What impact do tropical storms or hurricanes have on the island/land?
Roatan like any island is impacted by tropical storms, but fortunately because of its unique location, hurricanes are a rarity. The last major hurricane to strike Roatan was the Hurricane Mitch in October of 1998. Our unique location Just North of the Honduran mainland and its tall mountains buffers us and any approaching storms have to be coming straight west to sustain a direct hit. Tropical storms typically move in a more Northward pattern so it benefits us.
What are the financial options when buying a piece of land?
You have the option of trying to arrange financing on your investment here on Roatan. Some sellers will consider this and work out arrangements with you. Others will not. If your home in your country of origin is almost paid for then a home equity loan is an option. Other than that, your remaining option is to put in a cash offer.
If it's undeveloped land are building permits required?
Whether land is developed or not, permits must be obtained from the local Municipal government. These are usually and most successfully obtained by your builder or contractor. A typical building permit is 5% of the cost of the home for example.
What is the range of construction costs?
Construction costs generally range from $65.00 to $130.00 per square foot. It is dependant on the materials used and the slope of the land, Steeper being more expensive but often more dramatic and beautiful as well.
What materials are used for building and what are the benefits of using one material over the other?
Wood and cement block are the two main materials used on Roatan. Each has its own benefits. Many owners use a combination.
How important is it to have access to a property I purchase?
Access of some sort must be had in order to get to a property, albeit road access or water access. Make sure that access is deeded and registered and part of your final document when buying land. We take great care in insuring you get good legal advice and look for all pitfalls to help maintain our satisfied customer base and stellar reputation.
Are property taxes expensive on Roatan?
Property taxes will vary depending on where on the island the property is located but in general, property taxes are very low on Roatan. The recent top end has been $400 per $100,000 in value annually.
Is it safe to purchase property on Roatan as a foreigner?
Buying property in Honduras as a foreigner is very safe and entirely legal. As a foreigner you may buy up to 3000 square meters or approximately .72 acres on a one time basis in your own name. If the size exceeds .72 acres or you want to purchase more than once then you may form a Honduran corporation through your attorney here and buy any amount of land you wish.
The system for land ownership is similar to the United States and we also have Title Insurance through FIrst American and Stewart Title which can be obtained quite easily and gives you more protection and confidence.
I always recommend for my customers purchasing a home to get a complete home inspection as well and we do have a few certified home inspectors working on the island as well.
In terms of political stability, Honduras boasts a fully democratic government. The last military rule ended in 1982.There are two political parties in Honduras, the nationals (blue) and the liberals (red).
How much are closing costs and do they include attorneys fees?
The average closing cost is approximately 4.5% to 5.0% of the purchase price and includes your attorneys fees. These can easily be quoted to help you make an informed decision.
Are there capital gains taxes in Roatan?
As a result of the new duty free port status, there is a 4 percent capital gains tax owed by all sellers of properties or homes.