10 Questions You Must Ask The Real Estate Developer Before You Buy

Monday, May 10, 2010

10 Questions You Must Ask The Real Estate Developer Before You Buy

Master-planned communities in Central America come in all shapes and sizes - from small condo buildings to developments covering thousands of acres offering resort style amenities. Many offer pre-construction sales where you buy before you see the finished product. Great gains can be made as properties are offered at a discount. But you have to be confident that the developer will deliver. The starting point is getting answers to these 10 questions below, before you sign the contract.

1.Find out what kind of title the developer has to the land and ask to see the master title insurance policy. Ensure the legal due diligence on these documents is carried out by a good quality attorney. The developer may recommend their own attorney, but it is always safer to conduct an independent review of the documents before signing.

2.Ask whether the development masterplan has been approved by all relevant authorities. In particular, check to see if environmental impact statements have been submitted, and approved. Authorities across Central America are getting increasingly stringent in their environmental regulation.

3.Investigate whether the developer has the capital to move the real estate development forward or if they are relying on sales revenues. Remember that limited financial flexibility or low project sales can adversely impact the timely completion of a project.

4.Do some research into the past experience of the developer and and ask to be put in touch with previous buyers. Try and get background information or bios on the entire developer team including builders, architect, marketers, operators and master-planners.

5.The builder being used is a critical component of the development team. If the developer is using a well respected local firm that has a track record in the type of construction required by the master plan, this is a good sign. If possible try and see examples of buildings that have been completed by the builder so that you can get a real sense of the quality of their work.

6.Find out how much time of the year the developer spends in-country. If the developer is foreign, but lives full-time in the country where the real estate project is located, this is a positive indicator for their long term commitment to the project and country.

7.Find out about the water source and whether the developer has ensured that there will be enough supply even when the development is fully built-out. Ask how sewage is being handled and does the process comply with local regulations. Check to see if power lines will be underground or overground.

8.Read the Codes Covenants and Restrictions (CC&Rs) carefully. CC&Rs in some international real estate developments can be highly restrictive, down to what you can or can’t grow in your garden, what pets you can have, the architectural style that is allowed, or the color of your roofing tiles. Make sure you know what you’re getting into. In most cases the CC&Rs will be enforced by a Home Owners Association (HOA) - a legal entity which allows the developer to transfer ownership and management of the community to the homeowners after it has sold a predetermined number of units or lots. Ask to see a copy of the Association bylaws and budget.

9.Don’t forget to find out about after sales service such as property management, rental management and marketing support for re-sales. Make sure you are comfortable with the level of service that the developer intents to provide after the sale.

10.Find out if the developer is addressing the social and environmental impacts of the development and whether there are any programs in place to support the local community. Efforts to protect the environment, treat employees and suppliers fairly and ensure that the local community is benefiting are all good signs of a ‘responsible’ approach to development over the long term.

Reveal Real Estate - charting international real estate trends in Central America.

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Facts to know about BELIZE

Belize

Have you ever wondered what paradise looks like? Do you like to look at breathtaking views? Have you ever wondered what it feels like to walk in the past? Do you want to experience Caribbean culture and cuisines at its very best? Are you looking for adventure? Are you looking for your getaway location? You can find all this and more in Belize with the help from Platinum International Real Estate and Investments.

Belize is a small, unspoiled country located in Central America and is fast becoming a world-renowned destination for tourists and international investors alike. It is the only English speaking Central American country due to the historical influences of the British Buccaneers and Colonialists that settled in the country for over a century. It is home to a multi-cultural society made up of Creole, Mestizo, East Indian, Chinese, Arabs, Garifuna, Maya, and Mennonites just to name a few. It is a country rich in Culture and rooted in beliefs of working together for a strong economy. The Belizean people are very friendly and a simple hello is given everywhere you go no matter who you are or what you do.

People that visit Belize keep coming back to immerse themselves in the rich cultural diversity and the well preserved forests and barrier reef that we call paradise. People enjoy soaking in the cool azure Caribbean waters; taking day trips to the fishing, diving or snorkeling preservation sites or taking a hike in the lush protected rain forests that keep the country so serene. The preservation of such beautiful places in Belize is essential for generations to enjoy it even after we move on and leave our legacy behind.
Platinum International Real Estate and Investments, vows to stand firm, work with everyone to bring Belize to a recognizable International Real Estate Level unsurpassed by most in the industry. We look forward to bringing you to a place you can call Home in Belize.

Life in Belize

For many years Belize has gone under the shadows of many other Central American countries. Belize has it unique features that famous celebrities have come to appreciate. You need to understand the geography, history, the people, the economy and the atmosphere to truly appreciate this inspiring place called Belize.

Geography

Belize is positioned in both the northern and western hemisphere. Located in North America on the northern edge of the Central America isthmus 16º 13' N, 88º 48' W - a somewhat narrow strip of land that connects North and South America - the country is bordered by Guatemala, Mexico, the Gulf of Honduras and the Caribbean Sea. Belize is the 23rd country on the list according to world atlas for the lowest density of people to land per square mile. With 240 miles of coastline, 8,805 square miles of land and 62 square miles of water rights it’s easy to see why people are flocking to Belize to call it home.

Belize's diverse landscapes include hundreds of islands, subtropical rainforests, fertile savannas and mountains. It is internationally recognized as a leader in environmental preservation and conservation.

Belize is divided into four main geographic regions, including the relatively low Maya Mountains of the south that dominate all but the narrow coastal plain; the northern lowlands and its many rivers and streams; the flat and swampy coastal plain, and the almost countless cayes, islands and lagoons that fringe its Caribbean coastline. More than 50% of Belize is covered by tropical rain forest that's dissected by a network of rivers, mostly small in length. The largest and most significant river is the navigable Belize River that stretches from the Guatemala border all the way to the Caribbean Sea. Second only in size to the Great Barrier Reef off the northeast coastline of Australia, a 175 mile long barrier reef fronts the Belize coastline, intermixed with literally hundreds of islands and cayes. This great site has been recognized as a World Heritage Site, the other site is located 58 miles direct east of Belize City in the Carribean Sea, the Blue Hole; more than 1,000 feet across and some 400 feet deep, it's the opening to a former Ice Age cave, and is today one of the world's most popular dive sites. Belize is divided into six districts; including Belize, Cayo, Corozal, Orange Walk, Stann Creek and Toledo.

History

Archaeological evidence in Belize indicates that the famed Maya culture began to emerge in this lowland area of the Yucatan Peninsula around 1000 BC. That Maya civilization flourished here for eons; great cities were formed, massive ceremonial buildings, palaces, temples and personal dwellings were constructed, and the people farmed the land with great proficiency. Remnants of this extraordinary people and a quite sizeable population of direct descendants still exist in Belize and all across the Yucatan today, despite hundreds of years of European colonization of the area.

Spain aggressively controlled most of the colonies on the fringes of this New World, when the first English settlers arrived in the early 1600s. For the next two centuries military conflicts (mostly naval) between the British and Spanish raged, as both countries desired this land. Regional power struggles continued in the area over the next 50 years, and then in 1862, the Settlement of Belize was officially declared a British colony, and named British Honduras. Similar to all European colonies in the Americas, British Honduras also craved independence, but Guatemala continued to claim the entire area, and the British were reluctant to release their firm grip. By the 1960s the British began to soften their position, and though they still controlled the entire defense and foreign affair of the settlement, its name was changed to Belize in anticipation of the independence, which finally did come in 1981.

The People

Today you can see the remnants of the original settlers in Belize namely the Maya, British and European people. Today Belize offers a multi-cultural society made up of Creole, Mestizo, East Indian, Chinese, Arabs, Garifuna, Maya, and Mennonites just to name a few. Belize is a country rich in Culture and rooted in beliefs of working together for a strong economy. The Belizean people are known for their cultural tolerance, diversity and friendliness and it’s not uncommon to see the Belizean people smiling and waving at anyone passing by.

Spirituality in Belize life is diverse in a way that it will suit many nationalities. Majority of the citizens are Catholics while a fourth of the population are Protestant (Pentecostal, Anglican, Seventh - day Adventist, Mennonite, Methodist, and Jehovah’s Witnesses). Other religions present are Taoism, Buddhism, Hinduism and Islam.

The Economy

Belize is a member of the British Commonwealth and is governed by parliamentary democracy. It then became an independent nation in 1981 and has a stable and progressive political history. Agriculture, manufacturing and tourism are key elements of its economy. Belize enjoys close ties with the U.S. and UK and steady economic growth.

The national currency of Belize is called Belizean Dollar (BZD) and is approximately worth a half of U.S. Dollar, depending on the inflation. It comes in denominations of 2 dollars, 5 dollars, 10 dollars, 20 dollars, 50 dollars, and 100 dollars. One Belizean dollar is a coins and a 25 cent coin is called a shilling.

Foreign investors enjoy a range of incentives in Belize, outlined in its Fiscal Incentives Act of 1990. Foreign-owned real estate privileges, offshore banking and a lack of capital gains tax attract international business to Belize. With Houston airport just over two hours flying time away and Miami airport an hour and a half, the country's proximity to the U.S. is another attractive feature for foreign investors.

The Atmosphere

The laid back atmosphere of Belize life actually comes from a unique blend of nationalities. Belize enjoys a nice tropical weather. It rains a lot during the months of May to November, while dry season is on February to May.

PLATINUM INTERNATIONAL REAL ESTATE AND INVESTMENTS would love to welcome you to share in our experiences. Selling real estate is what we do best and with our various departmentalized services we offer everyone looking to buy or sell real estate in Belize unmatched services amongst our competitors.

Please take the time to read, comment and share about your experiences.

Thank you,
Platinum International Real Estate
Management and Staff

Written by:
Will Moreno
Copyrighted 2009

Monday, May 10, 2010