Stability in Costa Rica Investments

With the uncertainty in today’s financial markets and US real estate markets, Costa Rica investments are concerned more so than ever about the value of their investment options. Markets such as Florida attract attention because prices are so drastically reduced, but the savvy investor knows the real value of the underlying property, not just the percentage reduction that is being advertised.

Because the capital markets in the US were so open to nearly anyone wanting to make an investment, real estate prices were driven to all time highs. The prices at the peak of the market were a function of the available financing more so than their actual value. Now that the financial markets have contracted, prices in various real estate markets around the world have made obvious adjustments. Despite all of the adjustments and concerns, real estate prices in Costa Rica investment markets have been relatively insulated. The reason for the Costa Rica Investments stability is found in the conservative investment approach. For foreign clients interested in financing, they should plan on a down payment of 30% while Costa Rican citizens can finance up to 90%. It is not uncommon for many buyers to pay for a property outright in cash. In fact, nearly 80% of Coldwell Banker Jaco real estate transactions are cash purchases.

Costa Rica Investments

The requirement of having a larger down payment reduces the pool for potential buyers and that pool of buyers is highly qualified and very knowledgeable. Because the clients that participate in the market in Costa Rica have the ability to produce conservative down payments, they also have lower principal amount on their mortgages (if they have one at all). Highly qualified clients with reduced carrying costs are well positioned to maintain their monthly payments even in the toughest of times. The result is that owners decide to sell, they are not forced to. Of course, there are exceptions to this, and when great deals come on to the market they do not last long.

From the perspective of an investor looking to move forward in today’s market, wouldn’t you rather invest capital in a market that has been one of the best performing markets during the good times and the bad? Or would you invest in a market that consists of properties where the values were falsely elevated and are now selling at a discount of that inflated price without considering the real underlying value?

How do you know the value of what you are really getting if you invest in the latter of the two? If one looks to historical performance to gauge future performance, hands down Costa Rica is better choice for investments. In Costa Rica you will find stability in the capital markets, stability in the real estate market, stability in the resale market, and low cost of living. There are very few locations in the world that have this type of performance given the current economic conditions in the world.

In Costa Rica, for sellers that do need to sell their property, although they may sell at a reduced price relative to competing properties, we have found that they been able to liquidate without losing money. If you are interested learning more about Costa Rica investment opportunities that have beat market averages or will act as stable investments in uncertain times, don’t hesitate to contact us. Coldwell Banker Jaco has helped hundreds of clients find their own Costa Rica investment opportunity, why not you? We can help you find yours.

If you are serious about buying or selling property in Costa Rica, then Brian Smith from Coldwell Banker in Jaco is the only professional Realtor you’ll ever need! Having someone who is down there, on the ground so-to-speak, as MY representative, someone I trusted to make experienced decisions for me was beyond helpful—it was peace of mind that I was in good hands.

The fact that Brian is a native English speaker and a well-spoken, knowledgeable Realtor made things even easier. He was always available to confer with, was diligent in providing updates, made the phone calls, wrote clear and concise emails, all solid reasons I recommend him.

The whole process of having property overseas is very involved. There are many details to account for with Corporations, Trusts, contracts, etc and Brian saw me through all of them. He got the sale, was able to help in negotiations throughout and watched out for the transaction until it reached my hands.

I am very thankful that I found Brian and he made the entire selling process so much easier for me. I was able to tell him honestly what I wanted from the situation and he was open with his thoughts and opinions. He is a true professional but also a ‘real’ Realtor; he takes pride in what he does and wants it to be a success for all involved.

I highly recommend Brian Smith to be your Costa Rican Realtor!

Melanie P.

Canada

Costa Rica Condo Investment Opportunities are on the Rise!

If you are interested in purchasing a condominium, Costa Rica would be a great place to make your purchase. The economy of the country is thriving, and the people of Costa Rica are turning their coastal villages from wilderness to investment opportunity paradise. Condo projects are established and new ones are breaking ground every few months. As a result, property management services are moving into town. They handle everything from paying your taxes to renting out your condo to earn you rental revenue. There are many reliable property management companies that will care for your property while you are out of the country.

The proof of this growth outside of Jaco Beach Condos and the central Pacific market is a $400 million dollar development being built in the Guanacaste Province. At this time, locals and foreign investors alike are prospering. The construction, business, and property sales in the region have been growing by leaps and bounds.

The central bank of Costa Rica states that foreign investment in the country has tripled in the last twelve to eighteen months. The largest growth throughout the country has been in the tourist industry. Local and foreign entrepreneurs alike are buying up boutique hotels, and other developments. Very few of the developers are mega corporations and most are families and individuals whom have been attracted to Costa Rica by the weather and the natural beauty of the country. It is this segment of the investment market that make up the bulk of new construction and as a group they are making a large investments in the central Pacific area. All types of people from all around the globe have discovered the earning potential of owning a condominium in Costa Rica. A condominium makes a wonderful vacation home, and after your vacation, you can rent it for the rest of the year making a huge profit.

If you want to purchase a condominium here in Jaco Beach you might want to consider one of the projects that offers in house professional property management. For single family homes or lots, property management services can prevent you from dealing with a squatter while you are away or out of the country. The benefit of having a professional property manager is numerous, and it allows you to feel confident when you leave the country. Plus a good manager can earn you rental revenues which can help augment your condo fees. Remember, these services are either paid for by sharing of the rental revenue or a guaranteed fee each month. The first fee structure is obvious, no rent, no fees. The second fee structure offers you a fee per month regardless of the rentals. The flipside is, the rental manager can earn huge profits since everything above their monthly fee is profit for them. Some owners like this because it gives them a lower but steady income each month. You will have no trouble renting your property here in Costa Rica The market is exploding as a tourist and vacation destination each year.

If you are interested in learning how to purchase a condominium or beach home as a vacation home and/or as an investment to earn rental revenue, please call Lisle Head at 866-403-1345 Lisle can discuss your options with you and help maximize your investment! Coldwell Banker Jaco prides itself on its integrity and its track record of success. Take a look at our Costa Rica Real Estate Testimonials section, these are real people just like you.

There are many ways for you to make a solid and fortuitous foreign investment in the Costa Rica real estate market. Right now the property tax rates are low because the Costa Rica government is trying to encourage foreign real estate investments which will help the booming tourism market. Since the tourism sector of Costa Rica is growing at an exponential rate, you can expect to see a very sizable return very soon after you purchase your Costa Rica property.

As a foreign investor there are several things you are going to need if you want to purchase a viable and solid piece of Costa Rica real estate. One of the things you always need to understand before signing your Costa Rica property contract is that there are many scam artists here. If you are not careful or you left your common sense at home you will be exposing yourself to undue risk. If you become a victim of real estate fraud you would be able to make a case for it with the government but it would take you years to reach any type of resolution. Therefore, you need to find an honest lawyer and real estate agent. Look for a lawyer who has many references and an agent that is accountable to a larger entity such as Coldwell Banker.

Second, you need to know every step of the Costa Rica real estate closing process so you can be sure when you leave the office, you have all of the papers and contracts you need to secure your property. For example, after you close it might be possible that some of the papers have been filled out wrong. The burden will then fall on you to correct the problem or you risk spending the first few years of your new Costa Rica vacation home with a cloud over your head. The easiest way to have your purchase contract declared invalid is not dealing with a tax lien on the property whether you knew about it or not. Again, if you use common sense in the beginning by working with professional organizations such as Coldwell Banker Jaco, your exposure to administrative problems is virtually zero!

If you are interested in learning how to purchase a condominium or beach home for your own enjoyment or to earn rental revenue, please call Lisle Head at 866-403-1345 Lisle can discuss your options with you that are the right ones! Coldwell Banker Jaco prides itself on its integrity and its track record of success. Take a look at our Costa Rica Real Estate Testimonials section, these are real people just like you.

Coldwell Banker Jaco Costa Rica Real Estate

A laidback but bustling town, Playa Jaco (Jaco Beach) is one of the most popular Costa Rican beaches. Located in the North of the Puntarenas province and hugging the country’s central Pacific Coast, Jaco is less than 2 hours from San Jose. Whether it is a luxury dream home, a second beach home or an investment property that you are looking out for, Coldwell Banker Vesta Group can help you with different Jaco real estate properties.

Jaco is reputed for being a “party beach” with a terrific nightlife. However, the fun here is casual and relaxed, and the people are pleasant and friendly. Largely catering to an immense number of foreign tourists who want to enjoy a more tranquil lifestyle, Jaco has a nice, clean beach that is very popular, especially in the summer. The Playa Jaco real estate market is diverse and has something to interest every taste and lifestyle.

In your introduction to Jaco Beach, your Jaco real estate agents will certainly tell you about one of the town’s finest attractions, its fantastic surfing waters. The waves tower wonderfully and the breaks are equally good. Investing in Jaco Beach real estate also allows you to enjoy the international surf contest held annually in nearby Playa Hermosa which attracts throngs of avid surfers from all over the globe.

Your Jaco real estate agent will also introduce you to the areas north and south of Jaco, which have some of the most picturesque and stunningly gorgeous panoramic ocean views. Easily accessible, Playa Jaco is about 3 km long and is best reached by catching an international fight to San Jose and then driving over. Jaco real estate agents can help you out after your arrival in Playa Jaco in getting yourself set up with a great property for lease or with a luxury apartment rental.

Current events in Costa Rica:

Did you know that Mel Gibson recently purchased a $24 million 400-acre ranch, 300 miles from San Jose? He sold two of his houses in the U.S. and hopes to spend more time at his new Costa Rican estate. His love affair with Costa Rica began when he was casting for a new film about the Spanish explorer Vasco Nunez De Balboa.

Unwittingly, he stumbled upon Costa Rica real estate’s big secret – that you can purchase a thousand acres of jungle land in Costa Rica, replete with waterfalls and hot springs – for the same price as a small bungalow in California.

Now that you have been let on into the secret, get acquainted with Costa Rica real estate for sale pronto. Costa Rica real estate agents, Jaco real estate agents and tourist authorities agree that this is the perfect time to buy into what will soon be hailed as a prime tourist destination and investment opportunity.

Jaco Beach real estate investment ventures continue dominating the hottest current events in Jaco and Costa Rica. Soon after the promise of Costa Rica’s real estate was realized, Stephen Case, co-founder of AOL, recently purchased $800 million in commercial Costa Rica real estate for sale in Northern Guancaste (near Playas del Coco), with the aim of building five 5-star eco-tels and an 18 hole Tom Doak Golf Course.

Costa Rica real agents are in a celebratory mode with such illustrious personalities taking so much of an avid interest in its real estate. The partial ownership villas at “Rancho Santiago” in Playas del Coco were sold out in less than a week. To fill this growing need for Costa Rica real estate for sale, Costa Rican Vacations co-owners Tony Silva and Casey Halloran recently erected the 1000 meter “Costa Rica Villa” luxury vacation rentals for the ultimate accommodations. These dazzling units are set to make their official debut in March or April 2008.

In Jaco and Costa Rica business current events, Petro China had agreed to build an oil refinery in Costa Rica to process heavy oil from Venezuela and supply the rest of Central America. As a pat on the back for breaking off ties with Taiwan, China has recently funneled $50 million dollars to Costa Rican President Oscar Arias to help improve infrastructure, roads and security.

Current events in Jaco and Costa Rica regarding the quality of life and the community are promising. Safety has been bolstered in many areas – for instance, a Jaco beach prostitution raid cut down crime in the area. The removal of unwanted trees and light posts has made the airport much safer as well. Criminals trying to gain entry to the country have been thwarted and checked. Jaco Beach real estate is even more promising in light of such careful attempts at improving community life.

Economically speaking, the poverty rate fell 4% (to 16.7%) in just one year, representing the most promising decrease in almost two decades. The national salaries increased 19%, showing wage increases in commercial, hotel, restaurant, construction, financial advisory and real estate industries.

In recent years, electronics, pharmaceuticals, financial outsourcing and software development have added to Costa Rica’s economy, primarily because 96% of the country is literate, making it one of the most literate nations in the world. Exports now total $7.931 billion and include: coffee, bananas, sugar, pineapples, textiles, electronics and medical equipment. Such a good state of financial stability is one of the best indicators for investors to hedge their money on Jaco real estate for sale.

With regards to the recent developments in Playa Jaco and Costa Rica infrastructure, the $1.7-billion-a-year tourism industry is expected to make a huge leap this year with the spring completion of a new highway system that aims to cut travel time from the airport to tourist destinations in half.

Annual events in Jaco and Costa Rica in the tourism sector include parades and drinking in the streets for October’s Limon Festival, the December 12th Fiesta de los Negritos fireworks and costume parade, post-Christmas bullfighting and carnivals in San Jose, as well as February and March Art Festivals. While the tourist business is booming in Jaco, investing in Jaco real estate has never been smoother. Jaco real estate for sale can get you settled with the right kind of property.

Costa Rica appeals to many Americans, not only for the aforementioned reasons, but also because it is the most politically stable country in Latin America, with over 59 years of uninterrupted democracy. The country’s foreign policy puts human rights above imperialistic gain and holds a strong stake in the United Nations, the Organization of American States, the Inter-American Court of Human Rights and the United Nations University of Peace.