Boomers In Costa Rica's Real Estate & More

Check out Real Estate by Paradise Management--San Ramon area

My friends Steven and Janet have a terrific website, Paradise Management, that is just chock full of information about purchasing real estate in Costa Rica.  If you want to learn all about the San Ramon area, this is the place to go!  What a terrific job they did in compiling information!  This boomer lives in San Ramon and even learned a thing or two!  They also have some nice listings--homes and land--particularly in the San Ramon area.  Take a look when you have a moment: Paradise Management!

Want to learn more about real estate in the Central Valley, meet HONEST, people with INTEGRITY?  Join one of our Boomers in Costa Rica Tours!  Check us out here: Boomers' Tours!

Top 10 Tips on Buying a Lot!

Many people view beautiful land with building lots available for sale here in Costa Rica.  Some have stunning mountain and valley views, others have incredible ocean views, and some have both.  It is easy to get caught up in the natural beauty that is Costa Rica.  Here are few tips when considering a lot purchase, whether a "standalone" lot, or a lot in a planned community.

1. Find out whether the lot is titled and before you give the seller a down payment, have a qualified attorney do a title search to ensure it is indeed owned by the seller.
2. If the lot is in a community with other lots, find out where other homes will be and how close they will be to yours.  In particular, ask about whether other homes--which may not be built for some time--will block your views.
3. Ask for a soil study to be conducted--it's usually inexpensive--to ensure the lot will actually support your structure!
4. Find out how close your property/lot is to a natural springs and/or river.  There are restrictions on how close you can build to a spring or river.
5. Ask  the seller (or developer) where the electricity (and other utilities) is relative to the lot and if it is not present already, when will it be available and who pays to bring it to your home.
6. Ask whether the electricity will be underground or above ground and where the poles will be.
7. Understand where internal roads and your driveway will likely be, particularly if you are buying in a planned community.
8. Learn about the status of trees on your property to know if they can be cleared or not.
9. If the area you are in is sometimes windy, find out the optimal place to put your home on the lot to avoid wind.
10. Ask if others have already purchased lots near you and get a sense of the types of neighbors you may have.

For more information and to see a wide range of lots, investment land and resale homes, take a "Boomers in Costa Rica Tour!"  For more information, click here: Boomers Tours!

Real Estate Values in the Central Valley

I just came back from our "Boomers in Costa Rica" (Boomers Tours!) 4-day relocation/retirement/real estate tour.  We had some terrific guests who left the country knowing a great deal about the areas they liked (and didn't like).  They also saw many properties--homes and building lots throughout Grecia, Palmares, Naranjo, San Ramon and Atenas.

While I view many properties each month, whether on tour or not, what struck me this time was the amount of development still going on in the Central Valley, even though in some areas, prices are rising rapidly.  For example, in Atenas, to get a decent-sized lot (1.25 acres) of which only a small portion is buildable, it is going to cost you upwards of $150,000.  Add a home for at least another $150,000 to $250,000, it seems to me things are getting out of hand even in the Central Valley.  Sure, compared to some very expensive areas of the United States, the Central Valley still provides good value.  However, before long, it may not make sense for the "average couple" to live here. 

Grecia, Naranjo, Palmares and San Ramon are luckily still fairly reasonable but we are seeing some price appreciation in Grecia in particular, with some people calling it the "next Escazu," with many people commuting to San Jose from Grecia.  San Ramon, however, still provides some excellent value, and has not reached the point where it is unaffordable yet.  It is a growing area with foreigners just now starting to discover it.  Lots can still be found as cheap as $30,000 and even some terrific ocean-view lots can be had for under $100,000.  Hopefully the area will not be overdeveloped like some other areas but for the moment, it still has some excellent values.

Happy hunting!

Out on Tour!

We're out on another of our "Boomers in Costa Rica Tours" (Boomers Tours!) so we'll be posting again later this week. We still have some room on our March 26-29th tour but sign up soon!  More information here: Tour info!

Pura Vida!

Tips on CR Real Estate Investment Funds

Many budding entrepreneurs in Costa Rica are setting up "real estate investment funds."  The model is simple: investors put X dollars into a fund and when the fund is fully subscribed (i.e., there are enough funds from all investors to buy properties), the fund's managers buy properties and flip them for a profit for its investors and the fund's managers.  While the model is simple, the risk can be significant so ask many questions.  Here a few you might consider:

1. What is the experience of the fund's managers in Costa Rica?  Have they done this before and what have been the returns to investors?
2. Who has invested in the fund (or in previous funds) and can a prospective investor speak with them?
3. What types of properties is the fund going to seek out, in what areas?
4. How will the fund make payouts to its investors? In one lump sum? As the fund becomes profitable?  Over set intervals?
5. How much are the managers asking for expenses? What are these expenses for?
6. Is the fund buying raw land, developments with utilties nearby or in place, homes, or a combination of properities and homes?
7. What's the minimum, maximum and average investment? What percentage of the fund will you own and how is it calculated?
8. If a fund claims the potential for a certain return on investment (ROI), how is the fund calculating the ROI and what factors are used to determine the potential ROI?
9. How do the fund's managers know which properties are capable of meeting the investment objectives of the fund--i.e., how do they really know which properties are undervalued?
10. Are the fund's managers invested as well? And if not, why not?
11. Does the fund already hold assets or will it acquire new assets?
12. To what extent, if any, do the investors have a say in determining the assets of the fund?
13. Who maintains the legal and financial books of the fund?
14. What are the tax issues if an investor wishes to repatriate his profits to his home country?
15. Are there any legal liabilities for the investor?  In other words, if the fund purchases a property and a potential buyer is injured, is there any legal (or financial) impact on the investor?

No matter what, use your own lawyer--not those of the fund--to carefully review the investment proposal/contract.  And, of course, visit the fund's current or possible properties for sending in money!

Best of luck!

A Few Spaces Left!

We have just a few spaces left on our February 12-15 Boomers in Costa Rica Retirement/Relocation tour.  If you want to join us on the highly informative and fun tour, see our website here: Boomers Tours!

If you cannot make the February tour, consider our March 26-29th tour.

Boomers in Costa Rica Tours

Cost of Living in Costa Rica

I recent survey claimed that Costa Rica is the 8th cheapest place in the world to live.  Yes, it is less expense to live here than in many countries, particularly the United States.  To live here estimates range from $500 month to $1200 or more, depending on your interests, whether you eat out a lot, if you own a car, and other factors.  It all depends on your individual needs.  For more information on the cost of living here, see an article from "Living Abroad in Costa Rica," here: Cost of living in CR