www.CostaRicaTicas.com

"BTW, when the masses start investing in oil, then we should see it drop"

Like the last 2 weeks (down $20 even with CAT 2 in the Gulf)!!!!!!! Too many speculated in it. My money stays away from oil and gas for awhile anyways.

A post from Rota, Spain. If it's happening there, and Europe and U.K. and U.S. gonna happen in CR, no doubt in my mind.

----------------------------------------------------

Rota Real Estate (Dos Mil)
Posted: 5:03:01 pm on 6/5/2008 Modified: Never

How is the real estate market these days in Rota? At one time back when it was incredibly affordable I dreamed of purchasing a property there.

I have seen article en El Pais where they discuss the market thruout Spain which is adjusting as it is here en Estados Unidos and wondered if the same thing now in Rota?

Muchas gracias,
David Miami

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Re: Rota Real Estate (admin)
Posted: 7:09:55 am on 6/6/2008 Modified: Never

Hello David,

The real estate market here in Rota isn’t good at the moment. Prices are out of sight. The market correction that is supposed to be happening in Spain hasn’t touched Rota yet. Rota is, after all, by the sea and as such considered to be a resort area by most Europeans.

That being said, I think that the correction must eventually come. My reasons for making this statement are several. First there are literally hundreds upon hundreds of brand new vacation apartments (meaning lots of small apartments advertised as 2, 3, and even 4 bedrooms but all very tiny rooms – by my standards) unsold that are just finished construction, or nearing completion. Then the local economy has the same problems with raising prices for everything as it is everywhere else, especially fuel prices. Also there aren’t nearly as many buyers and there are sellers in the market this year. And then this year many beachfront rental properties are still, at this late date, not contracted for the summer as in previous years, another indication on the state of the economy. However what seems to be the happening thing is that people are buying older apartments much cheaper and completely renovating them, which is much cheaper than buying a new apartment. The downside of this venture is financing the purchase and renovation of an older apartment means a much shorter term bank load than is available for purchasing a new apartment.

However cash is king here as it is in most places and if you are in the market and have the available cash your options are vastly improved as a prospective buyer into the Rota real estate market.

Administrator

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Re: Rota Real Estate (Dos Mil)
Posted: 6:06:05 pm on 6/6/2008 Modified: Never

I just found this post en El Pais. Very interesting read on the "crisis inmobilaria" there similar to what is happening now in the U.S.

If this link does not work it is in the Economia section.

http://www.elpais.com/graficos/economia ... eco_1/Ges/

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Re: Rota Real Estate (Dos Mil)
Posted: 6:07:01 pm on 6/6/2008 Modified: Never


Thanks for the reply. I feel bad for everyone caught up in all this. Yes cash is king!

The play would be for someone rich with lots of liquidity to sit back, wait and pick off deals... Might even be a couple or three years away before the prices hit bottom. Swoop in and buy low. Who knows how short or long it will stay down, but it will eventually cycle back up... And oldtimers will be tell stories of how they could have bought this and that for a song.

There is no doubt that in a few years many will wish they bought in 2008. I am on Florida's west north of Naples, we had a very fast run up and a very fast decline. But at the prices, we have investors with lots of cash coming back in the market. We just had a corporate RE company come in with $100MM to invest at the bottom of the market in housing and vacant lots in a town that is to the north called Pt. Charlotte and North Port.

The RE meltdown is a global situation and is even happening in DUbai where all the sheiks and multi millionaires are. And even the rich folks($10MM+) are cutting back on expenditures.

I like to buy land in my IRA and 401k rollover for long term investment and get the tax benefit. I just cashed in some more mutual funds I had that were'nt doing anything and put them into an IRA rollover and bought some lots. I do the same for custodial accounts for my nephews & nieces.

As far as buying in foreign countries, I will wait a little longer as I believe the markets lag the US by a year or more and the deals will come in a year or 2. And I'm still not sure I would want to own in another country. It just seems so much easier to just rent and not have the hassle or deal with the unexpected.

PURA VIDA!

_________________
Livin' & Lovin' in Key Largo....oh....And the one in The Keys, too!

The biggest problem with CR beach real estate are 1) the companies that thought building massive condo complexes on the water and charging $300k+ for each unit, and 2) the idiots paying for them.

_________________
heredia porn king

Man I wish a big RE company would come in and swoop up my townhome in Daytona Beach Shores. Good well sought after area well south of Daytona proper. Valuations have been dropping like a rock but if there is any good in out Volusia County looks like are going to drop my taxes a considerable amount. And they should.

www.REUTERS.com

====
Bathers are risking their health by high fecal contamination in Jacó
Fecal Matter cause respiratory infections, diarrhoea, vomiting or allergies

Mayor Garabito offers, once again, corrective actions

Marcela Cantero | mcantero@nacion.com

Visitors Jacó beach risk that his tour ends in a visit to the doctor by diarrhea, vomiting, allergies or infections.

These are the problems they expose bathers after that in the past year fired levels of contamination by feces in these waters.

"The pollution has increased to such an extent that this beach is unsuitable for swimming," said darn Mora, chief of the Laboratory Water Water Supply and Sewerage (AyA).

The water suitable for swimming should not have more than 240 fecal coliforms (fecal waste) per 100 milliliters of liquid. When exceed 500 coliform, it is considered harmful to health.

The latest analysis of microbiology AyA-of which The Nation has copy-drawn amounts of coliform much higher than the previous ones.

Samples of seawater taken in June of 1100 to 2400 found fecal coliform in three of the four points which are monitored by the laboratory.

These measurements exceeded the range of 0 to 240 coliform in the measurements that were conducted in July 2007.

Only one point monitoring showed an improvement, going from 240 to 150 coliform in the last year.

AyA takes samples at these sites quarterly.

Mora noted that the observed increase is dangerous because, if actions are not taken soon, Jaco Beach could become a site unhealthy.

Without actions. The problem of contamination by fecal coliform in Jacó is nothing new.

In fact, a report of The Nation on 10 September reported that the AyA had detected high levels of pollution in rivers and streams that flow into this Pacific beach.

"Here there is little control over the discharge of sewage, everything falls into rivers and streams without proper treatment," complained Sonia Alvarado, president of Blue Flag Committee of Jaco.

Precisely, Alvarado organized the community to achieve the blue flag for the city, now, his challenge is izarla on the beach.

"It's unbelievable that the town, nor Health do something to address this emergency. Imagine that another year will take place here a world championship surfing, "he said.

The mayor of Garabito, Marvin Elizondo, promised, as he did in 2007, taking actions. "I asked for a second to AyA to confirm these data, and whether to maintain these levels of pollution, now we are going to this stage (to close shops)."

Health officials discussed this issue with the council.

"We've turned health orders, but there was no closures. We will coordinate more shares in a committee that was formed, "said Francisco Murillo of the office of the Ministry of Health in Orotina

Oh Ya,

I want to buy an OVERPRICED condo to swim in sh*t invested water.

Tha Nuck

_________________
Throughout the history of mankind there has never been one shred of evidence that supports that life is serious..........
Don't believe everything you think ............

No doubt or have one swindler after the other try to phuck you out of your hard earned money. I NEVER WILL BUY ANY RE DOWN THERE OTHER THAN MAYBE A MODEST TICO HOUSE IN A DECENT AREA AFTER I HAVE BEEN THERE A YR.

I love these first timers from America that come down after vacationing in Hawaii and other more advanced destinations and the first thing they exclaim is they didn't know about all the shanty homes! Well you are in Central America!!!!!

If condos were in high demand in Jaco, they would not have to bow to "fractional" ownership. They would just sell the things and be done with it.

http://www.jacobeachtowers.com/fractional.html

aka Timeshares

Fractional Ownership is far better than a timeshare. I don't know how or why they are offering them in this case, but the differences for the ones that I'm involved with are that:

1. You own a deeded share and can sell at anytime.

2. When other owners aren't using the condo it gets rented and owners receive income on a per share basis

3. Receive equity as price raises/ easier to sell a share than a condo

4. No annual fee

5. Much more flexible with availability

6. Have a vacation spot that gives off income w/out a mortgage or tying up alot of cash.

7. Travel expenses are tax deductable as you are an owner

According to an article published today in AM Costa Rica real estate prices are starting to tumble and expected to continue for awhile.

"Faltering real estate market presents opportunities
By Garland M. Baker
Special to A.M. Costa Rica

A personal trip to the Parrita-Quepos area to look at property and meet with real estate agents turned out to be an invaluable experience. The real estate slowdown is quite evident, but there is good news for well-informed investors. Today’s deep discounts are tomorrow’s profits.

For sale signs are everywhere. Property prices have dropped on some real estate 50 percent or more. Some people have walked away from the houses they were building before completion and assigned them to real estate agents with instructions to sell them for whatever they can get. Some condominium developers are selling their projects out using factional ownership so they can make some sales and bring in badly needed cash flow.

A.M. Costa Rica published articles cautioning about the coming weaknesses in the real estate market starting in January 2005 when property values were spiraling out-of-control. Later articles predicted that too many condominiums were under construction and this would cause an over supply.

In retrospect, 2005 surely was the topping out of the real estate market in Costa Rica and the beginning of the slowdown of real estate sales. This is true in most market situations. When prices are crazy and people are willing to spend almost anything on the upswing, the market is ready to burst and turn around.

The slowdown started to show its nasty head in 2006 when real estate agents complained of fewer sales and prices leveling off or declining. The events in the United States surrounding the subprime mess where consumers over borrowed on the equity in their home, perhaps to buy a vacation or retirement property in Costa Rica set the foundation for a turn around in real estate here.

This is not the first time this has happened in Costa Rica. Old timers remember Costa Rica went though a similar time in the 1970s. Property values were on the upswing and relative to those times, real estate was expensive and increasing in value rapidly. However, with the onset of the Nicaraguan conflict and the United States embargo against the country, real estate sales abruptly entered stagnation.

Values did not start to rise again until after the end of the United States embargo against Nicaragua in 1990. Costa Rica’s real estate values started to increase slowly at first but gained momentum rapidly in the late 1990s. This culminated into explosive growth and skyrocketing prices from 2000 to 2005.

Today, Costa Rica real estate prices are on the fast decline for several reasons. Here are a few:

North America is in serious financial distress. In the past, when the United States caught a cold, Costa Rica suffered financial pneumonia. This is not as true as it was in the past because Costa Rica is a destination and retirement option for many other types of foreigners not just North Americans. However, even today, when the United States is having troubles so does Costa Rica. Usually, there is a lag time of around a year before Costa Rica suffers from the happenings in the United States. This is also true during the recovery process. Costa Rica needs the same amount of time to begin recovery after the United States markets improve. This means the bottom of this slowdown is just beginning not ending.

As stated in the article “How high can skyrocketing land values go?” New found paradises go through a defined cycle: The phases to the cycle are exploration, involvement, development, consolidation, stagnation and, decline and/or rejuvenation. Given all the development over the past several years, Costa Rica is now ready for its consolidation and stagnation phase. The slow down in the United States has not helped and is probably nudging the country into these phases prematurely.

Today, Costa Rica is at war. It is at war with crime. Crime is everywhere. It runs the gambit from the highest echelons of government down to petty street crime. The problem is the street crime is not so petty any more. Many robberies are at gunpoint or worse, someone is killed. The Costa Rican press is full of stories of students being murdered over a cell phone while waiting for the bus. The problem is Costa Rica has not declared war on crime. The country is just too complacent letting the criminals run the show.

The country had better wake up sooner rather than later. In the past, Costa Rica’s proximity to Nicaragua made North Americans uneasy about traveling here during the Nicaraguan war. The United States’ embargo put the nail in the proverbial coffin. Most foreigners like to feel safe when they travel — especially North Americans — and when they do not feel safe they tend to avoid a destination in conflict. The increase in crime in Costa Rica and the increasing world’s perception that Costa Rica is not a safe place to visit will stagnate Costa Rica’s growth even if the United States recovers from its financial problems.

For these and other reasons, the bottom of this slowdown is in its beginning stages not at the bottom, as some real estate agents believe.

Now for the good news for savvy investors. Baron Rothschild, an 18th century British financier, is attributed with saying "The time to buy is when there's blood in the streets — even if the blood is your own."

This author is bullish on Costa Rica and feels the country will eventually get its act together — of course — in its own Tico time, but it will happen eventually.

There are some great real estate deals these days for investors and for those people looking to retire here in the future. There are even better deals for those with cash. Knowledgeable investors recognize bad times make for good buys. Even though Costa Rica has probably not hit bottom, it is the time to start looking for property. Real estate values have a positive trend over time and real estate values will sky-rocket again sometime in the future as it has done in the past. Markets always do.

_________________
Pura Vida
Only Irish coffee provides in a single glass all four
essential food groups:
alcohol, caffeine, sugar and fat.
Alex Levine

This is EXCELLENT news! I almost bought 2 years ago but didn't. Have always felt that patience would be a virtue. Actaully was planning to be back there this December to re-visit the idea of finding a bargain. I have to believe a lot of sellers and particularly developers (doubly so for Jaco developers) and nevous right now.