For many of us in the Northern Hemisphere, the allure of tropical climates can be enticing, especially in these winter months.

Many people long for the option to move to warmer regions like Florida or Mexico, but property prices there are rising and foreigners are prohibited from buying property in tourist regions of Mexico. That’s causing some people to look further afield.

Michelle Lyons of Belize Sotheby’s International Realty is one of those people. She and her husband had always dreamed of moving to Mexico from their home in Idaho but were deterred by the idea of learning Spanish. But seven years ago they discovered Belize, just south of Mexico, where the language barrier wouldn’t be a problem.

It took a while to convince me that English was really the national language, and that made so much more sense than Mexico.

The couple made the move seven years ago, and both stayed in the same line of work they were doing in the United States, him as a general contractor and her in real estate. “We just do it without any snow,” she jokes.

Buying Property

There are a few differences between buying a home in Canada and Belize.

For one, attorneys handle the closing by doing the title search and facilitating the transfer of ownership. But that means the initial purchase documents are simple, says Lyons. All the real estate agent does is connect the buyer with the seller, facilitate a meeting of minds on the property’s price, and set a closing date.

Canadian buyers will likely also be struck by the closing cost. As Lyons points out, property taxes in Belize are one of the biggest differences. Where in Canada, homeowners pay a monthly tax, in Belize they collect what is called a “stamp tax” or “stamp duty.” The stamp tax is about eight per cent of the home and land value and is collected up front. After that is paid, the cost of owning property falls to about US$50 per year, Lyons explains.

So if you look at the upfront cost of buying property, it’s completely offset by 30 years of next-to-nothing in taxes.

Owner Financing

Another big difference in Belize is that you don’t necessarily have to pay all cash up front. Lyons explains that many sellers today originally purchased their homes in the 80s and 90s, so the place has been completely paid off.

Purchasers can offer a 20 or 30 per cent down payment, and pay the rest off monthly directly to the owner. The sale is registered through an attorney and with the government as a legal transaction, so buyers don’t need to be concerned with the property being sold out from under them. However, an important thing to know if you want o buy a property in Belize is that the ownership doesn’t transfer until the home is paid off, so the seller is protected as well. This gives the seller a guaranteed income, while also giving new residents a little more money to get situated with.

Oceanfront Casa Del Mar for sale at $525,000

Is Belize Real Estate A Good Investment?

Many signs point toward Belizian property as a good investment. Some professionals say property prices rose 30-to-40 per cent between 2015 and 2017, but it can be a difficult number to nail down as there are no official house price figures. The region was hit hard by the global economic crisis, with values falling by as much as 30 percent, but 2012 saw a rebound that continues today.

A recent tour boom, coupled with the passage of the Retired Person Incentive Act in 1999 has been drumming up more buyer interest in the country. According to GlobalPropertyGuide.com, prices along coastal and tourist areas rose by as much as 30 per cent annually, while inland prices rose by about 15 per cent annually.

These days, in the more expensive regions like Belize’s famous islands or in the Placencia region, it’s not uncommon to spend a million dollars on a home. But if you’re content with something more off the beaten path, there are great deals to be had says Lyons.

People are usually really pleasantly surprised. Especially on the mainland. You can get 30 acres with three houses and a thousand coconut trees for US$230,000.

The jungle and mountain areas are even more affordable, where fifty acres of farmland with two houses, a stream, and a cenote can be had for $500,000.

So you can get a bit more bang for your buck on the mainland as opposed to venturing out onto an island.

And if you’re looking to make a little extra cash, you can always rent out part of your property on Airbnb. There doesn’t seem to be any restrictions against using the service in Belize.

Casa Royale Belize for sale at $429,900

Cultural Differences

There are some things that folks from Canada might not be used to. For instance, because of the way property taxes are collected, the roads aren’t maintained as well.

It can also be difficult to find some American or Canadian products, but Lyons says that’s one of the main reasons people live in the Caribbean—to escape the consumerism. Part of the draw is to have a simpler life. “If you can’t find it here you probably don’t need it or there’s a substitute for it,” she says.

But in a country where the average coastal temperature ranges between 24°C to 27°C, giving up a few creature comforts can seem worth it.

“Even when it rains it’s not cold, it’s just wet,” says Lyons. “Leaving the snow behind was our big draw.”

General Advice

Lyons suggests that people be open-minded about where they live. Many people are fixated on buying on an island, but there are many other options and climates, including islands, beaches, mountains, and jungle.

Don’t listen to other expats because each person that you talk to will try to convince you that the area that they live in is the very best. So you may come here thinking that you need to live in a beach community because that’s what someone told you, then you realize that you’re much more suited to the climate in the jungle areas.

The Great Blue Hole, Belize

Be Aware…

Of course, there are some things to keep an eye out for.

For one, buyers should be extra careful choosing an agent since there’s no licensing requirement to sell real estate in Belize.

If you’re interested in buying a condo rather than a house, it’s usually better to deal with an owner-owned condo association rather than an outside management company, according to this New York Times piece. Management companies often take a hands-off approach to the property, but when the condo owners handle things themselves they tend to handle them with more care.

Safety concerns are natural when moving to a place like Belize. Certain areas are more dangerous than others. As the United States Overseas Security Advisory Council says, “there is no indication that foreigners are broadly targeted, although tourists can be easy targets when not displaying situational awareness.” It is recommended that people exercise extreme caution when visiting Belize City.

As we’ve seen just in the last year, hurricanes are a major concern in the region around Belize. Since 1930 there have been 16 hurricanes in Belize, eight of them major. The deadliest occurred in 1931, killing 2,500 people. Most storms hit Belize in the months of September and October, but you’re less likely to see the effects of a hurricane in Belize than you are in certain regions of the US. According to the Belize Magazine, the odds of a hurricane landing in Belize in a given year is just 17 per cent, while in Florida the odds are 68 per cent.

Still, storms in that part of the world appear to be getting worse with each year, so buying insurance is highly recommended. Coverage can be bought—known as “all peril” insurance—that ensures against storms, hurricanes, fire, and more.

Getting Started

Lyons says you should contact a local realtor if you’re interested in buying real estate in Belize. The realtor can send links and pictures of properties while the buyer is still in Canada. In fact, there are a number of Belizean properties already listed on the Torontoism website.

Belmopan Estate for sale at $780,000

Realtors can help out with a rental car and lodgings when they come down to look at potential properties. The realtor will set up the initial offer and then introduce them to an attorney. Those attorneys can also help with importing pets or setting up a business in Belize.

The only requirement is that you have a valid passport and a downpayment to buy property in Belize. The closing can be done as quickly as 60 days or set for six months while the buyer gets their affairs in order back home.

Belize is an untapped resource for many people looking to buy a home in warmer climates. It’s a safe and secure option, but also offers a bit of adventure.

“Like my mom told me, if you go down there and decide it isn’t for you it’s not like we’re going to close the door, says Lyons. “You can always come back home but at least you will have tried.”

Available properties in Belize:

[property type=”international” status=”available,sold-conditionally” orderby=”price” area=”Belize”]

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One of Jim and Richard’s listings was featured as a Done Deal in the Globe and Mail. The four-bedroom row house at 642 Wellington St. W hit the market in November and sold in 9 days for $250,100 over asking price. Here is the article posted in the Globe and Mail.

642 WELLINGTON ST. W., TORONTO

ASKING PRICE: $899,900

SELLING PRICE: $1,150,000

TAXES: $4,245 (2016)

DAYS ON THE MARKET: NINE

LISTING AGENTS: Jim Burtnick and Richard Silver, Sotheby’s International Realty Canada

The action: When this four-bedroom row house hit the market in November, there were few comparable houses to compete with it in the highly desirable niche neighbourhood west of downtown. Seven visitors submitted offers, including one that added $250,100 to the list price.

“I didn’t go crazy to underprice it,” said agent Jim Burtnick.

It’s a classic home in a triple A location right downtown. There are a lot of people who don’t want to go in a condo, so this is an opportunity to take a house and put your own touches on it.

What they got: The brick façade and stained glass windows of this 1,798-square-foot Victorian are prominent features dating back to 1892. The formal living and dining rooms have crown mouldings and tall baseboards.

For 80 years, the same family occupied the dwelling. They had replaced the roofing, some windows and wiring, and maintained a second kitchen on the upper floor above the main one. The latter has access to the basement, back deck and 15-by 64-foot grounds.

The agent’s take:

The thing that really lends itself to renovation was it has a full three storeys with high ceilings on each floor. And the other redeeming feature was the original staircase banisters that could be restored nicely, so I could see a nice mix of old and new in there.

Originally posted in the Globe and Mail, written by Sydnia Yu.

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Here lies Walter Fielding. He bought a house, and it killed him.

In the classic Tom Hanks movie, the Money Pit, Hanks’ character Walter and his wife buy a dilapidated mansion with the plan to renovate the property and move into their dream home. After an abundance of escalating setbacks, the renovation nearly ruins their marriage and leaves them homeless. Indeed, the above quote nicely sums up how a lot of people feel about buying a fixer-upper. Months of stress and hard work could grind to a halt with little to show for all the work.

But with the right amount of planning, a decent budget, and a reputable contractor, a fixer-upper can be a viable option for many potential homeowners.

According to real estate professionals like Richard Silver and Jim Burtnick, whether you’re planning on selling the property in the future or remaining there to live, if you’ve got the time and money, a fixer-upper can be a great way to get more value for your cash.

The Right Kind Of Person

It’s difficult to say just how many fixer uppers are on the market at any given time. After all, the definition of what needs updating can vary widely depending on the buyer and seller, but most people agree there’s value to be found out there.

Still, many real estate professionals warn that it takes a special type of person to take on such a project. According to Jim Burtnick, Broker, SVP of Sales at Sotheby’s International Realty Canada, the fixer-upper in this market is where the oportunity lies: 

The fact of today’s society is that people are so busy with their work life, their family life, that not a lot of people have the stomach or the inclination to take on a fixer-upper project. They’re just too busy. So there is less demand for those types of properties. So with less demand obviously you get it at a better price.

A lower price isn’t the only reason for homes that may require some extra attention. As Richard Silver of Sotheby’s International Realty Canada points out, one of the main benefits is that you can customize the building to your standards.

You can change it inside to be very traditional, you can make it very modern, you can put in a brand new kitchen and bathroom and all the things. So there are benefits.

Planning Is Key

If buyers decide to fix up a home, there are a number of things to consider first, depending on what they’re trying to achieve. If the goal is to flip the house, concentrate on areas that are going to add the most value. An updated kitchen will add a lot more value than a new HVAC unit, according to Burtnick.

Burtnick says the first thing owners should do is sit down and determine the scope of the work.

Are they renovating everything or just the bathrooms? Which items will require professionals? Kitchens and bathrooms usually involve specific expertise like plumbing and electrical work, but if you’re putting up a fence or deck, that’s probably something you can do without consulting a professional.

Make sure to set a budget. Burtnick says he’s seen too many people blow through their money and over-capitalize the property. Otherwise, you may end up with an aesthetically lopsided home.

You want to have a consistent type of finish throughout the house so there’s no sense in having a brand new, ultra-modern kitchen and a bathroom with old vinyl flooring and fixtures. You want to make sure you have a consistent feel throughout the house.

Before beginning the renovation, make sure to look into building permits as well. In the City of Toronto, it’s the homeowners’ responsibility to make sure they’re following all the applicable building codes. All of that information can be found on the City of Toronto website.

The Right Person For The Job

There are a lot of risks that go along with fixing up a home. According to Silver, one of the best ways to mitigate that risk is by finding a decent contractor:

I think there’s a lot of people out there who could take advantage of you, so you really have to know the marketplace. Or you have to find somebody you can trust.

One issue now though, according to Burtnick, is that the best contractors are often booked as much as a year in advance. In Toronto, the renovation business has proven to be a strong marketplace so there are more new entrants vying for business. That can make it difficult to judge their skill and experience level.

To do this properly, you’re going to spend a lot of time interviewing contractors.

It’s up to the homeowner to do their due diligence, according to Burtnick. They should make sure to get referrals from friends who have gone through renovations, obtain references, and make sure the contractor is properly insured.

Also, make sure contractors aren’t subcontracting out the work, according to Burtnick. While it’s not illegal to farm out jobs to other workers, it can create major headaches for the homeowner.

What you’ll get is one contractor coming into bid on the business, but he doesn’t indicate to you that he’s just winning your business and sub-parceling it off to other contractors. You want a contractor who is responsible for all of the job and has direct control over that. When they start subcontracting it out they’ve lost control of it.

Contract With the Contractor

Making sure there’s a strong contract in place will help things run smoothly.

Outline the work that needs to be done, says Burtnick. That may include sketches, blueprints, or CAD drawings. It should include an estimate for the entire project, a payment schedule, and a clause to cover any extra expenses.

If you’re going through the project and decide you want to use granite instead of the ceramic tile that was agreed upon that, you’ve got a clause covering the extra costs that are bound to come up.

The contract should include the full legal name of the contractor’s company, their business address, HST registration number, phone number, and City of Toronto contractor license number. The homeowners’ full name and the job site address should all be included.

Burtnick says you always want to have an estimated start and finish date within the contract as well. But don’t worry if those move around. In general, he says double the amount of time you think it will take you to finish a job.

Those have to be somewhat flexible because things come up such as weather. But just a general guideline is important.

Prepare For Stress

Both Burtnick and Silver warn that renovations aren’t for the weak-willed. They take a lot of patience and planning. If not dealt with properly, they can be detrimental to relationships and even end marriages. 

If you don’t want to end up like Walter Fielding, plan ahead and make educated decisions.

Indeed, for many professional couples, a fixer-upper probably doesn’t make sense, says Richard:

If you have a husband and wife and they have a couple children and both work, they’re not going to have the time to do a fixer-upper. It just doesn’t make sense for them to put in the time.

Silver says he has some experience with this, having taken on a similar project himself in the mid-80’s.

I bought from a builder. I made some changes. He started building and I was on that site every day. I became somebody who yells and I never yell. But I learned to yell.

If you’re in the market for a fixer-upper but don’t think you have the stomach for it, Richard says there are other options. A new construction home that hasn’t been built yet isn’t necessarily the same thing, but buyers do have a bit more control over what the home will look like.

But fixing up a house can be nerve-racking, asserts Silver.

You don’t know if you’re doing the right thing, you don’t know what the market wants, and you don’t know if the market’s going to change and you could be caught.

In Toronto’s current housing market, finding good value can be a challenge. Prices continue to rise, properties get smaller, and every day more people are seemingly priced out of the market. For many buyers, a fixer-upper may be the last vestibule of hope for finding property in the city. That is if they can stomach it.

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TorontoStoreys.com asked a couple of Toronto real estate agents, including Richard, about their wishlist for Christmas. The question was:

If you could ask for one thing in GTA real estate, what would it be?

So what does Richard want this year? It’s more about what he doesn’t want.

At a time when we need more rental properties to be built in the marketplace, the provincial government’s move to insert rent controls will stifle the building on new rental properties. I would hope that they would lift any restrictions on rent control. They have always caused more negative damage than positive change.

The government needs to streamline the building process so that more units can be built. More supply usually helps to smooth out the market in terms of price. Forget rent controls and encourage building … that will be more positive for the marketplace.

Rent controls and their potential impact on the market are a very hot topic in the city. We wrote about it in our of our recent articles, you can find it here.

Read the rest of TorontoStorey’s article here.

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Jim was recently interviewed by Jill Mahoney from Globe and Mail about the effects of Foreign Buyer’s Tax on Toronto. Here is an excerpt from the article: 

In all, 3.8 per cent of homes sold in the city of Toronto were to buyers who were not citizens or permanent residents between mid-August and mid-November, down from 5.6 per cent for the previous three-month period.

In the wider Greater Golden Horseshoe region, 1.9 per cent of residential properties were bought by people from abroad, down from 3.2 per cent.

The government’s data come amid continued debate over the role of international capital in the Toronto area’s real estate market.

Some analysts and home buyers believe wealthy foreign buyers are pushing prices beyond the reach of many local residents, while the real-estate industry argues the main challenge is strong demand and a shortage of housing supply, rather than small numbers of non-citizens.

Foreign purchases began to fall in the vast area around Toronto after Premier Kathleen Wynne’s government introduced its tax in April, according to Finance Ministry figures. Before the move, the real estate market appeared to be overheating, as average home prices soared to nearly $1-million in the Greater Toronto Area. After the tax, the market entered a downturn.

The government on Wednesday said the overall housing market “continues to show stable growth,” while noting that Greater Toronto Area home resales fell 13.3 per cent and the average price dropped by 2 per cent last month from November, 2016.

Real estate agents who work with foreign buyers said many are waiting out the market’s turbulence.

“[The tax] forced everybody to the sidelines for no other reason than psychological because it was new and they wanted to see what kind of an effect a government intervention like that was having,” said Jim Burtnick, a Toronto broker who works with international clients

People want to make sure that they’re not catching a falling knife, that the sky’s not falling, and once they realize fundamentally nothing’s changed and everything’s pretty stable, I think you’ll see that it’ll pick up again.

Mr. Burtnick said foreign investment could also be down because some buyers are finding ways to avoid paying the tax, such as by registering properties in the names of relatives who are Canadian citizens or permanent residents. “People are generally pretty resourceful,” he said.

If you are interesting reading the rest of the article, head to The Globe and Mail site and read it here. 

Toronto’s Kingsway is 20 mins to downtown, surrounded by beautiful nature, rivers and walking trails. Its outdoorsy vibe, beautiful architecture, mature trees and manicured lawns make it a perfect family neighbourhood.

It is the perfect choice for people looking for little more space than what’s typically offered in the downtown core, with a bit of backyard, community feel and great schools.

Find out more about Kingsway in the video below.