The staff at Guatemala Realty are optimistic about the future of investing in Guatemala Real Estate with our newly elected, American-born president Jimmy Morales in place. Our goal is to promote this tropical paradise as a solid real estate investment for those looking to build a portfolio of vacation rentals, develop agricultural farms on Guatemala’s rich soil or build an industry here relying on the hardworking people of Guatemala. With that in mind, we have compiled some recommendations for prospective investors.
Hire an Appraiser to Properly Assess a Property
There is really no consistency in real estate pricing throughout Guatemala. Many of the early investors in Guatemala Real Estate, having purchased their property years ago, are often asking overly inflated prices. And because Guatemala property taxes are low, they are able to play the wait and see if they can get anything near their asking price.
If you do find a property of interest, make sure to contact Guatemala Realty so we can recommend a licensed Property Appraiser to give you a complete assessment of the value. We also have attorneys who are experienced in Real Estate Transactions in Guatemala.
Realtors generally take a 5% commission, and don’t expect them to do much more than showing you around for that price. So if you like a property, the best way is to ask them to put you directly in touch with the owner, so they can mention they referred you and still get paid, and negotiate directly.
Plan on a Cash Deal for the Best Value
Most people pay cash for properties, and if you can afford to, you can get a serious discount on the price. Otherwise, you can negotiate the terms directly with a seller and get them to offer financing plans. Traditional mortgages can be expensive and are often hard to get. Look at Rental Property and Vacation Rental Property as a Solid Investment.
Consider Creating a Guatemalan Based Company For Buying and Selling Real Estate
This is actually a good way to go around capital gain tax, as the company buys the place, then when you want to sell, you just transfer the company shares to the new owner. Setting up a company costs about $2,000 plus around $50 for an accountant every month to take care of tax reports and obligations for you. As a foreigner, you can’t own 100% of the company shares, so you will need a Guatemalan shareholder who can hold one share while you own the remaining 99%. Your accountant can be that person for a small monthly fee.