In the face of potential political and economical instability as well as a struggling local property market, an increasing number of affluent South African property buyers are moving to off-shore property investment.

One overseas market that has attracted major interest from both South African property investors and property developers is Belize.

Emerging as the best investment destination in the Caribbean, a recent Coldwell Bankers study revealed that property and land in Belize has seen an increase in value of 15 percent and as much as 30 percent along the coast in the period between 2006 and 2007.

Properties priced from US$30 000

The Wall Street Journal also recently earmarked Belize’s real estate market as one of the best value markets not only in the Central American region, but globally. Properties here start from as little as US$30 000 for a plot, to private islands at US$175-million.

"We have had an overwhelming response since we have commenced marketing of our various developments to the South African market. The majority of interested parties in the country, specifically investment bankers and high net worth investors, know that Belize, in property terms, is the next gold rush," says Bruce Krog, head of marketing in Africa for Hopkins Bay Group.

The Hopkins Bay Group, a consortium of Canadian and South African investors, is behind a unique integrated master planned resort, residential and business destination offering various investment opportunities near the town of Hopkins, which is just a two hour flight south of the US.

It currently constitutes Belizean Dreams (a private enclave of luxurious villas), Hopkins Bay Resort (a private coastal resort with oceanfront villas in a lush tropical paradise) and Sittee Point (a quiet, gated community featuring beach front and beach view properties). Over and above what already exists and is under construction the development team is busy with a strategic master plan that covers the balance of the 4000 acres owned by Hopkins Harbour.

Reasonable property prices

Belize is a particularly favourite investment spot for US, Canadian, UK and South African investors because of its British heritage and legal system and English-speaking population. Property investors are also attracted to favourable property laws, reasonable property prices, immigration laws and the user-friendly banking system.

"No restrictions are placed on you as a foreign buyer of property in Belize. Those who own real estate in Belize pay no capital gains or estate taxes and pay very low property taxes. Rental yields are improving as tourism in Belize flourishes and the best news is that rental income is taxed at only 1.75 percent of gross receipts.

"The cost of transfer of property is generally five percent plus an additional 10 percent General Sales Tax if the property is purchased from a registered developer. Property tax is usually assessed at one percent of land value for undeveloped land.

"Banking in Belize is one of the only secure and private havens in the world. You can protect your wealth with confidence as Belizean legislation prohibits banks from revealing the ownership or contents of accounts to anyone but the rightful owners and only to authorities that can provide substantial evidence of criminal activity.

Formerly British Honduras until the name of the country was changed in 1973, Belize lies on the eastern Caribbean coast of Central America bounded on the north and part of the west by Mexico.

For further information on Belize as an investment or emigration destination, contact Bruce Krog at brucekrog@hopkinsharbor.com or Raquel Croeser on 021 424 0470 at the South African office of the Hopkins Bay Group.