5 insider tips to real estate investing in Central Ameria

1. Understand the link between tourism and real estate

There is a strong relationship between leisure markets and the market for vacation and retirement homes.  Across Central America, the areas that attract most tourism numbers also generate the highest levels of real estate activity.  Add data on tourism rates into your research and seek out areas that are experiencing growing numbers of tourist visitors.  The real estate dollars should follow close behind.  
 
If you dream of a vacation home in the truest sense of the word, a property that you can enjoy right now and not sometime in the distant future, then seek out established tourism destinations -  in Belize this means a popular spot for diving and snorkeling.  You’ll also find that rental returns are highest here.

2. Read those codes covenants and restrictions

If you’re buying in a planned community make sure your vision matches that of the developer.  You want a low density eco-development but they’re planning a high rise condo.  Something has to give.  And as an occupant in a new development you may be disturbed while building work continues on the site.

CC&Rs in some developments can be highly restrictive, down to what you can or can’t grow in your garden, or the color of your roofing tiles for example.  For some this means a well managed community, for others a loss of freedom. Just make sure you know what you’re getting into.

3.  Visit where you want to buy out of season

Visit the location out of season.  For Belize this means visiting in the rainy season which tends to fall in June, July and August.  Some tourism businesses in Belize close down during the months of September and October, the peak hurricane season.  It’s important to make sure you still like the location and that you can access the local services that you need.  For that matter, also visit at the height of the high season to see if you enjoy the crowds.  November to January tend to the big months for North Americans and August for European travelers.

4. Consider making your investment green

We’re reaching a tipping point - where a critical mass of people understand that green investing is the most competitive thing they can do.  We’re not talking about greenwash or empty eco-marketing messages but about finding the sweet spot where being environmentally responsible results in smart design, healthy living, reduced energy costs and enhanced asset value.

More developers are designing green properties where you can invest in a way that helps produce a healthy, livable world for you and your family.  In our survey, we’ve highlighted developments that incorporate social and environmental best practices.  We encourage you to take a closer look and get in early, just as the rest of the world is catching on.

5. Become and expert in investing in international real estate …before you invest

You should never make an investment decision on the back of one piece of information whether it be a glossy brochure, your agent’s number-crunching or a friend’s recommendation.   Investing is about triangulating between many layers of information, perspective and judgment.  Remember to seek legal advice as early as possible and understand the way of buying properties in other countries could be very different from what you are used to at home.  In reality, you can do much of the homework without even getting into a plane.  This will help keep your feet on the ground when your reach the stage of considering individual properties.

Want more tips? Read our combined list of insider tips.