www.CostaRicaTicas.com

As I've already mentioned I had a very positive monthly cash flow (more than I could have made with any investment in the U.S.) I couldn't have cared if it took 100 years to sell. It's tough to beat great monthly ROI and the bonus of a nice potential capital gain when/if you sell. Because it's paying off and is a cash producing asset, you have the option to wait for the right buyer and your price. It's very seldom you can be in the driver seat like that- but you can in Costa Rican real estate if you do it right.

My bad--I had linked a subscriber-only article. As you were.

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"A man accustomed to hear only the echo of his own sentiments, soon bars all the common avenues of delight, and has no part in the general gratification of mankind"--Dr. Johnson
"Amen, brother"-ED

OK, Jsmythe23, I have the following questions to further flesh this out. This is just for my further edification and I would appreciate a response.

How much did you charge for rent?
Did it cover the mortgage and also allow some profit?
What would you say was the annual return on your investment?
What was your occupancy percentage?
How often did you have to deal with damage to the unit, or did you just insist on a hefty security deposit?
How much operating costs did you have?

Thanks.

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“Good people sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.” And we are the guys that keep them in Eggs & Grits

I would prefer not to post that info. on a public forum but have sent you a pm, feel free to post your conclusions for the board to see.

Cool. Thanks!

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“Good people sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.” And we are the guys that keep them in Eggs & Grits

Tim,
We're waiting........

Thanks Jsmythe, all the way through this thread, you were very clear. Perhaps some people should read rather than scan?

I think a certain few do not get the squatter issue. Squatting is more about occupying land than it is about occupying a home. Some land owners actually lose track of what they own or lost track of the boundary of what they own so the owners of the shack that occupies a remote part of the property for many years may lay claim to the property their shack sits on, but not the entire land track. Also, sometimes fences are put in the wrong place then someone builds a shack which over the years becomes a large home just outside the fenced land track; say that house is there for 15 years then suddenly the land is surveyed and reveals house would be within boundary so owners of the large home claim rights to the land under the home, but again, not the entire land track.

CR isn't so backward that people are actively looking for homes to occupy so they can claim squatter's rights. Breaking and entering and then occupying is a crime even in CR so laws which have nothing to do with real estate will remove occupants quickly (like trespassing laws).

If you own a lot in the city or the country that you are going to leave vacant, fence it with simple barbed wire (doesn't have to be a grand fence) and put no trespassing signs up, take pictures if you want of the signs and fence, hire someone local to check on the lot, if a shack appears, start process to remove settlers. Again, they trespassed, even in CR, this is illegal. They have to be there for years and years to lay claim to the lot.

Who on here is going to buy anything in CR and just let it sit without renting it or who on here is going to buy a lot to let it sit for a long time, probably no one so squatting is a mute point all the way around.

Great thread, trying to think of some to add to Icantstayaway's growing list but he pretty much has it covered. I looked into the CR foreclosure market a few years ago, it was exciting even went to a couple auctions but decided the risks and workload too great to try and manage not living there full time or being fluent in spanish. But there was, and surely still is money to be made in CR real estate if one has trustworthy and competent connections IMO. I could flip a house in 3-6 months in the states but in CR it may not sell for 5 years if at all, plus it seemed that unless it was beach property the rent just not sufficient to make it worthwhile holding onto. I know several people that have made money, several more that claim they have and a few that lost their ass or got screwed over.

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Living well is the best revenge
http://www.youtube.com/watch?v=MwUtj_YnNoY

Problems with squatters don’t often make it to the news, only about once or twice a year. The infrequency is undoubtedly due to the idea that property owners are aware of the danger of losing their property and take measures to prevent squatters. But it still occurs.

D2864 is correct that typically the issue involves vacant land. But it does effect unoccupied buildings. Most of us would never see it because it takes place in rural areas, not in the urbanized areas where most of us hang out.

After my father-in-law passed away earlier this year, several squatter’s attempted to take the farm because the property was unattended. His farm was in a very remote area. Everyone involved was a Tico.

Back around 2002 or 2003, there were about 80 or 90 squatters who moved onto property in Herradura near Jaco. The police evicted them. There was also an eviction of squatters in 2007 and 2009 in the same area.

It has been reported that some of Costa Rica’s wealthy and influential pay squatters to seize land through the squatter law and then the illiterate squatters sell their rights to the land for a comparative pittance, the wealthy now own the land and the American’s just got swindled.

These people take advantage of the extremely lax property recording process at the Registro Nacional and the “flexible & adaptable” property registration laws, along with shell corporations in other countries such as Panama. Some of the squatters are actually trained and organized by business interests who want the land.

These are choice properties near the beach and ripe for development not some rental house in a typical barrio. You Gringo, they Tico; guess how the court will decide?

This concept of stealing land is not new. The District of Mata Platano in the Municipality of Goicoechea (Guadalupe) got its name based on theft of a farm from a German. It occurred in the 19th Century. The German own a large platano farm in what we now call Guadalupe. He had to return to Germany so he cautiously buried his money and property records in one of the platano groves.

He measured the exact spot of the “treasure chest” but pacing from specific platano trees. But the Tico who was watching him bury the money and records waited until the German left for Europe. Then the Tico dug up the treasure, stole the property and the money. Then burned down the grove, ergo, mata platanto. It wasn’t squatting but it was . . . a surprising loss. The German had nothing when he returned to CR and the legend goes he simply returned to Germany.

My hats off to Jsmythe23. He certainly has an excellent business acumen.

Brother DiegoC's involving story should go into that wonderful book on Tico culture, "Culture Shock". A terrif object lesson concerning somebody way savvier than me (that German). These Tico folks didn't just start this stuff yesterday--they've been practicing since the 1800's (sure did a number on those 3rd-tier Spanish conquistadores, didn't they?) And stealing a metal church AND Guanacaste? Slick MFs, I'm telling ya.

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"A man accustomed to hear only the echo of his own sentiments, soon bars all the common avenues of delight, and has no part in the general gratification of mankind"--Dr. Johnson
"Amen, brother"-ED

Yes, here are two paragraphs that are very germane to the discussion:

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“Good people sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.” And we are the guys that keep them in Eggs & Grits

How does the situation in CR compare to Panama?

Exactly my thoughts. To me, flexibility is key.

Panama is much more modern, has a lot more rental possibilities and better incentives to invest. The growth the next 5 or so years in Panama will also dwarf that in Costa Rica. They both have big red tape hassles but there are more professionals in real estate and law in Panama as well as less scammers.

42) All the people on the lower floors of my building voted to allow a 450kg cell phone antenna to be attached just above my tin roof 12 feet from my bed.


Took $1000 in attorney fees and ugly threats to get this thing squashed as we were severally out voted.


Only the people on the top floors didn't want this as the people on the lower floors are insulated from the unknown risk.

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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.