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Costa Rica, the new frontier!

By
Services for Real Estate Pros with 506 Properties Costa Rica, S.A.

Many of you are still looking at Costa Rica as the new frontier and looking at the past few years of real estate and property development, one may think you are right.
But now the mainstream real estate investment world has caught on and areas such as Tamarindo, Jaco and Quepos have seen the same boom as San Diego, California.
So should you still invest in Costa Rica?
The answer is yes.
You should.
But knowing where is the key.
You may not want to buy property at sky high prices in Malpais and Santa Teresa (even though we are still finding great deal there), but rather the surrounding areas such as
Manzanillo, Delicias and Playa Hermosa (no, not the one close to Jaco, but the one on the Nicoya Peninsula).
We have recently taken a tour and shown clients properties overlooking the ocean and some of those are going very cheap.
Properties in those areas are bound to go way up especially with the roads being paved and more and more people feeling the desire to live where you can still enjoy the beauty of Costa Rica's nature, wildlife, flora and fauna.
The best way to go is to buy a huge piece of land and file it under your own Costa Rica Corporation and then sell off bits and pieces, develop some and then
let investors or homebuyers make it pay off many times within a few months.
A great example is a huge piece of land in Montezuma which has just been presented to us.
The owner wants to sell it for $6 Million which makes the 1km by 1km piece of land a steal at only $6 per square meter.
The problem is that many of the property owners here are land rich and cash poor.
Our lawyer is currently checking up on everything before we list it for sale, which is a process many of the local owners don't want to deal with.
Driving thru some of the still rustic locations makes you feel like a true pioneer. You remember what the older folks have told you about some parts of California back in the 50s or what you're used to seeing on television from way back when.
You come to some of the overpopulated tourist spots and you feel like you're in Miami and wonder if a cheaper way of life is the only reason those people come here.
Santa Teresa is still the number 4 spot for surfing in the world with constant waves. As long as you're close to good surf, you will always have people coming and business will not go away.
Those of you who haven't come to Costa Rica yet ... you should! But please avoid the tourist hot spots.
Get in touch with some people who have lived here for a while and ask them where to go.
You will not regret it. Whether you buy a house here or just stay for 6 days. Costa Rica is an experience you DON'T want to miss out on!

Mike

Robert Monk
100% Realty, Inc. - Santa Rosa Beach, FL
Florida Real Estate
Many investors are going that way.  Hope the weather stays good and the government never confiscates investor property.  Do you think this is a possibility?
Sep 05, 2007 05:34 AM
Mike Dammann
506 Properties Costa Rica, S.A. - La Jolla, CA

I don't see confiscation happening at all. The key is to have a good attorney who knows what he is doing and is on your side. The weather is normally what it is. Rainy season is harsh. But it never rains all the time. Once it hits November, it's 6 months of sunshine.

 

If anyone is coming down here, I have an excellent lawyer who I can get you in touch with.

Sep 05, 2007 05:59 AM
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros
My patner is very heavily involved with groups in Costa Rica. It really sounds like it is still agreat place to be. I wonder though if there is a problem in a transaction what type of dispute resolution on the Cosa Rica side is there
Sep 05, 2007 06:00 AM
Anonymous
Anonymous

Well, what we normally do is get our clients their own Costa Rica Corporation which normally runs around $500.00

Properties should be registered under the corporation once your lawyer checked everything out and the title is clear for transfer. If the title is clean and nobody owns a lean or anything, the previous owner is free to sell and transfer the property to the new owner.

The law is very clear regarding ownership. Owning the property under a corporation is the best way to go.

What area is your partner servicing?

Sep 05, 2007 06:47 AM
#4
Mike Dammann
506 Properties Costa Rica, S.A. - La Jolla, CA

This last post was made by me by the way, didn't even know I could post without being logged in. Here is some corporation info btw.

http://506properties.com/?page_id=17

Sep 05, 2007 06:50 AM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Mike, Costa Rica sounds wonderful, since they don't have mortgage loans I guess they don't have the same economic problems as the U.S.!

Join my new AR group and post your blog at http://activerain.com/groups/virtualoffice

Regina P. Brown

Mar 08, 2009 06:36 PM
Mike Dammann
506 Properties Costa Rica, S.A. - La Jolla, CA

Thanks, Regina. We do have mortgage loans, but they are way harder to get than in the U.S.

 

I have a real estate investment related group if you are on Facebook.

Go thru http://www.firetown.com if you wish to join.

I will check out yours lateeron!

 

Mar 08, 2009 06:40 PM