I had considered purchasing a home on the island of Roatan in Honduras. From time to time I would look through Caribbean properties for sale and kept coming back to Roatan. Some of the homes in the hillside with views over the ocean were spectacular and very reasonably priced when compared to California real estate. The combination of low housing costs and great island amenities is what drew me to invest in San Diego a decade ago and what nearly lured me to Roatan.

Roatan is a mostly residential, sleepy island. The western tip is a more active tourist destination with sandy beaches, restaurants, and dive shops. With a few exceptions the rest of the island has no resorts. There are residential developments much like a HOA.
Much of the island’s southern shore is rugged or mangrove swamp, the north shore is less so.

I recommend subscribing to Matt and Margo’s “Roatan’s Hot Sheet” and visiting their website (google matt and margot roatan). Other websites are OK, but they consistently seek out quality properties. It is fun to day dream.
I did read one article in the past year that mentioned Roatan, drug trafficing, and violence. One article is no big deal. I do not believe this is a problem on Roatan. Be warned though, Honduras law favors the worker (which I think is a good thing). One example: you have to give your employee paid vacation time, you cannot fire an employee without good reason, and you must provide severance pay! Imagine paying your gardener severance pay or providing paid vacations in the U.S. (yes we have a “blow and go” gardener)

Here’s why I will (probably) not purchase foreign property.

1. Travel.. If we own we would feel obliged to use the property when it is not rented.

2. Maintenance. A vacation rental has more wear and tear than a typical rental property. We also would have to hire a management company to help with booking and manage maintenance.

3. Absentee Landlord and Honduras’ Legal system. As a foreign investor in any dispute with a locall company or individual, we would be asssumed to be in the wrong.

4. My wife. She would much rather rent in various locations around the world without the hassle of a foreign rental.

After some years of discussion and researching vacation rentals, I have come to agree with my wife. Though the allure of owning a fabulous home on Roatan or in Belize is captivating and within reach, we could as easily find a long term rental on Roatan or Belize, enjoy life there for two months or so, then leave with no strings. We have found what appear to be reasonably priced, charming condos and homes for rent in exotic location. Finding a moderately priced long term rental in the heart of Rome or London is a challenge, less so further from the city center.

Ron