Belize Foreclosure Auctions
Purchasing properties from the Bank Auctions in Belize can be a very profitable and can generate successful buyer significant capital gains that are tax free in Belize .
Here is the example of property purchased on March 14th 2013 from the auction in San Pedro Town.
Description: 24 condo style apartments in two concrete buildings on a busy street of Seagrape Drive. Property occupied 25% of the land . Excess land could be subdivided, used to build additional rental units or a retail development.
Market value of the 24 apartments $50,000 US x 24 = $1,200,000 US
Excess land $500,000 US
Total market value $1,700,000 US
Bank reserve was announced at $1,000,000 US. Highest bid was $600,000 US. After consulting with the bank representative present at the sale the property was sold for $600,000 US.
Potential net profit for the buyer $1,100,000 US
Many more investment grade properties are set to come on the foreclosure market within the next 24 month .
Buying properties from the Belize Real Estate auctions however, can consume a lot of time and for the absentee buyer it may be next to impossible to sort out properties that can bring high returns . Also biding in person for all the potential properties will require the buyers to be in Belize full time. Buyer without local bank account would not be able to provide the auctioneer with the local banks cashiers check immediately after the auction as required by Belize Law. In addition most of the properties offered are single family lumber homes that require substantial capital repairs and are located in the obscure areas. Those type of properties can never be resold or rented for a reasonable price. Coldwell Banker Ambergris Caye agents are experts at the Belize property auctions and can guide the potential buyers in the directions of the profitable properties that can be ether rented out or listed and resold for a significant profit.
Coldwell Banker Ambegris Caye procedures for foreclosure, bank owned, auction purchase properties.
Coldwell Banker AC can assist buyer in purchasing foreclosure and bank owned properties through bank held auctions. Our office has extensive files on the existing REO properties available from the banks and other financial institutions of Belize. We also have a great relationship with the Bank credit officers, CEO`s, and auctioneers.
All REO properties in Belize must be sold through auction and sometimes the auctions are held for the same properties multiple times. The rules of the property purchase through the auction are as follows-10% non-refundable deposit in cash or cashiers check must be placed with auctioneer immediately at the end of the auction, balance of the purchase price has to be paid within 14 calendar days. FREE AND CLEAR TITLE IS PROVIDED. All buildings are sold in AS IS condition.
Our office is able to provide the following:
Consult on the upcoming for auction properties and advise the potential buyer on the possible uses and market value of the property.
E-mail potential subscribed buyers info on all the upcoming property auctions that may in our professional opinion provide a good investment potential.
Arrange the inspection of the property by the potential buyer personally or take pictures for the buyer if the buyer is not in the country.
Arrange for a contractors visit and the repairs estimate as well as surveyors report if needed.
Hold 10% deposit money in escrow for the purchase of the property and provide the auctioneer cashiers check for the 10% deposit immediately after the auction in the event of the successful bid.
Recommend a reputable paralegal for the closing of the transaction within a 14 days period.
Codwell Banker Ambergris Caye Fees:
Buyer purchase premium: 6% of the purchase price for the residential /commercial properties, 8% on land parcels and acreage. 1/2 of the buyers premium has to be wired together with the initial 10% deposit to purchase the property. Balance of the premium to be wired immediately upon bidder winning at the Auction. In the event of the buyer not being the top bidder all but 1 % will be refunded to the buyer.
E-mail subscription for the upcoming properties that offer investment potential : $200 US per month 1 year term. Can be paid by credit card or wire. Please contact us for the wire instructions or the credit card form.
Property inspection: $500 for the residential or commercial property in San Pedro Town, $1000 US for the out of Town properties. (Additional travel fees may apply). Contractors report (if required) on property condition-additional $500 US, surveyors report (if required) additional $1000 US. (Travel fees may apply)
Escrow services for the 10% deposit -providing the cashiers check to the auctioneer immediately after the auction: 2% of the purchase price for the properties in the range of $100,00 US -$500,000 US. 1% on the properties over $500,000 US. Minimum fee of $1000 US for the properties with the purchase price below $100,000 US This fee is charged regardless if the bid was successful or the bid was unsuccessful and the deposit has to be wired to the buyer. (Bank charges not included )
Bidding for the property of behalf of the absentee buyer: included in the 1%-2% escrow charge. Additional travel fees may apply for out of San Pedro Town properties.