Jaco Beach Costa Rica Real Estate investments

Luxury Tax Opinion rendered by Owner-Broker Jeff Fisher

Jeff Fisher — Sun, 13 Dec 2009 21:15:00 GMT

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...(read more)

UNBIASED POSITIVE REVIEW OF COSTA RICA

Jeff Fisher — Tue, 24 Nov 2009 21:34:00 GMT

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...(read more)

FIRESALES IN JACO, COSTA RICA, really?

Jeff Fisher — Tue, 24 Nov 2009 21:29:00 GMT

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!

Jeff Fisher — Thu, 21 Aug 2008 15:53:00 GMT

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...(read more)

Jaco Market Analysis July 31, 2008

Jeff Fisher — Thu, 21 Aug 2008 15:39:00 GMT

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...(read more)

The 'Right' Way to buy real estate by Brian Smith

Jeff Fisher — Tue, 10 Jun 2008 15:30:00 GMT

"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"...(read more)

More tourists travel to Costa Rica in 2008 ... 17% more!

Jeff Fisher — Wed, 30 Apr 2008 16:06:00 GMT

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...(read more)

Hounded by Costa Rica mass marketers?

Jeff Fisher — Thu, 06 Mar 2008 13:15:00 GMT

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.

Still Hot Market?

Jeff Fisher — Thu, 06 Mar 2008 13:10:00 GMT

South of the Border,
The Market's Still Hot
Americans Find Second-Home Boom Endures; Wildlife in the Neighborhood By JUNE FLETCHER December 14, 2007; Page W12
The housing slump has sent many Americans shopping south of the
border. Existing-home prices in the U.S. dropped 4.5% in the third quarter from a year ago, according to S&P/Case-Shiller. But they are still climbing in much of Latin America and the Caribbean.

Buyers are being enticed by the kind of double-digit
appreciation that has all but disappeared in the States. In
addition, a growing number of new developments are targeting
Americans looking for good deals and a lower cost of living.
Since 2003, annual home-price appreciation has been running at
20% in the Dominican Republic, and could reach 50% in the near future, according to Boomerang Unlimited, a Napa, Calif., real-estate investment advisory firm. In San Pedro, Belize, the average price of a 2,200-square-foot home was $697,500 in September, up 18.6% from a year ago, according to a study by Coldwell Banker; the price of a similar property in San Jose, Costa Rica, was up 20.7%, to $389,900, the study said.
Prices remain low compared with those in the U.S., particularly for waterfront properties. Because Americans generally buy and sell properties throughout the region in dollars, not the local currency, home prices don't fluctuate with the various exchange rates, as is the case in Europe. What's more, the dollar generally buys much more house in these countries than it does in the U.S., because labor and land are less expensive.

LIKE FLORIDA IN THE '50s

Still, the rapid appreciation is drawing growing numbers of bargain hunters, making good deals scarcer and causing some customers to look beyond the usual vacation hot spots. In the Dominican Republic,

Century 21 broker Dean Brown says that 80% of his buyers this year have been Americans, compared with half last year. Softec, a real-estate consulting firm, says in the past three years, investments in vacation homes in Mexico, primarily by buyers from the U.S. and Canada, have shot up by 60%.

Americans' appetite for investment opportunities is helping to spur a building boom in some areas. In Panama, 170 residential-building projects are under way, mostly marketed to Americans, and 100 more are in the pipeline, according to Panama Legal, a law firm based in Panama City.

Among them, a 1,500-acre resort and marina by Naples, Fla.-based developer Todd Gates. The project, on Isla del Rey, one of the Pearl Islands near Panama City, is slated to open in 2009 and will have condos, villas and singlefamily homes ranging from $275,000 to $1.4 million. "It's like Florida was in the '50s," Mr. Gates says.

Some buyers are buying sight unseen. Shams Deitrick, a Walnut Creek, Calif., financial adviser, recently bought a furnished, two-bedroom "ocean view villa" for $375,000 in Canto del Mar, a new 35-unit development in the southern Costa Rica town of Dominica; the project has already sold out. "All I saw was the Web site, which showed a sloth 30 feet from the unit, and monkeys everywhere," Mr.Deitrick says.

He snapped up the home on the advice of a gym buddy, who said his own Costa Rican properties have quadrupled in value over the past four years. Although Mr. Deitrick isn't looking forward to the daylong flight to Dominica when he visits for the first time in February, he says he's glad he bought the property: "It just doesn't make sense to buy in the U.S. right now."

BARGAINS, WITH TRADE-OFFS

Preston Thompson, a retired Clearwater, Fla., hospital administrator, hopes to make some money in the Dominican Republic as a "serial renovator," moving into homes, fixing them up, and selling them. In

July, he bought a 2,100-square-foot house for $265,000 on the beach in Cabarete, quickly added $50,000 worth of improvements, and put it back on the market for $489,000. If the property sells, he and his wife plan to repeat the process.

Getting the house ready to sell hasn't been as easy as he anticipated, however. Subcontractors were hard to find -- only one firm in Cabarete (population about 15,000) could do granite countertops, for example

-- and the quality of their workmanship was "hit or miss," Mr. Thompson says. Worse, neither he nor his wife speaks Spanish, which made communicating with the workers difficult. He's also concerned that

Americans may be turned off by local health-care facilities, which he says are very modest. For all of its current popularity, he says, the Dominican Republic is essentially still a developing country. "You have to put up with inconveniences," he says.

Earlier this year, Geoff Folsom, a Thousand Oaks, Calif., businessman, bought a 4,500-square-foot oceanfront penthouse, with its own private swimming pool, in Trump's Ocean Resort in Playas de Tijuana, Mexico, a 30-minute drive from San Diego, Calif. He paid $3 million for the property, about half the cost of similar resort units he looked at in the States.

Property taxes and maintenance costs are lower than in the U.S., too.

There are trade-offs, he says. The mostly undeveloped area outside the development's gates has few restaurants and hotels, and Mr. Thompson is concerned about recent news reports of armed robberies on nearby roads. Still, he anticipates that, as the area develops, appreciation rates will exceed anything he could get in the U.S. "You get so much better value south of the border," he says.

There are additional downsides to buying in this part of the world. The weather can be violent and unpredictable: Last month Hurricane Noel slammed the Caribbean, causing floods and mudslides, and

leaving 147 dead. And insurance to protect against natural disasters, including earthquakes, may be impossible to obtain.

In addition, many foreign real-estate brokers are unlicensed and don't necessarily adhere to the business standards that Americans expect. Some, for example, encourage sellers to raise their asking price after

American buyers have made a full-priced offer, even if no other bidders are involved. Plus, not every place is a boom town. Seasoned real-estate brokers say that to be successful, developments need at least some amenities and should be within an hour's drive of an international

airport.

Cuxlin Ha, an 80-unit riverfront retirement community in Punta Gorda, Belize, near the Guatemalan border, is about 300 miles from the closest international airport, although a small "air taxi" airport is eight miles away. On the development's Web site, house hunters are warned that "this is not an area that promotes exciting night life and wild times (unless you're a jaguar or a howler monkey)." Buyers apparently have taken the hint: Although a three-bedroom, fully-furnished 1,350-square-foot home sells

for only $100,000, only two buyers have stepped up since the project opened two years ago. "People want a more touristy area," says Bob Prehall, the Roseburg, Ore., broker who's selling the project. But if a place does draw tourists, Americans are willing to travel long distances to buy there. Shaun de Jesus, a San Francisco derivatives sales manager, bought a three-bedroom condo in Punta del Este, Uruguay, three years ago for $120,000, then got a distress-sale deal on a two-bedroom condo in the same town for $90,000 six months later. On the southeast coast of Uruguay, about 90 miles east of Montevideo, the beach town -- which has its own international airport -- has a year-round population of 7,300 that swells with vacationers in the hot months of December and January.

Since he bought the properties, Mr. de Jesus received an offer of $150,000 on the first unit, and $170,000 on the second.

But he's not selling. Even though he gets down to visit only two times a year, he says he is pleased with the units' low maintenance costs and the high rents they pull in when he's not around. In fact, he's now looking for another good deal. "If something comes up, I'll jump on it," he says.

URL for this article:

http://online.wsj.com/article/SB119758837723028177.html

Why Jaco beach Costa Rica real estate is a smart investment strategy!

Jeff Fisher — Sat, 27 Oct 2007 23:45:00 GMT

My very first published letter as to why it's very smart

to invest in Costa Rica real estate, and especially Jaco beach!

A.M. Costa Rica

San José, Costa Rica, Friday, June 23, 2006 Vol. 6, No. 124

Dear A.M. Costa Rica:

Well I think I was either too sarcastic or not sarcastic enough since I received a lot of emails today asking if I was really leaving Costa Rica after 13.5 mostly glorious years. Would you be so kind as to publish another letter from me?
I will admit that I am a real estate Broker (now, Costa Rica Beach Investment Real Estate), 9 years in the business, mostly in San Jose, but the past few years in Tamarindo and Jaco. I moved from Tamarindo for a number of reasons, but mostly because as a full time resident, life is much easier when the big city essentials are less than 2 hours away and not 6.

My analysis of Costa Rican real estate BEACH prices is determined by what has happened to other international beach hotspots, enduring various boom-bust cycles. What determines fair market value in any situation is to check "comps" (comparables) and in this case, those beach communities that can offer to the North American retiree/adventurer a place to purchase for investment, rental income, or a new way of life.

Without delving into lifestyle issues and comfort zones found for the typical N. American seeker, we must first start with travel time from the United States/Canada. Obviously, the closest places are the Caribbean, (foreign residents subject to island fever) and Mexico, (personal safety issues and lack of 100% title). We also have to rule out Guatemala, El Salvador, Honduras, and Belize, though each place has something unique to offer for a week or two, to live or invest in these countries for a long period can be perilous. Nicaragua has been attracting more super adventurers as of late, but I have little respect for Nicaragua's political smarts (oxymoron?). Panama is probably Costa Rica's stiffest competition, but that's still a secret, and it's too damn hot. So that leaves Costa Rica as the nearest, safest, easiest to adapt to foreign country closest to the United States for residents and investors alike.
How high can prices go you ask? Go to google and type in Cancun or Puerto Vallarto beachfront condos for sale.

Try to compare condos that are not in towers that are 20 stories tall (I would prefer a building limitation of 7 stories here in Jaco!). With Mexico, remember, no foreigner gets 100% ownership-fee simple title and Punta Cancun Beach front Condos, are being offered between $480,000-$700,000. Are Costa Rican beachfront condos with title worth the same amount or 30% less than Cancun? One can play these games with google with Hawaii (much more expensive), the Caymans (bet there's more former residents of the Caymans living here than the reverse) ad infinitum.

The point is that Costa Rica now enjoys a very favorable image within the United States, Canada, and Europe as both a place to live and as an investment opportunity. Of course buyers have to use their head- booms come and go, as sometimes markets get saturated with product for a short time, but in a world renowned locale, prices are
usually justified and will continue to rise, maybe not as quickly, but comparable to other places. Just remember, this ecologically renowned little Switzerland of the Americas hasn't yet come close to being as famous as other hotspots. Invest now because prices will continue to rise, just don't be stupid, check and compare. Thanks for listening.
Jeff Fisher - Broker-Owner CR Beach Investment Real Estate,
jeff@crbeach.com

UPDATE: It's now August 20th, 2007 and Hurricane Dean is close to wreaking havoc again in Mexico's resort area of Cancun. Again I am thankful that the Jaco area of Costa Rica receives very little of nature's wrath. Last week we had our first tsunami warning, thanks to the 8.0 Peruvian quake, but this was more a preparation drill by the CR Emergency Services than the real thing. Less than 2 hours later, the warning was rescinded.

A little internet research comforted me to know that the last tsunami to hit Costa Rica was in 1854, and it was in the southern region of Costa Rica. Remember, the hills are only seconds away!

We are often asked what type of natural disasters Costa Rica is most vulnerable to, and the answer for the Jaco area is: some minor earthquakes, occasional minor flooding,(not as severe as tonight's news about floods in many U.S. cities), but thankfully NO HURRICANES. The major complaints of most foreigners that live here range from the occasional power outages (how romantic?) and weak cell phone signals (how frustrating!) to the typical rage against government bureacracy and ineptness. Most complaints have to do with the newest restaurants' prices for shrimp cocktails!

Real Estate Market Update: Soon we will start the third year of the "boom" for the Jaco Beach area and finally prices are stabilizing after shooting up dramatically. As friends of mine from Florida and California tell me, the beachfront is still a deal, even at $135 sq.ft. This is difficult for long time residents like myself that remember when..., but I know and experts agree that the Costa Rica real estate market still has many years left before there is a major correction. There are plans for at least 5 more towers in Jaco, some over 20 stories (they didn't listen to my 7 story limit!), so yes, Jaco's future looks more like Puerto Vallarta everyday. This can be great for "smart" real estate investors, and developers, and fun seekers! Don't like crowds? Live 10 minutes away and it feels like a whole new world, with forests, and mountain breezes!

What about Baby Boomer retirees? Well personally I would love for some developers to call me and look at those properties that would be perfect for developing Costa Rica's-beachfront-active-Baby Boomer communities." There is a need for more homes in this area in well designed gated communities at all price points. They can either be beachfront, or close to the beach, or with large lots with fantastic ocean views, but the key words are community. Not just, here- enjoy your community pool and barbecue area, but all kinds of activities; physical, mental, cultural. A community center on the premises with all kinds of classes- spanish, dance, yoga, cooking; wine tastings, sushi gatherings, backgammon, and outdoor areas; for horseshoes, croquet, lawn bowling, putting green, volleyball, etc., etc. You get the idea, active Baby Boomer activities, who will eagerly come to Costa Rica for six to twelve months at a time, not just six weeks. After 14 years, I still love living here; call me and let me know what you think.

Thanks,

Jeff. (Happily living 200 feet from the always beautiful, occasionally dangerous waves of Hermosa, 8 minutes south of Jaco). *I also did guess right about Nicaragua...