high returns

In Belize, properties in high-demand areas like Ambergris Caye and Secret Beach provide exceptional value for money. A beachfront condo in Ambergris Caye, for example, costs around $300,000, while comparable properties in the Bahamas or Costa Rica often exceed $1 million. This significant cost difference allows investors to enter the market with less capital while still tapping into lucrative vacation rental markets.

One compelling success story is a young professional from New York who decided to break into offshore real estate. Drawn by Belize’s affordability, she purchased a lot near Secret Beach for just $40,000. With an additional investment to construct an eco-friendly vacation rental, she created a thriving income-generating asset.

Comparative Cost Advantages

Belize’s affordability extends beyond purchase prices to ongoing costs, making it ideal for first-time investors or those seeking to diversify without significant financial risk:

• Property Taxes: Belize boasts some of the lowest property taxes in the region, often as low as 1-1.5% of the property’s assessed value annually. This ensures that even long-term ownership remains cost-effective.
• Development Costs: Building costs in Belize, especially in areas like Secret Beach, can be significantly lower than in more developed markets, depending on design and materials.

These factors combined mean that investors can build or purchase properties in Belize for a fraction of what it might cost in other popular offshore markets, leaving room for additional investments or faster returns.

Opportunities for Small-scale Investors

Belize’s real estate market also caters to smaller-scale investors who may not yet have the capital to acquire fully developed properties. Vacant lots near Secret Beach often sell for $40,000-$60,000, offering affordable entry points for those looking to develop over time. These properties provide flexibility, allowing investors to construct homes, vacation rentals, or even small eco-lodges tailored to market demand.

Scalable Investment Options

Investors who start small often find opportunities to scale. That same young professional near Secret Beach is now expanding her portfolio, using the profits from her initial property to fund additional eco-friendly vacation rentals. The affordability of land in Belize enables a compounding strategy where one property’s success can fuel future developments.

Why Affordability Matters

For investors, affordability isn’t just about saving money—it’s about reducing risk and increasing accessibility. Belize offers a market where small-scale investors can experiment, learn, and grow their portfolios without being financially overextended. For experienced investors, the lower cost of entry allows for greater diversification across multiple properties or regions within the country.

With its affordable property prices, low taxes, and development-friendly environment, Belize provides a unique opportunity for investors to break into the offshore market without the financial barriers that often come with more established destinations. Whether it’s a modest lot near Secret Beach or a beachfront condo on Ambergris Caye, the opportunities are as financially appealing as they are rewarding.

Other Key Factors

Infrastructure improvements are also worth considering, as they often signal long-term growth potential. In Belize, the planned expansion of Philip Goldson International Airport to handle more international flights is likely to attract additional tourists, increasing the demand for short-term rentals as well as a rapidly growing long-term rental market boosted by ex-pats and part-time residents who want a long-term lease.

Emerging tourism trends, such as the rise of eco-tourism, further underscore Belize’s attractiveness. As travelers increasingly seek unique, environmentally friendly experiences, destinations that cater to these preferences are poised for sustained growth.

What are other Benefits a Market Like Belize Offers?

Belize is truly a gem for real estate investors, blending affordability with immense potential. Here’s what sets it apart:

• Ease of Ownership: Belize offers straightforward property rights, with full foreign ownership of freehold property.
• English Language and Familiar Legal System: English is the official language, making transactions and legal matters clear and accessible for investors from the U.S. and Canada.
• Tax Benefits: Belize has no capital gains tax, which means you keep more of your profits on appreciation. Property taxes are also minimal, adding to the long-term affordability.
• Natural Beauty and Growing Tourism: Known for its stunning beaches, world-renowned diving spots, and rich biodiversity, Belize attracts a steady stream of tourists, which boosts rental demand for short-term vacation properties.
• Lifestyle and Visa Programs: For those considering a move or extended stays, Belize’s Qualified Retired Persons (QRP) program offers residency benefits for investors aged 45 and up.

How Can Someone Get Started?

Starting with offshore real estate in a place like Belize involves a few critical steps:

• Research and Engage Local Experts: Understand local laws and investment landscapes by speaking with real estate agents and legal experts in Belize. Consulting with a property attorney can clarify rules around land titles and tenancy.
• Visit and Explore: If possible, plan a trip to see the properties and neighborhoods firsthand. You’ll get a better sense of what you’re investing in and can visualize how your property might perform.
• Secure Financing: While some banks offer financing to foreign investors, many deals are cash-based. Arrange your funding and be ready for cash offers, as these may give you leverage in negotiations.
• Conduct Due Diligence: Check land titles, zoning restrictions, and potential for land appreciation. Also, review any local construction or land use requirements if you're considering developing property.

Start with a Rental or Smaller Property: Many new investors dip their toes into the market by acquiring a vacation rental or smaller parcel of land. In Belize, areas like Secret Beach are seeing a new construction boom for vacation and rental property.

Connect with us for a consultation on how to build a home in Belize.