investing

Is the government stable?
Honduras is a democracy headed by a President and Legislature elected by popular vote. All elected officials serve four year terms. There also is an executive and judicial branch and appointed governors of eighteen departments, As is true is much of Latin America, Honduras has privatized most businesses and is very interested in attracting foreign investment. The most recent of these being the 4 International Airports in Honduras-now being operated by the same company that operates the San Francisco Airport. They have as their mandate to spend $55 Million in the next 5 years improving and expanding them. The government understands the need for absolute stability. Therefore the laws of Honduras extend the same protections to foreign Investors as to its own citizens. Many experts believe Honduras will be the next Costa Rica, or Caymans. You will find that it is far different from the image some people have of Central America. Thriving businesses and a sense of optimism are everywhere.

Can foreigners own land?
Yes. You may own up to 3,000 square meters (approximately 3/4 acre) in your own name subject to certain building requirements. Larger parcels may be purchased by forming a Honduran corporation, an attorney can advise you on the details. This is common practice and we recommend this to many of our clients.

Is Financing Available?
Traditional bank financing is uncommon, as interest rates are high in Honduras. Although the terms of each sale differ, owner or developer financing sometimes is often available with average interest rates of 10% to 12%.

What are estimated taxes and closing costs?
A property transfer tax is based on the transaction value and is 4% for unimproved property and 3% for improved property. An additional 2% should be anticipated for legal fees and other closing costs. Many times this is negotiable. Caracol Choice Properties can recommend 2 or 3 attorneys for you to interview. Annual property taxes are reasonable. The annual tax for a 10 acre parcel depending upon location will average $100, a beach front home likely will be less than $375.

Is there title insurance?
Title insurance is now available through Caracol Choice Properties. Fees are in the 1.25 - 1.5% area. Caution with title is important when investing in any foreign country and it is important to have a publicly recorded document. WORK WITH EXPERTS.

What about utilities?
Water supply currently is from sub surface wells and rain cisterns. Since the Bay Islands receive over 90 inches of rain per year (primarily from September 15 to December 15). with proper conservation techniques, water is not a significant problem. Electricity is supplied to Roatan by the Roatan Electric Company. Sewage is primarily handled by private septic systems. A multi-million dollar loan to Roatan was granted for the installation of new sewage systems in the three towns in 1998 and has been under development since.

Are there building restrictions?
There are no zoning laws in the Bay Islands, although a task force is developing them. Therefore, it is important to be careful when acquiring small parcels which eventually may have a use "next door" which may be incompatible with your plans. Many people acquire a property for a residence within a master planned village in order to have the protection of covenants. Building permits are required and issued by the municipality. Building inspectors are non-existent on Roatan.

Are there medical facilities and what about schools?
There are several clinics, two hospitals and a recompression chamber for divers. One of the hospitals is private and designed for the foreigner communities. Modern state-of-the-art equipment and well trained doctors are on call 24 hours/day. Ambulance service is also now available on Roatan. Larger medical centers are available on the mainland. There are several bi-lingual schools on the island and every town has its own public school.

How does the cost of living compare to the U.S.?
Life is simpler on the islands and you will find your needs are less. The price of U.S., goods are higher, as you might expect as they have to be shipped via boat. However, local goods are inexpensive. Gasoline is currently $3 per gallon and a loaf of bread is 60 cents. There are grocery and hardware stores, several appliance stores, and lumber yards Maids, cooks and gardeners wages average $7 U.S. a day. Freshly caught seafood is readily available on the Islands through local fisherman and is relatively cheap. Lobster tails and jumbo shrimp run about $6 per pound and fresh fish is about $2 per pound.

Are the rental management companies for my homes?
YES. There is a network of Property Management companies on the Island to optimize the rental return from your home while carefully monitoring the tenants for the protection of your investment. We receive inquiries every week and would be pleased to add your home to our rental portfolio and advertisement program, or to help you find the right home for your rent.

Why invest in the Bay Islands?
The stable government is but one of the reasons that Honduras is receiving increasing attention as a retirement and business haven. The year round temperate climate, diverse topography with beaches and mountains, a developing economy, English speaking inhabitants in the islands, friendly people, good medical care and low, cost living are some of the features. The close proximity to the USA (just 2 hours by plane) make it the perfect second residence for many who would like their own piece of paradise. The Bay Islands are relatively undiscovered and there are many opportunities. Especially welcomed in the Bay Islands are service oriented businesses.

How do I get to Roatan?
Roatan is accessible by non-stop or direct commercial jet from Houston, New Orleans, LA, and Miami. In addition, the Roatan International Airport is connected from all the major cities of the world through San Pedro Sula. Flight time from the United States is approximately 2 hours, making it one of the closest islands of the Caribbean. Currently TACA is the carrier directly to Roatan from the United States. However, flights by Continental, American, and other airlines arrive daily in San Pedro Sula with connection by Islena, Sosa, and Caribbean Air to Roatan. For the adventurous, ferry service is now also available from La Ceiba to Roatan.

The new Roatan International Airport terminal opened in 1995. The 27,000 square foot air conditioned structure includes two passenger lounges, two snack bars/restaurants, two gift shops, a car rental, and information counter. Immigration and customs departments are included within the international arrival area.

Travel Documents?
A valid passport and payment of the Honduras departure tax (approximately $27) are required. Visas are not required for visiting up to 30 days.

How do I get around?
Roatan is easy to navigate by car. While exploring on your own, there are several car rental companies on the island. A valid driver's license and major credit card are required. There also are taxis and buses.