Why buy now in Costa Rica Central Pacific Jaco area?
Jaco Costa Rica Beach Fire Sales!
UPDATED: March 25, 2011 by Jeff Fisher,
Owner-Broker CR Beach Investment Real Estate
Has the Global Recession "bottomed out" as some economists are stating ?
Will Costa Rica's new highway to the Central Pacific, Jaco Beach area help to create another boom?
Will you have waited too long, hoping for that last additional 10% discount and miss the opportunity of your dreams?
We watch the U.S. news stations, and we know what's going on in the U.S. real estate market, because it does affect us here.
We also are aware of conflicting opinions regarding the immediate future, as this article states.
Predictions for Housing in 2011 in the U.S.
Dec. 28, 2010 National Association of Realtors|
Will housing values increase in 2011?
Fortune.com offers both a bullish and a bearish prediction.
The bulls say: Affordability is at its highest level. Billionaire Warren Buffet is among those who believe this is a sign the slump is about to end. Buffet writes: "Prices will remain far below 'bubble' levels, of course, but for every seller (or lender) hurt by this there will be a buyer who benefits."
The bears say: It’s not over yet. Housing is still overpriced and inventories are enormous, says Daryl Jones, an analyst at investment research firm Hedgeye. Jones warns that home prices could fall another 15 percent to 30 percent because no one is buying. Source: Fortune.com, Nin-Hai Tseng (12/27/2010)
Vacation Home Sales on the Rebound
March 23, 2011 Daily Real Estate News
Some of the hardest-hit cities in the housing downturn were from vacation home areas, but now these areas are seeing a surge in sales.
Condo sales in Hawaii and Florida are inching upward, Housing Predictor reports. For example, in the first two months of 2011, existing condo sales in Oahu, Hawaii, increased nearly 21 percent and the median prices on these units jumped 7 percent higher than more than a year ago.
“We’re definitely seeing continual strengthening of the market as more buyers are taking advantage of low prices and low rates to buy second homes and vacation homes,” says Jeff Proster, president of Brookfield Homes in Hawaii.
Meanwhile, closed transactions of existing condos in Miami jumped 58 percent higher in February compared to a year ago.
“We are even seeing instances in certain neighborhoods with multiple offers above asking price,” says Jack Levine, the Miami REALTORS® chairman.
Main reasons why there aren't more Fire Sales in Costa Rica:
1. Costa Rican banks did NOT make many loans to foreigners, nor even residents the past 7 years. Our banks are not in the same crisis situations as found in other countries, with bank repossessions and liquidations, foreclosures and bankruptcies.
2. Our condo market consists primarily of purchasers who only have 10-30% invested, with the rest Owner-financed. Thus they can only discount what they have invested! If the building isn't finished, they might only have equity of 10-30%. Some developers are offering discounts of only 10-20% now, so as not to infuriate their previous purchasers too much.
3. Remember, even at our peak, the prices in the Jaco Beach, Central Pacific area never reached the incredibly high price points found in other popular international tourist or retirement destinations, like Mexico. Lower building & land costs were reflected in the original sales price, so instead of $1 million for a 3 bedroom beachfront condo that is now to reduced to $400,000, in our area you might see a $600,000 condo reduced to $469,000.
4. Some properties in our Central Pacific area are in that rare category for Costa Rica:
100% Fee Simple Titled Beachfront.
This is one of the reasons why prices in Playa Hermosa or Jaco are have not dropped at the same rate as properties that are not beachfront. Hermosa Bungalows and Hermosa Palms have seen reductions ranging from 10 to 20%, but there are no foreclosures in either place. Again this relates to the above statement that the banks didn't loan money-thus no foreclosures. However prices are at their lowest in 3 years, so now is the time to buy!!!
Why Buy Now?
1. "With crisis comes opportunity" but nobody can predict with 100% accuracy the perfect time to buy.We can show you that right now, prices are that their lowest in several years.
2. The new Caldera (Ruta del Sol) highway from the western part of San Jose to the Central Pacific area of course will continue to attract potential investors to our area.
Costa Rica is a small country and access to the capital San Jose, is very important for all kinds of "quality of life" issues including shopping, medical, and entertainment options.
The appreciation of the Central Pacific Jaco beach area is thus, (dare I say) guaranteed!
3. The U.S. housing market is "flip-flopping" regarding its recovery. Our market is showing resurgence!
Finally there is some positive news from the U.S. housing market which does affect our
market here. The faster U.S. residents can sell their homes, the faster they can come to Costa Rica to purchase properties here. But negative news is right around the corner.
The Opportunity is Now!
Please contact us, by phone or email, to get all our latest updates for our "fire sales and almost foreclosures!"
CR Beach will assist you in determining which Central Pacific Jaco area properties could be reduced further in price, and which will be sold very quickly.
By simply typing your name, email, and (hopefully your phone number) below, you will be able to discover our newest listings.
We promise to respect your privacy, (we hate spam too!) and we will never share our lists with any spammers.
March 25, 2011
Owner-Broker CR Beach Investment Real Estate