Abandoned or stalled deveopments

[MIKE T.]

It was interesting as I was looking at some housing developments, specifically Orchid Bay, that the area is developed for a whole bunch of homes but only a very few are built. Did something fall through there? Bad economy? Also as I look with Google earth along that whole coast or bay line area I see several more areas that have preliminary development, leveling, clearing,, even some water areas for marinas. It looks like they have all gone bankrupt or something as there are no houses built. Is the development opportunities that bad? Looks like some tried to get things going but nothing happened. Do you know what is up?

[COUNTRY EXPERT ANN KUFFNER]

If a developer is primarily selling lots of land in a development it’s difficult to force an owner to build right away, so it can seen as if nothing is happening. That doesn’t necessarily mean the development is bankrupt. But Orchid Bay is out of the way, far from the town of Corozal. Visiting tourists at times buy at a place like Orchid Bay, without realizing that it would be difficult to live there.

Some of the developments in Belize are owned by outsiders who had no experience in development, but thought they could make a quick buck at it in Belize. They have little to no experience prior to trying to build a development here. Some fail based upon their lack of experience and funding, or because they do not know how to effectively work within the country of Belize. But that is not related to the real estate market, which is currently very strong.

Another interesting development that is controversial is Sanctuary, located in a remote but beautiful area between Hopkins and Placencia. Once the expat who buy a lot figure out, much later, that the development is really far from shops, doctors, banks, etc., they try to sell. I recently met several expats who are going thru this dilemna with their property at Sanctuary. They now live in Placencia and are trying to sell their lots. Once they realized that it would take them an hour to go shop in the closest town for groceries, they realized that it make little sense to build on their lot in Sanctuary. It will be many years before there is a functioning community at Sanctuary. Now these expats are having no luck selling their lots. The developer is not motivated to assist them…

I haven’t been to Orchid Bay and can’t directly speak about the status of that development. We IL “correspondent writers” steer clear of getting involved in the financials of developments and we never “recommend” developments. Our goal is to give you a general overview of the trends and show example properties. But you could contact the Pathfinders managers to ask, as they used to represent Orchid Bay, years ago, but are no longer involved with them. They may have an opinion but our paths seldom cross.

IN 2008 the overall real estate market downturn did impact Belize. At that time many developments could no longer sell units, so stopped building. Many went belly up. But the real estate market has been very strong in most areas of Belize during the last few years. Prices have been going up and some new developments have done very well and continue to expand. Examples on Ambergris Caye include Grand Caribe, Coco Beach and Hol Chan, which have been expanding for several years.

These days expats are, fortunately, much savvier than 5-10 years ago. They now understand that it seldom makes sense to buy “pre-construction”. Pre-construction buys are very risky, since you don’t get a title for a long time and the developer often changes their plans and approach without the buyer having any input at all. It is much safer, albeit a bit more expensive, to buy what is already built, and has a valid title that can be immediately transferred.

The realtors around the country of Belize (other than in Punta Gorda) have told me that they have had several outstanding years. The property on the coastline on Ambergris Caye is being bought up and individuals are building their own homes these days. I just drove south on the island last Sunday and there are many new homes going up. That’s also true of the Placencia Peninsula. There aren’t that many pieces of property left in the more popular expat regions that are large enough for a development. It seems that those expats who can afford it prefer to build a home, rather than opt into a risky pre-construction development. There seem to be more expats with money coming to Belize and building their own homes these days. Others are buying existing homes or condos and spiffing them up.

[MIKE T.]

Thanks for the info. If we decide to move to Belize we will rent for at least a year before we consider any purchase. Unless of course something really great presents itself. I appreciate your clear understanding g of the situation and will definitely seek the advice of long-term experts like yourself along with an attorney before committing To a purchase.

[COUNTRY EXPERT ANN KUFFNER]

Glad I could help. Expats who have lived in Belize for a while are always amazed to learn that some of the newbie expats we meet bought a home on their first trip here, before they did their homework. We know that a year or two down the road, when we get to know some of these folks, they’ll be telling us a sad story and asking for advice and sympathy…

When you rent and live here for a while you will hear, through the grapevine, which developments, developers, and contractors are reputable, and which have a history of problems and controversy. You will seldom find this detailed info on line, and few realtor will disclose each properties problems, since their goal is to sell real estate. And, as you mention, hiring an attorney to do your title search, and to review any outstanding legal problems, is the most secure way to go. The cost is well worth it, so you’ll be sure to get a clear title when you purchase, and to know before hand if there are any outstanding lawsuits or back tax issues.

[JAMES W.]

Please do us all a favour and talk to the hundreds of satisfied buyers at Sanctuary and other developments before making judgments based on interviewing a few people in a bar. Do you have any statistics of satisfied versus non satisfied buyers?
You are doing more harm to the development of Belize with your sketchy opinion of how happy or not people are with thier purchases. Buyers at Sanctuary knew from the start where the developement was and their poor buying decisions should not in any way reflect on that development. I am not an owner at Sanctuary, but I do know many satisfied owners that you no doubt did not talk to.

[COUNTRY EXPERT ANN KUFFNER]

James,

I have never put in a “plug” for a development on this forum and I am not going to in the future. My position as a correspondent requires that I NOT “recommend” developments, but rather give prospective expats the info they need to make an informed decision and to avoid the situation that the unhappy Sanctuary buyers found themselves in.

A primary goal of IL correspondents is to encourage readers to rent in the region they are considering buying in for 6 months before they buy, so that they know what they are getting into. The types of Weekend retreats put on by Sanctuary and many other developers put quite a bit of pressure on the people attending to buy right away, rather than to rent first. And several regional realtors told me that they have been unable to resell Sanctuary lots because they are overpriced compared to similar lots in Placencia… I spent a day with each realtor and we were not drinking at any point. They would be happy to sell Sanctuary lots if they made a commission. But they said the lots they listed just sat there and that Sanctuary was not at all happy about having for sale signs up on lots, so took them down, making it near impossible for these folks to sell and get out, and move on…

I did not meet the people who complained about Sanctuary in a bar. I met them at the local Rotary Club meeting where they were all planning their next event to give back to the Belizean community where they now happily live, in Placencia. They are all active in the community of Placencia, where they have a network of friends and have found many things to do locally in the established community.

Do you work for Sanctuary? Do you live there full-time? How many retirees actually live there full-time, vs. just come for vacations? How far away is a decent sized, well stocked full grocery store? If you had a serious illness, what medical clinic would you go to and how long would it take you to get there? These are just a few of the important questions that IL readers ask me about each expat region they are considering in Belize.

[JAMES W.]

I don’t work at Sanctuary and I have been to one of the weekend retreats. Have you been to one? If not how can you give 1st hand knowledge about the amount of pressure put on people to buy, because I can say there was no pressure at all. Many folks on the weekend I was on did not buy and they confirmed there wasn’t pressure put on them.
How close to the grocery store or hospital do you recommend, right next to it? Many people live 20 or 30 miles from a town or city in the USA and have no problems driving that distance to get to a store. A lot in Placencia is just a lot and can’t be compared to a lot in a development that has many ammenities associated with the lot that the Placencia lot does not have. A bad lot in Placencia is the same as a bad lot in a development, and won’t sell. There are many reasons why lots don’t sell quickly.
You still haven’t said how many satisfied people you have interviewed. I guess the dissatisfied people are the most vocal.

[COUNTRY EXPERT ANN KUFFNER]

James,

I am neither for nor against Sanctuary. My job as a correspondent is to make readers aware of issues that may impact the quality of their life living in various regions of Belize. For instance, it may not be a big deal to drive on a paved road 20-30 miles in the USA. But in the rain the dirt roads in Belize wash out and driving becomes a major challenge during the rainy season if you have to travel miles to get groceries. The roads do major damage to vehicles, as well, and the cost of gasoline is much more expensive here. These are important factors to consider before deciding to buy a place or live in a remote area.

How far a person chooses to be from a hospital is also a very important factor to be considered for retirees over 60. A number of expats in Belize have died on their way to a hospital in Belize City… To get from Sanctuary or the Placencia Peninsula to Belize City in an emergency is time consuming, due to the distance. During the day you can fly from the Placencia Peninsula. At least on Ambergris Caye we can fly to Belize City anytime of day or night. Again, it is a personal choice, but one that the expat needs to consider before deciding where to settle.

When I accepted a position with International Living as a correspondent it was made very clear to me that I could not ever appear to “promote” a development in Belize. If you review my articles you will see that I have never written about specific developments unless they are included as part of a real estate article that covers a variety of properties. I have met a number of people who own property at Sanctuary, but bought for the investment value and do not live there fulltime. I’d be happy to listen to any satisfied Sanctuary owner who lives there fulltime and would like to contact me to describe their lifestyle at Sanctuary. And anyone who lives there fulltime and loves it can submit an article to International Living to tell their story. I do not review those articles. They are reviewed and selected by the editors in Ireland. Quite a few fulltime expats living in other regions of Belize have already submitted such stories that have been published in 2015. I encourage other expats who are able to write their own story of their lifestyle in Belize to do so.

[Rafael g Rohena jr]

I come to this site strictly for the kind of insight that Ann is providing. Raising red-flags and things to consider for potential expats is exactly what I find missing from the main magazine where everything is so perfect and glowing when I know better. It makes one dubious to what is written in the mag. when you don’t read about the potential negatives. I have been to Orchard Bay and while the people were very nice with no pressure, I could not get adequate answers in regards to drainage ditches behind the lots, distance/time to services, murky/silty water, low number of house starts, all of which would be nice to have flagged for an individuals consideration. Note that I have experienced, for the price of a couple of beers, the most transparent, to the point advice on areas of interest. Never underestimate the power of the alcohol truth serum, so even if you heard something in a bar, it often uncovers opportunities or potential issues that I would love to read about. Keep it up.

[COUNTRY EXPERT ANN KUFFNER]

Thanks, Rafael. As you mention, the magazine is not the forum where we can delve into these types of problematic issues. When I mention these types of issues on this forum it is still each readers personal choice how they proceed. But these forums are the only place where we can have an active discussion as very few realtors or developers are going to divulge a properties’ or developments’ problems. Having lived in Belize for many years, I regularly listen to expats complain if they have bought into a development that hasn’t delivered what was promised. And I’ve heard of ongoing title issues with multiple properties, especially pre-construction type developments. There are many good developers and developments in Belize. But there are also some that are problematic, or just too remote to provide what the majority of expats expect to find when they live in Belize full-time.

Thanks for your vote of support. I feel it is my obligation, as a correspondent, to provide honest, measured responses to the questions that come up in the forum. I also do try to do this when appropriate on the Belize Facebook page, although there is not enough room to elaborate there. So this is the best place to go into detail, for those of you who really want a balanced picture of Belize before moving here.

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