- Current market info written by CR Beach agent Colin, to a Seller, who is now more motivated!
-
The owner of a home in Jaco that has been for sale under another agency's " Exclusive" agreement for more than 3 years, without success, asked Colin about current market conditions and how we could help her sell her home now that she is highly motivated. I thought this would be good to share with you all. The home had been rented most of the time, but now she really wants to sell. This is what CR Beach agent Colin Miller wrote to her on August 21, 2012, with a few extra comments by me, Jeff-owner/broker CR Beach.
THE MARKET
a. The market is currently a Buyer’s Market, most owners here in CR paid cash for their properties and so there are not many foreclosures. However, savvy Buyers (mainly Americans and Canadians) know, or at least want to be under the impression, that they are getting a FIRESALE or a very large discount off of a property that formerly had been priced in a speculative, booming, pre-crash market.
Also, we know we are competing with other USA markets as well. We may have a Seller wanting to sell their property here to leverage a great deal in the USA, or Buyers weighing options in places like discounted Florida beach inventory vs. Costa Rica. For Sellers, it's no longer a matter of reducing the price 20% off of the ¨Speculation Era Price¨, but rather a 10-20% off the readjusted current ¨Buyers Market Price¨ or even 10 to 20% off the total amount invested in the property. Some Sellers are willing to do this as they have plans to take a loss of 20% and then go buy something thats' reduced 30% to 70% in the U.S. or buy something else in Costa Rica thats reduced 25% or more.
b. OWNER FINANCING is a good option that many Buyers are taking advantage of; most owners want half down in cash, and will carry the rest for three to five years with a balloon at interest rates varying from 5% to 8%. Property/Title is held in a Guaranteed Trust until property is paid off. This extremely protective trust option makes it much easier (cheaper-faster) for the owner to foreclose on the Buyer if the Buyer does not honor the contract. If you are a Seller, why not offer owner financing at 5% instead of having your money sitting in a bank earning one percent or less?
c. PRICE MOTIVATION. If the price you have has not generated a sale at this point, you will need to think about your level of motivation and reduce your price based on that level of motivation. You'll need to consider investing more money in "curb appeal" and see if there are improvements that can be made for small amounts
of money and time invested.
Buyers will never want to buy a property and inherit problems, be it legal issues, construction problems, unsightly finishes, damage to the home, neglect, unkempt and unsightly yards, etc. especially in a foreign country where Buyers may not have a network of people or resources to remedy the problems. Logically, the Seller must do thier part to deliver a property that has been taken care of and in excellent condition. If not, expect Buyers to lower thier asking price even further.
Additionally, a good agent will inform both Buyer and Seller of "comps" for similar properties in this market area so we can help price a property more accurately.
d. Sellers, PAY ATTENTION! EXCLUSIVE vs. NON EXCLUSIVE Listing agreements. What to do?. Many real estate agencies here in CR automatically ask Sellers for an Exclusive Contract. An unscrupulous agent may make promises to post your property on the Costa Rica MLS (Multiple Listing Service), even there is no USA type of MLS system in place in CR. Exclusivie listing contracts in the USA relies on the MLS in order to function! The MLS creates the role of exclusive listing agent and buyers agent. In CR, many agents act as both. The agent that asks for an exclusive and states that they need it to post on the ¨Costa Rica MLS¨ may conveniently fail to mention this to you and instead rely on your ignorance as you sign an exclusive. Remember, do not operate under the assumption that laws here for realtors are the same as your home country.
Without the strong participation by all licensed real estate agencies working in conjunction with the Costa Rica government to create and use a bona fide MLS; and without strong national legislation demanding that real estate agents be educated and licensed, what we currently have as MLS in Costa Rica are some private companies who have websites that attempt to call themselves, a Costa Rica MLS. These sites have no government backing, no realtor unions on board, and as a result very few enforceable contracts and rules and regulations. Furthermore, most properties in Costa Rica have no numeric address or street location! Good luck with an effective MLS!
Thankfully, the laws in CR regarding ownership and transfer of property give you the same right as the President of Costa Rica to own fee simple property, that has always been a major attraction to foreign investment. But the laws here are very lax regarding the real estate industry. The problem is compounded by the fact that anyone can sell real estate here in Costa Rica: taxi drivers, tour guides, bartenders, backpackers, surfers on holiday, etc.
The difference between the U.S. real estate transaction and Costa Rica transactions is that more power rests with the attorneys to provide the legal framework. The Costa Rica real estate "profession" is evolving and we expect strong legislation in the near future.
I know that the policy with some of our competitors is to always ask for the exclusive and only list exclusives, even before listening to the all the facts about the property, doing a purchase price analysis, actually visiting the property, and some don’t even bother to remove the other agencies sign or take new pictures !
Many Sellers that have granted "Exclusives" have told us that they were not even aware that they had signed
an exclusive agreement. They weren't aware that it was possible to terminate the agreement before the time frame was up. We have seen some agents totally misrepresent the Sellers' property, and then when the Seller wanted to terminate the "exclusive" they were told, "sorry, that´s impossible."
Some agents exhibit a "knee jerk reaction" (based on greed, blind policy, etc) to ask for the exclusive and then do nothing except put it on the website and wait and see what happens.
In conclusion,
Why give an exclusive without checking:
1. The agencies website, do they update it regularly? Are there listings there
for properties that sold 4 years ago or developments that never got built?
2. Do they have an office? a Secretary/Receptionist? An 800-toll free number?
3. How long have the Agents been in Costa Rica? Are they legal residents?
4. Search engine position-can potential. Can buyers find the website easily?
5. The advertising plan or ideas on how that agency will market your property-
OVER AND ABOVE just sticking it on the website?
6. How quickly your emails are answered, or your phone calls returned?
The biggest complaint we hear about other agencies is the failure to communicate.
If an agency is interested enough and confident enough to ask for the "Exclusive" they should check out on all of these points and more.
MOVING ON...
e. COMPS in your area.
If your next door neighbor had his home on the market at $299K for months with various agencies, down from an original asking price in the $350K range, and its very similar to your home, then we need to do things differently. Either starting at a lower price or by offering owner financing. We need to position your home to be the one that sells first!
These are some current thoughts we have regarding how we may assist you with the sale of your property.
To contact us, please call toll free from the U.S. or Canada: 888-782-1119 or locally 2643-4334, 2643-3672.
thank-you
Colin Miller
Jeff Fisher
- Where is the best place to live in Costa Rica?
-
Best place to live in Costa Rica? That's easy after having lived in various areas over the past 19 years-the Central Pacific area,specifically Hermosa Beach de Jaco. We are only 10 minutes south of Jaco so we get all of the benefits without the noise: 1. like tons of restaurants from overpriced to underpriced-from exotic to tipico; all kinds of shops including a used bookstore; new 4plex movie theatre with a/c & surround sound; conference center for plays and special events; new central park with art and music events, 2. a strong Gringos-locals Chamber of Commerce (www.jacochamber.com); strong Women's Group doing all kinds of beneficial activities; and offering varieties of classes. 3. The majority of the roads are paved and in great condition (except of course my last 1/2 mile to my Hermosa beach bungalow!) Also I love seeing the incredible ocean and sunset views while hugging the coast on the Costanera to and from Jaco. 4. The advantage of having all of the major utility companies and County seat government agencies located in Jaco. It's a nightmare when you live 1.5 hours away from getting your electric or phone or cable hooked up. I do love paying the absurdly low annual Municipal taxes ($69 for me). 5. Playa Hermosa just received a "Blue Flag" award for its cleanliness and is world reknowned for its surfing and uncrowded conditions for beachcombers. Also our weather is better than anyplace on the coast south of Mexico. Our bay is slightly turned to receive more breezes, and yet we are not susceptible to many natural disasters found worldwide. Yes we get quakes, but they are very deep. We are 3-7 degrees cooler than the northern and southern pacific and 3-7 degrees warmer than San Jose. 6. Another reason I love the Central Pacific is now driving only an hour plus away from either the main Int'l Airport (SJO), or the great activities of Escazu-either to visit Central America's largest mall; or the restaurants, the only IMAX theatre of Central America; art, wine, or BEER festivals (had the 1st Craft beer one 2 weeks ago.) The Jazz cafe is there, the U.S. embassy is nearby, the Priceclub/Home Depot/Office Depot like stores, the Johns-Hopkins affliated Hospital-Cima is there and there are tons of weekly clubs, church/spiritual groups, natural events, and Costa Rican cultural events happening regularly... So in conclusion, it ain't easy moving to Costa Rica, and its not for everybody. Other places like Nicaragua and Panama are cheaper, but its amazing how many of those former Costa Rican resident expats that move there wind up returning to Costa Rica. Something to do with the friendly "Costa Rican" people and the stronger sense of community with the Gringos. Yes I wish things went faster, made more sense, or were cheaper, and often times we comment that its amazing that Costa Rica has come as far as it has. The reality is no place is perfect, and I like the "no lawsuit" mentality here, and the "personal responsibility" that is demanded of you if you wish to enjoy your life here. After 19 years, my favorite area of Costa Rica is beachfront Playa Hermosa. Sincerely jeff |
- Why Costa Rica? Why Jaco?
-
Since I had named this blog Why Costa Rica?, I thought it might be good to consolidate all the reasons previously stated on the CR beach website, and put them in one location. I will update this as new awards are awarded.
The Boom started 2006 and continues due to:
1. The continued success of the luxurious Los Suenos Marriott Marina & Golf Resort, where their high end condos and homes set the standard for gated beachfront communities. 2. The availability of more than 700 fee-simple 100% fully titled Jaco-Playa Hermosa beach front condos, homes, villas & ocean view lots-cheaper and so much safer than Mexico!
3. The year-round tropical lush green beauty of the Jaco beach area with the best climate enjoyed along the entire Central American Pacific coast! No hurricanes, no tornados, no tsunamis!
4. The new highway from San Jose to the Jaco area has opened and the travel time is now ONE hour plus to the popular western suburbs of San Jose (Santa Ana-Escazu areas with IMAX, Cima Hospital, the biggest mall in Central America, and Priceclub!). This should "guarantee" our properties to appreciate in value faster than other areas.
4. Jaco Beach visitors are astounded at the positive changes over the past few years: beautiful new roads, exciting beachfront rentals, more police, shops & international restaurants, cleaner beaches, more entertainment options with our new 4plex movie and Jaco Conference Center, plus smarter-better looking people like you!
5. Continual International Eco Tourism & Other Awards & Honors:
August 18, 2011: Costa Rica Ranks Best Country in Central America and the Caribbean for Foreign Direct Investment 2011-2012 Considering the country´s strong value proposition added to the attraction of more than 227 new investment projects between 2003 and 2010, the Financial Times Group´s FDI Intelligence unit has named Costa Rica the “Best Country of the Future for Foreign Direct Investment in Central America and the Caribbean” in its “FDI Countries of the Future” report. • Country outrivaled its traditional competitors the Dominican Republic, Panama and Puerto Rico.
Nov. 3, 2010 Costa Rica ranked number one value destination for winter 2010 by popular college student travel agencies: Smarter Travel, StudentUniverse, and STA in regards to great value locations for trips from December 1 through January 25.
August 26, 2010: The magazine "Travel + Leisure" places Costa Rica at the top as the best country in the world for single travel. In its latest publication, the magazine takes a look at the top 15 vacation spots for singles travel, taking into account several factors, among them basics for a foreigner to enjoy their stay in a country and security.
2009 Global Prosperty Index ranked Costa Rica #1 of Latin American nations out of 104 nations indexed.(see our News page!)
Costa Rica tops list of 'happiest' nations with the world's highest life satisfaction and the second-highest average life expectancy of the new world (second to Canada)," said the Independent British group that creates the Happy Planet Index July 5, 2009 CNN reports.
Costa Rica is the safest country in Latin America for business and multinational companies, according to the latest Latin Security Index analyzed by FTO for the weekly publication Latin Business Chronicle, May 25, 2009.
For the fifth consecutive year, Travel Weekly magazine has named Costa Rica as “Top Latin American Tourism Destination” for 2008.
The World Travel Awards announced (Feb. 2008), that Jaco Beach Costa Rica (with votes mainly from the U.S. and Canada), was recognized as "the Leading Beach in Central America."
Billabong's 2009 International Surfing Association (ISA) World Surfing Games was in Playa Hermosa Jaco beach, Costa Rica, July 31 till Aug. 9, 2009, 35 countries participated. It was a big success with an estimated 70,000 people in attendance!
Costa Rica, according to The Global Competitiveness Report 2009, is the highest ranked Central American country, with Panama the next highest. Costa Rica’s commitment to education, good governance standards, production and export diversification (such as high-tech products, eco-tourism, and medical tourism) were some of the factors.
UPDATE June 25, 2011
The Jaco Cinema Complex is now open with 4 movie screens, with prices ranging from $4-$7. HOORAY!
UPDATE APRIL 16TH, 2011
The town of Jaco is very proud to have won its 4th Blue Flag thank to the joint efforts of the Municipality of Garabito, Central Pacific Chamber of Commerce, community and especially thanks to the excellent performance of the Interinstitutional Environmental Commission of Jaco , the only one in Costa Rica.
In order to receive the Blue Flag award, the quality of water, the solid waste management systems, the signaling of roads, the environmental education and public safety are all evaluated. The city council, local businesses and members of the community all worked together to ensure that the requirements were met and that Jaco was able to renew their accreditation.
For those that have not been to Jaco in the last few years,
you will be shocked at the changes:
First: the newly paved roads entering our town.
Second: the high rise towers showing the dramatic growth.
Third: the small modern shopping centers;
Fourth: the presence of tourist police & the municipal police in
new cars and motorcycles.
Fifth: fewer low lifes, now replaced by tourists and cool people like you!
HOW NICE TO LIVE IN A COUNTRY THAT RECEIVES INTERNATIONAL TOURIST AWARDS!
1. The magazine "Travel + Leisure" places Costa Rica at the top as the best country in the world for single travel, says Inside Costa Rica Aug 26, 2010.
In its latest publication, the magazine takes a look at the top 15 vacation spots for singles travel, taking into account several factors, among them basics for a foreigner to enjoy their stay in a country and security.
2. Travel Weekly ranks Costa Rica as the best Latin American Destination 05-Jan-09
Travel Weekly Magazine, a specialized travel trade magazine, recognized Costa Rica as the best Latin American travel destination. The publication highlighted among the assets of the country, its many leisure activities and the friendliness of the Costa Rican people.
This is the 5th year in a row that Costa Rica has been ranked this high while competing on this occasion with destinations such as Peru, Brazil, Argentina and Belize. The selection of Costa Rica was the result of a voting process in which 180 thousand travel industry readers in the United States representing travel agencies, hoteliers, corporations and suppliers, actively participated.
Source: National Press
3. COSTA RICA IS AN ECO PARADISE ACCORDING TO NATIONAL GEOGRAPHIC July 11, 2008, "the tropical jungles, rivers and the country`s beautiful white beaches were reason enough for the National Geographic Channel to rate Costa Rica as the closest thing to heaven on earth."
4. Condé Nast Traveler recognizes Jaco Costa Rican Hotel
25-10-08 A recent edition of Condé Nast Traveler magazine, mentions Costa Rica among their Best Hotels of Central America awards. Each year, the readership of the magazine selects the Top 100 - Destinations, Hotels, Resorts and Islands (among other categories), to be recognized by the publication. Costa Rican hotels included in the listing are Lapa Ríos Ecolodge, ranking in 2nd place; Hotel Grano de Oro, in 5th place; followed by the Costa Rica Marriott in sixth and Villa Caletas in seventh. In the category of Central American and South American Resorts, Hotel Punta Islita ranks 1st while the Four Seasons Resort took fourth place. Source: La República
5. U.S. TV Networks and Internet sites recently promoting the virtues of Costa Rica
07-03-09 Reports aired on U.S. networks such as CNN, CNBC and ABC (available on You Tube), highlight Costa Rica as one of the most attractive destinations for Health related tourism, Real Estate and leading edge Technology. For Medical Tourism, foreigners have selected Costa Rica for the combination of its low cost services, modern technology and highly trained health professionals.
6. The World Bank has ranked the Costa Rica as the world’s fourth exporter of technology, ranking first in all of Latin America. With respect to leading edge technology, Costa Rica has been recognized as an ideal destination for the development of the industry.from Al Día
7. The 2009 International Surfing Association (ISA) World Surfing Games has been awarded to Hermosa Beach/Jaco, just 5 minutes south of Jacó on the Central Pacific coast. Some 35 countries are expected to be represented in the prestigious competition set for July 31 through Aug. 9, 2009. Improvements are being made to the Hermosa Beach Jaco area- right now!
8. The World Travel Awards announced (Feb. 2008), that Jaco, Costa Rica won "the Leading Beach in Central America."
9. Costa Rica is the second best tourist destination in Latin America and the Caribbean, according to a survey by the World Economic Forum (WEF), which evaluated 130 nations (Mar. 14, 2008).
10. 26-02-09 Rain Forest Aerial Tram of the Tarcoles, Jaco area receives award as the Best Tour for the 2007-2008 season by Princess Cruise Lines.
11. Costa Rica Blue Flag Beach Awards: Oct. 2008 Jaco received its first Blue Flag beach designation for its clean beaches and general cleanliness, clean tap water, and other things. Again awarded this Mar. 24, 2009!!! AND AWARDED AGAIN IN 2010!!!
12. March 24, 2009 Playa Hermosa of Jaco has just been awarded its first Blue Flag beach designation. All of the Hermosa residents (including me) and international surf lovers are celebrating this award. Congratulations!
Prior Awards for Costa Rica:
2008 Readers’ Choice Award: Best Destination for Ecotourism & Adventure.
2007 Travel Weekly voted CR: Best Destination Latin America
2006 Smarter Travel.com voted CR: #3 Safest Destination for Women Travelers
2006 Magazine "Viajes y Turismo" granted Costa Rica
the award for "Best Nature Tourism Offered"
2004 Recommend (one of the most read mags by employees of travel agencies),
Readers’ Choice Award: Best Destination for Ecotourism and Adventure.
Also Recommend Readers’ Choice Award: Best Selling Destination
for Latin America
2004 Modern Bride - Best Destination for Honeymoons (Culture)
Modern Bride - Adventure Destination for honeymoon
2004 Travel Weekly - Best Destination for Latin America Travel Weekly -
Best Destination for Tourism from the United States
2003 Recommend - Best Destination for Latin America.
- 2012 Hopes, Dreams, Realities
-
Happy New Year everybody!
We hope this year will be much better than last year,
and our dream is that our dreams will become realities.
Seriously.
The "experts" say that last year was the absolute worst for
sales and new home construction. We believe that this year
prices will hit rock bottom, and begin to climb back up,
ever sooooo slowwwwwwlllllllllllllllyyyyyyyyyyyyyyyy.
We are optomistic.
Call us and you'll hear it in our voices.
Sincerely,
Jeff
- Firesales with Financing, Now Available!
-
Jaco Costa Rica Beach Fire Sales!
UPDATED: August 26, 2011 by Jeff Fisher,
Owner-Broker CR Beach Investment Real Estate
We just sent out a newsletter in September promoting some of our firesales
that now have Seller Financing! Call or write us to get a copy!
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. However Costa Rica real estate is very different.
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. Many properties in our Central Pacific area are in that special category for Costa Rica, 100% Fee Simple Titled Beachfront!
This is one of the reasons why prices in Playa Hermosa or Jaco 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.
DURING 2011, our sales as well as other local realtors, have been very good compared
to last year. Of course, Sellers need to show that their properties have been reduced
at least 20% in price from the previous year. Again, no bank financing has hurt us, but some Sellers are willing to give owner financing. Give us a call to discuss our best deals.
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.
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.
Best Regards,
Jeff
August 26, 2011
Owner-Broker CR Beach Investment Real Estate
- 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
www.CRbeach.com
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.
Best Regards,
Jeff
March 25, 2011
Owner-Broker CR Beach Investment Real Estate
- Is now the time to buy in the 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 www.crbeach.com Has the Global Recession "bottomed out" as some economists are stating ? Will Costa Rica 's new highway...(read more)
- Luxury Tax Opinion rendered by Owner-Broker Jeff Fisher
-
Owner-Broker Jeff Fisher hopes to help your understanding of this new law by posting a mixture of facts and opinions. Laws generally do not take effect in Costa Rica, until they are ruled upon after a challenge has been made to the Sala Cuarta (Costa Rica's version of the Supreme Court). We feel this will soon take place, prior to the required payments being due!
Please keep in mind from December 19, 2009 to January 4, 2010, ALL public sector employees are off on their Christmas/Year End vacation. Thus no information will be available from the municipalities nor the Registro Nacional until Monday Jan.4, 2010. The payments are SUPPOSEDLY due Jan 15, 2010, giving everybody 10 working days to figure out their tax and submit this BY COMPUTER-online as required.
Thus my professional opinion is to contact your personal attorneys for legal advice, and I promise to provide further relevant data here with information and options as they become available.
Be prepared, but don't send in anything. Read the Bob Klenz letter below. Waiting is the key.
Thank-you, Jeff
- UNBIASED POSITIVE REVIEW OF COSTA RICA
-
LATIN BUSINESS CHRONICLE
Monday, November 23, 2009 BY WALTER T. MOLANO
"Costa Rica has one of the healthiest economies
in Central America."
Tightly wedged between the Pacific and Caribbean, Costa Rica is the picture of entrepreneurship and industry. Unlike most of the countries in the region, Costa Rica does not brim with mineral riches. It lacks the oil and metals deposits that abound throughout parts of the Caribbean and Latin America However, that is not to say that the country never took advantage of its comparative advantages and endowments. During its colonial days, Costa Rica was a breadbasket for Central America and the Caribbean, cultivating the wide range of crops and livestock that thrived throughout its varied climates. During the past 30 years, Costa Rica cashed in on its bounty of ecosystems and natural beauty, becoming one of the major destinations for high-end tourism. Moreover, during the last two decades, the Central American country tapped into its rich vein of highly skilled workers to become a manufacturing hub for the high tech industry. Given such a diversified economy, it is little wonder why the global credit crunch was little more than a speed bump.
After posting an average growth rate of more than 6 percent y/y during the past four years, the impact of the global credit crisis was relatively mild. Costa Rica’s GDP is expected to decline 1.6 percent y/y in 2009. The level of economic activity dropped 4.5 percent y/y during the first quarter and 2.4 percent y/y during the second quarter.
However, the economy bottomed out at the end of the first half, and there are clear signs of an early recovery. We expect GDP to expand more than 4 percent y/y in 2010, thus allowing the unemployment rate to fall below the current level of 7.7 percent. The silver lining of credit crunch was the sharp decline in the inflation rate. Costa Rica’s consumer prices typically post double digit increases each year. However, they are expected to increase only 5 percent y/y in 2009.
We expect inflation to remain in the mid-single digits in 2010. As a result, the central bank is changing its exchange rate policy. Instead of employing a crawling peg, it recently shifted to a banded system—thus allowing for greater flexibility. Most locals expect the colon to appreciate by the end of the year to a level of 550. One of the factors that should help appreciate the currency will be the large influx of foreign direct investment (FDI) expected next year. Government officials expect FDI to reach $2 billion in 2010, thus exceeding the highs that were posted in 2008. The effects of the global credit crunch and a sharp decline in tourism led to a 30 percent decline in FDI this year. However, a series of reforms and initiatives will allow capital inflows to resume. The government recently passed legislation allowing among other things, the liberalization of the insurance and telecommunications sectors, which sparked interest from a wide range of multinational and regional players. Moreover, the signing of CAFTA-DR led to a flurry of FDI activity in ports and infrastructure.
Unlike many Central American countries, Costa Rica is known for its solidarity and political consensus. In 1948, following a brief civil war, President Jose Figueres Ferrer abolished the military. This abolition was instrumental in allowing it to avoid the social strife and divisions that characterized most of the region during the 1970s and 1980s.
This is one of the reasons why most people are sanguine about next February’s elections. Justice Minister Laura Chinchilla is expected to sweep the day. A close associated of President Oscar Arias, the bounding popularity of Minister Chinchila reflects a general desire for continuity. Chinchilla may be expected to win the elections, but she still faces several important challenges. The main issue will be addressing the erosion of the fiscal accounts. The decline in economic activity and a sharp increase in government spending pushed the fiscal accounts deep into the red. The fiscal deficit is expected to crest over 4 percent of GDP, thanks to large increases in infrastructure spending and social programs.
Fortunately, Costa Rica enjoys strong multilateral and international investor support. Therefore, it can get easy access to financing. In sum, we believe that the country should overcome its obstacles. Costa Rica has one of the healthiest economies in the Central America. Its economic diversification and political stability allows it to enjoy a steady pattern of high economic growth and prosperity. Perhaps, this is one of the main reasons why Costa Rican bonds were one of the best performing instruments throughout last year’s global financial meltdown.
Walter Molano is head of research at BCP Securities.
Copyright Latin Business Chronicle, www.latinbusinesschronicle.com
- FIRESALES IN JACO, COSTA RICA, really?
-
Jaco Costa Rica Beach Fire Sales! UPDATED: Nov 1, 2009 by Jeff Fisher, Owner-Broker CR Beach Investment Real Estate Will the U.S. recession and Global Crisis terminate by the end of the year as some economists are predicting ? Will Costa Rica 's new...(read more)
- Still Optimistic about Jaco!
-
Quick thoughts as to why I am still optimistic about Jaco! by Jeff Fisher, Broker-Owner CR Beach Investment Real Estate Aug 16, 2008
Hello from my beautiful semi-beachfront bungalow home in Playa Hermosa, just 8 minutes south of Jaco. When I first wrote this I had just posted in our "Costa Rica in the News" section that the town of Jaco was awarded a Blue Flag. We have one blue flag now and well on our way to having the actual beach receive a blue flag. And we are getting a beachfront boardwalk! For those that have lived here a long time, (15 years for me!) this is almost unbelievable news! Just recently announced is that the "2009 International Surfing Association (ISA) World Surfing Games will take place in Playa Hermosa, just south of Jacó on the central Pacific coast. Some 35 countries are expected to be represented in the prestigious competition set for July 31 through Aug. 9 of next year." More great news can be found in our "Costa Rica in the News" section of our website, like: During the first six months of 2008, 1.03 million foreign visitors came to Costa Rica, for an increase of 12.5%; or President Oscar Arias said that a regional development bank granted Costa Rica a loan of $850 million to help improve the country's infrastructure; or .........
I am always being asked how the continual negative real estate news from the States is affecting our business here. I tell the truth, maybe things are slower by about 10%-that's all. (August update-ok 15% slower).
Costa Rica is still unknown to many N. Americans and still has a tremendous allure to those that have never been here. The publicity surrounding the vast quantities of "Baby Boomers" who are active and interested in either retiring full time or half-time to Costa Rica is constant. Articles about vacationing in Costa Rica appear daily in my Google alerts about Costa Rica; and the overwhelming amount of articles are positive. But how's the market you ask? Will there be a glut of condos available that will drive down the price? The facts are that most of the beachfront condos currently under construction are sold out. Many are currently being "resold" at a profit, anywhere from 10-40%. The situation in the States is affecting us here, in that many developers here with new condos to sell will have to be more reasonable in setting their pricing! The "flippers" are accepting less than they had thought they might be able to charge for their investments of only one year ago--but there are still profits to be made. These are all positive signs for the moment because Jaco condos currently do not have the right to charge the same high prices as their Mexican or Hawaiian counterparts. Not yet!
A few weeks ago an investor from Florida was here that missed out on some tremendous opportunities a few years ago that I had shown him. He could have tripled his investment dollars. Instead he invested in Florida and is now suffering tremendous losses. He showed me his emails that everyday were touting liquidations of condos and homes with discounts from 30 to 50%.
How can I compete with that I thought? How do we in the real estate business in Jaco compete with the foreclosure hysteria in the States?
I have had time to reflect and the answer is Florida is in the United States, and so is San Diego and Padre Island and New York and Las Vegas. The minority of world travelers, second home purchasers, and international retirees will always seek out a place that is not in the United States. Costa Rica welcomes these visitors, inspite of all its problems, in a way that is rivaled by no other country. The "land of peace" the "Switzerland of the Americas" is indeed the most expensive place to live in Central America, but it is also the safest and closest to the U.S. with the best weather, great lifestyle options and most community support of other Ex-pats. In a world that is increasingly more unfriendly, more violent, more expensive, I have yet to hear a better option than Costa Rica. More thoughts-
Why is Jaco a great place to invest NOW?:
1. The new highway was started in Jan 2008 and will be partially finished-2009? reducing travel time from the airport to Jaco to under 75 minutes.
2. The hard work of the Jaco Chamber of Commerce, (www.cenpac.net) promoting real changes. Very few other international destinations have as strong a local-Gringo positive guiding force. They just sponsored Jaco's First Art Festival.
3. International travel and eco awards continuing to publicize Costa Rica and Jaco Beach.
4. Pricing that remains cheaper than other beach vacation and retirement destinations, especially when you factor in , no taxes on property gains, and best of all, annual property taxes of 1/4 of 1% annual of declared value. ($250 for every 100k).
5. The "boardwalk" or promenade will garner Jaco the positive international reputation it has been seeking since the town's renovation. Police and infrastructure changes are improving everyday.
6. The neighboring oceanview and beachside communities within 25 minutes of Jaco will become very desireable places to live for those that seek a mellower lifestyle. Golfing and boating fanatics will be overjoyed at the choices offered and other adventure enthusiasts will continue to appreciate their options.
7. Whereas many major hotels have been announced for the northern region, their land procurers will discover like I did, that the Central Pacific area is the place to be: a. better weather here than up north (6-10 degrees cooler). b. better availability of water for developers and locals alike, see our news section! c. easier access to and response from the local Municipality d. continual year-round tropical green e. the proximity to the nation's largest airport and capital San Jose is a real asset; after all this is a small country! f. greater availability of goods and services than any other beach community g. LOWER PRICES for almost everything compared to the north!
thats all folks, any comments-put them in the blog!
- Jaco Market Analysis July 31, 2008
-
Our Own Top Sales Executive Brian Smith responds to our favorite online thread, July 31,2008 http://groups.yahoo.com/group/CostaRicaLiving/ Although I agree to a number of things, I must take a moment to clarify the area where my expertise and knowledge are strongest, the Central Pacific.
1. Virtually dead RE market, prices dropping?.
Not here! We've seen price stabilization in the last six months, but no real price drops except on those properties that were clearly overpriced in the first place.
Our office is busier than same time last year. Other RE agents here tell me they have picked up the pace in the past several months as well. Probably 50% of our prospects are folks retiring in 5-7 years and interest is VERY strong in beach area properties. This percentage seems to grow every month. Even with a bad U.S.
economy, prices there for beach properties are astronomical! Mr. & Mrs. Average North American can afford something nice on or near the beach here that they can't get there...
2.) Stewart Title says "business is dying"? Perhaps that has more to do with the fact that international title insurance companies pay off so seldom on problematic titles. They won't issue it on anything that might be a problem and who would pay 1% for title insurance when the company does decide to issue it to them with virtually no chance to pay off on it?
3.) Prices are quite high, selling prices FAR below asking?. This is true in the Central Valley and Guanacaste in many cases. I can't believe the asking prices (especially new condos) in the Valley. For something similar here, the price is the same. The only difference is that it has ocean view and you can walk to the beach. This makes a 40%+ price difference in most places around the world, so
the Valley places are overpriced. Guanacaste is discovering that poor infrastructure and low water tables can't be hidden forever, that sooner or later the market takes note....
Here in the Central Pacific, selling prices are remarkably close to asking prices. In the past week our office has seen a $220K beach house go for $215K, a $195K new condo go for $192K and a Los Suenos home go for about 6% less than asking price. This trend of which you speak is not found here.
The only exceptions we're finding are those few "emergency" sales that are prompted not by the CR market, but rather for the U.S. market, particularly Florida and California. Investors losing their shirts in those markets are sometimes forced to sell off appreciating assets here to cover losses there....
4.) Inventories quite high?. In the Central Valley, yes, this is true. I know of several nice condo projects that were completed 3 or 4 years ago with something like 20% sold. Many of these Costa Rican builders believe that the waves of ex-pats are coming, so they keep building them. Common sense says to wait until 90% of these unsold condos are bought before building more.
Here in the Central Pacific, we get tons of requests for preconstruction sales. Folks want to lock in today's price. My own personal opinion is that more condos are not needed here. What is needed is single family homes in gated communities. There are few here and probably 40%+ of our prospects are looking for this sort
of property....
5.) Interest Rates Rising?. This is quite true. Is there anywhere in the world right now where they are not?
6.) Virtually impossible for prices not to drop, up to 40% corrections. In the Central Valley and Guanacaste, I think this is absolutely true. Here in the Central Pacific where a pure beach front 2 BR luxury condo can be bought for as low as $200K-$275K, I simply can't see a 40% drop! Did I mention that these condos come fully turnkey furnished and include all closing costs? I don't
believe that these condos will be worth just $150K in the near future.....
I have such confidence in the market here that I'm making an offer on a property next week. I feel that there is still some room to grow and that a rebound of the U.S. market will only feed this one. Sure, I'll ask the title insurance company if they'd issue a policy on this property. If they say no, I'll be real careful in my research. If they say yes, it will just give me more confidence in my purchase....
I'd be more than happy to show anyone the types of properties, comparables, selling prices, the market and more here in this area....
Brian L. Smith
CR Beach Investment Real Estate brian@crbeach.com
RE: Current state of real estate market... "the fact that the st moritz project, a very chi chi development near los suenos has shut down (for now) must say something."
I believe Mr. Lee is referring to the St. Regis development. Trying to sell 1 BR studio apartments with NO kitchen for $800K+ SHOULD lead to a shut down and it did here. I simply cannot see how that could possibly be an indicator of the current and near-future market place....
How about the newly announced high end project across the bay from Los Suenos that just started sales about 6 weeks ago? We heard they are moving well....
"in jaco, there is a glut of unsold beach codos, but the cranes (our new national bird) continue to pour more concrete"
I just spent an hour researching the numbers and found that less than 15% of all the currently existing and reasonably priced brand new condos are unsold. Naturally it is the way overpriced projects that are having difficulty selling more than 10% or 15% of their units. Also, presales have been excellent for reasonably priced condos as well. I believe that 15% unsold doesn't qualify as a
"glut" as a glut by any standard. Go to the Daystar office or Vista CR and get an update for yourself. They are the big boys in town some 10 beachfront projects.
What remains unsold are generally the grotesquely overpriced ones....
The proof is in the pudding:
Costa L condos (252 condos) have sold 20+ units in the month of July, about 30 remain available....
Ac sold four units this month, only three left....
Monte R, only one unit left....
Jaco Viage, only one 2 BR unit left.....
Vista M, sold out (38 units)
Palo B., just four units out of 38 remaining....
Ba Az, sold out (38 units)
Ba E, sold out (38 units)
Tr. Res, just three units remaining....
Dia. el Sol, sold out (72 units)
Presales are also doing well for at least 6 other projects currently under construction.....
Finally, if folks believe that these condos won't get sold or there is no market for them, think again. A lot of condos have come on line in the last twelve months. I defy you to come to Jaco, the single most popular beach in all of Central America, after Dec. 10 and try to rent one. Chances are you'll be staying in a hostel....
I think that to get a true understanding of the market, one must pound the pavement every day, look, listen and get the facts. Developers talking about slow sales in what is traditionally one of the slowest months for real estate sales doesn't surprise me a bit. Let's try this experiment again in mid-January 2009. That will be the true test....Respectfully, Brian L. Smith |
- The 'Right' Way to buy real estate by Brian Smith
-
"WHY would you use ANY Real Estate agent without checking
references?...CHECK OUT your Real Estate agent...Don't be scammed...deal with
reputable owners and agents...'showing fee' up front should tip you off...Don't
get ripped off"
I've been wanting to comment on the number of warnings about crooked or terrible
RE agents in CR for some time, now is as good as any I guess....
First, the "showing fee". I do know of several agents, particularly around
Escazu, that do charge a fee. I don't think it's necessarily a tip off about the
agent one way or the other. A poor agent might do that to try to make some
money. A great agent, very much in demand, however might see that as a
"qualifier" for prospective clients. With gas at $5 gallon, the cost of a
vehicle about double that of the U.S. and with parts and labor runarounds here,
it costs like double that of the U.S. to run a car. Since it is very apparent
that there are probably 5 times as many "tire-kickers" here as in the U.S.,
that's a LOT of time and money to drive folks around. Although I've never
charged anyone, sometimes I will bring up the subject to see what reaction I
receive. What I tell them is that if they pay $100 for a full day of looking, if
they purchase something, I'll give them back $200! A truly interested buyer
won't hesitate to say yes and that's all I need to
hear! If they say no, I let them know that I won't charge them, but I will be
looking for some sort of evidence that they are truly interested and capable of
making a purchase....
Less than a month ago I stood in line at Mas x Menos. A visiting couple were
with a woman who was clearly a long time resident. As I stood there, I couldn't
help but hear the woman laughingly tell the couple that if they wanted a nice
day of touring the coastline, they should find a real estate agent to drive them
around! Yes, sad but true, but these expensive times are changing lots of things
all over, including real estate....
You are right on the first part. I've been an agent for years and not a single
person has ever asked me to show my references. I can't think of a more
important thing to do for one of the most important financial decisions you'll
ever make.....
Here's FIVE EASY STEPS TO FINDING THE RIGHT AGENT:
Call 4 or 5 real estate agents in the area and ask them to name the best two
real estate agents they know OUTSIDE their own offices. Whatever name pops up
most often is likely to be your best candidate....go Google the agent's name and
see what comes up.....
Ask that agent to show you their CR cedula (ID) or work permit.....
Ask how long the agent has lived in CR (5-7 years minimum)....
Ask for a few happy customers to contact.....
Ask the friendly, helpful folks at CRL for their knowledge of said agent...
This should eliminate 95%+ of the bad/poor agents....
I don't tend to use CRL for advertising as I'd hate to see it degenerate into
just another advert forum, however I think that since I've been a member for
over 5 years and that I've made generally positive contributions from time to
time that I've earned the privilege of pointing out some important things about
myself:
I've lived in Costa Rica for over 10 years. I'm married to a Costa Rican and we
have a 3 year old son. I have full legal citizenship through naturalization with
the full right to work. In the past I've been a social sciences teacher and have
run my own business in Costa Rica. I've lived in the Central Valley and in the
Central Pacific areas for years and have travelled this country extensively. I
have a clean background, plenty of clients, friends and many others who've known
me here for years.
I've never had anyone ask me to prove any of this and yet I hear over and over
again about "bad" agents that have burned folks and I know that the vast
majority could have been unmasked with a few simple steps. But why hasn't that
happened? Probably because they are (in most cases) North Americans. North
Americans tend to want to help out their own kind. But what of the United States
itself? Isn't one of the biggest issues right now to do with illegal immigrants?
Some of these same folks who wouldn't dream of hiring an illegal immigrant at
home will literally run to one here!
When you deal with an "illegal", you are not only at risk of a problem with any
legal transaction, you're also at risk for a rip-off of almost any kind with no
real legal recourse. They don't have a personal stake here, most have no home,
no bank account, no phone in their name, no roots at all. They usually pay no
taxes, take advantage of all the benefits, avoid all the legal steps and
paperwork that those of us who want to remain fully legal must endure and they
generally give nothing back to the community. They can just disappear and pop up
later at a new location to start all over again. Longevity is the key factor
here.....
The other part of dealing with an "illegal" is that you are not only giving them
the chance to rip you off or mess you up somehow, you are perpetuating their
stay here in Costa Rica and paying them to boot. This leads to an appearance of
even more of their ilk. How honest do you think they really are? They are here
working illegally and you think they'll truly protect YOUR interests? They are
breaking the law, period.
I'm calling for a conscious movement on the part of CRLers and those they know
to start looking for the "legal" folks in every area of business and services.
These folks have EARNED the right to your support and to your business. They've
spent years of their lives and thousands of $$$ to do it right and they deserve
to be given first chance at making a living.
If you are legal to live and work here, a business owner or provide goods and
services, please let everyone know this. Making a living here is TOUGH and those
of us that have gone through all the malarky should feel proud to point this out
and ask for your business.
I'm here in the Central Pacific and I work hard every day to find great
properties and good prices for my clients and I do everything in my power to
protect their interests. I've spent years learning the language, the culture,
the economy, the government, the legal system and the RIGHT way to get things
done (granted sometimes it is SLOW). I've kept my nose clean and my shoulder to
the wheel, I'm a family man, honest, hard working and LEGAL. Somewhere out there
is somebody that really wants or needs what I have to offer. I ask you fine
folks to consider me if you have an interest in real estate in this area or to
recommend me to others who may be looking. I'd be delighted to show you my
credentials....
By the way, I found my job right here on Costa Rica Living! How's that for a CRL
success story!
- More tourists travel to Costa Rica in 2008 ... 17% more!
-
More Tourists
This year’s first quarter, the number of tourists increased by 92,000 - or 17% - compared to the first three months in 2007.
The overall number of visitors corresponds to those flying into Juan Santamaria and Daniel Oduber international airports.
According to Minister of Tourism Carlos Benavides, a majority of the visitors come from the United States, in spite of fears that recession in that nation would result in a decrease in the number of leisure travelers.
|
- Hounded by Costa Rica mass marketers?
-
Buying Costa Rica Land From The Telephone Boiler Rooms by Scott Oliver Sept 1, 2007
http://www.welovecostarica.com
Thousands of people who have bought land from the dozen or so companies that send out millions of emails per week and then have someone in a boiler room in Florida or California beat you to death on the telephone to "close" the sale are now waking up to reality and realizing that their land is not at all easy to sell...
As far as we know, it's not illegal for a high-pressure salesperson in the USA - many of whom have never even set foot in Costa Rica - to sell you land in Costa Rica using this method, but it's just not a smart thing for you to do, especially buying land in a foreign country without seeing it first and doing your homework.
We've been writing about Americans selling land in Costa Rica by this high-pressure method for about five years now and even though there are about 20 different projects that we can think of with thousands and thousands of acres of land and, from what we are being told, during this time there have been less than 20 homes built in all of the projects combined.
One problem that people did not expect, having listened to their salesman tell them that they could buy the land, split it into two and sell off one lot to pay for their new home - Yeah right! Is that most people who have wanted to sell their land have been unable to do so.
Buying Costa Rica Land Is Easy - Selling May Not Be.
Why can't they sell? Because there is no open market for this kind of land...
Who are you going to sell it to? If you are really lucky, the company that sold it to you 'may' buy it back from you and resell it but why would they want to buy it from you to resell your land to one of their customers with a tiny mark up when they can sell their own land with a stratospheric mark up and huge commissions to that same person?
Nobody else in the open market wants it... It's an artificial closed market where the price action is determined by the marketing people.
The reason this land increases in price is NOT because of supply and demand, it's not because people are banging on their doors to buy it, contrary to what they may insinuate and what their email marketing campaigns show - this is not prime ocean view land - the only reason their land prices increase is because they increase them. Simple.
Buy Now Before The Price Goes Up!
You see it's always useful for a salesperson to have a 'sense of urgency' so if they have a regular price increase, it makes it appear that this land is in demand and, the salesperson can genuinely say that: 'You'd better get on board now because prices are going higher at the end of the week" before he pockets his double the industry standard 10% sales commission...
And please remember when the next Costa Rica land salesman calls that the #1 focus for these companies is to sell you land for a much higher price than they paid for it so that they can make money.... They don't give a damn whether you can build your dream home on that land or not.
Some of them claim that they will help you build your homes but since we have seen less than 20 built in the last five years, this promise does not sound promising.
From a recent WeLoveCostaRica.com Discussion Forum thread:
"When he first went there, some dude called Flores said they would build his home for $90 per square foot and that construction price would be rock solid for two years when he planned to build his home which was one of the main reason he bought a land there. Then only five months later (not two years) they tell him the construction costs would not be $90 per square foot but $130 and he is real mad because for his house plan which is just about 2,500 square feet that's and extra US$100 grand he has to find and they lied about the roads which they said would be brick pavers but are now going to be asphalt and he don't believe them much about anything anymore."
Are these boiler room salespeople lying to you too?
Martin Gill mentioned that; "... we do get guys asking us to re-sell their lots..." and..."The big problem is that these developers sell this as an investment and people think that they can flip their lots and make money, but they forget that there are 2,000 lots just like the one that they have." And "unless you have an awesome ocean view the homes will be hard to sell." If They Don't Build It For You, Who Will?
And if they don't build your home for you, who will? Because if you are thinking of building a single family home anywhere in Costa Rica from a distance, may we politely suggest that you rethink that idea...
We get emails every week from people saying they bought lots in one of the 'Sold-Me-Hard Projects' and could we recommend a Realtor to help them sell their land. Unfortunately, my response always goes something along the lines of: "Sorry we have already asked our recommended Realtors to see if any of them would be interesting in helping you out but there is not one single Realtor that I know of in Costa Rica who is remotely interested in selling your 'Sold-Me-Hard Projects' lot and would be surprised if you find one..."
These land promoters make it difficult for their potential buyers to visit the land they are trying to sell them - unless they have already paid a big deposit BEFORE they have seen it (??) - so how difficult do you think it is for an outside Realtor to gain access?
Depending on the overall market conditions, land can be a very illiquid investment, meaning it can be difficult to sell in a timely fashion but when your Realtor can't even visit it, it's impossible to sell.
If you are planning on buying land in Costa Rica and wish to invest your money where it has the highest probability to make you money with the lowest possible risk, I would suggest that the next time you hear from one of these boiler rooms, you tell them that you are not interested and hang-up.
Instead, find yourself an experienced, trained Costa Rica real estate sales professional, like CR Beach agents, that will sell you the land you want, often with the developer living on the development and, when the times comes, he or she will also be happy and proud to help sell your land for you...
Written by Scott Oliver, author of How To Buy Costa Rica Real Estate Without Losing Your Camisa and Costa Rica's Guide To Making Money Offshore. © 2007-2008 WeLoveCostaRica.com All Rights Reserved. Reproduction without permission prohibited.