Investing in Real Estate

Speculating – Investing in Real Estate

If you are interested in purchasing real estate for investment purposes, you
will be pleased to know that the government welcomes your investment. If
you choose to speculate in real estate, there are some prime areas to choose
from in the Central Valley. This area offers a lot more potential because of
its proximity to San José, the large number of services available and excellent
infrastructure. The towns of Escazú, San Rafael de Heredia, Santa Ana, Ciudad
Colón, Alajuela (Costa Rica’s second biggest city) and San José’s suburbs of
Rohrmoser, Los Yoses and San Pedro
are all hot spots.

Homes range from about $50,000 in some tico neighborhoods to
$250,000 on up in high-scale areas such as Rohrmoser and Escazú. It is
best to speculate in middle and lower-end properties since they are more
affordable for the average Costa Rican and financing is available. A standard
rule of thumb is the farther from town you go, the lower the price.

The current housing shortage, the popularity of Costa Rica and the
Central Valley’s weather assure excellent investment opportunities. Whether
you are buying a home or an investment property, you are bound to make
money if you hang on to your property. Real estate values are expected to
double over the next decade or two. During the last 10 years some property
values have risen 10 times. There is limited land in some urban areas, so
the resale value goes up as population grows. Beach property is also a good
investment because of the demand.

Presently there is a building and investment boom in Costa Rica’s
Central Pacific and Guanacaste beach areas. Infrastructure continues
to improve in these once inaccessible areas. The Central Pacific area is
like Hawaii or California, but only a fraction of the price. If you cannot
afford to live in a prime coastal area in the United States, you may be
able to find the property of your dreams in Costa Rica in a much more
spectacular setting.

Remember this when thinking of investing in Costa Rican property.
Real estate will not become more plentiful in Costa Rica and the demand
will increase based on the number of retirees world-wide. Furthermore, the
exodus from the United States due to government policies will increase the
worldwide demand created by North Americans looking for a simpler lifestyle.

Another excellent investment is Costa Rica’s nascent Real Estate
Investment Trust Market
. Briefly, a Real Estate Investment Trust (fondo
inmobiliario) or REIT is a type of public investment fund that buys and
rents out real estate and distributes the profits among investors. Depending
on the fund, dividends are paid on a monthly, quarterly or yearly basis.
Revenues for these types of funds depend mainly on the price at which the
property was bought and the price at which it rents. For more information,
contact Costa Rica Retirement Vacation Properties at E-mail: robert@
costaricaretirementvacationproperties.com, christas@racsa.co.cr or call
toll free 1-888-581-1786.

Banks offer properties that were collateral for a mortgage loan and were
legally repossessed by the bank after the client defaulted on the loan. Properties
are awarded to the highest bidder. Most banks require a five percent
security deposit when making a bid. Some good deals may be found by
checking with a local bank.

Property management companies are available to take the hassle out of
home ownership. Most property management companies charge a monthly
fee to cover general maintenance, security and upkeep costs. The fee ranges
from $50 to $150 monthly. If you have a rental in the Central Pacific or
Guanacaste beach areas, one of these companies is essential. A list of property
management companies can be found in the local Yellow Pages under
“Administración de Condominios.” In addition, many real estate companies
have partnerships with property management companies. I have friends
who own a rental property in an exclusive gated community in the Central
Pacific area who use a local realtor to manage their condo. They are very
pleased with this service.

Related Resources:

Costa Rica Luxury Manuel Antonio Beach & San Jose Real Estate Investments

Cayman Real Estate & Vacation Rental Properties

Mexico real estate – Cancun, Playa del Carmen, Riviera Maya, Cancun

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