CostaRock's Blog

Foreclosure Sales in Costa Rica

Robert Irvin (Green Seal Realty) — Fri, 24 Jul 2009 12:20:44 -0500

Lucky, the Foreclosure Dog.

Lucky wandered into The Oaks, www.theoaksrentals.com, in search of food last week. We adopted him, are feeding him and will put him up for permanent adoption by one of our owners as soon as he is in shape. The economic crisis has caused some Costa Ricans to stop feeding their pets. With a world economic crisis, there simply is not enough money for some families to feed both their pets and their children.

Can a smart broker get lucky, too? I think so. Every week we get wind of distress sales, which are snapped up quickly when they are real. Just yesterday I had a call from an acquaintance in Tamarindo who has to sell his two bedroom, two bath condo in town. He purchased it two years ago for $155,000 and is now willing to sell it for $80,000. Of this amount, $70,000 is represented by a 7% assumable mortgage. HOA fees are $350 a month and taxes are about $20 a month. This is an excellent rental property, walk to the beach, that probably will return at least a 50% profit in two years. Rental income probably will fall short of carrying costs by about $400 a month, so a two year hold would require $20,000 total. With a likely $40,000 profit, you can do the math.

This is the time to tour properties and snap up a bargain. The weakest owners are selling at fire sale prices and after they have sold, the remaining units are priced at market. For example, this building has only two fire sales, then list prices jump $50,000.

If you are an investor looking for a bargain, we can set up tours based from The Oaks (sadly, no fire sales in The Oaks). From The Oaks, you have easy access to the hottest Pacific markets, and can tour 10 properties in a day. If you are a broker bringing clients, we can share commissions.

Why not just come on your own? For the same reason that I wouldn´t dream of flying into your market and buying something that looks like a bargain. Too risky. Maybe water issues. Maybe poor construction. Maybe noise. Maybe the wrong location, where that lot next door will be an eyesore. We can prescreen properties for you, whether it is condos, lots, houses or land. If you want a true bargain, now is the time.

And what is in it for me? I want to expose The Oaks rentals and few remaining sales, because I know that some people will come for a fire sale and snap up a bargain, while others will take their time, come back again, and buy the place of their dreams in this marvelous country. Those others are our motivation.

If you have always wanted to come to Costa Rica, this is the time.

PLAN AHEAD FOR YOUR COSTA RICA CHRISTMAS AND NEW YEAR

Robert Irvin (Green Seal Realty) — Sun, 19 Jul 2009 20:58:32 -0500

It´s incredible, but this year more than ever it´s time to plan your Costa Rica Christ

mas vacation in July. In years past, you have searched the web for deals, made numerous phone calls and sent countless emails, all in search of the perfect Costa Rica vacation. And in the end, you either paid big bucks or you settled for accommodations that truly were “second best”.

This year we are making it easy for you. There is a new luxury condominium project waiting for you located midway between Hacienda Pinilla and Reserva Conchal. The Oaks will finish its first year after opening at Christmas 2009, and to celebrate we are offering an early bird Christmas and New Year special.

Yes, you could go online or call now and reserve a peak season week at a two bedroom villa in Hacienda Pinilla for $4,232 for Christmas or New Year (tax included). Or, you could go online or call now and reserve a peak season week at a two bedroom condo in Reserva Conchal for $4,350 for Christmas or New Year (tax included). Or, you could go online or call now and reserve a peak season week at a two bedroom condo in The Oaks for only $1,800 for Christmas or New Year (tax included).

We know why you are coming to Costa Rica. At the Oaks you are only fifteen minutes away from five of the best surf beaches in the world, ten minutes away from Tamarindo, with fantastic beginners and intermediate surfing, fifteen minutes from snorkeling in the crystal waters of Playa Conchal, fifteen minutes from advanced surfing at Playa Grande and twenty minutes from deep sea fishing out of Flamingo. Here is a list of what one of our recent guests, Steven, a surfer, did during his week at The Oaks, in his own words.

1) Witches Rock Surf Camp was a convenient way for me to rent surf boards and eat right on the beach in between surf breaks as well as meet other friendly surfers. Also the local surf instructors working there are quite friendly. I also rented from Iguana Surf and Banana surf shops.

2) I went on a surfing day boat trip to Ollie's Point and Witches Rock with "Kelly's" surf shop (which is located across from Witches Rock Surf Camp in Tamarindo. Cost me $95.

3) I drove to Arenal which took almost 4 hours and the roads became very winding but for an experienced driver it was a piece of cake. The zip line operated by SkyTrek was a lot of fun and cost $65 and was almost 3 hours long. I also visited the waterfall in La Fortuna near Arenal. That was probably the best part of the whole vacation (waterfall). And it only took 10 minutes to walk to the waterfall from the parking lot (down a very steep hill).

4) Playa Avellanas was very nice and quiet and small. We stopped at a small Israeli owned restaurant and ate a really good chicken Shwarma.

5) And lastly, there was a place your staff had suggested right next to the AVIS car rental before Liberia (about 1 km after the turn for the airport), it was a really nice outdoor big restaurant right off the main road and they made an excellent breakfast.

Steven was too busy surfing to have time for deep sea fishing, golf, scuba, horseback riding, white water rafting, off-roading, visiting the national parks and nesting turtle beaches at Playa Grande and Playa Ostionol and visiting the Monteverde tropical rain forest. But from your base at The Oaks, all are within easy reach.

Apart from being in the center of everything, and only 48 minutes from the airport, what does The Oaks offer? An ecologically planned development that respects nature as well as its guests.

For the environment, ecological corridors for the howler monkeys, nature trails, energy efficient double paned windows, ecological low flush toilets, a state of the art tertiary waste water treatment plant, and an incredibly detailed effort to build around native trees, not cut them down.

For The Oaks guests:

Available on-site at The Oaks are in-room massages at $50 and yoga classes.

Check us out at www.theoaksrentals.com and www.theoakstamarindo.com, but hurry these prices won't last!

ASTHMA ATTACK IN COSTA RICA

Robert Irvin (Green Seal Realty) — Mon, 15 Jun 2009 20:55:46 -0500

This morning my long term girlfriend, Rox, suffered her first asthama attack in over six months, here in Escazu, a suburb of the capital city of San Jose. We had just come back from vacationing in moist, hot weather in Bocas del Toro, Panama to rainy, chilly weather in San Jose. Where we live, in Guanacaste, the weather is hot but dry, so asthma problems had been history.

Anyway, it´s seven in the morning, Rox can´t breathe, and off we go to a "doc in a box" provided free by the Costa Rica state run health care system. Only problem is, the doctor won´t be in until 10:30, according to the nurse on duty. Wait. And the traffic to San Jose will take at least half an hour, maybe much more. Instead, we drive five minutes to CIMA hospital, an outstanding private hospital in Escazu affiliated with Baylor. They run the credit card, make us wait less than three minutes, and begin treatment with oxygen and an inhaler filled with something that clears up the bronchial tubes. Four treatments of this, and we are out before 9:00 a.m. Total bill for private medical care, provided by going to the emergency room, $46.64. That included an 8% discount by presenting our PriceSmart wholesale club card.

So, we get back to the bed and breakfast where we are staying, I turn on CNBC, and there is Barack Obama with his speech on reforming the U.S. health care system. Hmmmm. Time will tell. Hope so.

In our case, we had a choice between free government run health care (wait 3 1/2 hours, but the price is right), or outstanding private care for under $50.

Do any of you in Canada or the U.S. have similar stories? How does our experience compare?

COSTA RICA FOR FUN AND PROFIT

Robert Irvin (Green Seal Realty) — Sun, 03 May 2009 18:14:35 -0500

I am trying to find one person in a 1,000 on ActiveRain who wants to come to Costa Rica, have fun, look around, and make some money with very little effort.

Phases one and two of The Oaks Tamarindo, www.theoakstamarindo.com and www.theoaksrentals.com, are fully finished. We are over 80% sold out, and our owners want rentals. During July, a great season to visit for "little summer", we are offering week long activities: Fitness at the Beach, Yoga Awareness Week and Alternative Therapies Week, plus classes in t´ai chi. Surf classes are offered all three weeks. More on this later.

How do you make money with very little effort? You have to leave a comment to let me know you´re curious. Remember, I said "very little effort", not "no effort"! There are sales and rental commissions to be earned, fun to be had and even low cost dental work if you want to come back with a white smile to contrast with your tan.

WANT TO SMILE ALL THE WAY TO THE BANK?

Robert Irvin (Green Seal Realty) — Mon, 27 Apr 2009 20:54:12 -0500

Want to smile all the way to the bank? Costa Rica developer looks for a few adventurous agents.

I am a developer in Costa Rica, www.theoakstamarindo.com, www.theoaksrentals.com, and I have a high class problem. My first phase is 80% sold out, and I have 30 owners who want to rent their condos on a weekly or monthly basis. I want to put a smile on your face and on the faces of my owners.

I am looking for one person in a thousand on ActiveRain (that´s 144 of you). One person who is up for the fun and adventure of Costa Rica, and who wants to put a smile on his or her face, and on the faces of your clients. How? Come to Costa Rica and stay at my condos, of course. Costa Rica alone is enough to put a huge smile on. Ask Mel Gibson. Or Britney Spears. Or Heidi and Spencer. Or even Iron Maiden.

Or sign up for our first class dental vacation! That´s right! Costa Rica dental work is first class, and a fraction of the cost in the U.S. or Canada. Or come down and look for Blago. If you find proof that he makes it to Costa Rica for I am a Celebrity ... Get Me Out of Here! we will give you one year free at an Oaks condo! (Photoshop doesn´t count, although the best photo-shopped photo will be good for three free nights at The Oaks.)

What´s in it for you? We will register anyone you send down as your client, and if they buy an Oaks condo from us within two years, you will automatically get a referral fee. If you actively sell them, you will get a commission. And, we promise not to approach them with sales attempts. It´s not our style, and we want them to have a great time. If enough people have a great time, sales will take care of themselves.

Air fares are low, rentals are low, www.theoaksrentals.com, and this is a great time to get away and have fun!

COSTA RICA RENTALS, UPDATED

Robert Irvin (Green Seal Realty) — Tue, 31 Mar 2009 18:43:21 -0500

A year ago, I wrote:

• If you decide on short term rentals, you should register as a tourist establishment, publish notice of your registration and collect and pay your 16.39% sales and tourist taxes.

Well, a change in the law, and another year of experience, and it´s time for an update. Woke up Sunday morning to another day of sunshine, opened the daily newspaper, La Nacion, read all about Vuce President Joe Biden´s visit to Costa Rica, Nicaragua President Daniel Ortega´s call for U.S. aid (the more things change...) and, way in the back of the paper, found out that Costa Rica´s legislature had just repealed its 3.39% tourist tax on hotel rentals. That leaves the 13% sales tax on hotel rentals.

But what about condos? While the issue is not clear, after consulting with way too many Costa Rica lawyers and accountants, I have decided it is better to take an aggressive approach. The law imposes a 13% tax on hotel rentals, but it also gives certain breaks to hotels. Regulations attempt to extend this tax to all short term rentals of six months or less. However, condos that do not offer hotel services, such as a restaurant, do not receive the benefits of the hotel tax law, and, I have "concluded", are not required to collect and pay the tax. Since tax policy everywhere is more than a little arbitrary, I may come to regret this decision. Still, it seems to be based on the law, and worth the trouble of taking a good position. Time will tell.

Meanwhile, at The Oaks Tamarindo, we are offering bargain rates now that our 96 condos are completed and some of our owners wish to earn income from their purchases, bargain rates that do not include sales tax.

Costa Rica: A Good Place to Hide Out?

Robert Irvin (Green Seal Realty) — Sat, 07 Mar 2009 16:07:36 -0600

Nearly six months ago, from Costa Rica, I posted "Bush and Congress Agree on Bailout Blunder?" The more things change, the more they stay the same.

If you read the footnotes to banks´balance sheets, banks are getting decimated by write downs of assets caused by mark-to-market accounting. They then go to TARP to replace some of the "lost" equity, go to Congress to get publicly whipped by folks who should know better, but don´t, and go to the market to raise new capital, when they can, at extraordinary cost to their existing shareholders. And we wonder why banks don´t lend. Or why times are tough. Or why frauds are uncovered when the financial tide goes out.

Meanwhile, down here in Costa Rica, a funny thing is not happening. By and large, real estate prices are not going down. (Big exception: raw land.) Sales activity has slowed dramatically, but the slowdown is not reflected in prices, at least not yet. And life goes on, sunny and hot here at the beaches.

What is happening is that vacation rentals have fallen dramatically. What would have cost you $1,000 a week a year ago, for a one week stay in a quality condominium, now can be had for $600. Plus, air fares are dirt cheap. One charter from Edmonton, Canada could be had last week for $312 (CAN $400), about the same as a flight from Miami.

Costa Rica has always had a reputation as a good place to hide out. Time for you? Try it for a week, stay forever.

A Costa Rica Engagement

Robert Irvin (Green Seal Realty) — Sat, 31 Jan 2009 20:31:07 -0600

Among all the business of real estate comes joy. We finished our resort condominium, The Oaks Tamarindo, just in time for Christmas. And lo and behold, just last week, we got to celebrate our first engagement! One of our new owners, Sherie, from England, arrived in Costa Rica with her boyfriend, and left with her fiance! Yes, the same lucky guy, Lawrence. Check out the rock!

Sherie is a dealer in antique jewelry, and Lawrence runs a business in the neighboring county. So, Sussex and Kent unite in Paradise! Congratulations!

Bush and Congress Agree on Bailout Blunder?

Robert Irvin (Green Seal Realty) — Sun, 21 Sep 2008 13:47:21 -0500

I have been happily minding my own business in Costa Rica, off to Alberta for a bit of marketing, then Spain, where I am now. So I check in to the internet this weekend, no worries, the Dow is unchanged, politics as usual, whooops! A $700 billion bailout?? That´s more condos than I can build and sell for the rest of my life! Unless, that is,our politicos blunder (again), inflation ramps up and that starter unit goes for a cool $billion. Oh man, I hope I am wrong about this.

And what exactly are our leaders proposing? Destroy the remaining banks, best I can tell. And here I was, all smug, in a third world country that has sidestepped problems mostly by having an underdeveloped banking system that wouldn´t know a CDO squared if it found it in a crossword puzzle.

So where is the blunder? Step one. (Those who can analyze do, those who can´t, number.) Make banks mark to market the value of their assets. So, if the market panics for a quarter, your bank is insolvent. Step two. Invent a race to the bottom, a reverse auction ( I promise you, I am not making this up), where the most desperate bank wins the right to sell its riskiest assets to us, the U.S. taxpayers, at the lowest price, in competition with other banks. Step three. By the end of the following quarter, use this price to mark to market the portfolios of all banks and other financial institutions, making more of them insolvent. Repeat.

The fact is, the AIG loan of last resort solution was the right one. Can´t borrow money? OK, we provide liquidity, but make it a loan, make it secured, and expect to be repaid. If some banks go broke because of their bad assets, so be it, but not because of illiquidity. Meanwhile, the ones that will survive with time, but suffer from a liquidity problem today, can get their liquidity as loans, yes, from you and me, the lender of last resort. Financial markets unfreeze. Stronger regulation, including forbearance where prudent, gives technically insolvent banks the time to work their way out of trouble, while taking down the hard cases. Kinda like the 80´s.

During the last financial crisis, the Resolution Trust Corporation took over the assets of insolvent S & L´s, auctioned them, and minimized thetaxpayer´s loss. But the key was, insolvent S & L´s were allowed to go bust without being mindlessly marked to market, laid low by bad assets rather than by bad accounting. This new combination of mindless accounting and a mindless reverse auction gives pause. But, I fear, pause is not in the cards six weeks before a general election. Hopefully, this is Bush´s intelligence test for McCain and Obama, and one of them will pass the test.

Here is what I wrote for Chicago Title´s Latin American magazine in a more innocent time (July). For those not interested in Costa Rica, you can stop here.

Friends who learn that I left for Costa Rica looking for adventure three years ago and never came back eventually get around to asking me if the Costa Rican real estate market is still going up in spite of the subprime mortgage meltdown in the U.S. And, if it is, how can that be possible?

On December 14, the Wall Street Journal reported on a phenomenon that those in the know have found out first hand. “The housing slump has sent many Americans shopping south of the border.” Existing-home prices... are still climbing in much of Latin America and the Caribbean. ... In San Pedro, Belize, the average price of a 2,200-square-foot home was $697,500 in September, up 18.6% from a year ago, according to a study by Coldwell Banker; the price of a similar property in San Jose, Costa Rica, was up 20.7%, to $389,900, the study said.” What? In the face of massive publicity in the U.S. concerning the U.S. subprime mortgage meltdown? House prices falling? Foreclosures rising? Gloom and doom.

Let’s start by stating the obvious (it makes things so much easier). A subprime borrower is not now, and never was, a good candidate for buying a vacation or retirement home overseas. Ouch. We sympathize with the plight of subprime borrowers, but, no, here in Costa Rica we do not feel your pain. If you are successful enough to be planning your vacation or retirement haven overlooking the Pacific Ocean, you are successful enough to have sidestepped the problems caused by overextended finances.

What about financing? In the United States, the mortgage market went from being incredibly permissive to incredibly tight in two short years. From fantastic to terrible. In Costa Rica, the mortgage market has gone from worse to bad. Yes, you read that right. Not bad to worse. Costa Rica is only now starting to develop modern home lending practices. Who knows, in another couple of years, they might even be good (which will lift prices). There is always a bull market somewhere (credit to Jim Cramer). What is happening in North America are government policies that look to favor Costa Rican real estate values.

Costa Rican real estate deals are transacted in U.S. dollars. Inflation traditionally has been high when measured in the local currency, the colon. In 2007, according to official government statistics (http://www.inec.go.cr/) Costa Rica’s general price inflation was 10.81%. Construction cost inflation (for construction of houses) was slightly higher, at 11.48%. The main newspaper, La Nacion, calls for 15% construction price inflation this year. In the face of all this local inflation, U.S. dollar price inflation historically has been low, because the Costa Rican government supported a creeping devaluation of the colon against the dollar.

No more. Since 2007 the colon has remained within a narrow band against the dollar, sometimes up, sometimes down. What does this mean for a North American investor? Just this. In order to purchase the same construction one year from now, it is prudent to count on annual construction cost inflation of 15%, plus or minus. And this does not take into account inflation in land prices, driven by the same inflation forces, plus supply and demand. No wonder, then, that prices were up 20% in 2007,according to the WSJ article.

Does this make sense? We have been there before. When general price inflation is high, like in Costa Rica, real estate is a terrific asset class. In inflationary times, you want to own real estate. And since real estate prices move in five to seven year cycles, you don’t want to bargain hunt by buying too early in a falling market like the U.S., you want to buy in a rising market like Costa Rica. There is always a bull market somewhere.

But what about the Canadians to the north? Cold, dark, long winters. Ehh? A strong economy. Crazy real estate prices. The Canadian dollar is up 50% against the U.S. dollar over the past five years. Whoaa. Cheap U.S. dollars. Bargain time in a rising market, sipping a cold one while watching the hot January sun set into the Pacific Ocean.

At The Oaks Tamarindo, my luxury condominium project cum nature preserve located within 10 minutes of Costa Rica’s best beaches, and only 48 minutes from the international airport, savvy North Americans have snapped up units at prices under $200 per square foot, compared to around $500 per square foot back home. Ecologically planned, built to the highest North American standards, with the best of Costa Rica waiting just outside their door. Phase one? Sold. Phase two? We sold 34 units this year, almost all to U.S. and Canadian citizens, only 14 units remaining. What subprime mortgage crisis? Ask the author about phase three. Or selected opportunities. info@greensealrealty.com.

ELECTRICITY COSTS: A REPORT FROM THE OAKS TAMARINDO, GUANACASTE, COSTA RICA

Robert Irvin (Green Seal Realty) — Sat, 06 Sep 2008 14:28:17 -0500

I have been reviewing our typical unit owner´s electricity costs at The Oaks, noting that a typical bill during July for a fully occupied unit was $67 CAN for the month. When I asked our on-site concierge, Ana Lorena, for an explanation, she sent me our local electric company´s rates.

Rates are divided into two seasons, "dry" and "not dry". Because 80% of Costa Rica´s electricity is generated by hydroelectric power, rates are 25% higher during the "dry" season from January through June. For an average user of 625 kWh per month, the July low season rates cost $67.75 CAN. VOILA! During the "dry" season from January through June, rates are 25% higher, which would result in an electric bill of $84 per month.

So how does this compare with where you live? Here is information from ENMAX for July.

Calgary's Regulated Default Electricity Rate for July 2008

For Immediate Release
Calgary
26 Jun 2008
The default electricity rate for Calgary will rise to 11.99 cents per kilowatt hour (kWh), effective July 1, 2008. Consumers who have chosen a fixed price energy plan will not be affected by this price change.
As a result, the electricity bill for a typical Calgary household (using 625 kWh per month) will increase by 15.5 per cent compared with the previous month to $112.31.

Hmmmmm.

A SLICE OF LIFE

Robert Irvin (Green Seal Realty) — Sun, 11 May 2008 14:18:36 -0500

Where is this maneuver being practiced?

Unless prohibited, a three-point turn may be used to turn around on a narrow, two-way street. You may be required to make one of these turns on your road test.

To make a three-point turn:

•1. Signal with your right directional, then pull over to the right and stop. Signal with your left directional, then check carefully for approaching traffic.

•2. Turn left, cross the road so you come to a stop while facing the left curb or edge of the road.

•3. Check again for traffic. Turn your steering wheel as far to the right as possible, then back up to the right curb or edge of the road.

•4. Stop, check again for other traffic, then pull away from the curb.

TIPS ON LEASING YOUR COSTA RICA CONDO

Robert Irvin (Green Seal Realty) — Thu, 03 Apr 2008 17:04:18 -0500

We finished construction on our first 30 condominium units at The Oaks Tamarindo before Easter, and some of our owners already have begun renting out their units. Out of 30 units completed, 5 units are being rented out on either a short term or a long term basis. We are using the 3 units that we are not selling as model units, a home for our manager of guest services, Ana Lorena, and as VIP units for local dignitaries. One of our owners even has set up his own web site.

First, let's start by stating the obvious. (It makes blogging so much easier.) Renting is extremely attractive from an economic point of view. Prices are going up while phase two is under construction, making renting an attractive option to cover one's costs while enjoying the benefits of price appreciation.

We recommend that owners enter into short term rentals whenever possible. Rates are attractive, at $900 per week during the low season, pretty much the same as renting two rooms at the new Best Western Motel one mile down the road. Additionally, an owner can schedule personal and family use during the year, and we can keep a close eye on the unit's use when it is rented out.

Still, some owners have told us that they believe that long term rentals are more attractive to them, because their income is more stable, and because there is less wear and tear on their units. In our opinion, both beliefs are questionable.

From the point of view of stability of income, the law limits a landlord to only one month's rent in advance and one additional month's deposit for damages. As a nice trap for the unwary landlord or lawyer, a tenant can cancel his lease with three months' advance notice unless the lease explicitly provides otherwise. Moreover, a long term lease really is long term. Under Costa Rica law, every residential lease has a term of 3 years (even if the lease itself says otherwise). So, if you enter into a lease for any term (other than a short term tourist lease), you have entered into a three year lease. Combined with the discussion in the following paragraph, think of this as a form of rent control.

If rent payments are stipulated in a foreign currency, such as U.S. or Canadian dollars, the rent cannot be increased for three years (even if the lease says otherwise). Only if rent payments are stipulated in Costa Rica colones can the rent be increased, once a year, by an amount equal to the annual rate of inflation, up to 15%.

This actually is a pretty good deal for the landlord, since the colon is going up against the U.S. dollar, and inflation is running around 10% per year. So, your lease payable in colones will have two nice annual increases in rent, while your lease payable in dollars is fixed for three years.

What can go wrong? You negotiate a three month lease in October, during the rainy season, for a low rent, payable in dollars. You neglect to register yourself or your company as a tourist establishment, thereby attempting to avoid charging your tenant Costa Rica's 16.39% sales and tourist tax. You figure, no worries, I am covering my costs, the lease is only until December, and I'll raise the rent during the high season. WHAMMO. An unscrupulous tenant will stick you with the low fixed rent for three full years, during low season and high. Never mind that the lease says it is for three months. Costa Rican rent control.

What about wear and tear? Isn't it easier on your unit to have a nice, stable, long term tenant? Well, you own a vacation home, within minutes of the best beaches in the country. So, even though your tenant is a professional architect, engineer or lawyer who lives and works in the area full time,with a wife and no children, he has two parents, six brothers and sisters, and20 cousins, and their families, all of whom want to come visit him at the beach. And there is nothing you can do about that. Do you think one month's security deposit will cover three years of wear and tear?

KEY POINTS
• You are better off as a short term landlord to foreign tourists, by and large.
• If you decide on short term rentals, you should register as a tourist establishment, publish notice of your registration and collect and pay your 16.39% sales and tourist taxes.
Want to Learn More? Click here.

Why Costa Rica Real Estate Prices Are Going Up

Robert Irvin (Green Seal Realty) — Mon, 28 Jan 2008 09:26:11 -0600

People who have never visited Costa Rica always ask me the same three questions. Is it safe? How is the medical care? Is the real estate market going up?

On December 14, the Wall Street Journal reported on a phenomenon that Canadians and Americans also are beginning to discover.

According to the article: "The housing slump has sent many Americans shopping south of the border.

Existing-home prices... are still climbing in much of Latin America and the Caribbean. ... In San Pedro, Belize, the average price of a 2,200-square-foot home was $697,500 in September, up 18.6% from a year ago, according to a study by Coldwell Banker; the price of a similar property in San Jose, Costa Rica, was up 20.7%, to $389,900, the study said.

Costa Rica has been popular for years because of its stable democracy, friendly people, beautiful beaches and stunning biodiversity. Starting with the 2003 opening of The Four Season Resort in Guanacaste, along the Pacific Northwest coast, direct international flights to the Pacific Northwest have increased exponentially, driving an investment boom. Available airline seats are up 26% over last year.

What is new in 2008 is a policy change that looks to drive real estate values up even further. Real estate deals are transacted in U.S. dollars. Inflation in Costa Rica traditionally has been high when measured in the local currency, the colon, but low when measured in U.S. dollars. In 2007, according to official government statistics, http://www.inec.go.cr/, Costa Rica's general price inflation was 10.81%. Construction cost inflation (for construction of houses) was slightly higher, at 11.48%. The main newspaper, la nacion, calls for 15% construction price inflation this year, in colones.

U.S. dollar price inflation was historically low because of a creeping devaluation of the colon against the dollar. This devaluation ended in 2007; from January through November the colon was virtually unchanged against the dollar. On November 23, the dollar lost almost 4% of its value against the colon. In the less than two months since, the dollar has gradually lost another 1/2 of 1%, which would indicate an annual devaluation of about 2.5%. Informed sources tell me that this will pick up soon, with an additional devaluation of 5 to 10% coming in 2008.

What does this mean for a buyer who pays U.S. dollars? Just this. In order to purchase the same construction one year from now, it is prudent to count on annual construction cost inflation of 13%, plus or minus, measured in dollars. Add to that a dollar devaluation of 5 to 10% more.

What does this mean for a developer? It is equally prudent to raise prices by 13% to 23% during 2008, just to stay even. And this does not take into account inflation in land prices, driven by the same forces, plus supply and demand. No wonder, then, that prices were up 20% in 2007, according to the WSJ article. At my project outside Tamarindo, Costa Rica, The Oaks Tamarindo, prices are up 11% so far this year, with more price increases in future.

Does this make sense? If you are my age, you have been there before. When inflation was roaring in the United States in the 1970s, real estate was your refuge. The consumer price index was going up in double digits annually, and real estate was going up even more. In inflationary times, you want to own hard assets. Like real estate. And since real estate prices move in long cycles, you don't want to bargain hunt in a falling market (trying to catch a falling knife), you want to buy in a rising market, with the wind in your sails.

What about a buyer who pays Canadian dollars? Economic Nirvana. A Perfect Storm.

The Loonie has risen by about 50% against the U.S. dollar over the past five years, from 65 cents to parity, making this an interesting time to buy Costa Rica real estate- priced in U.S. dollars. Combine this with no capital gains taxes and a ridiculously low ¼ of 1% annual real estate tax rate, and the Canadian investor's stage is set. Now mix in a price of around $200 per square foot, compared to Canadian prices of around $500 per square foot. If you haven't planned your exploratory trip, maybe you should. But before you go, there are pitfalls to be aware of. Is it possible to make mistakes in a foreign country? Oh yeah. Don't leave your brain on the plane.

Ask us. info@greensealrealty.com.

MEDICAL CARE FOR COSTA RICA SNOW BIRDS

Robert Irvin (Green Seal Realty) — Mon, 21 Jan 2008 12:08:13 -0600

People who have never visited Costa Rica always ask me the same three questions. Is it safe? How is the medical care? Is the real estate market going up? This report is not for full time retirees, but for those of us who love travel, don't like the cold, and wonder what their medical care would be like if they spent the winter in Costa Rica.

Having lived here now for nearly three years, and in two different areas, one being the beach areas surrounding Tamarindo, the other being the mountains outside San Jose, I have accumulated some sense of life here and a feeling for some of the ins and outs of medical care. I am a healthy 50 something (ah, vanity) male. I have found the medical care here first rate, and far less costly than in Miami, where I formerly lived. I go to the best dentist in Escazu, and to doctors who practice out of CIMA, one of the two best hospitals in San Jose.

I travel between my project, The Oaks condominiums near Tamarindo, and Green Seal Realty, and my weekend home in the mountains near San Jose. Those of you who are Californians and go from the beach to spend weekends at Lake Arrowhead or Big Bear get it. Except here, the mountains also are the city.

In December I went to my Escazu dentist for a checkup. After a routine cleaning and inspection ($50), he discovered a cracked filling in a molar, but more important, a need for some periodontal surgery. We scheduled it Friday morning. After a little over an hour and a few stitches in the gum, I was as good as new. Cost? $200. In the States?

What about Tamarindo? Luckily, I haven't gotten sick there, but Melanie's father-in-law and best friend both had medical emergencies last Wednesday. (Melanie is a 20 something German native and legal resident of Costa Rica, who is director of international sales at The Oaks.)

Her father-in-law, about my age, began vomiting and otherwise felt miserable 11:00 o'clock Wednesday night. Melanie and her husband took him to the emergency room at Coastal Emergency Medical Service, about 5 minutes from The Oaks.

There, he was rehydrated with a drip, given an antiviral injection, and sent home after a little over an hour. (He's fine, by the way, thanks for asking.) Cost $40. The treating physician worked at CIMA before deciding to live at the beaches.

Same day, mal suerte, Melanie's friend, a 20 something female, hurt her toe at the tennis club in Tamarindo. Ouch. By midnight, the pain had become unbearable. She, too, went to the emergency room at Coastal Emergency Medical Service. There, they sedated her toe with a local anesthetic, injected it with something to stop the inflammation, and put it in a splint. Cost $50.

As luck would have it, my 20 something daughter also hurt her toe partying New Year's Eve, while I was visiting her in Los Angeles. I took her to the Cedars Sinai emergency room New Year's Day. It turned out to be an ugly blood blister, caused by excessive dancing in high heels. Diagnosed, no treatment. Cost $300. Double ouch.

I prefer paying cash for medical care, especially in Costa Rica, since I feel I can afford it and I don't like paying overhead costs and profits to insurance companies. However, insurance is readily available. Not surprisingly considering the low cash cost of care, the insurance is quite reasonable. At Coastal Emergency Medical Service, about $40 a month gets you free medical consultations, a 50% discount on ambulance services, free consultations at home, and a discount on lab and dental services. Available equally to residents and visitors.

Private hospital insurance also is available. The Association of Residents in Costa Rica, run by Canadians, offers two different group health plans. One private plan with which I am familiar, Global Care Latin America, offers $100,000 family coverage with an annual $1,000 deductible, costing under $1,500 for folks between the ages of 50 and 54 and under $1,800 between 55 and 59.

The bottom line - in Costa Rica I feel that I have world class medical care for a tiny fraction of what I would pay "back home".

Statistics back up that judgment. Costa Ricans enjoy the third highest life expectancy in the Western hemisphere, 77.2 years of age, compared with the United States at 78 and Canada at 80.3. Source: U.S. Census Bureau Data Base, Life Expectancy at Birth 2007. Costa Rica's strong tradition of medical care is backed by free universal health care for citizens and legal residents, which many legal residents (usually not snow birds) use in combination with private care.

If you are visiting Costa Rica, or living here part time, world class medical care is at hand.

If you want to find out more, contact me, or check my ActiveRain blog in October 2007, reprinting with permission an October 5, 2007 article from The Tico Times about medical tourism to Costa Rica. The take away from that article is that first class knee replacement surgery that would cost $45,000 in the U.S. was done for $12,000 in Costa Rica. The Tico Times is free on the internet, and I highly recommend it as a weekly read!

THREE QUESTIONS THAT EVERY VISITOR ASKS: #1

Robert Irvin (Green Seal Realty) — Mon, 07 Jan 2008 13:04:12 -0600

People who have never visited Costa Rica always ask me the same three questions. Is it safe? How is the medical care? Is the real estate market going up?

Let's start with safety. Having lived here now for nearly three years, and in two different areas, one being the beach areas surrounding Tamarindo, the other being the mountains outside San Jose, I have accumulated some sense of life here and a feeling for the question of safety.

Personally, I feel much safer, physically, living in Costa Rica than I did living in either Miami or L.A. The stories that I hear from friends and acquaintances confirm this feeling. For the Canadian, American or European, violent crime resulting in personal harm is very rare. Extremely rare. As anywhere, you need to use common sense, but your chances of being assaulted or hurt are much lower here than in the United States or Canada.

This personal experience is backed up by statistics. I found a fascinating web site, www.nationmaster.com, that collects country statistics from official sources, then compares them. In assaults, the United States leads the way, but is nudged out of first place in assaults per capita by smaller places. In both absolute and per capita terms Costa Rica does surprisingly well, far better than the U.S., Mexico and even Canada. Out of 57 countries listed, the United States comes in at number 6 for assaults per capita, Canada number 9, Mexico number 20, and Costa Rica brings up the rear at number 50. Not bad, eh? Especially considering that Costa Rica has a small population, just over 4 million people, which would inflate its per capita numbers if tourist crime were high. http://www.nationmaster.com/graph/cri_ass-crime-assaults and http://www.nationmaster.com/graph/cri_ass_percap-crime-assaults-per-capita and http://www.nationmaster.com/graph/cri_ass_percap-crime-assaults-per-capita

On the other hand, petty theft is common. The Costa Rican character is non-confrontational, almost to a fault. Get pushy and you commit a social mistake. Your Tico counterparty probably will not argue back, but will be resentful and will figure out a passive-aggressive way to get even, usually by telling you what he or she thinks you want to hear, then doing nothing. This character trait also shows up in non-confrontational crime patterns.

Leave anything in your car unwatched, and you run a good chance of losing it. A local institution is the "watching man", to whom you pay from $0.20 to $2.00 to watch your car. The amount depends on the time of day or night and length of time away from the car. Leave anything lying around, your wallet, purse, IPod or camera, it could disappear. To avoid aggravation, make a copy of your passport and visa stamp and leave your passport in a safe. Never leave stuff unwatched on the beach.

More problematic, theft extends to cars and houses. Therefore, as a part-time resident, your property is much more secure if you live in a gated community. This also is true, by the way, in Miami and L.A. Since I live a lifestyle not that different from a snowbird's, frequently away a week at a time, I live in gated communities. I also incorporated extensive security into the design of my gated condominium project outside Tamarindo, www.theoakstamarindo.com.

Apart from anecdotal evidence and statistics, you also can gain insights from indirect evidence, along the lines of the famous Sherlock Holmes clue, the dog that didn't bark. If you're in a building and you want to know if it's raining outside, you can look out the window to find out. Maybe you can see the rain. Maybe you can't. If you're like me, you look at the cars. Are their windshield wipers on? If they are not, then it's not raining.

In Costa Rica, indirect evidence comes from tourism and investment, both of which are booming. Passengers travelling through the international airport in Liberia, which serves Costa Rica's Gold Coast, are soaring. Far from being scared away, tourists are coming in greater and greater numbers, fueling a real estate boom. Ditto with San Jose and the Central Pacific coast. It's not raining.

In conclusion, at this writing, is Costa Rica safe? By many measures, yes, surprisingly, safer than Canada and the United States. Take normal precautions and you should be fine.

Next time. How is the medical care?

South of the Border in Costa Rica

Robert Irvin (Green Seal Realty) — Mon, 17 Dec 2007 19:06:38 -0600

Since I live and work in Costa Rica, I found the Wall Street Journal's article on red hot real estate markets in Central America fascinating. Following are some excerpts, with my comments following, marked in italics and underlined.

South of the Border,
The Market's Still Hot
Americans Find Second-Home Boom
Endures; Wildlife in the Neighborhood
By JUNE FLETCHER
December 14, 2007; Page W12
The housing slump has sent many Americans shopping south of the border.
Existing-home prices in the U.S. dropped 4.5% in the third quarter from a year ago, according to S&P/Case-Shiller. But they are still climbing in much of Latin America and the Caribbean.
Buyers are being enticed by the kind of double-digit appreciation that has all but disappeared in the States. In addition, a growing number of new developments are targeting Americans looking for good deals and a lower cost of living.
In San Pedro, Belize, the average price of a 2,200-square-foot home was $697,500 in September, up 18.6% from a year ago, according to a study by Coldwell Banker; the price of a similar property in San Jose, Costa Rica, was up 20.7%, to $389,900, the study said.
At The Oaks Condominiums outside Tamarindo and Playa Grande, on the Northwest Pacific coast, www.theoakstamarindo.com, prices have gone up 40% in 2007, but are still more than 25% below the lender's appraisal of value when the first two phases are completed in July 2008. For good design and construction (see last comment below), prices routinely appreciate 15% between pre-construction and construction, and another 15% between construction and completion. Inflation in Costa Rica is running about 10% per year.
He snapped up the home on the advice of a gym buddy, who said his own Costa Rican properties have quadrupled in value over the past four years. Although Mr. Deitrick isn't looking forward to the daylong flight to Dominica when he visits for the first time in February, he says he's glad he bought the property: "It just doesn't make sense to buy in the U.S. right now."
Buyers need to ask the right questions, and to inspect the property.
There are additional downsides to buying in this part of the world. The weather can be violent and unpredictable: Last month Hurricane Noel slammed the Caribbean, causing floods and mudslides, and leaving 147 dead. And insurance to protect against natural disasters, including earthquakes, may be impossible to obtain.
Costa Rica is south of the hurricane paths. In Costa Rica, insurance is available through the INS, a government monopoly insurer. Insurance includes coverage for earthquakes and hurricanes. Regulated rates for condominiums vary from a high of $0.6215 per $100 on an individual policy to a low of $0.452 per $100 on a policy purchased by the condominium association.
In addition, many foreign real-estate brokers are unlicensed and don't necessarily adhere to the business standards that Americans expect.
Does the broker have an "exclusive listing" for one or more properties at a higher than normal commission? Is that why the broker is showing you that property? Is there a sales contest going on, where the winning agent gets a free unit or cash bonus? Ask the same questions of brokers in at least three different firms, and note the different answers.
Seasoned real-estate brokers say that to be successful, developments need at least some amenities and should be within an hour's drive of an international airport.
Amen.
This means, for beach properties, the Guanacaste region along the Northwest Pacific coast. High scale development was opened up by The Four Seasons Resort four years ago.
Thanks to direct international flights from the U.S., Canada and the U.K., beach communities from Coco to Tamarindo are within an easy one hour drive. Tamarindo is the social hub of the area, within easy driving of lesser known and even better beaches such as Playa Grande. An apparent exception to the one hour rule is the booming beach town of Jaco, where a proposed highway from San Jose promises to bring the driving time from San Jose down from two hours to one hour. This new highway is promised for completion within three years. A word to the wise. This promise first was made thirteen years ago. Each year the promise remains unchanged.
Estimated buyer transaction costs: 3.8%
If the developer structures the sale properly, closing costs can be as low as 1%, including title insurance. How? The seller transfer shares of individual corporations set up for each unit, avoiding transfer taxes, side stepping "minimum" attorneys' fee schedules, and easing the opening of bank accounts.
There are no capital gains taxes in Costa Rica (except in the case of "habitual" sales, in which case a 30% rate applies).
Do not assume that North American construction and environmental standards apply, or that developers accurately or consistently describe the number of square feet contained within a condominium or home. Remember, the market is basically unregulated.
According to Wikipedia, only about 15% of waste water in Latin America is treated before it is released into rivers and bays. Insist on compliance with environmental standards. Ideally, insist on tertiary waste water treatment systems that clean waste water to 95% or better purity, sufficient for reuse for irrigation purposes. To begin in Costa Rica, check www.greensealrealty.com and www.theoakstamarindo.com.
Robert Irvin, info@greensealrealty.com

Rainy Season in Costa Rica

Robert Irvin (Green Seal Realty) — Sun, 21 Oct 2007 13:47:59 -0500

I came back from Canada this week to find a state of emergency declared and most major roads closed at least part of the week. This is the height of Costa Rica's rainy season, from late September through early November. Luckily, the waters recede quickly, so that traffic is now restored between San Jose (where I live) and Guanacaste (where I live and work). Roads were impassable or hugely delayed for two days as rivers rose. While Costa Rica is too far south to be in the hurricane routes, heavy rains are the norm now.

For the next three weeks, keep in mind our top ten reasons to visit Costa Rica during the rainy season. http://www.greensealrealty.com/tt/one.html Reasons no. 3 and 1 apply for fun and profit.

Hint: don't even think about renting an ordinary car, it's 4 x 4 time! These amazing rental supercars can ford streams and practically walk on water, which they may need to do! This is the perfect time to do extreme real estate searching.

This is not the time to sell Costa Rica real estate, but it is the time to buy it or vet it. See with your own eyes which preconstruction condos have been built right, and which real estate deals are deals for the buyer, or for the seller.

Costa Rica Referendum -CAFTA

Robert Irvin (Green Seal Realty) — Sun, 07 Oct 2007 21:15:00 -0500

This is off-topic, but I can't resist.

Today marks an important moment in the history of Costa Rica. For the first time, the people are deciding, in a direct referendum, the fate of the proposed Central American Free Trade Agreement among the United States, the Dominican Republic, and the other nations of Central America. By all reports, the people are almost evenly divided, and we probably will not know the result until tomorrow, or later. The streets of San Jose have been packed all day, by people in favor and opposed, but so far as I know with no acts of violence, actual or symbolic.

No matter the result, Costa Rica is the only nation that has signed CAFTA that has entrusted the decision to its people. Costa Rica's strong democracy, its lack of an army, and its sense of solidarity, are excellent reasons for living here, no matter how the vote on a particular issue results.

Costa Rica Medical Tourism

Robert Irvin (Green Seal Realty) — Sat, 06 Oct 2007 19:03:09 -0500

The article below is from Friday's edition of The Tico Times, http://www.ticotimes.net/, and is reprinted with permission. If it's too long, the take away is first class knee replacement surgery that would cost $45,000 in the U.S. was done for $12,000 in Costa Rica.

I travel between The Oaks condominiums near Tamarindo, http://www.theoakstamarindo.com/ and http://www.greensealrealty.com/, and my weekend home in the mountains near San Jose. Those of you who are Californians and go from the beach to spend weekends at Lake Arrowhead or Big Bear get it. Except here, the mountains also are the city.

My dermatologist, Dr. Rodolfo Nunez, is a New Yorker who practices at CIMA Hospital in Escazu. I have as much confidence in him as I have in any doctor I had in the U.S. I see him every six months for routine checkups. Last year, he found a mole on my chest, near the collar bone. As a routine precaution, he took a biopsy and sent it to the lab.

Three days later the results came back: basal cell carcinoma. One day after that, it had been removed in an office operating procedure. It was kind of cool to be able to see the hole as he cut through the muscle. Cost, about $400. In the States? I don't even want to guess.

The bottom line - I feel that I have world class medical care for a tiny fraction of what I would pay "back home". The statistics back up that judgement, but that can be the subject of another post.

Anyway, here's the article. The Tico Times is free on the internet, and I highly recommend it as a weekly read!

More Tourists Coming for Major Surgery

By Peter Krupa
Tico Times Staff | pkrupa@ticotimes.net

He looked nervous, this rangy, six-foot-one Gringo with the towhead and pencil mustache.

His Army fatigue shorts revealed an 8-inch U-shaped scar just under his left knee - the result of a failed operation and the reason why Vince Dugdale, 47, was standing in the waiting room of the Clínica Bíblica Hospital in San José.

After two injuries and 11 surgeries, Dugdale needed a new knee. But as one of the nearly 50 million U.S. citizens with no health insurance, he'd been out of luck for seven years.

"You get to a point where you can't afford medical costs and they just exclude you," he said.

So Dugdale came here, a developing country far from his home in Sioux City, Iowa, to get what he couldn't find in the United States: Major surgery he could afford out of pocket.

"It's been a long road for me," Dugdale told The Tico Times just before a technician led him into the X-ray room. The next day, Dugdale would go under the knife for what he hoped would be the last time.

A New Kind of Medical Tourism

An Affordable Knee: A surgical team at the private Clínica Bíblica Hospital in San José works to replace a patient's knee in one of the various types of surgeries becoming more popular among a growing number of tourists attracted to Costa Rica for its quality affordable health care.

Ronald Reyes | Tico Times

Medical tourism is nothing new to Costa Rica. Since at least the 1970s, this country has been a hotspot for cheap, high-quality dental work and cosmetic surgery.

But increasingly, say the representatives of Costa Rica's two biggest private hospitals, medical tourism is taking on a more serious character.

Foreigners aren't just popping down for whiter teeth or larger breasts - they come seeking major surgeries such as knee replacements, hip replacements and angioplasties that Costa Rican hospitals offer at steep savings over U.S. prices.

Lower costs for drugs, hospital stays and doctor fees mean that many surgeries cost half what they would in the United States, and some even less than that, said Jonathan Edelheit, vice-president of OptiMed Health, a U.S. health-care company.

Edelheit said he was so impressed by the Clínica Bíblica and CIMA Hospital (a hospital that is part of the International Hospital Corporation) that the first issue of a medical tourism magazine the company is launching this month will focus exclusively on Costa Rica.

"I'm hoping to create this huge boom for medical tourism, because I think it's about to explode," Edelheit said.

Customers like Dugdale are where Edelheit and others think the greatest opportunity is to be found.

A former truck driver, carpenter and jack of all blue-collar trades, Dugdale is probably as close as one could get to the "American everyman." He first hurt his knee on the job in 1996, when his foot slipped through a grate and twisted, tearing his meniscus, part of the knee cartilage.

After several surgeries covered by his health insurance, Dugdale injured himself again in 2000 at an Allman Brothers Band concert, where he slipped on a plastic bottle and wrenched his knee around again.

"I just had people pick me up and hold me and grabbed a beer and watched the whole performance," he said.

But a few operations later, Dugdale's knee still wasn't up to snuff; even worse he'd lost his health insurance after losing his job at Wilson Trailer. Dugdale had one last operation on the IowaCare public health plan, where the doctors tried to sever a nerve to stop his constant pain.

It failed.

"And that's when they told me to have a nice day," Dugdale said.

It was after he saw a feature about Clínica Bíblica on the TV show 20/20 and called to see what it could offer that Dugdale became part of the growing number of "baby boomers" and uninsured U.S. citizens showing interest in Costa Rican medical services, said Bill Cook, the hospital's medical tourism coordinator.

Even without much publicity, the hospital gets half a dozen foreign patients a month seeking major surgery. Carole Veloso, the CEO of CIMA Hospital, west of San José, said her hospital is seeing something similar.

"We've seen a huge shift," she said, noting that CIMA gets a lot of small-business owners from the United States who pay for their own health care.

The most popular operations in both hospitals are orthopedic surgery, some heart surgery and weight-loss surgeries, all of which are offered at steep savings.

For example, Dugdale's knee replacement surgery, which in the States generally costs near $45,000, in Costa Rica ran Dugdale around $12,000.

"We expect this to be like a snowball," said Brad Cook, Bill's brother and the general manager of Clínica Bíblica's International Department.

"It will just keep growing and growing."

Both hospitals are taking action to help the snowball along. For one thing, they have opened up new floors and facilities designed exclusively for this new wave of medical tourism (TT, April 13).

More importantly, by the end of the year both hospitals are on track to be certified by the Joint Commission International, the standards organization that certifies U.S. hospitals.

"That will open the door for a lot of Americans coming over to Costa Rica," Edelheit said.

Under the Knife

Recovering: U.S. citizen Vince Dugdale recovers from knee surgery he couldn't afford back home.

Christopher Huber | Tico Times

The day after his X-ray a different door opened, this one into the operating room where Dugdale would have his knee replaced. Dugdale lay on the operating table slowly passing out at the hands of an anesthesiologist while a team prepped him for surgery.

Dr. Oscar Oeding, the orthopedic surgeon who would be doing the operation, pointed to an X-ray of Dugdale's knee.

"It's bone against bone here," he said. With no cartilage left to cushion the joint, the knee would be replaced by unfeeling titanium.

With the knee bent at a 45-degree angle, Dr. Oeding made a vertical incision and pulled aside the skin and the kneecap, exposing the white bulges that made up the bottom of Dugdale's left femur.

After sawing off the bulges, Oeding replaced them with a titanium implant. He did the same on the bottom, then straightened the leg, and flexed it up and down - a perfect fit. He sewed up the knee, and then closed the incision with several dozen staples.

The whole thing took less than two hours.

Oeding, who studied medicine at the University of Costa Rica (UCR) and is a member of the American Orthopedic Academy, said he's done more than 500 knee replacements, and does an average of a dozen orthopedic operations a month - increasingly on medical tourists.

"I feel like it's going to increase a lot," he said.

While this type of medical tourism may be growing in Costa Rica, medical tourists have been traveling to India, Thailand and Singapore for many years for these kinds of operations, Edelheit said.

Costs in those countries remain lower than in Costa Rica, a country with a relatively high standard of living.

Veloso said that is something private Costa Rican hospitals will have to deal with as the market matures, although the five-hour flights to Costa Rica from the United States will remain a distinct advantage over the sometimes 24-hour flight to East Asia.

Meanwhile, a publicity campaign is about to kick off, with both the OptiMed Health magazine featuring Costa Rica and a CNN feature on Clínca Bíblica set to run in the U.S. market, according to Bill Cook.

As for Dugdale, he has already started his own publicity campaign. Propped up in bed in his hotel room with an ice pack on his knee a few days after the operation, Dugdale was practically giddy.

"You ain't gonna get this s*** in the United States, I'll tell you that much," he said, adding that he is going to recommend Costa Rican hospitals to a relative, who needs his own knee replacement.

The only drawback, Dugdale said, is the food, which he declared "unedible."

"I'm going back to America," he said. "I'm gonna get me a T-bone, throw it on the grill, and get me a baked potato."

Trump/Learning Annex Calgary Expo

Robert Irvin (Green Seal Realty) — Sat, 06 Oct 2007 11:51:34 -0500

Diary of a neophyte. Only one week to go before the Trump Real Estate Wealth Expo in Calgary! Todd and Danielle told me they heard there is "a bit of selling". I hope they're right. Well, marketing anyway.

Including rental of a 10 by 10 exhibitor booth, booth accessories, air fare and hotel rooms for two people, materials and newspaper advertising, the total cost is pushing $20,000! Wow. Not to mention taking out my old ski underwear.

Why? I'm following my customers. About 20% of my walk-ins at The Oaks Tamarindo, www.theoakstamarindo.com, have been from western Canada, defined as Toronto to Vancouver. Could Costa Rica be the new south Florida?

Years ago, and maybe even now, there was a regular migration of snowbirds from eastern Canada to south Florida. Along Costa Rica's Guanacaste beaches, the weather is warmer in winter, mid-90's compared to mid-70's in south Florida, the cost of living is much lower, and the beaches are much less crowded. Not that I don't like south Florida. I do. We don't have South Beach here, just the Monkey Bar and Rey Sol.

I'll let you know how it goes. Mistakes masquerading as adventures. If anyone with experience has advice "en anticipacion", I'm interested.

Trump/Learning Annex Calgary Real Estate Expo

Robert Irvin (Green Seal Realty) — Thu, 27 Sep 2007 21:38:31 -0500

Confession of a dummy. I'm going to my first Trump Expo as an exhibitor, October 13 in Calgary. I know, I should have checked it out first as a guest, but I don't have a lot of free time to fly up to the States or Canada from Costa Rica. We're representing my development, The Oaks Tamarindo condos, and my environmental real estate agency, Green Seal Realty, www.greensealrealty.com.

Has anyone been to one of these Trump expos? What is it like? What would you recommend to an exhibitor? What should you expect?

If you've had an experiece, thanks for sharing!

Costa Rica Environmental Planning

Robert Irvin (Green Seal Realty) — Mon, 24 Sep 2007 00:03:54 -0500

The only edit was when, with help, I figured out how to link the video. Thanks! So if you have read this, stop here.

Here is some new wording for my web site, http://www.theoakstamarindo.com/, concerning environmental concerns. It was easy to write, since I've already lived it. If you have additional suggestions, I'd love to hear them!

THOUGHTS ON AN ENVIRONMENTAL COMMUNITY

THE LAND

To have a chance at creating an environmental community in an area that generally lacks strong zoning laws, you need to begin by considering the land.

Ideally, you want land that is not environmentally sensitive, meaning not on a nesting turtle beach, not part of an estuary or mangrove system, not located in a primary or secondary forest that you are cutting down, and not on a ridge where your construction will cause erosion.

Land that is healthful, "high and dry", but still with good access to water. Also, enough land so that you can create your own land use plan, preserving biological corridors for animal life and avoiding the all too common problem of one small building site located next to another small building site.

THE NATURAL SETTING

Before you begin building, not only do you want a survey of the trees on the land, which is required by law, you also want to situate your buildings so that you build around the trees, preserving them.

You also want to build around existing biological corridors. The monkeys were here first, after all.

You also want to design your construction so that you do not adversely alter natural water flows, causing erosion.

DO NO HARM

You want to leave natural areas natural, not dotted with houses. This means planning where you allow construction, and population density, so that you minimize the harm caused by all construction.

You want to design and build a waste water treatment plant that treats black water to at least 95% purity, so that it can be reused for irrigation, and not dumped into the ecosystem, eventually to pollute the bay.

You want all electric power lines and fiber optic lines underground. Electrocution is now said to be the number one cause of death of howler monkeys.

You want to conserve water and energy in your building designs (double-paned windows, low flush toilets and top-loading washers).

You want your pools cleaned by natural systems, not by chlorine or salt.

AS A BUYER

You want to think about these issues, because if you don't, neither will most developers. You are coming to Paradise to enjoy it, not to destroy it.

Discovering Costa Rica....Renewable Energy

Robert Irvin (Green Seal Realty) — Sun, 16 Sep 2007 13:31:23 -0500

If you want to reduce your carbon footprint, one way to do it is to move to Costa Rica! I was cleaning out my gmail (no more storage!) and found this article by Peter Freeman on renewable energy from the April 18 issue of The Guanacaste Journal. I have included excerpts below.

The article appears generally correct, though a little too Pollyannish. It looks like oil-based generation may rise to 20% of Costa Rica's total energy production before new hydropower or geothermal plants can be brought online, as demand increases faster than supply. So, conservation is important, but solar energy probably is a waste of resources for now. EXCERPTS.

"Costa Rica's National Electricity Institute (ICE) provides the cheapest electricity in Latin America. The low price is a result of a number of factors, including regulation and infrastructure. But the main reason lies in the country's energy sources: they are 100 percent renewable, including hydroelectric, geothermic and wind power....In Costa Rica, at least, while not discouraged, installing renewable electricity sources for the home, office, or hotel is an act of pure charity - and an expensive one at that....

The average Tico household uses 300kw/hour, which works out to 10,000 colones (less than $20) a month. Twenty solar panels, enough to generate 300kw/hour, cost 11 million colones ($21,000) in Costa Rica. At that price, it would take almost 100 years to start to save over ICE's electricity provision, at which point ICE's prices, if they continue to fall as they have over the past 10 years, would probably be lower still.

In 2006, 76.7 percent of electricity was generated by hydroelectric plants. Another 15.3 percent was geothermal, 1.3 percent was wind-generated, and 6.7 percent thermal.
"This is important because in Costa Rica, new renewables substitute other renewables, rather than fossil fuels, for example," said Cañas....

It may be difficult for die-hard environmentalists to feel guilt-free about leaving the light on in their bedroom while they cook in the kitchen, and this is alright - the less they use, the less they will pay. But they will pay very little anyway, compared to other countries.

Regardless, while a wasteful attitude doesn't do anyone any good, in Costa Rica at least it doesn't use up fossil fuels. If one still feels compelled to buy renewable energy for the home or office, however, the contribution to an industry that still needs development in all parts of the world will be well received."

For an average air-conditioned home at the beach, my experience and that of my neighbors is that the cost will vary from $50 to $150 a month, depending on size and use. So conservation is a very good thing, especially as more air-conditioned homes get built, but at least foor the most part, you are automatically using green energy.

Discovering Costa Rica…..How do condo developers or agents measure square feet, or square meters?

Robert Irvin (Green Seal Realty) — Sat, 15 Sep 2007 21:10:25 -0500

Before I came to Costa Rica, I thought I knew what a square foot was, or for that matter, a square meter. There was an accepted definition from the local Board of Realtors. No more.

Now, when I read a web listing that says: "Approximately 850 sq. ft., 2 bedrooms, 2.5 baths, plentiful balcony space". I start thinking. Hmmm. I wonder if they measure their square feet from the outside wall to the outside wall of the unit. Or from the mid-wall to the mid-wall. Or from the interior wall to the interior wall. And what's up with that "plentiful balcony space"?

It makes a bigger difference than you think.

Things are so confusing from one property to another that we are setting up a special disclosure section on my web site for The Oaks Tamarindo and Green Seal Realty. On Green Seal, some developers have objected to disclosing their square feet! No problem. In that case, we just don't list them.

Here is how we are setting up the disclosure.

"We are uncertain as to how other developments measure their square feet or square meters, especially when sales are offered in preconstruction. We show you our floor plans measured first in the way that we prefer, from interior wall to interior wall, thereby not including structural parts of the building that legally are part of the common elements under Costa Rica's condominium law.

We then show you our floor plans measured in the two most common ways: from mid-wall to mid-wall, a measurement used by the Costa Rican College of Engineers, and from outside wall to outside wall, a measurement used by some developers.

These latter two measurements are shown only for comparison purposes with other developments, as they do not accurately describe living areas available for your use."

Sparing you the drawings (they copied too small), here are some differences, for exactly the same unit!

Inside wall to inside wall: 886 square feet, 82.3 square meters

Mid-wall to mid-wall: 949 square feet, 88.2 square meters

Outside wall to outside wall: 971 square feet, 90.2 square meters

That is a difference of 10% in the published description, and therefore 10% in the price per square foot. Exactly the same unit, just different measurements.

What do your buyers think of when they see square feet? Are there different standards in different areas?

Discovering Costa Rica…Part 4: How I Made a Million Dollars in Two Years

Robert Irvin (Green Seal Realty) — Fri, 31 Aug 2007 13:19:27 -0500

I left off Part 3 right after the purchase of a $550,000 1 ¼ acre lot outside San Jose, Costa Rica. I was on my way, beginning the laughably easy permitting process. Here is a photo of the mountain on which my lot is located, taken from Escazu, where I currently live on the weekends, when I can sometimes take a break from my condo project, The Oaks Tamarindo http://www.theoakstamarindo.com/.

But first, I had to get my architect to prepare the "anteproyecto". This is a preliminary plan that shows planned construction, including everything except actual construction plans. For example, the "footprint" and interior design of each house, driveways, exterior improvements such as retaining walls, detailed land elevations, the condition of the soil for purposes of water drainage, and ability to support construction. All this had been done before buying, but had to be done again.

Things started well. I paid my architect a deposit on his fee. My fiancé and I met with him to go over our houses. We wanted two commercial houses each with a pool and a little over 5,000 square feet of living area, and one house to call our own, which eventually expanded to about 8,000 square feet.

But, the time between meetings, and progress, seemed, how to say it, long. Where was our architect? He was never available. And so it came to pass, that after four months of "no architect", we learned his secret. He was in Tamarindo!

And so off we went, on a tour of the Pacific Coast of Costa Rica. If things were so busy in Tamarindo that we couldn't get our houses planned, much less built, in the Central Valley, we had to see what was going on!

We started in the north, by the Nicaragua border, and drove the monkey trails down the coastline, looking at real estate. We saw a lot of national forest land, land that was really hard to reach (rent horses), and that most amazing resort, The Four Seasons at Peninsula Papagayo. On south. Playa del Coco, the oldest beach town in Guanacaste, but....my personal opinion, don't get mad if you bought there, just my opinion, I'm sure it's terrific... an ugly beach. Sugar Beach. Gorgeous. Memo: desperately needs road. Amend that: needs stronger monkeys for monkey trail. Flamingo. Old money. Once and future yacht marina. Views views views. Brasilito. Playa Conchal. Up and coming. Reserve Conchal: high end resort and condos, over $500,000 and rising. Today, over $800,000 and rising. Playa Grande: leatherback turtle nesting grounds, awesome surf, clean white sand. Memo to self: do not build here and kill the turtles.

Tamarindo: our architect's Promised Land. Surf for beginners and experts, beautiful white beach, a brand new cobbled brick road, a new tourist shopping strip alongside the landmark oceanfront Hotel Diria, and a parade of fully loaded dump trucks tearing up the brand new cobbled brick road. Ground zero for the Costa Rica real estate boom. A casino, and nightclubs, of the ski town variety, that had divided the nights of the week among themselves so that every night there is "one place" to be.

Now that I've gotten used to it, as a resident rather than as a visitor, that scene reminds me of the movie Groundhog Day. I see (now only once in a while) the same locals every week, at the same place, with new tourists for their week's vacation, to whom all is fresh and truly amazing. Hot climate, mostly dry. Arizona by the ocean.

Then we circled back north, on the "main road" to the international airport in Liberia, exhausted by the monkey trails. The main road two years ago wasn't much better. To say that the road had potholes would be misleading. To say that the potholes were surrounded by a road would be an overstatement. Drive time: an hour and a half of torture.

Aside: when Costa Ricans elected a new President, Oscar Arias, this road magically was repaved this past winter to become the "Route du Soleil", producing a Seventh Wonder of the World, Costa Rica style: an asphalt highway that is not overcrowded and that is a pleasure to drive. Drive time: a little over 45 minutes. Hopefully, a sign.

We dropped off our rental car, an amazing vehicle that could ascend and descend monkey trails and ford rivers without complaint, and flew back to the central valley. Four months, no architect in sight (we did see him at the bar of the Diria), but the start of an education in Costa Rica real estate, Pacific Coast version.

Oh okay. To the chase. The million dollars? Two years later, March 2007, I sold the central valley lot for $1,600,000, after marketing it for six months. How and why? Later.

I'm new at this blogging thing, witness the two week delay while I've been working on my development and messing around with marketing materials and a web site with my colleagues at Green Seal Realty. (If you're wondering, I'm not in charge of the creative side.) I admire the skilled bloggers here. I'll never catch up with you guys. But maybe I don't need to. I just need you guys to wonder; how can my clients realize success and happiness in Costa Rica real estate? How can I get referral fees for doing almost nothing? How can I earn commissions, not to mention free trips, by coming down to Costa Rica? (Hint: Unless you are hard core, maybe not in September or October. If you are hard core, we need to talk.) Oh, and I'm coming up to Calgary for the Trump Expo. Any Canadians reading this? Come on, someone at least from the Yukon Territory.

Next installment....more of the Pacific Coast. Real estate prices are rising. Beware the Gringo price. The permitting process is on hold, which is not all that atypical.