Costa Rica Real Estate - Part 2 March 18, 2007
Posted by admin in : Real Estate, Investing, Living, Retirement , add a comment
Common Sense Says…
The American Real Estate investors who originally bought the land, and either subdivided it into lots or built condo high rises, and the agents who sell the land and condos, will take most of the appreciation out of the asset before selling it to you. This makes common sense. If the land developer believes, that their land is going to double in value within a year, why would they sell it to you today?
“Who Knew?”
Real Estate agents get paid when they sell. It is in their best interests for you to buy, they will show you the obvious and deny the reality, and tell you later “who knew?” If you are buying Costa Rica beach property now, you are most probably buying it from a land speculator, at a fully appreciated price. You are a 2nd generation real estate investor. You will not double your money in Costa Rica Real Estate - the land speculator who came before you just did.
“I’ll take a double doble please!”
The Costa Ricans long ago, figured out that Americans coming to Costa Rica, will buy real estate at incredible prices. If an American shows up looking to buy his land? He instantly doubles the price. Bye-Bye appreciation.
The Second Scary Reason
The second and scariest reason not to buy Costa Rica beach property - the U.S. economy is about to tank. A painful plunge into recession in the United States is about to occur. Starting with the over inflated values in real estate, and an over valued stock market, the United States may be facing a prolonged recession.
Is this the time to be investing or buying Costa Rica Real Estate?
If the economy in the United States of America is going down, what makes you think, Costa Rica’s is going up? The United States is Costa Rica’s largest trading partner. When the U.S. and World economy tumbles, Costa Rica’s exports will decline. A severe slow down in tourism due to high airline tickets (jet fuel, Iraq war, job anxiety) , which has already begun, will worsen. And finally, if the run-up in real estate values in the United States have to correct, what will happen to real estate values in Costa Rica, where there has been tremendous appreciation in real estate values in the last two years? Read more in Costa Rica Real Estate Part 3
