You may want to know how to build a house at The Reserve in Belize. Let me reveal my expectations.

My investment at The Reserve in Belize differs from many of the people who purchased more than 1,000 home sites before me. My understanding is that most of those people purchased home sites because they wanted:

  • To build a house at The Reserve for their retirement.
  • To build a house at The Reserve to enjoy as a vacation property.
  • To build a house at The Reserve to use as an income property.

Those were three good reasons. Yet my time horizon for the investment and my ultimate goal differed. My wife and I were in our mid-50s when we made our investment. We wanted to begin investing outside of the United States, and we chose to invest in Belize because we believed that our investment would generate an excellent rate of return while simultaneously protect us from losing value. With so many others investing in Belize, we felt confident that the value of our land would rise over time.

I leveraged other assets that I own to acquire 27 home sites in a pre-construction area of the Laguna Palms subdivision. When I made the acquisition, my intention was to sell 25 of the home sites and build houses on two of the lots. We would not begin to build until 2023, when we anticipated some of our other investments to mature. Since we did not expect to build until 2023, I invested in home sites that I expected to become more valuable over the next five years.

We intended to use those two houses as income-producing properties. To prepare for the build, I interviewed Frank Connelly, CEO of Newport Land Group. If you’d like, you may watch that interview on my YouTube channel at the following link:

As I understood Frank, the process to build at The Reserve follows:

  1. Purchase a piece of property.
  2. Retain an architect to draw up the plans and a contractor to build the house.
  3. Submit the plans to the planning-review board at The Reserve and get approval to build the house from the planning-review board.
  4. Submit the approved plans to the building authorities in Belize and obtain approval.
  5. Obtain the building permits from the central building authority in Belize.
  6. Clear the property and begin to build.
  7. Expect the entire process to take approximately one year.

 

Investment Plan:

My intentions are to build the first house in 2022 and to build the second house in 2023. I will use those two properties to generate income as short-term rental properties through the Airbnb service. I will retain local help to manage the property and I will use technology like smart keys and cameras to keep an eye on it.

I am budgeting a total investment of $500,000 for each property in this gated, oceanfront community. I expect to invest approximately $150 per square foot, all in, to build and landscape each property. My budget will leave sufficient capital to fully furnish each house. For my purposes, a house of 2,000 square-feet will provide sufficient space to generate $60,000 in annual income. If I borrow $500,000 at a 6% interest rate to fund the property, and I finance the note on a 15-year plan, my monthly payments will approximate $4,200 per month; if I were to finance over a 30-year plan, my monthly payments would be less than $3,000 per month. Either way, I would have sufficient cash flow to pay for the property and I would not have one penny of my own money invested.

Further, once the property is complete, I anticipate that it would be far more valuable than the $500,000 it cost me to build. Indeed, I am anticipating that by 2030, the value of each property would be worth close to $1 million. For those reasons, building a house at The Reserve strikes me as an excellent alternative investment.