Property ownership in Honduras

Buying property in a foreign country can sometimes pose problems and many countries have restrictions. Honduras is one of the countries where owning a home or property is easy although not without rules. In Honduras however, the benefits of owning property in this country far out weight the minor inconveniences. The Honduran government learned years ago that tourists love the country and would move if the process were simple. Honduras did that and more. Many incentives lure investors and retirees from all walks of life.

Buying property in Honduras is a somewhat simple process but the aid of a knowledgeable Honduran attorney is essential. Real estate agents in Honduras can find homes in areas you like at the prices you want to pay. They can arranging showings and often be the go between for a Spanish speaking seller and an English speaking buyer. While a real estate agent will help to locate the property and advise you to the best areas as well as the areas to stay away from, your attorney will facilitate a contract, conduct a title search and in general make sure your property transaction runs a smooth course and once concluded you are the legal owner.

Once a property has been located the negotiations are often verbal and your real estate agent can be the mediator while discussing terms of the sale including price and length of due diligence. Once a price has been set your attorney will draft the contract for both buyer and seller to approve.

Some property in Honduras can pose specific problems with title and many properties will have these problems. Your attorney will conduct a title search once a price has been agreed upon. The title will need to be clear and transferable in order for the new owner to enjoy full ownership with no legal repercussions.

When searching for the perfect Honduran property it is wise to have as much information as possible and talking with locals can provide a wealth of information including homes for sale and pricing in the local market. As inexpensive as Honduras may seem, don’t overpay for a property. Many times when locals see Americans and other foreigners looking for real estate the prices can rise drastically. A local real estate agent can help you avoid this pitfall by conducting preliminary inquiries about properties, including price. After these preliminaries are established foreigners can look at properties confidently knowing the price isn’t inflated for their benefit.

Different areas of Honduras will have different property types available. If you are looking for new construction with modern amenities, many of the larger towns and even the Bay Islands can accommodate you. New developments including condos and single family homes are available and at fantastic prices. All homes offer the conveniences of modern technology including wiring for cable television and internet service. The setting for most new developments include lush landscaping, pools and club houses and some communities include a golf course. They are usually well situated near all the attractions and shopping tourists love to visit.

For established homes in small towns or more remote areas look for outstanding buys but with fewer amenities. Most homes will have electricity and water but services can be unreliable in outlying areas. If you prefer to purchase land and build, there are land lots everywhere in Honduras from the Bay Islands to the mainland, beachfront property to inland you’ll find something you like and at a reasonable price.

Financing in Honduras is available but most buyers get their funds from other sources due to the high cost of borrowing. Most will secure a new loan on other property they own and purchase their new property in cash which will allow them greater negotiating strength also. Funds to purchase are often wired into a Honduran bank and exchanged to Lempira. Closing costs will run about 6% to 7% and this will include your attorney’s fees local transfer taxes and other miscellaneous fees.

Taxes can be a sore spot for many people, especially people from the U.S. were anything and everything is taxed. In Honduras however just the opposite is true. Property taxes in Honduras are quite low and many times seem to be non existent. Retirees living in Honduras enjoy tax free living from pensions or income derived from other countries; another great reason to consider Honduras as a retirement or relocation prospect.