San Pedro, Belize — RE/MAX Belize, one of the leading real estate brokerages in the region, has just launched an investment strategy around diversifying a portfolio during a period of high inflation and economic uncertainty. In addition, to educate buyers and investors on how to find real estate investments that are strategic assets during inflationary periods.
Managed by Real Estate Brokers & Regional Owners Will Mitchell & Dustin Rennie, RE/MAX Belize has been one of the top performing regions within the Caribbean & Central America. To take advantage of this, Dustin Rennie & Will Mitchell have introduced a new strategy based on assets and Belize, where the market is less susceptible to volatility.
As the duo explained how this new initiative seeks to educate investors on Belize’s less susceptibility to inflation and bearish economies, they said, “Recessions and inflation are part of all economies. For example, a long bull market just ended in the US. However, investors don’t stop investing just because inflation and recessions happen; they find new avenues to leverage cost-effective investment methods”.
During a discussion about educating people on Belize, Dustin & Will stated, “There are generally two elements to a real estate investment: cash flow and appreciation. Capital Protection, Yield (Cash Flow), Capital Growth, and Favorable Taxation are the four pillars that a real estate investor looks for when the economy is no longer bullish.”
The initiative has led Dustin & Will to educate investors and buyers on the Belize market (as over 90% of their customers are in the US or Canada) and create strategies to better position their clients during periods of economic uncertainty.
They also noted that, despite Belize real estate’s counter-cyclical nature, bullish markets still emerge when capital access is greater. A bull market will follow a bear market, resulting in a substantial capital gain for all real estate (especially vacation properties).
As a combination of the Caribbean and Central America, Belize offers a unique investment environment. Due to the island nature of Ambergris Caye, there are fewer properties available than on the mainland, so Dustin & Will concentrate on real estate on Ambergris Caye. As real estate investors, they believe that scarcity will work to their benefit in both the rental and appreciation of their properties.
Dustin Rennie says Belize offers a unique investment opportunity experience. “As a rapidly expanding destination, we produce cash flow and are flexible to market changes due to the absence of traditional bank financing. Renters and resale property owners have a distinct advantage due to the lack of inventory. Since most real estate is owned outright with cash, a bubble in real estate is less likely to occur”, he added.
Additionally, RE/MAX Belize cites this as one of their primary reasons for being in Belize; “When you buy a property in Belize, you own a tangible asset.” Property ownership in Belize is open to foreigners with a fee-simple title. A tangible asset in Belize can still be used and controlled even if the value goes down (or even if it has no value/defaults). The low property taxes in Belize also make ownership very affordable.
To educate investors about Belize, the duo believes, “During economically slow times, many investors look to tangible assets like gold and real estate. Therefore it is crucial to consider both the return on investment and the return on investment during periods of uncertainty. In Belize, people can get both for a reasonable price. A real tangible asset with future demand, the real estate on Ambergris Caye provides investors with a means to invest in a finite commodity.”