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Building in Costa Rica
https://forum.costaricaticas.com/viewtopic.php?f=1&t=19312		 Page 1 of 1
Author:  Devo [ Mon Sep 24, 2007 10:00 pm ]
Post subject:  Building in Costa Rica
I just returned from C.R. and took the opportunity this trip to look for some property to purchase. Without getting into too much detail, I am involved in the residential-commercial property development market here in Canada. I was quite surprised to see the asking price regarding the majority of properties that I viewed. Poorly constructed units in a third world country do not add up to a $250,000 + price tag in my opinion, even if they are located in Escazu.

I do however have a question that I would appreciate some advice on. Would it be possible to purchase a parcel of land and hire local trades to complete the work? I have many years of experience dealing with tradesmen and running a project, however I know C.R. can be a different situation entirely.

Thanks in advance!

Devo
Author:  D2864 [ Mon Sep 24, 2007 10:46 pm ]
Post subject: 
Legally, you should have 2 lawyers who don't know each other.

Running the project would be a lot easier if you know spanish, if you don't know spanish, you better hire a foreman who knows english.

You have to be in CR the entire time your project is active.

The difficulty in CR, from what I've heard, is the slow pace in which the government does things as well your fellow Ticos like to take a lot of breaks and they like to take shortcuts. You look around and you know not many are following the law, but you have to do it or else something bad could happen (legal issue could work against you). Building takes patience in the USA and I assume Canada as well and from what people seem to be saying is that you'll need 100 times the patiences in CR (same with a lot of 3rd world countries).

I agree, the prices that are quoted in English are outrageous. They seem to be wanting near and above USA prices in a country who's infrastructure really sucks. The countryside in CR is pretty, the cities, the town centers are not pretty.

Real estate prices have run wild worldwide. It will all change eventually, especially in 3rd world countries. I personally think the party is over, but the trouble is that there is no record keeping in 3rd world countries so you can't really tell except by doing your own research.

I wouldn't buy in CR to invest, but I'd still think about buying to live in CR.

*
Author:  Mucho Gusto [ Tue Sep 25, 2007 9:39 am ]
Post subject: 
D2864 wrote:
You have to be in CR the entire time your project is active.

D2864,
That's some good information, but IMHO, the above quote is the most important line in your post. :wink: Also, the comment about having 2 lawyers. Muy importante' !

MG
Author:  Tuanis [ Tue Sep 25, 2007 10:31 am ]
Post subject:  reply
Gent,s I am somewhat confused by the reply,s to this post. Why would you need a lawyer to build a house. And as far as the government is concerned, if you are not trying to build in the maritime zone the only involvement is thier approving your building plans. I have built 6 houses here in my years of living in Costa Rica, and the only thing I would advise is keep a sharp eye on your employees.

tuanis
Author:  Mucho Gusto [ Tue Sep 25, 2007 10:52 am ]
Post subject:  Re: Building in Costa Rica
Tuanis wrote:
Why would you need a lawyer to build a house.

My response to Devo (regarding a lawyer) was because he mentioned that he was interested in possibly purchasing a parcel of land. :arrow:

Devo wrote:
Would it be possible to purchase a parcel of land and hire local trades to complete the work?


Tuanis,
If you've bought land, and built 6 houses in CR - without a lawyer, more power to you. But IMO, it's not an advisable thing to do, especially if you're new to the real estate market in CR (which I assumed Devo is).

Respectfully,
Mucho Gusto :wink:
Author:  D2864 [ Tue Sep 25, 2007 5:06 pm ]
Post subject:  Re: reply
Tuanis wrote:
I have built 6 houses here in my years of living in Costa Ricatuanis


How long have you lived there and was it easy to sell the houses you built?

I see houses on the internet for long periods of time, however if I speak to people in real estate, they act as if a house sells in a week, even in these times.
Author:  Bomber [ Wed Sep 26, 2007 8:57 am ]
Post subject: 
We have tried to buy 10 acres near Los Suenos for a few years for development of a multifamily product. The process is very slow and the owners think the market has increased instead of decreasing. They are asking a lot more than the land is worth. I know a lawyer in San Jose if you need someone to show you the ropes. email me.
Author:  Tuanis [ Wed Sep 26, 2007 3:02 pm ]
Post subject:  Reply
M>G, I think I may have confused you with my responce. I was talkung only of building houses. Of course you need a lawyer to purchase property. The greatest challange in this country is finding one you can trust, and then nver take your eyes off him. I have had the same lawyer for 15 years and have never had a problem with him. Do I trust him completely. NO WAY.

Someone asked how long I have lived here and did I have problems selling these houses. I have lived in Costa Rica since 1982. Of the six I built, I only sold one. My X-wives got the others.

tuanis
Author:  BangBang57 [ Wed Sep 26, 2007 6:17 pm ]
Post subject: 
x WIVES GOT THE OTHERS!!!!!!!!!! DAMN I would not trust that lawyer either!!! This is Costa Rica- things are not suspose to work that way.. OH! I FORGOT; YOU ARE A GRINGO; NOT A TICO!

And speaking of gringos--they havebuilt/bought and then resold at California/Florida prices till the price of a house here has become totally artifical and unrealistic. The market CANNOT substain itself at these inflated and artifical prices. I would not put money into buying a house, nor in most areas of CR, land, at this time. A lot of people are going to lose a lot of money when the bottom falls out of the housing market here!!

JUST MY OPINION :roll: but then what do I know? I am the guy that refused to buy Walmart stock at $1 a share back in the 60s :evil: :cry:
Author:  BangBang57 [ Wed Sep 26, 2007 6:30 pm ]
Post subject: 
Another thing about building here:

I have a friend who has lived here for several years. Last year he bought land up in the mountains with plans to build a home. Well, it has been 8 months of hell trying to get approvals and permits, and design specks. Things like, he was planning on a 10 mt. (about 30 ft) wide road up to the house. NOPE!! local politicans are insisting on 15 mts :P come on; that is wider than most highways here :roll: IN 8 MONTHS, NOT THE 1st SHOVEL OF DIRT HAS BEEN MOVED and he has no idea when he will be able to start construction.
And He knows the laws here and has lawyers :twisted:
Author:  D2864 [ Thu Sep 27, 2007 3:46 am ]
Post subject: 
BangBang57 wrote:
The market CANNOT substain itself at these inflated and artifical prices.


I agree. Will have to read the websites and news media that are in Spanish to get the real deal.

Everything in English I take with a grain of salt.

In CR, there is very little recording of anything so you can't prove or disprove much (concerning RE prices). I've heard that even when it is recorded, the amount can't be trusted (like in many countries, not just CR).
Author:  MrLasVegas [ Mon Oct 01, 2007 3:29 am ]
Post subject: 
Anybody considering buying property in CR should hold off. The international market as a whole will be taking a massive tumble in the next year. RE prices are plummeting in the US. Retirees are not able to sell thier homes to buy the dream CR property. Lucrative loan programs that drove the market have evaporated in most states and starting in the morning will be illegal in several states. The ARM that many homeowners are clinging to now will increase dramatically in the next coming months, relieving potential second home buyers of thier investment dollars for a CR property. Hold off for a year and you will see an immense number of properties across Central America dropped as much as 40% in price.
Author:  SurfTown [ Mon Oct 01, 2007 11:49 am ]
Post subject: 
MrLasVegas wrote:
Anybody considering buying property in CR should hold off. The international market as a whole will be taking a massive tumble in the next year. RE prices are plummeting in the US. Retirees are not able to sell thier homes to buy the dream CR property. Lucrative loan programs that drove the market have evaporated in most states and starting in the morning will be illegal in several states. The ARM that many homeowners are clinging to now will increase dramatically in the next coming months, relieving potential second home buyers of thier investment dollars for a CR property. Hold off for a year and you will see an immense number of properties across Central America dropped as much as 40% in price.

Yep exactly the CR real estate market is a house of cards that depends on the new influx of buyers selling there homes in the US to support the ridiculous prices for a 3rd world country with no infrastructure and no good public schools. Without the new buyers coming in from selling other homes the market is going to tank. I would never buy in CR right now its a no brainer to avoid that market. However the one thing that the market has going for it is most people dont have mortgages or ARMs for that matter to pay and also they dont pay property taxes, so they can wait out a crash unless they need the cash, but still you cant fight the supply demand curve which is going to be skewed soon, I see so so many properties for sale its ridiculous, just from looking around ANYWHERE looks to me like everyone an their dog is trying to sell their hot potato.
The separation between what you can rent for (low rents) and what you can buy for very high prices relative rent, indicates the market will be coming down soon.
Author:  D69X [ Fri Oct 05, 2007 10:45 am ]
Post subject: 
el devo 8) 8) 8) loonies..............................eh :lol: :lol: :lol:
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