Quote:
Originally Posted by pocketkangaroo
You said you lived in Costa Rica, maybe you can help me with a question.
I'm looking to buy something down South and out of the country. Preferably something I can stay at a couple months out of the year (January and February aren't much fun in Chicago). Is investing in a property worthwhile, and is it safe? Do you know of people doing stuff like that and making a Winter home in your country?
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No problemo and know what you mean
OK... quick assessment on investment in real estate here...
Yes, I do exactly that and very familiar with both land and home values - tho tend to stay away from homes since you have to rent them and causes more work/hassle. We own around 1100 acres of real estate here and still buying up anything that has potential.
There are certain areas of the country which are excellent for your purposes - these are mainly on the Pacific coast. The north western airport at Liberia has flights direct from the US to the Pacific coastal area - and saves having to fly in to the main airport near San Jose.
Investment value - it sure is a good deal to invest here, particularly on the Pacific coastline. It's always hard to say how long this trend will last - I expected a blip because of the downturn in the US home market, but from all comments from our realtor, this has not happened and it's the reverse - real estate generally is on an increase. (There are various reasons for this - but boring unless you really want to know).
Based on the last five years, - it's safe to take the official government figures which have shown a capital appreciation increase in property values on the Pacific coast (and some elsewhere) between 40-60% per annum. This is much in line with what we have seen on our properties - seems to average 50%/year increase. As far as forecasting is converned - I can't see much change in that over the next five years. Longer than five years is hard to estimate at the moment, but the general trend is likely to be upwards, mainly because of the increasing numbers of "immigrants" arriving here from a range of places - US, Canada, Germany, Denmark etc.
Can only give
on making sure you get a good deal on a property. There are plenty developers asking seriously silly money for their product, and, ironically getting that money. Simple example - in the spring of this year a developer announced his plans. Within six weeks our realtor lady did a job as a sideline and sold three of these properties. They were priced at $1.2 mill each for a condo. Just heard yesterday - there are only six units left and these have been increased to around $1.5 mill. These are not special properties - just very expensive for what they are. And... they have not even been built yet! *lol*
It's important to have a good look round and be fussy about whatever you buy and don't enter the overpriced market. But, it's also safe to say, if you buy correctly - it's easy to see a 50% potential annual increase on your investment for a good few years ahead.
Is it safe? Yep - no problem. But, as a matter of course, do some due dilligence on the developer if it is a "work-in-progress". Otherwise, if you are purchasing an existing home - much easier. A local lawyer will do all searches in the National Registry and perform all the usual stuff you will be familiar with in the US. The choice of a lawyer is also important - there are the usual wannabees and tho they may be well-qualified, - it may not be a good idea to use em
If you want recommendations of a lawyer - no problem - we work with a number of highly respected lawyers who are very familiar with real estate and are involved in massive projects.
On the country itself - nice place. The people are friendly and very willing to help - genuinely. At the same time there is the usual small element of swamplife, but no need to come in contact with these people. The Pacific coast are is awesome - some areas tourists never see - it's paradise
The cost of living as we know it, is silly - a beer costs .50 cents, banannas 2 or 3 cents and there is plenty fresh fruit blah blah.
The healthcare system (should you need it) is cheap and all-inclusive. Was chatting with a US person recently and he was amazed that he can get full medical care of the same standard as in the US for his family (four people) for around $250/year including dentistry. He unfortunately ended up in hospital for a while and got introduced to what he described as the best healthcare ever - and was only too pleased to join the healthcare club
It's prob better to spend some time down here PK before making any investment - and also having a look around at areas. (Also remember property is increasing - it's often increased by the month!) But generally, probably the best area is on the Pacific coast and near Liberia airport. The eastern side of the country is awesome, but seriously extreme in the eco sense. The central valley area where most people live is OK, but also near the capital, San Jose - and you want to avoid the place
If you need help on this, there are various forms - can recommend lawyers and could also introduce a "real realtor" (there is no control over them by law here - so better they have been in biz for 15 years or so and have an honest track record) - either way, can recommend a few.