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Hello and welcome to another consumer tip courtesy of your friends here at TMG The Mortgage Group. With real estate prices at all time highs across the province, wouldn't it be nice to be able to buy quality real estate for just pennies on the dollar. Now that probably sounds too good to be true but as amazing as it sounds this might be the weekend to do it.
For properties here in BC, in all municipalities, except the City of Vancouver, where the owner has not paid the taxes for 3 years, they will be auctioned off on the 3rd monday in September. Each municipality will publish in their local paper, a list of those properties that will be auctioned if the owner does not pay the taxes by monday morning. This is an ad from my local paper, listing the properties, that are scheduled to be auctioned on September 24th.The bigger the municipal the bigger the list. Many of these properties will be pulled off the market before the auction because the owner will pay the outstanding taxes at the 11th hour.
If you want to attend any of these auctions you need to be ready to pay cash and the auctions are usually held in city council chambers starting at 10:00am. It is a pretty interesting experience to attend. The starting bid on each property is the amount of the outstanding taxes and the winning bidder has to pay for the property in full by the end of the day.
I would be remiss if I did not mention the following, when you are the successful bidder and you have paid the city for the property, the owner still has another year to redeem themselves before title to the property transfers to your name.
The good news is that while the owner is taking their time to pay during this last year, you make a good rate of interest on your money and it is guaranteed by the municipality.
There you have it, there is a way to buy real estate in Canada for pennies on the dollar and it is totally legit.
I'm John Charbonneau here at TMG The Mortgage Group, reminding you that we make mortgage shopping easy. And I'm never too busy to show you what your mortgage options are, give me a call and I can even show you how to make the interest on your mortgage tax deductible. Until my next video, have a great day.