Is Jaco Costa Rica a Smart Investment for Professional Investors?

I recently wrote something similar to a client, and thought I would post it
here to get more attention.
 
The client is debating whether to invest in our "fire sale" priced hotel in Jaco
Costa Rica or a hotel  in the Dominican Republic (where I have never been).   
To many professional investors, Costa Rica never looks as good on paper,
compared to other current 
deals still being offered in the U.S. or maybe in the
D.R. .  I have dealt with these professional investors (i.e. hedge funds)  for
many years, and yes
 the prices here are high compared to certain other locations, 
but our potential for equity growth is excellent compared to non-U.S. resort areas. 
We used to be 20% less than Mexican beachfront, (and ours is 100% fully
titled), and obviously we are cheaper than popular beach resorts in the U.S.,
and now our prices are at "rock bottom", much lower than at anytime since
the crash 
of 2008.
An example of price variations here in Jaco beach: seven years ago our beachfront had asking prices up to $2000m2  ($185 sq.ft), both 3 years prior and at current pricing its now
between $500-$600m2 ($50-$60 sq.ft) . Our main street still has pricing up to
$500m2, and new buildings are being built all the time. 
 
The last 2 hotels I recently sold were to people that own hotels in San Jose, and
not only did 
they buy another in Jaco Beach, but one year later, they are looking
to buy more, (of course beachfront is their preference.....)

Without my knowing exactly the real estate market or the cost of living of the
Dominican Republic,  I would say, probably Costa Rica is more 
expensive,
but we don't get new residents complaining of  "island fever."  
Regarding the Dominican Republic, Colin Miller contributes this:
 Also, very important to note that CR is a much friendlier and advancing country than DR. in DR,
 you can’t mingle with the locals, you stay in your gated community and don’t venture out, it also borders Haiti 
one of the poorest nations on earth, it  is in the hurricane path-the place is a third
world nightmare, there is no comparison to Costa Rica. Every single one of my clients who has
been to DR says the same things as I 
just mentioned. 

Plus the fact that Costa Rica is always winning awards such as: 
 §  Costa Rica named top tourism destination in new global survey

June 11, 2014 by Tico Times Zach Dyer  
A new global survey confirmed that tourists love Costa Rica, naming the country most
recommended tourism destination in the world.The Global Tourism Monitor Survey asked
23,000 globetrotters from 26 countries where they had traveled during the previous 12
months and which destination they would more recommend based on their experience there.
 
 

World Happiness Report: Costa Rica ranks #1 in Latin America!
§  September 10, 2013 - Costa Rica ranked happier than Mexico, Panama and the U.S.
in the United Nation's newly released World Happiness Report. Costa Rica still ranks
among the world’s happiest countries according to the U.N. 2013 World Happiness Report

Over the past 20 years, I have personally witnessed lots of people (usually single
guys) move to Costa Rica from the U.S., and then in a couple of years, (mainly for
economic reasons) decide to move to 
Nicaragua or Panama.
Shockingly, I have seen half of them returning to Costa Rica within a year or two
because of the intangible 
lifestyle benefits Costa Rica offers, like great weather,
friendly locals, and more people with similar backgrounds. (Supposedly Costa
Rica is #2 for quantity of ex-pats.)
 
By the way, there is a new optimism here now that the new Costa Rican President,
Luis Guillermo Solis has taken office 
for a 4 year term, that things will improve by
ending the corruption, lowering costs, and
 encouraging new businesses and
retirees with real incentives. Could this happen?  Sure why not, he's not a
professional politician from a famous political family, he wants to improve
Costa Rica, without concern for a "legacy."  
  
I was recently in the U.S. for 3 weeks, and I do see how cheap one can live there,
but U.S. medical costs and property/income taxes offset those great prices on
Alaskan king crab, Oreo cookies, or the items from the Dollar Stores. 
Then there are the other high costs found in the U.S. that we don't have here,
like frivolous lawsuits, and very high hourly wages for maids-plumbers-electricians.    
 
I am extremely grateful that CR Beach has been making sales, and often to those 
that really want to leave the U.S. and Canada and live in a place with great weather,
nice neighbors, 
good medical, and lower taxes than their former countries.
With the current market conditions of 
properties selling for 20-30% less than
original pricing, we continue to attract those prospects that are getting super
deals these days, many below the actual cost of building. 
 
Of course I know I may never again see the real estate "boom" we had from
2004-2008, the "good old days" 
but for many people looking for a second home,
a rental income producer or a retirement place to live full or part time,
NOW IS THE TIME TO BUY, because to me and many others, Costa Rica is
still the finest choice available.  
 
For our best deals, check out www.crbeach.com  for the Jaco Beach-Playa
Hermosa-Los Suenos-Playa Bejuco-Esterillos Este-Esterillos Oeste, Central
Pacific Costa Rica:
http://www.crbeach.com/SUPER_DEALS__FORECLOSURES/page_2204316.html
  
Here are some examples: 
Hermosa Beach bungalows-were $235k now as low as $179,900
Jaco beachfront condos, were $300k now as low as $199k
Playa Hermosa HP homes: were $480k now $365k
Bejuco Homes: were $250k now $199k 
Los Suenos condo was $495k, now $365k
Jaco Hotel, was $1.3 million now $775,000
 
Keep checking our Newest Listings and Super Deals pages and maybe you'll
find your "dream" property at the price you can afford. So where does this 20
year resident of Costa Rica live? As you can see from the video on the bottom
of our home page,  (http://www.youtube.com/watch?v=SOxzPSSttGM )
I love the Hermosa Beach Bungalows and Hermosa Palms- there's a beautiful beach, quiet, safe, great neighbors, 8 minutes from Jaco, little more than an hour from San Jose, and 
the best prices I have ever seen in 8 years. Check out our Hermosa page.
Since today is July 4th, 2014, I should mention that another reason I love Costa Rica
is that with all the expats living here, today there will be no shortage of celebrations,
BBq's, potlucks, and fireworks displays, and of course, many Costa Ricans will be sharing this with their Gringo buddies.
 
Pura Vida,
 
jeff 
 
 

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