Top 5 Costa Rica Real Estate Lines March 24, 2007
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If you hear any of the following lines, coming out of the mouths of real estate agents in Costa Rica, something should go beep-beep in your head.
The Top 5 Costa Rica Real Estate Lines:
#5) Once the highway is built, in about a years time (connecting us with civilization), real estate values in Alto Humongous will Skyrocket! You should, in general, be wary of the word skyrocket.
#4) When the Marina is built, in about a couple of years time, your investment in Jaco Tower 24 is going to instantly double. Add “instantly double”, along with “skyrocket”, to the list.
#3) The New Administration, is going to fix all the roads, get rid of the corrupt and inefficient state monopolies, pass CAFTA - thereby opening up Costa Rica to a flood of American investors, and cure cancer. The New Administration isn’t really that “New” anymore, so I expect to see a decline in it’s usage, but it was and still is very popular.
#2) It looks like secondary forest to me? I’m sure the monkeys, sloths, parrots, toucans would all disagree, it looks like the forest is primary to survival for them.
#1) People have bars on their windows to keep out Raccoons. Yes, while they may be effective in keeping raccoons out of the house, their main purpose is to keep out thieves. The same holds true for the Rottweiler chained to the front door.
Cheers,
Ramsay
Investing Living Real Estate Retirement
Comments»
Hi Ramsay,
Great website. I agree with you. After visiting for over 20 years, I looked at beach property in Guanacaste this year. It was very clear that everything you say is true. The only reason to buy now is for the lifestyle. You should be willing to lose your investment or at least see it depreciate.
Properties are often valued at a price that a real estate agent uses to get the listing from the seller. He then tries to pass this on to the seller. There are hundreds of scam artists masquerading as legitimate RE agents.
In reality, the Costa Rica RE market was driven by artificially escalated US prices and homes/land were bought through home equity loans. I couldn’t agree more with what you are saying about waiting a few years to buy - prices will certainly adjust, especially since in most undeveloped CR land there is a ZERO cost basis to the seller!
I agree, wait a couple of years, especially if there is going to be a semi recession in the USA. Then watch the prices drop as speculators (people and realtors) start to cut and run.
I also found thatnyou can find real gems if you look carefully. For example, don’t go near any place listed by an American realtor (Century 21 or re-max etc). They try to sell as close to US prices as possible. Instead learn a wee bit of Spanish and look at “for sale” (Vende) signs in Spanish, odds are they are being sold by Costa Ricans at Costa Rican prices. Near Samara I recently saw a property with a nice brand new house listed by Coldwell Bankers for 280k, 10 mins along the road I saw another of similar size and location, but with an older Tico house on it going for 60k. It was listed by a local realtor. Use your common sense. If your going to buy the super duper all mod cons house, yes your going to pay top dollar and a lot more. Instead do what you would do back home, don’t buy the best house on a bad street, buy a bad house on a good street. And remember, if it’s too good to be true, then it ain’t true. Costa Rica is beautiful and Costa Ricans are nice and friendly easy going people, don’t bring your hard ass, I want it now, arrogant, looking down on the locals attitude with you. You’ll just be laughed at and the locals will double their everyday prices for you.
Just bring a smile and enjoy the beauty.