www.CostaRicaTicas.com

OK guys. I have read many of the real estate threads and I know how most of you guys feel about buying real estate in Costa Rica. I will try to summarize what I believe I have read throughout the year on this subject. You may correct me where I am wrong.

Don't buy anything in Costa Rica
Live here three years before buying
Don't buy anything in Costa Rica
Real Estate is vastly over priced for Gringos
Costa Rica sucks
Real Estate prices should come down
Don't buy anything in Costa Rica

OK, now you wonder, why I am starting this thread. I have this crazy idea of putting together a fractional deal within my extended family. I would like to buy something nice and secure, perhaps a condo in a nice area. It does not have to be big and I would like to keep the cost relatively low. I have a lot of interest amongst my family members to do something like this as a vacation get away. Some of my family members have K*ds, so it can't be in a monger area, but should be within striking distance.

Any constructive advice would be greatly appreciated.

P.S. We might consider Panama, too.

I think your idea has a lot of merit. I rent in Escazu,but would consider buying the condo where I live because I love it. The problem is in determining the right price for something. Even if you get access to the past purchase and sale agreements,the amount is almost never correct since prices were always written at a fraction of the "real" sale price. You can get opinions of the value of a condo that will vary GREATLY. how do you know what is accurate? You cances of getting comparitive sales info isn't like in the States.In the higher priced market,the new taxing structure on properties in excess of $172,000 will help. In this price range you are dealing with a lot of Gringos who think their property is made of gold and are willing to wait until the "market turns around". The truth is that values have come down quite a bit due to the same reasons as parts of the U.S. Then their is the problem of the political situation. Many people believe that if Laura gets elected (highly likely) she will attack Gringos favorite hobbies (Casinos and prostitution) and that could surely affect how many of "our kind" will want to move here,thus reducing the potential buyers in the future. A lot to think about.

I actually think now is a good time to buy in the states and CR. I know several in real estate who say its a buyers market. Signs that I see that are promising:

1. The largest condo project in Escazu is empty. El Cortijo Las Laureles. They were selling tiny first floor units for $200k. A ripoff at that.... I bet the price is down by 40%. The Spanish firm that built this DIURSA is loosing their ass very quickly. I wouldn't want to live there, but the fact that they can't sell them, is probably a good sign for the buyer.

2. Several condo projects up the hill in Bello Horizonte ran out of money and just stopped building. I feel bad for the investors... One project has squatters..... locals that have moved in to bare cement construction. They were hanging clothes out to dry the other day. Sort of a symbolic gesture. Its ridiculous seeing half-built luxury condos... with poor people watching TV inside... cuz there are no walls. But, its a sign that the general market is at a bottom.

3. I have a friend who works for Coldwell Banker. He sold a house in CR in 2009. In his office of 20, he is the ONLY agent that made a sale in his office ALL YEAR LONG.

4. Chinese investors bought a condo project in Trejos Montelegre. Put up a big sign in Chinese letters... Banners in Chinese all over the friggin' building. Three months later, the signs came down. I assume they thought they could sell the empty building to Chinese people at a firesale. The place is still empty. Either that - or the locals who dislike chinos scared them away.

Hire a good attorney. Put it in a legit corporation. Do a thorough title review. Make sure the zoning around the place is residential.... you don't want a gas station to move in next door.

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delete

don't buy a condo, anywhere, ever.

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You mentioned you might consider Panama. Here is a resort with rock-bottom pricing- starts out around mid $80's. It is about 40-50 minutes from Panama City. The city closer to this development is Colon and should be avoided. There are some good monger spots in the area.
http://www.balabeach.com/

There is another good beach spot on the Pacific coast called Playa Blanca, at 1.5 hrs. from the city (and action) it may not fit your plan. The resort though will have pretty much everything and they are currently constructing the 2nd largest swimming pool in the world.
http://www.panamaplayablanca.com/

If you want a place in the city there are numerous high rises you can get for a very good price and have a nice pool etc. Lots and lots of fine dining, restaurants, and action in Panama City.

Cali,
Care to elaborate? The only reason why I say condo is minimum of maintenance and hopefully a secure set up. I know nothing is totally secure but it would likely be more secure than a free standing house.

the problem with condo ownership is that you are responsible for all the problems in the building/grounds whether the other owners pay their share of the condo fees.

if the condo building(s) is only partially full or not everyone is paying their share, then guess what, you will pick up the slack with your increased fees.

here are some common situations faced by condo owners




# The low condo fees which only cover the regular monthly expenses and preclude building an "adequate" reserve fund which will one day be needed to pay for larger repairs and maintenance projects such as roofs, decks and siding.

# The condo owner who can't afford the special assessments and assumes that the low condo fees will cover all maintenance costs.

# The embattled condominium owners' association with one faction wanting blue vinyl siding, another wanting clear cedar, and the rest who don't participate in the meetings or are just sick and tired of the war.

# The music lover, exercise machine user or daytime sleeper whose activities and needs upset other owners.

# The common area hog who washes cars 4 times a week, invites rowdy friends to use the condo pool and disregards parking assignments.

# The main floor unit owner who does not want to pay for roof repair (or basement water problems) because, "the problem does not impact my unit. And, by the way, I never use the pool anyway, so why should I have to pay for the pool maintenance?"

# The absentee landlord whose condo unit is rented to problem tenants and who will not participate in the management of his/her property.

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also, if you ever try reselling the condo in, say the next 15 years, you find you will probably have to give it away.

you are better off renting, especially if it is just for vacation purposes...i promise you, anything you buy will not appreciate for a long, long, did i say long?, time.

now, if you are going to live there full time, it makes a bit more sense, but even then, i would not buy a condo....unless you don't care about losing equity or paying the freight (condo fees) for others.

also, loans for condos are impossible to get....figure on paying cash.

why take on all the responsibility and risk of ownership for very little return?

now, there are others that will defend condos,... fine.

but me? no way would i recommend buying a condo anywhere, ever.

especially in a foreign country and just for vacation purposes.

_________________
The difference between a Sea Story and a Fairy Tale is that a Fairy Tale starts out 'Once Upon a Time..' and a Sea Story starts out 'This is no Shit...'

(export version only, some restrictions may apply, some assembly required, not valid where the sun don't shine...

if you live in the states of Poverty, Darkness or anywhere outside of The Blessings of Civilization Trust, Inc...other rules may apply)

In response to the "don't ever buy a condo" post-I think that is a little too broad a statement. There are of course lots of potential problems. With research and intelligence in choosing a project a lot of those problems can be minimized. I have 3 condos in Panama and have been getting a great return for a few years now on the rentals and I love living in the one I reside in. I've sold units over the last few years for profit as well. I think like with girls YMMV.

Sounds like you live in Panama and this is a full time job for you AND you have a "nack" for this. Most people don't.

Many people don't belong in business. I have witnessed this time and time again. Everyone has whimsical thoughts and dreams. Acting those out is a mistake for many.

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* These are the "Good Ole Days". Enjoy Them.

* RENT but, "Don't Buy a Home in Costa Rica" until you have lived here for THREE years.

While I am not a pro, I have owned many personal residences (detached homes and condos) and at one time owned and manged over forty income producing properties. I am no fool when it comes to real estate but real estate in Latin America would be another story.

There are just not many good reasons to own in Costa Rica.

Just the monthly guards fees or condo maintenance will usually kill the cost/savings benefit.

Every vacation becomes a to-do list . Pay this tax, check on this etc. And you cant move condos when a dog barks 23 hours a day and your the only one that seems to notice . Or the building sewage was not pipped and vented properly so you get the gas bubbles up the drains while you sleep.

Owning takes away the vacation from vacation. And there is no monetary benefit.

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* These are the "Good Ole Days". Enjoy Them.

* RENT but, "Don't Buy a Home in Costa Rica" until you have lived here for THREE years.

Thanks for the feedback. You are probably right.

Renting chicas, casas and cervezas is the way to go

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teach 'em what they don't know how..." TMIB

I in April bought a condo in southern California. It was less than one-half the cost of what it was at the top. I am now paying less than I was in rent.

The market in southern California, which took a huge hit, according to the papers (which does not make it true), are up by about 4% since the bottom.

Could I lose money, of course, but I lived in an apartment for 12 years after my divorce, due to the unrealistic costs of buying in southern California.

What did I get for the $175,000 or so that I gave my landlord?

Happy holidays..........

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