Belize 25 acres Teak

[Henry Clark]

Closed on 25 acres in Belize 2 weeks ago.  

Property:

20 acres of 12 year teak.  5 acres of cleared hill.  Water and sewer about 200 yards away.  1 mile to the main highway.  Great 360 degree view.  Great cell reception.  3 miles away from our existing plantation and house.  Main road for mennonites on buggies traveling to town.  Picturesque.  Clear rock stream on the backside.  Road frontage on the front and side road.  

Why?

Although we could continue to add to our Self Storage investments in the US.  This adds to our existing Teak plantations and retired lifestyle.  Our market for the Teak will be China and India.  Belize is a low income market so we only plan to sale low grade lumber there.  The land we are buying also has secondary value to future expats moving there.  Location, view, water, trees, electric, water.

Will clear building spots and plant 100 fruit trees and 800 hardwood seedlings.  This will make the 5 acres value more than the entire 25 acres.  The overall value of the land and potential subdivision and the harvested lumber will be 10 times the original cost.  No capital gains in Belize.  But will have to pay in the US.  Not worth giving up our citizenship to avoid taxes.

Process:      
1.  Tracking the owner down.  There is no Property tax GIS map.  You can’t go to the Lands department and ask.  You have to have the property ID.  You ask the neighbors or the village council.  Then if in the US you have to find a friend of theirs to get their contact info.    

2.  The owner did not want to use an agent.  They wanted to meet in Belize with an attorney and pay cash and transfer title.  I said I could t do that.  I would pay for a buyers agent who did the paperwork.  Used our same agent.  Example.  Found out the land was owned by three people.  If we had just paid her the others could have challenged. Was not their intent, but.  They had two passports.  They used the wrong one for a sale in Belize.  Had to fix.  My signature was not the same as in my passport. With and without middle name.  Belize is super picky on financial transactions due to US drug traffic monetary controls. 
    
3.   Seller wanted cash paid in US dollars in the US.   Not a U.S. citizen.  If paid in Belize in Belize dollars you have to go through an approval process to get your money out.  So if you ever sell down there, make the payments in the US.

4.  Since we and the seller were in the US they had to overnight paperwork for signatures.  

5.  Payments went to Realtors US account. Does not go to a Title trust account.  

6.  Sale is complete but now has to be recorded at the lands department.  Our first property took 1 1/2 years to be recorded.  

Possession:

7.  Surveyor to mark corners.  Costs about $200 US to mark 4 corners.  Costs $100 per corner to replace any missing concrete markers.  Most properties they have to bush hack up and down hills and through jungle.  Snakes, killer bees, getting lost.

8.  The excavator is supposed to come in the next two weeks to clear and widen the existing driveway to the top of the hill and a site in back for a shed.  They will also make a rock bottom swimming hole in the stream.  Cost will be about $800 US.  

9.  Planted 5,000 seedlings at our last property.  Will buy another 800 for this location.  Probably cedar, zericote, granadillo and Cortez for show.  We have to order six months ahead from our Mennonite source and put a deposit down.   $.75 US per seedling.  Plant in a 10x10 grid.  430 per acre.  After thinning over 20 years, 1 out of 7 will be left for harvest.  

Guys out planting trees at the start of rainy season.  During the dry season we cleared land and plowed rows.  

Real estate wise we can subdivide and sell.  Lumber harvest.  More US expats are looking to buy overseas and in Belize.  

Hopefully I remember to do a post in 10 years and see how it goes.