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Opinions requested regarding investing in CR
https://forum.costaricaticas.com/viewtopic.php?f=20&t=21739		 Page 1 of 1
Author:  Novice [ Mon Feb 11, 2008 10:52 pm ]
Post subject:  Opinions requested regarding investing in CR
OK here it goes: I have the equivalent to invest on the order of a small fixer-upper house or re-po in the US – say about 150K. I could come up with this much cash…I have excellent skills/ability to oversee renovations; and I have a CR corporation; my own abogado and know most of the legalities and bla bla bla.

This is strictly a “where to invest” question. I have the logistics figured out both places and prior experience in both markets.

Question is: Should I do this in Costa Rica or the US? In your honest opinion – which would be the better market to gain the best return? Assuming of course I manage/market it properly.
Author:  PacoLoco [ Mon Feb 11, 2008 11:01 pm ]
Post subject: 
Send me the 150k amigo.
(you have PM) :wink:
Author:  Novice [ Mon Feb 11, 2008 11:17 pm ]
Post subject: 
Check in the "mail" Paco - let's do good with it.
BTW your 'dollar waving' is totally annoying.
Author:  PacoLoco [ Mon Feb 11, 2008 11:33 pm ]
Post subject: 
There are bargains to be had in both countries but you need dependable contacts in CR to find them, fix them, sell them and of course handle the legalities. Pretty sure it would be much more difficult, aggravating and time consuming in CR, but maybe not if you find the right people and good subcontractors. Also don't expect a quick turn around on your investment unless you get lucky, the old "easy to buy, hard to sell" principle seems common. Marketing is another issue, there is no MLS to speak of so you'll need a knowledgable realtor to get the word out and market it for you.
You know what's going on in the states right now and IMO it's prime time to be shopping for foreclosures there. Although not much is selling now so you could rent out until things bounce back. Wherever you choose I'd make sure you had time to stay in country and on top of things and don't buy unless your sure it's a steal.
Author:  Novice [ Tue Feb 12, 2008 12:03 am ]
Post subject: 
OK put your waving dollar back you da man. I agree.

Any other opinions?
Author:  Bilko [ Thu Feb 14, 2008 2:51 am ]
Post subject: 
Unless you are investing in order to live here, I wouldn't invest here, personally. I am not saying there aren't ways to make money, or good deals, but the chances of losing money are a lot higher here, for numerous reasons. The main reason is the rules of 'the game' are very different here, and although there are ways to get things accomplished, most gringos come here with a LOT of presuppositions that can just don't apply here. Assuming you are not a Costa Rican, which I assume you are not because you are asking for advice HERE, getting to the point of knowing what's going here enough to make an intelligent business decision will take a lot of effort and unless you put in that effort your chances of losing money are a lot better than your chances of making money. I doubt most people want to spend years preparing to make a decision on how to invest 150k. If you want to live here and that's your reason for choosing to invest in Costa Rica, that may outweigh the risk to return equation for you. But as an economic decision only... I wouldn't do it.
Author:  Crookedcr [ Thu Feb 14, 2008 8:47 am ]
Post subject: 
For a while I have thought about buying a small house or condo in CR and trying to rent it out when I'm not in town.

I'd like to make 6 trips or more per year to CR, and I have thought that perhaps it would be better at some point just to buy a place than it would be to get hotels everytime I come down - of course this limits mobility.

There is so much to consider in CR - insurance, title records, etc. that most people take for granted in the US. I know lots of people who have bought homes in the US and they are still clueless about title issues, surveys, etc. and they just rely on the banker and broker to do everything, and they just walk in an sign their name.

It would be hard for me to feel like I could trust the seller, broker, surveyor (do they even do surveys in CR?), title company, escrow agent, attorney, etc., etc. There are a lot of steps where someone could step in and screw you.
Author:  Novice [ Thu Feb 14, 2008 5:58 pm ]
Post subject: 
Gents thanks for the opinions. Yeah, I know enough to know it would be very easy even likely to lose your shorts on real estate in CR. I also know people who have made very good money. Hell my Step dad had two lots in Potero that he thought were worth-less before he kicked off in 2000. Pa didn’t even put them in his will. With a little creative Costa Rican attorney-ship I managed to retrieve nearly $80K for his estate in 2006. So I’ve seen firsthand the property values rocket; and on the flip-side – I, well let’s just say the process I pulled off was more ‘creative’ than legal under CR law and the purchasers were Ticos lol. So scary, ya to say the least and a whole different set of 'rules'.

On the other hand, I have done the “Spend enough time in CR” (a good year in the country over five); and “See all of the different parts of the country” thing (just about everywhere I care to experience). I know where I like the best, Santa Ana, perfect for me. I would hate to know exactly how much I have spent on hotels and apartments in that time, likely 15 grand, anyway. And I know I want to spend a good part of the year there, because at this moment I’ve been for a few weeks an hour north of Seattle and The Weather Sucks!

I have been thinking like Crookedcr about having something down there and renting it when it’s summer here up in the North. MG filled in some of the logistics of that in the other thread. There is massive building going on right now in parts of CR, personally I don’t see the market topping out anytime soon, if you pick the right spot.

I dunno, which is why I asked, and why I appreciate the feedback. Gracias fellas.

PS just lately, I was lucky enough to score on a decent 2 bed apartment in Santana for $300/mo everything incl. except phone and food/Stoli. So for the moment I’m set and ain’t gonna rush into anything. Hold That Door – I’ll be back next week!

PPSS Ya Crookedcr a survey is called "Cadastro"
Author:  Icantstayaway [ Tue Mar 04, 2008 4:13 pm ]
Post subject: 
I am in a "relax" period and try to let business thoughts go and enjoy living here . Although I did notice a new Taco Bell open on the main Paseo Colon drag yesterday. If someone copied their business model , I think they may be successful . All the American franchises here seem to do a great business : Mcds, KFC , Quizmos, etc.
Author:  Chi_trekker [ Fri Mar 07, 2008 12:29 am ]
Post subject: 
I invested about that much in a home in CR, which I'm living in. I have scratched my head over the absentee landlord thing, and DO NOT see how it works here. Like many have said, the rules are different and its almost like the wild west. Thus, only invest, if you plan on physically being here and actively managing.
Author:  D2864 [ Fri Mar 14, 2008 12:24 am ]
Post subject: 
Stock market is down - invest in it.

As for property, the more you own, the more it owns you.

Buy stock and let someone else deal with the day to day headaches. The stock market doubles every seven years... will your property value double without you doing any maintenance to it every 7 years?

I never want to own 2 homes again. I did it for 10 years and was sort of lucky the first 6, but the last 4 has been pure hell. Tenants suck and the courts hate landlords.... everyone hates landlords. Why? Because it is impossible to be nice as a landlord. Being nice gets you NO WHERE except phucked in the ass every time (nearly no exceptions).
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