Real Estate in Panama, Costa Rica

[pornprotege]

i want to diversify my investments and i never touched real estate before. some fine folks have told me to look into some market in panama, costa rica and some other place in asia where it's booming and you get a decent ROI over 1-2 years oh just holding the property and reselling it.

im not too versed into real estate, and was wondering if anyone here have first hand experience with this... especially with financing. how do you go and finance 50-60% of a property in a foreign country (panama, costa rica, etc). I know some GFYers are doing just that in those market, that's why i thought i could ask here

[Lykos]

I plan to buy some stuff in South America,so am interesed in this info as well

[BVF]

I'm waiting for castro to kick the bucket so I can hit cuba

[Quotealex]

Originally Posted by pornprotege

im not too versed into real estate, and was wondering if anyone here have first hand experience with this... especially with financing. how do you go and finance 50-60% of a property in a foreign country (panama, costa rica, etc). I know some GFYers are doing just that in those market, that's why i thought i could ask here

If you don't mind losing all of your investment, go ahead and invest in a real eastate market you are not familar with...

[joshll]

go for it man..

in my opinion you should..
Buy a plot.. and build on it..
and rent the building out..
since i had tyhe idea.. i get the first 2 weeks in it.. reserved

[Michaelious]

It looks like a good idea.

[cocky]

I have owned different land in Costa Rica for nearly 20yrs and have had a house there for more 5 years. I bought an several acres at $1500 each in 1990. 5 years ago I sold one acre for $45k and last year sold one acre for over $200k. Market keeps climbing but I think a lot of areas have topped out. ICQ me if you're interested in talking more. 210-877-237.

[Sosa]

Originally Posted by cocky

I have owned different land in Costa Rica for nearly 20yrs and have had a house there for more 5 years. I bought an several acres at $1500 each in 1990. 5 years ago I sold one acre for $45k and last year sold one acre for over $200k. Market keeps climbing but I think a lot of areas have topped out. ICQ me if you're interested in talking more. 210-877-237.

Can't complain with that profit

[JakeR]

you are about 5 years too late

[Dagwolf]

Real estate speculation drives up prices artificially... Don't fuel the madness.

[Fap]

friend of mine just bought a house/some property in panama. says it's a great investment

[Peaches]

There are a lot of adult webmasters and property owners in both locations. Hopefully they'll see this thread and give you some advice

I was looking at CR about 1.5 years ago. I'm sure the place I was looking at has doubled by now

Friends of mine are in Coronado and are building a house in Panama City. They will keep the place in Coronado as a vacation home. They paid less than $280K for a high level 2K sq ft condo directly on the ocean with all amenities including generator power. No way you'd get something that cheap in the states. I'm headed down in a couple of months to see if I can find something small and cheap. Very cheap ;)

Just go and spend a LOT of time there so you know which areas are good and which aren't.

[pornguy]

If you want to invest in realestate, the best place to do it, is either in your home town, or someplace VERY close to the US. Canada or Mexico.

The nice thing about canada and mexico, is that there are a lot of people in the US that use them both for vacation spots, and then later retire there.

If you decide on Mexico, hit me up, and I can point you in the right direction.

[BlueWire]

In my opinion you've already missed the boat for the "risk-free" investment high reward....


Where are "Doc" and Marty McFly when you need them?

[montel]

make sure you look into the type of land title you are getting in sth america. squatters can be a problem over there!

[Webby]

Originally Posted by pornprotege

i want to diversify my investments and i never touched real estate before. some fine folks have told me to look into some market in panama, costa rica and some other place in asia where it's booming and you get a decent ROI over 1-2 years oh just holding the property and reselling it.

im not too versed into real estate, and was wondering if anyone here have first hand experience with this... especially with financing. how do you go and finance 50-60% of a property in a foreign country (panama, costa rica, etc). I know some GFYers are doing just that in those market, that's why i thought i could ask here

Can only talk about Costa Rica and an element of Panama pornprotege.. and will try to answer best I can.

Both Panama and Costa Rica have had some of the highest rises in real estate in the world over the last..... roughly six years. The market remains *very* strong, but the entry level is now far higher than it was. There are no indications that this will change in..... who knows, but gutty feeling, for around 10 years ahead.

Can quote the latest CR govt figures on real estate appreciation - this depends on region, but generally for foreign investment areas, the capital appreciation last year was between 40-60%. (Tho, not sure exactly how they calculated these, - it could depend on the purchase price and there will be extremes on that). Own personal experience is reflected in a 50% rise in our investments over the last year - so suppose the govt stats are much in line with this level.

Don't want to predict much, but again, gutty feeling based on a knowledge of the market and the plans (and existing projects currently progressing), that this level will not change much for a fair while ahead. Each year over the last few years, there has been in increase in construction of around 78% and it's likely to be around the same for this year.

On factor to consider in both Panama and Costa Rica is.... depending on what currency will be used to inject funds into your investment, this can have advantages. All real estate in both countries is priced in dollars (or can be priced in dollar if not already). This means if you are paying in Euros or BGP, there is a benefit on currency exchange. Simple example... a property or land worth, eg $300K is actually only costing 150 GBP and what you get for that is far more than would be possible in the UK or Europe.

It has been fairly customary to have US and Canadian folks investing here - US particularly because of geo convenience and this is still continuing surprisingly. We had a meeting in Denver about 10 days ago and expected a "subdued" turnout - but it was actually massively overbooked by US folks still having an interest, which is maybe odd, considering the real estate scenario in the US. At the same time, there is more interest from Canada and now a considerable interest from the EU, which, I suspect will be another "mass injection" of people - partly because of the exchange rate and the main other reason is direct air flights from these countries. Last week we had the first of another flight direct from London Heathrow to here.

One of the main problems at the moment is locating suitable property - this is definitely getting harder to do and have two people working on it almost full time now. (Have not even bothered doing construction for a few years - but concentrating on buying as much viable land as possible - construction can come later). Despite that, it is still possible to purchase whatever and this can have a more than reasonable ROI.

Not sure of your location pornprotege, but it's important you know the regions and study them well. Generally... least for Costa Rica, any property on the Pacific Coast is good property. You can test out the net for this, but ignore the asking net prices - they are usually higher and better deals can be done locally.

On financing property here, not a good idea. It is far better to get financing from, prob your home country, since local "mortgages" are silly and at a rate of around 29% +/annum. (This scenario was a leftover from the past when the local currency was tied to US $, and, tho that has changed, - there is no hurry to reduce the rates, but it's only a matter of time.)

If you eventually find a property and need finance, one of my associate directors has plenty sources (tho no idea of the detail on this - would need to check with him) for either home or plot purchase and using in the region of 160 banks globally to facilitate these - so chances are, wherever you are located, there is a possibility he may be of help.

If you need legal representation in Cost Rica, and strongly advise this - no problemo. Can recommend a few trustworthy lawyers with experience in this field.

Better say what the background is here... we buy land in bulk and that knocks the cost/acre down considerably. We then go thru the legals and surveys (these are often severely out of date) and then plot the property, a lump we retain in our own corps, but then sell to whoever with the benefit of reduced cost on the bulk purchase. Along with most properties we also supply a non-trading corporation which is used to hold the asset and the buyer is given all shares and total control of this. (This also saves future land transfer taxes if an investor wants to sell his asset - he just passes over the corp to the new buyer - tho not one investor has sold yet - for obvious reasons ) From an investor angle, this pretty much makes sure they get max potential on appreciation and this has been around 50+% plus each year.

Unfortunately all we have on offer at the moment is a backlog of folks waiting for an opportunity and something to invest in - but eventually we will when we can find more land to buy, but if you have any questions or need a clue where to look, or need a legal representative here, no problemo

[SAM SIYC]

Hey...developing a condo-hotel in Costa Rica, check it out : www.blucondohotel.com

hit me up on icq, will fill you in with all there is to know about real estate in the area!

[Webby]

Originally Posted by IwantU SAM

Hey...developing a condo-hotel in Costa Rica, check it out : www.blucondohotel.com

hit me up on icq, will fill you in with all there is to know about real estate in the area!

Interesting project Sam - and a good area for this

You are going to get spin-off benefits to this with the other infrastucture/construction/plans going on the the Jaco area. What was a sleepy Costa Rica coastal "village" is going to rapidly change.

Tho.. only my two cents - was the architect on drugs?? *lol*

You will know already... there are large projects planned and partially implemented and to the stage of selling at "pre-construction" prices, but at loony world prices. A few months back one of our people was asked to sell some of them - but the prices were in the region of $1100 per sq ft finished construction cost - ie $2.2 mill for a 2000 sq ft condo -duh?? (OK.. admittedly they are offering a load of infrastructure and facilities with these properties, but it's still a kinda high level as pre-construction.) But... despite that, people are actually buying and a number have already been sold - we sold two in.. think just under 8 weeks tho just as a sideline. It's amazing people are actually paying this level - and shows great promise for your project

[SAM SIYC]

Originally Posted by Webby

Interesting project Sam - and a good area for this

You are going to get spin-off benefits to this with the other infrastucture/construction/plans going on the the Jaco area. What was a sleepy Costa Rica coastal "village" is going to rapidly change.

Tho.. only my two cents - was the architect on drugs?? *lol*

You will know already... there are large projects planned and partially implemented and to the stage of selling at "pre-construction" prices, but at loony world prices. A few months back one of our people was asked to sell some of them - but the prices were in the region of $1100 per sq ft finished construction cost - ie $2.2 mill for a 2000 sq ft condo -duh?? (OK.. admittedly they are offering a load of infrastructure and facilities with these properties, but it's still a kinda high level as pre-construction.) But... despite that, people are actually buying and a number have already been sold - we sold two in.. think just under 8 weeks tho just as a sideline. It's amazing people are actually paying this level - and shows great promise for your project

thanks ...
no the architect wasn't on drugs lol....just doing something that will stand out from the traditional "colonial rosti pollos" architecture that is flooding the country .....offering variety!

yeah, prices are going higher and higher, so are construction costs though....i wish the colones was still depreciating like before....

when you say "our people"....i am assuming you have real estate offices or brokers in the area....
hit me up when you're free, would like to chat more about what services, products you have...

[Shocking]

There is nothing wrong i can say about Costa Rica when it comes to investment, but i must say that Panama has a lot of advantage for people to relocate and invest.

One of the advantages of this country is of course the fact that is one of the most updates countries when talking about technology, medicine, education and real estate in Latin America.

The fact that we use the dollar make it even better for people like us that will probably keep receiving incomes in that currency. Plus high taxes benefits for regular foreigner investors and way more benefits for retired investors.

The real estate market is increasing so crazy here now that in a couple of years is going to be imposible to get a peace of land here and… you can check these two sites they have very good information about pretty much everything in Panama www.panama-guide.com www.boqueteguide.com and/or you can contact me if you will like to know more ICQ: 199428702

P.S.: I can answer some questions but I’m not a real estate agent so no tech detailed request please

[Corleone]

never invest in stuff you dont know much about...

[tony286]

in those places dont you have to worry about government stability?

[Webby]

Originally Posted by IwantU SAM

thanks ...
no the architect wasn't on drugs lol....just doing something that will stand out from the traditional "colonial rosti pollos" architecture that is flooding the country .....offering variety!

Ahah.. know what you mean! *lol*

Originally Posted by IwantU SAM

when you say "our people"....i am assuming you have real estate offices or brokers in the area....
hit me up when you're free, would like to chat more about what services, products you have...

Bascially this started as a sideline Sam and it's really still not what could be called a "normal biz" (tho obviously corps etc hold assets etc and there is a biz structure). It was just a group of friends who got together - and, by far, it's still like that - eg one friend mentions it to another etc. Na... we don't bother actually actively marketing or have a "product" as such - tho as deals come up, these can be a product, but never had a problem in selling that product - the problem was more in finding good deals - ie land with features at a viable price and on which there was sufficient space (not deep jungle) to create x units for investment/development and overcoming the SETENA and MINAE obstacle courses.

Along the way we seem to have assembled a "team" of mainly professionals and other directors and partners are lawyers and realtors etc and they do have regional offices - and on occasions we cooperate and help each other out in areas - eg in promos in other countries etc. A couple of our own directors are kinda "seconded" to this for a while - just to help out others in the group and finalizing another property exhibition in Madrid in about 14 days - mainly angled to obviously a Spanish market, but with the object of helping realtors here who are actually making a biz out of it.

I'm prob too lazy and getting too ancient to bother creating more work , but sure, there is plenty room to make a real business out of it and market a product to the public if anyone has time to do it - tho that prob will happen and be forced on us when we start actual development projects on the land currently held.

Sure.. will hit ya up Sam

[Webby]

Originally Posted by tony404

in those places dont you have to worry about government stability?

100% correct Tony! That is one of the reasons I first invested here - the country is prob one of the most stable democracies in the world.

That's not to say it does not have it's problems tho Formalities and legalities can be pedantic as hell and take a lot longer to process than eg the US or the EU, but the justice system is sound.

[Z]

I've done very well with real estate in Panama and a lot of other people in our business have too.

Hit me up if you need more info.

[Webby]

Originally Posted by Shocking

There is nothing wrong i can say about Costa Rica when it comes to investment, but i must say that Panama has a lot of advantage for people to relocate and invest.

Think you are 100% correct in that Shocking.... Panama "appears" to be a couple of years behind CR on this and has a promising future.

In several ways, Panama can actually be better than CR in a business aspect - the govt is wiping the red tape and actually encouraging investment - unlike CR, which has not even given a thought to wiping red tape.

[amateurcanada]

Originally Posted by BVF

I'm waiting for castro to kick the bucket so I can hit cuba

i agree, a potential goldmine.

[mattz]

Originally Posted by Alex from Montreal

If you don't mind losing all of your investment, go ahead and invest in a real eastate market you are not familar with...

can you read? He clearly said he was not familar with it, that's why he is asking questions