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April 18, 2009  Why a FireSales page?

by Jeff Fisher, Owner-Broker CR Beach Investment Real Estate

 

Why?-because you asked for it!   So many clients from Florida and California, Vegas and Phoenix, coming in and asking what are our best discounted properties. We watch the U.S. news stations here, and we know whats going on in the States, but almost never do we get a million dollar property selling for 60% off, as those other places. We will gladly inform you of price drops and new listings once you have registered with any of our registration forms. I personally feel that its better to buy the property of your dreams now, than purchase something with a worse view, or further from the beach later just to save a little more.  This is one of those rare moments, all the experts say, when its prudent to purchase. Don't wait for our market to bottom out, because the Jaco area is better suited than any other in Costa Rica, or the Caribbean, or Latin America to appreciate in value. If I didn't think so, I would move immediately to that other place. I love it here!

How will Costa Rica weather the Global Economic Turbulence in 2009?      

Tom Rosenberger   February 6, 2009 from Costa Rica Living Board

 The global financial crisis is being felt in Costa Rica, but not as dramatically as in the United States, Europe and elsewhere. Costa Rica is one of the major destinations of direct foreign investment (DFI) and is #1 in Central America according to the 2008 report of the United Nations Conference on Trade and Development.

The chief executive of Costa Rica's central bank, Francisco Gutierrez stated that the country should not experience major economic impact from the global financial crisis that is presently affecting most world markets. Costa  Rica has minimum involvement in international securities markets and the state banks maintain substantial reserves and tangible investments.   

 The International Monetary Fund (IMF), found that Costa Rica is in a significantly better position to respond to global economic shocks now than in the past, thanks to a marked improvement in public finances, sizable foreign exchange reserves, steps taken toward a more flexible exchange rate process and measures adopted to strengthen the financial system.

 Furthermore, the Costa Rican stock exchange has not experienced any major changes as a result of the turbulence affecting world financial markets. The chief executive of Costa Rica's stock exchange, Jose Brenes, asserted that no major effect has been felt locally because the local exchange concentrates on fixed-yield, debt securities, and not shares of public companies that have been degraded in most global markets.

Filling the USA trade gap in Asia and Regionally

Costa Rican is less dependent on the U.S.A. for exporting its products than in the past. This is because of the increase in sales to Asian, Central American and Caribbean markets. Exports to the U.S.A. went from 47% in 2003 to 35% in 2007, according to data released in August 2008 from the Promoter of Foreign Trade (PROCOMER).

However, the U.S.A. remains the leading destination of Costa Rican exports. Last year, Costa Rica exported a total of $9,343 million in products, 35% to the U.S.A., 21% to Asia, 21% to Central America and the Caribbean, 15% to Europe and the 8% to other destinations.

 With the U.S. economy continuing to show weakness, Costa Rica is increasingly betting on Asia to fill the trade gap. Costa Rican exporters have developed new business partners in China, Japan and India, while Asian companies, in turn, are boosting their exports to Costa Rica. Trade between the regions should keep growing thanks to a combination of factors, including growing demand for other products in various Asian markets, more demand for Asian products here, and an increasing number of bilateral free trade agreements.

 Recent Economic Statistics

  2. Inflation: The IMF predicts 13% inflation in Costa Rica during 2008. The Costa Rica Central Bank predicted 14.2% inflation this year. During first three quarters of 2008, inflation was 11.83%. In 2009, both the IMF and the Central Bank agree that inflation will be 9%.

 3. Production: According to the Central Bank, production has increased 3% in August as compared to the same month last year. This increase reflects the annual variation of the Monthly Economic Activity Index, which records the goods and services made or provided in Costa Rica. This index indicates that production has slowed down since early 2007 when it increased to almost 8%.

 4. Competitiveness:  According to the 2008 global competitiveness index, published by the World Economic Forum, Costa Rica has improved four positions, from 63rd to 59th. This increase indicates that in Latin America, only Chile (28th), Puerto Rico (41st) and Panama (58th) improved greater than Costa Rica.

  5. Unemployment: The most recent report from the International Labor Organization (ILO) points out that Costa Rica has the lowest rate of unemployment in Latin America and the Caribbean.

 Costa Rica has finally approved the Central American Free Trade Agreement (CAFTA). Recently, Costa Rican lawmakers approved the final law necessary to implement the agreement and it is now scheduled to take effect on January 1, 2009.

 Continues to attract multi-national investors.

Hilton, is building new projects and expanding their presence in Costa Rica, with plans to open 150 new hotels in Latin America during the next five years.

 Sykes, opened its first Costa Rican call center in 1999 with the purchase of Acer Information Services of Heredia. Now the company, which is a group of global businesses delivering business process outsourcing services, plans to add 630 new employees. Currently, SYKES has 2,500 employees, 2,370 of whom work at its facility in the Global Park Free Zone in Heredia. The additional employees will be working at a new $4 million facility in Moravia.

 Intel Corporation, the multi-national company employs hundreds of local engineers as well as other workers needed to maintain their huge facility in Belen, Heredia. Intel is now launching five new computer processors that have been assembled here by Costa Ricans. The new processors, three for servers and two for PCs, operate faster than their predecessors, and will be on the market worldwide in the near future.

 Procter & Gamble announced it has contracted with 100 professionals and is looking forward to hiring 150 more bilingual business experts to fill out the staff of its strategy center that it will open at their offices in the ForumBusinessCenter in Santa Ana, Costa Rica. Proctor & Gamble already has about 1,000 persons working in its Global Business Services center, which manages supply, accounting and finance here for its Latin American  operations. The purpose of the center is to come up with ideas to increase the efficiency of the company's operations on the continent. Procter & Gamble's Costa Rican business center represents a $60 million investment, and occupies four 4-story office buildings and it's already the largest of three new Global Business Service centers worldwide (the others are in Europe and Asia). GBS Costa Rica currently employs 650 people and expects to reach 1,200 bilingual, college-educated employees.

 Amazon, the world leader in internet sales, is opening its first Latin American customer service center in Heredia, Costa Rica this year. The online retail giant will employ 300 full-time representatives, and 400 seasonal workers will be hired during the holiday season so the facility can provide efficient phone and e-mail support for its customers. 

Costa Rican tourism is growing, in spite of the global crisis. Tourism is up 10% in the first nine months of the year 2008, and in December arrived their 2,000,000th visitor. for 2008.   Since Costa Rica attracts worldwide interest, to a certain extent it is insulated from economic problems in the real world.

 The facts speak for themselves:

Costa Rica is an emerging economy that continues to attract multi-national companies relocating and growing their businesses here as well as international investors that have found it to be an economic safe haven.

Since 1992, I have been fortunate to live and work in Costa Rica. I have adapted to the Tico culture and adopted their language. Additionally, I have encountered many challenging situations here over the last fifteen-years. With over 25 years of business experience, I write about subjects that are interesting to me and of interest to those who seek my advice-Tom Rosenberger - www.CostaRicaHomeBuilder.com - 506-8354-1989  

Quick thoughts as to why I am still optomistic about Jaco! by Jeff Fisher, Broker-Owner CR Beach Investment Real Estate April 6, 2008 

Hello from my beautiful semi-beachfront bungalow home in Playa Hermosa, just 8 minutes south of Jaco. I just got done posting  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!  

I am always being asked how the continual negative real estate news from the States is affecting our business here. I always say the truth, maybe things are slower by about 10%-that's all.  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; today I received articles from Modesto California and several blogs describing what an incredible country this is.

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! 

Jeff Fisher Owner-Broker CR Beach Investment Real Estate  April 6, 2008

  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....

B. L. Smith

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

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When and why it appears Sustainability, as a model for development, establishes the need to satisfy the requirements of today's society without making it impossible for future generations to satisfy their own. Basically, this means that the development of a country cannot be achieved by the unrestrained exploitation of its resources (natural, cultural, social, etc.) to the point of extinguishing or destroying them, seeking to fulfill the needs of the present population (food, housing, health, work, etc.), without recognizing that these resources are the only platform, or potential asset, that the future generations of this country will have to meet their own needs. For tourism, sustainability is not only a response to the demand factors of the industry, it is an indispensable condition to be able to compete successfully and, even more important, to be able to survive over the long run. The ever-deteriorating The classification criteria utilized by this program is worthy of exportation. Our commitment to the future generations demands the implementation of this initiative.   Mauricio Ventura Aragón, President of The National Tourism Chamber (CANATUR)   world ecological and social crisiss have had a significant impact on human consciousness and, therefore, have also seriously impacted the accelerated growth rate that environmental tourism experienced in the past decade, to the point that it has meant a significant change in the habits and expectations of the world's tourists. Unfortunately, in the last decade we paid most of our attention to the ecological aspects, but very little to the implications of the impact that tourism has on the quality of life and on the sociological heritage of the communities that are directly affected by this industry. It is time to change the tourism tide to a more integral one, namely, a sustainable tourism.   As we look at these changes in the expectations of the tourists, we notice how each day they are demanding a more active, more interactive tourism, with greater respect for the socio-cultural and ecological interests of the local communities, with higher standards of service, and with the ability to protect and regenerate the natural environment as well as to learn about local customs. Of course, all of this must include a high level of enjoyment of their hard earned vacations. At present, we are confronted with a new set of rules for the demand/offer factors in the industry, where it is clear that the unwarranted alteration or destruction of resources (natural, social, cultural, etc.) which constitute our attractions and tourist products, will inevitably mean the destruction of tourism as an economic activity. Likewise, it is not only the tourists, but also the potential investors, who are selecting with great care the companies or projects in the tourism field in which to invest their funds, seeking out those that act in harmony with the social and ecological interests of sustainable tourism. If we add to these two factors the fact that tourism is a demand driven industry, we can easily understand why these changes are having a transcendental repercussion on the tourism product that is being offered. This is why we can clearly state that "Tourism in the XXI'st Century in Costa Rica will be sustainable or it simply wont be!" The process of Certification for Sustainable Tourism constitutes an excellent alternative in the field of tourism development, not only taking into account aspects of the tourism infrastructure, but also considering social, cultural and patrimonial aspects of community.   Licda. Ana C. Arias Quirós, Anthropolgy and Sociology, School of the University of Costa Rica   In summary, we define sustainable tourism as the balanced interaction of three basic factors within the tourism industry: 1- Proper stewardship of our natural and cultural resources; 2- Improvement of the quality of life of the local communities; and 3- Economic success, that can contribute to other programs of national development.   It is also a source of concern that sustainable tourism is a concept which is only beginning to be developed, and that it does not yet have a solid reference base or measurable parameters that are appropriately established and universally accepted. This has permitted a significant number of companies to take advantage of the growth of sustainable tourism in an irresponsible manner and thus incur in what we call "Greenwashing", or a commercialization of a tourism experience that does not comply with the reality of the experience provided to the tourist when he/she reaches the destination. The immediate effect of this unethical behavior is to generate a great deal of mistrust on the part of the consumers about the products being offered, with very serious consequences for the whole industry. For Costa Rica, a country that has emerged as a leader in sustainable tourism and has very successfully projected itself in this field, the above problem is of strategic importance to its future. It is precisely to contribute to find an integral and global solution to this problem that we propose the immediate implementation of the Certification for Sustainable Tourism program, known by its initials "CST". This program is an institutional initiative inserted within the National Strategy for the Development of Sustainable Tourism, and is part of the government's national and regional programs which seek to move the model of development of our country closer to parameters of sustainability. The main objective of the CST is precisely to turn the concept of sustainability into something real, practical and necessary in the context of the country's tourist competitiveness, with the aim of improving the way in which the natural and social resources are utilized, to motivate the active participation of the local communities, and to support the competitiveness of the business sector. [ Back to Top ] I

Friday, September 07, 2007     The Beach Times

US Housing Crisis Not Affecting Costa Rica

The crisis in the US housing and financial markets, already spreading to Germany and Japan, is not expected to have a serious impact in Costa Rica, experts said this week.

Despite concerns with a record number of Americans set to lose their homes to foreclosure and house prices getting lower all the time, the general consensus is those buying in Costa Rica are not likely be greatly affected.
“I am under the impression that the foreign investor that comes to invest here in Costa Rica is precisely that type of investor that already has enough buying power, and has already resolved his housing situation and has come here to have a beach home, or a home in the mountains,” Finance Minister Guillermo Zúñiga told The Beach Times in a phone interview Wednesday.

“That is not the investor that would be affected by this situation.”

Should the current woes compound as far as to “affect the dynamism of the North American economy, and the real economy,” Mr Zuñiga said, “this could have an impact on the demand for our products, and that would have an effect.”

The problem, say economists, began with what are known as sub-prime loans — loans given to people who have poor credit. Many of those loans are adjustable rate, meaning the lender can change the interest rate. As those rates have climbed in recent years, many borrowers have been unable to meet payments, defaulted, and left the banks holding property, rather than money.

The business of repackaging debt to be traded in financial markets has meant the problem has had a wider effect, and the lack of payments has caused a shortage of money in the system, leading to a “credit crunch” and making it hard for some to get loans.

However, Mr Zúñiga says there are no signs that Costa Rica is, or will be hurt by these problems.
“I would not expect changes in what is happening in our country,” he said. “The foundation of our economy is solid, and the financial situation is very solid.”

In the first three months of 2007, mostly American foreign investors and homebuyers bought at least $192 million worth of property, largely in the provinces of Guanacaste and Puntarenas, according to Costa Rica’s Central Bank. That is nearly triple the $70 million registered in the same period in 2006.

Mario Solano, a Central Bank economist that worked on the estimate and tracks foreign investment in Costa Rica, said this week that the bank had not yet studied whether the crisis was affecting the country, but said, “Costa Rica could be affected, but not in the short term.”
The US Embassy also said it had no information on the possible effects in Costa Rica.

“I think the state of the US housing market will have an affect on others, but it has not been felt yet in Costa Rica,” said Ana Saboría, CEO of the Guanacaste tourism development, Reserva Conchal. “I don’t think it will be as radical an affect as in the United States. I don’t think it will reach the point where it is a pricing issue.

“It will probably mean that people will have to go for quality in their buildings, to make sure they can make a difference. If, as a developer, you don’t start with a base, with a large base and a good product, then you might have trouble,” she added.

Cynthia Durán, president of the Costa Rican Global Association of Realtors, said: “Right now, it is difficult to measure how it is affecting Costa Rica, because we are in the low season, and we know that, with the lower tourism that comes in during these months, sales fall.”

“We have been analyzing this a lot, and we have to give it a few months so that we can compare this low season to last year,” she said. Long-time Guanacaste realtor Les Nunez, said he recently asked an audience if anybody had been affected by the crisis. Nobody said they had.

“The scuttlebutt amongst us area realtors is if its going to effect us we haven’t really seen it yet. Is it going to trickle down? I imagine to some degree,” Mr Nunez said.

“If the thing sneezes we catch cold. But if their market gets decimated, maybe five or ten out of a hundred won’t be able to come down here and do what they want to do.”

Jeff Fisher, of CR Beach Investment Real Estate in Jacó, said he believed those buyers that are now unable to get financing in the U.S., to come buy property in Costa Rica,  would be balanced out by the new buyers.

“The other half will look at Costa Rica as an exciting alternative. They’ve lost optimism about financial gains in the United States and know Costa Rica is booming,” he said.

Mr Fisher wasn’t the only one to say the current situation could possibly bring benefits to Costa Rica. Finance Minister Zúñiga said that if the US Federal Reserve cuts interest rates to help out the market, that could result in lower rates in Costa Rica.

Antonio Echeverría, a Loan Officer with Banco Improsa, and who formerly ran his own Mortgage Broker service, said he believed the slumping market in the United States is already driving US lenders to Costa Rica.

“The housing market in the United States has fallen and financial companies are coming here. It’s not a prediction, it’s a fact,” he said.

Other effects could be that in the Costa Rican economy, interest rates are falling and becoming more and more attractive.

“Banks are offering very low interest rates due to the high volume of real estate and construction in the country. With the arrival of gringo companies, it will be even more competitive,” he said.
With downward pressure on interest rates, and the arrival of more lenders, could Costa Rica eventually tread on the same unstable ground that is sending the US into problems now?
“Because Costa Rica is rising now doesn’t mean it will be that way forever,” Mr Echeverría said. “They have to be very careful not to fall in the trap of basing on adjustable rates. Those are favorable for the banks, but only as long as the debtor can meet the debt.”

S4 | CENTRAL PACIFIC SPECIAL SECTION | THE TICO TIMES – August 24, 2007

Condominium Boom Turns Upwardly Mobile

By Peter Krupa

Tico Times Staff

They say these days that the construction crane is China’s national bird. But by all appearances, that exotic species is migratory, and at the moment it is making a stop in the central Pacific beach town of Jacó.

Just glancing out her office window in the center of town, Catherine Fitton, one of the owners of Jacó Beach Premier Realty , said she could count six of the gangly beasts, lifting and swiveling and dropping to build the hottest thing going at the moment: high-rise condominium towers.

Of course, in Jacó anything more than eight stories counts as a high-rise, Fitton said. But more than a dozen of the projects are either preparing to build or already under construction.

“Everything really took off within the last two years,” Fitton said. “(We) went from very little inventory to condos in the thousands.” It’s a phenomenon that’s rearing its head from Playa Herradura, just north of Jacó, all the way to Quepos, 60 kilometers to the south. Condo developments are booming.

They’re big.

And they’re selling.

“When people ask whether Jacó can sustain all these high-rises, the truth of the matter is they are at least 70% sold out,” said Jeff Fisher,  the owner of C.R. Beach Investment Real Estate,  www.crbeach.com).

Take Diamante del Sol, for example, a beachfront development undertaken by DayStar Properties.  The project, which will have five condominium towers between eight and 10 stories with a total of more than 100 units, is almost 60% sold out already, even though the first two towers won’t be completed until next year. Condos here are selling for between

$450,000 and $1 million, and Fitton said some pre-buyers have already resold their yet-to-be-built condominiums.

At least 17 high-rise condo projects are either completed, under construction or in the planning stages in and around Jacó. The Sonesta Jacó Resort project , for one, is only just beginning the foundations on the first phase of what will be a $70 million, six-building, 13-story development. Yet it has already sold 140 of the 196 first-phase condos, priced between $215,000 and $1.2 million. That phase should be completed in late 2008, said project manager Joshua Ten

Brink, and the second phase is set to begin early next year.

Several real estate agents said the boom owes itself mostly to middle-aged, uppermiddle- class buyers from the United States and Canada who have discovered Costa Rica and are buying vacation and investment

condos here.

“I feel like we’re getting to the point where the masses are starting to become interestedand know about Costa Rica,” said David Karr, an agent with Century 21 Jacó Beach  “It seems like in the past it was a hidden secret and more of a niche.”

Although a few large projects can be found outside Jacó – for example, the planned 12-story twin condominium towers on Playa Hermosa, five kilometers to the south, that will be Diamond Beach Resort if the developers manage to secure permits (TT, Feb. 23) – most of the high-rise developmentis concentrated in the former sleepy surfer village.

The boom has some people in Jacó concerned about the town’s infrastructure.

“I think that we should be concerned,” Fitton said. “The … local government and the central government need to be workinghand in hand with the development so we don’t see an overbuilding.”

Fisher noted that area developers have high confidence that the Central Pacific Chamber of Commerce and the new mayor of the canton of Garabito, Marvin Elizondo, will work together well to address the problems that are sure to crop up as the town gets more crowded.

He said that within the next 10 years he expects the area to look like Puerto Vallarta, Mexico, a tourist destination known for its beaches and luxury hotels. Fitton agreed, saying she thinks Jacó will soon be considered a “very nice small city, rather than the surfer village of the past.”

Other Developments

High-rises may be sprouting like weeds in Jacó, but the wide-open surrounding area calls for a different kind of living arrangement. Projects involving villas, townhouses and even whole family homes in gated communities have sprung up all along the central Pacific coast.

One big one – with permits in place and earthmovers warming up – is the St. Regis Resort, which will be a 250-acre complex with 49 condos, 42 villas and nine estate homes. Announced in 2006, the project was supposed to be opened by 2008, but that date has been pushed back to the first quarter of 2009. A spokeswoman at Grupo Genesis the group financing the project, said construction would start in September.

Another big project along that coast is C.  Caletas in Esterillos , a 15-minute drive south of Jacó. The golf course development will feature a combination of four-story condos and course-side homes.

Managing partner Aaron Dowd said the entire project, once built, will have more than 1,000 condo units and cost investors about $400 million. C Caletas has yet to get the final signoff from the National Technical Secretariat of the Environment Ministry (SETENA), and Dowd said it continues to negotiate with five-star hotel groups, “looking for a luxury brand to add to the product.”  Still, Dowd said he expects to break ground on the first phase of the project next year. It will take 10 years to complete.

Many other projects too numerous to mention are under way in the area to bring medium- and small-scale condo and gated community developments to the area between Jacó and Quepos.

C.R. Beach Investment Real Estate’s Fisher said for foreigners coming to live in Costa Rica (as opposed to just investing), he often recommends they buy into the individual homes going up in gated communities in the area._

Which is better, Panama or Costa Rica?    panamasol.com    May 25, 2008

Punta Leona, Costa Rica               

Ah, Punta Leona, the crown jewel of the central Pacific!  Imagine yourself surrounded by 750 acres of lush, tropical Costa Rican rainforest, then walk another step and suddenly you're there, directly facing the white sandy beaches of your dreams.  There is almost nothing as beautiful as Punta Leona, and yet only ninety minutes away from San Jose, and 15 minutes from the most bustling beach town in all of Costa Rica.  This is why we made Punta Leona our number one neighborhood to find your perfect retirement home.  You too will be swept away by the natural beauty found here and the convenience of everything located nearby:

• Only 5 minutes away from the Los Suenos Marina and Golf Resort  featuring 7 exciting restaurants
• Only 5 minutes away from the new Herradura shopping center featuring Costa Rica's most modern grocery
• Many nearby famous tourist attractions
• 10 minutes away from the hustle and bustle of Jaco

Punta Leona has one of the most important private reserves in Costa Rica's Pacific Zone, principally because of its geographic location and conservation plan. This refuge was created 27 years ago and consists of 300 hectares (750 acres) of primary and secondary forest. The reserve is of great importance from a biological standpoint because it is one of the few remaining forests in the transitional life zone between the DryForest of the Northwest and the Rainforest of the Southwest.

During the last two decades, Punta Leona's reserve has functioned primarily as a center for research on mammals and birds. Specifically, the conservation program introduced for scarlet macaws has received national attention.

Punta Leona is regarded as an excellent place for bird watching with over 330 migratory and resident bird species , including the brilliant Scarlet Macaw, Marbled Wood-Quail, Three-wattled Bellbird, Toucans, Trogons, Manakins, Flycatchers, and Hummingbirds. The reserve is also home to white faced monkeys, spider monkeys, sloths, white-nosed coati mundi, tyras, raccoons, iguanas and a large number of butterflies.

The reserve has 3 easily accessible, well marked trails. They are of varying difficulty and also wide enough to facilitate bird watching. There are two hummingbirds feeding stations and several feeders that attract birds and mammals.

Punta Leona is also a convenient departure point to many other tourist attractions. There are day trips available to ManuelAntonioNational Park (2 hours) and CararaNational Park (15 minutes) and much more.

FACT SHEET

Opening
1975

Area
350 hectare

Address
600 meters west of Aguja’s Bridge, Quebrada Ganado, Garabito, and Puntarenas.

Acknowledgements
-Bandera Azul Ecológica (Ecological Blue Flag) for the surrounding beaches of the complex: Limoncito, Mantas and BlancaBeaches and also for the community of Punta Leona.
-Certificate for sustainable tourism (CST)

Press Releases

1. Blanca Beach in Punta Leona is the first and only beach in the country to receive the category 4 stars in the program “Bandera Azul Ecológica”.
2. Punta Leona continues its efforts to protect the Red Macaw whose habitat is the Central Pacific.
3. Punta Leona awards the winning children of a painting competition organized by the MEP (Ministry of Education) and Punta Leona.

 Bandera Azul Ecológica

What is it?  It is and initiative for local organizational committees, communities, and educational centers along the beach coasts to foment development together with the protection of natural resources, to search for better sanitary hygiene, and to improve Costa Rican public health.

Facilities       

• Three pools
• Mini market
• Souvenir shop
• Boutique
• Discotheque (limited hours during the low season)
• Lighted tennis court
• Volleyball court
• Basketball court
• Children's play area
• Amphitheater
• Conference center                                                                    

 Services    

• Tourist information desk for booking day tours to nearby sightseeing attractions
• In-house shuttle transportation
• Car rental (pick up and drop off at resort)
• Physician at resort
• Mail
• 24-hr. telephone, foreign currency exchange and reception services
• Photo development - one day service
• Internet Conextion, ASDL- High Speed. (BusinessCenter).

By: Jeff Fisher

*Note: Jeff sez..."I think this is the greatest place to live in COSTA RICA!"

Each day, more Americans are attracted to nearby Costa Rica as a place to build second homes. Low property and labor costs and the natural beauty of the country are a few reasons Americans are are attracted to Costa Rica.

Sabanilla, San Jose, Costa Rica  March 28, 2007 --

 Many Americans seeking a second home are turning to Costa Rica. Known for tropical animals and exotic landscapes, Costa Rica beach properties are an ideal setting for a second home. A trip to Costa Rica requires only a two-hour plane ride from the Southern tip of the United States, allowing investors to visit and inspect their second homes regularly.

In addition to the country's natural beauty, Costa Rica property and development costs are remarkably lower than in the United States, and return on investments are higher. Last year, the U.S. Central Intelligence Agency World Fact Book ranked Costa Rica as one of five countries that stands "head and shoulders above all other nations worldwide in terms of the potential their real estate markets present property investors."

A piece of Costa Rica property currently costs approximately 70% less than equivalent property in America. Once developed, a Costa Rican piece of property can triple its value in as little as 5 years. To encourage development and investment, the Costa Rican government has reduced the slowing effects of "red tape" necessary to purchase or develop land.

Miguel Tapia, finance director of the Costa Rican Construction Chamber says."Beach tourism development has brought along with it a series of additional developments, such as construction of banks, commercial centers, storage rooms and other services. The construction industry has been struggling to find enough labor to keep up with growth."

The cost of living in Costa Rica is another incentive for second-home buyers. A monthly income of $2,000 allows individuals to live very comfortably in Costa Rica, and tax consequences for owning property are minimal. Costa Rican quality of life is comparable to that in America, and the country offers most technology and medical advances Americans access in their daily lives.

Compared to neighboring countries Panama, Honduras and Nicaragua, Costa Rica has proven a better country for building a second home. Because of this, Costa Rica has become a desired market for potential landowners who desire a second home in an exotic locale.

 The February 23, 2007, issue of "The Tico Times" states that "with the country experiencing a continuing real estate boom, emerging condo projects such as the one in the western San Jose suburb of Escazu' are a common sight." If property value continues to increase at its current pace, experts predict building a second home in Costa Rica may be unattainable for middle-class America within a decade.

Daily Real Estate News  |  June 20, 2007 Developers, Managers See Green Building Perks
The real estate industry — most notably the commercial side — is slowly but surely embracing sustainable business practices and green technologies, according to an analysis of the industry by Progressive Investor, monthly newsletter that’s focused on sustainable investments.

"The benefits will make green ubiquitous over the next two years," says George Caraghiaur, vice president for energy services at Simon Property Group, owner of 300 shopping malls.

Developers are using green construction in their projects, real estate consumers and tenants are showing a preference for sustainable buildings, and it’s becoming more affordable to make earth-friendly choices, the newsletter says. What’s driving the trend? Progressive Investor identified these factors:

• Energy prices are rising. Developers and building owners are feeling the crunch of high energy and water costs, which, according to the Building Owners and Managers Association (BOMA), constitute 28 percent of operating costs for downtown office properties, and 30.4 percent for suburban properties. They see the quick payback and cost savings energy efficiency and other green building upgrades offer.

• Construction costs are coming down. Building green no longer costs more. Turner Construction's 2005 Green Building Market Barometer shows it costs a just 0.8 percent more for basic LEED certification, easily recouped through lower operating costs.

• Tenants are demanding it. Increasingly, clients and tenants show a preference for green buildings, which have been proven to increase productivity, retain employees and lower absenteeism. The combination of reduced operating costs and more satisfied occupants translates into 3.5% higher occupancy rates, 3% higher rents, and a 7.5% increase in building value, says the McGraw-Hill 2006 SmartMarket Report.

• Green gets visibility. Corporations with sustainable business policies are building highly visible green headquarters including Bank of America, Toyota, Goldman Sachs, Hearst, IBM, JPMorgan Chase and Herman Miller. The Freedom Tower, which replaces the World Trade Center, will be LEED-certified.

• States are requiring it. Green building is increasingly being mandated. Nine states and 40+ municipalities have passed legislation mandating LEED-certified buildings. Six percent of commercial developments are LEED-certified, and it’s projected to jump to 10 percent of the market by 2010.

REITS Fill Demand for Green Investments

Because there are more green buildings, there also are more choices for investors who want to put there money into an environmentally friendly funds. Some 41 percent of the 300 U.S. real estate investment trusts (REITs) are actively pursuing energy efficiency and green building upgrades and another 27 percent plan to do so.

For now, U.S. investors can gain exposure to the sector through the Forward Progressive Real Estate Fund (FFREX), the first SRI REIT mutual fund, and through about two dozen individual securities, including Simon Property Group (NYSE:SPG) , Weingarten Realty Investors (NYSE:WRI) , Prologis (NYSE:PLD) and SL Green Realty (NYSE:SLG) .

Outside the U.S., leaders include Investa Property Group (IPG.AX), Australia's largest owner of prime grade office space, Lend Lease (LLC.AX), Land Securities (LAND.L), British Land (BLND.L) and SEGRO (SGRO.L), in the UK.

Progressive firms are increasingly focused on urban infill buildings rather than suburban greenfields and incorporating advanced energy efficiency measures, as well as recycled building materials, gray water systems, rainwater capture and green roofs, the report says.

— REALTOR® Magazine Online

Costa Rica  Real Estate

If you are planning a trip to Costa Rica, then you may also be thinking about investing in Real Estate here. The Costa Rica Tourism Board reports that 1 in 3 second time visitors to Costa Rica are interested in buying real estate, which shows what a great impression the country is making upon vacationers!

Many of our clients come into the office and say something such as -I have been coming to Costa Rica for years and watched the prices rising. I wish I had bought years ago, and I am not waiting any longer, or I will never be able to afford anything…

Foreigners who have vacationed here have found that the country is safe, amazingly beautiful, and not so far from home. In fact, from the east coast of the U.S., it is much closer to Costa Rica than to Hawaii. Costa Ricans are blessed with a stable democracy, no hurricanes, no revolutions, and a very happy populace, unlike many other countries in Central America. This set of traits, combined with its small size, low cost of living, and ideal climate make it one of the very best places on earth to retire, start a new life, or just invest in real estate.

With so many people wanting to move to Costa Rica, of course the real estate prices are rising and continue to rise. Forty million baby boomers are set to retire, and many are looking for a better retirement situation than they can afford in the U.S. and Costa Rica is on the top of the list.

Most people who are thinking about moving to Costa Rica are considering one of the many popular beach towns – places with a good variety of restaurants and other services, phone lines and internet service, etc. Unlike in the U.S., it is still possible to buy a beautiful ocean view lot or one close enough to the beach to walk, for an affordable price. Plus, you can expect your land to have monkeys, parrots, iguanas, and other beautiful jungle features. Many areas have waterfalls and a local airport with flights to the capital city of San Jose. While the weather is hot, it is not nearly as hot as places in the U.S. such as Arizona or Florida. If you are interested in surfing, then you have found the right country.

Costa Rica Weather Report
We're approaching the heart of the Green Season and the mid-morning rainshowers are now regular enough to set your watch.  However, don't be afraid!  There's still plenty of sunshine to get your sun tanning time, yet the greenery of the rainforest at its most lush and vibrant.  Hurry down to take advantage of Green Season rates while they last!
 
Here are some links to Costa Rica weather reports:
http://www.wunderground.com/global/CS.html

Again, and again I hear stories about people making mistakes when purchasing property in Costa Rica. I really feel it is my responsibility to share the following with my readers.

As you probably know by now Costa Rica has become very popular over the last last couple of years. From all indications interest in the country is not going to wane for some time to come. Recently one economist told me the local boom could last for up to ten years more.

Therefore, it is not surprising that investors are pouring into the country to purchase all kinds of homes and land. Unfortunately, in many cases they are not using their common sense.

Scores of would-be entrepreneurs have set up shop here. Most have eye-catching web sites proclaiming their expertise and real estate offices. The problem is that some of these people are little more that modern day "carpetbaggers" with no credibility trying to cash in on the real estate gold rush. They are here to get what they can take and ride happily off into the sunset.

A large number of these JCL’s or Johnny Come Latelies are not even legal Costa Rica residents but tourists. Would you buy real estate in your home town from a tourist? Of course not! Only a fool would do it. A realtor friend of ours had the immigration department run a check to see what the status was of foreigners selling real estate in a certain beach area of Costa Rica. The results were frightening. Many of the realtors in the area turned out to be tourists living here illegally. Furthermore, the Costa Rican government prohibits anyone from working here who is not a resident.

So when looking for real estate in Costa Rica you should only deal with time-tested real estate agencies and people who are legal residents of the country. Do your homework, ask a lot of questions and don't leave your “brain on the plane.”

TOLL FREE:

from U.S. or Canada

1-888-782-1119

In Costa Rica:

Dial

2-643-4334

Calling from Israel?

Shalom!

+506  2-643-4334

jeff@crbeach.com