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if you pay cash upfront for a to-be-developed property/neighborhood, then you should be wise enough to know that it is extremely high risk. It sucks for all the older folks who bought into this dream, but they did allow the dream to supersede some solid due diligence.
Yep, that's why when I bought an apartment in Spain, I put the minimum required to finance it as I figured the bank would make sure it was legit...no issues.
When we bought our properties in the Carribean, we made sure that they both had clean and clear titles. We paid cash for our properties, but put a portion down with the understanding that once they were deemed clean and clear we would pay the balance. We also used an attornwy as well as a real estate agent. Due diligence is always key.....sounds like they got caught up in the dream of Paradise
Lets call it for what it is, Belize is in CENTRAL AMERICA! That region has been unstable for years (Belize was one of the better areas though). How many people sent money WITHOUT even visiting the country? Too many "Discovery Channel TV shows" are giving people false hopes about fantasy retirement areas.
Puerto Rico has its own issues (huge debt, hurricane recovery), the Bahamas or other British Territories would be less risky than Belize.
I think Americans are choosing Costa Rica and Panama now, I think they both use American money there. There still is a risk. Although Panama is a tax haven. money launderer rumored, so it may be more protected but they have had Noriega before.
What kills me is when a home in a country costs $50K and then they build new ones and sell them for $400K to Americans.
I've bought homes before, but I haven't wanted to BUILD one yet. It just worries me about delays, work stoppages, increase in costs, etc.
Those poor people though
I'd bet if you dig deeper into the story there more than a few that thought this was a get rich quick scheme. People bought thinking they would "flip" the properties for big money. Greed can be blinding to red flags.
There was a project in 2005 I worked on that was all bad from the get go. Expensive, next to a cemetery and almost 90% "investors" were buying these homes. After meeting a few of these "investors" the common denominator was greed, they all felt entitled to a 100K profit like that was guaranteed. 3 of the people I met were retirees that had no intention of buying the homes to live in, they were told the properties would be resold days after closing so they had no plans for the upkeep costs (utilities, HOA fees, insurance etc). All
"hung on" way way way too long and all three lost 100-125K each. One guy lived in a 40K trailer yet bought a 400K house as an investment? He had a very expensive lesson.
Ironically the local realtor "expert" (super sleazy guy) was making money on the sales (commissions) then he was buying them from the bank after the foreclosures as investments which at that point they were 1/2 price!
I think Americans are choosing Costa Rica and Panama now, I think they both use American money there. There still is a risk. Although Panama is a tax haven. money launderer rumored, so it may be more protected but they have had Noriega before.
What kills me is when a home in a country costs $50K and then they build new ones and sell them for $400K to Americans.
Why does it kill you? You do realize that that building cost and real value have nothing to do with other, right?
I'd bet if you dig deeper into the story there more than a few that thought this was a get rich quick scheme. People bought thinking they would "flip" the properties for big money. Greed can be blinding to red flags.
There was a project in 2005 I worked on that was all bad from the get go. Expensive, next to a cemetery and almost 90% "investors" were buying these homes. After meeting a few of these "investors" the common denominator was greed, they all felt entitled to a 100K profit like that was guaranteed. 3 of the people I met were retirees that had no intention of buying the homes to live in, they were told the properties would be resold days after closing so they had no plans for the upkeep costs (utilities, HOA fees, insurance etc). All
"hung on" way way way too long and all three lost 100-125K each. One guy lived in a 40K trailer yet bought a 400K house as an investment? He had a very expensive lesson.
Ironically the local realtor "expert" (super sleazy guy) was making money on the sales (commissions) then he was buying them from the bank after the foreclosures as investments which at that point they were 1/2 price!
Sounds to me like that was his intention all along.
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