The Costa Rica Real Estate Expert

The finalized master plan for Phase 1 of Las Colinas de Miramar (a.k.a. Hills of Miramar) was just release on May 1, 2008.  Download Phase 1 Master Plan Map to your computer for review.

Phase 1 is made up of 123 lots sized around 1.25 acres each, and with 52 of those lots having ocean views.  Pricing is expected to be released within the next month, but initial expectations are that ocean view lots will start at $60,000, and other lots will start at $30,000.

Notice on the map that the commercial area that is situated near the gated entrance, next to the equestrian stables. 

Also new, though not on the map:  In the past, there was talk of building a golf course in the future, and it looks like that will be happening sooner than expected.  More details on the golf course to come in upcoming months.

Stay tuned for more updates on Las Colinas de Miramar.

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I have spoken to dozens of individuals who are looking at buying real estate in Costa Rica.  I have looked at hundreds of properties and developments in Costa Rica.  Of course, everyone’s criteria is varied, but there is a “magic number” that keeps popping up, like the universe recorded it somehow and keeps playing it back to me.

That “magic number” is 200 - or more specifically, $200,000.

Costa Rica has a large number of fine and luxury properties, priced at $400K and above.  What is more difficult to find are properties priced at a more modest price tag of $200,000 or less.  Over and over I hear from people that they want to find properties in the $200,000 range - it is like that recording that I told you about.

The luxury properties are exactly that - luxurious - but there is still the average buyer out there who wants a modest, safe, and clean Costa Rican property, but doesn’t want to pay a fortune for it.  For the beginner, finding these properties seems like a daunting, almost impossible task.  When you search the Internet, a score of ads and search results pop up for high-priced, luxury properties, making it appear as if Costa Rica is not for the average person any longer.  Unfortunately, that’s untrue.

The key is working with people in the know - people who can network with real estate folks all around Costa Rica to find those properties.  These properties do exist, and there are quite a few of them!

So that is one of my goals - to find these high quality, inexpensive properties priced around $200,000, or less.  My list is ever-growing and diverse, satisfying a large group of buyers who want to invest in the tropical paradise that is Costa Rica.

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I am proud to have been invited to be a presenter at the Real Estate Wealth Network’s March meeting to share with its members some exciting vacation, investment, and retirement opportunities available in Costa Rica.

Now, I have heard it.  You may have heard it.  The naysayers are saying that there are no more “good deals” or investment opportunities in Costa Rica.  Do your homework you naysayers!  I have found a variety of opportunities, many at prices less than you may think.

During this presentation, I’ll go over some great vacation, investment, and retirement opportunities available in Costa Rica, as well as:

• Costa Rica’s economy and why people are investing, retiring, and moving there.
• Review investment analysis of investment opportunities.
• Discuss financing options and products.
• BONUS:  Co-presenter, Munzer Ghosheh of Entrust IRA Services, will discuss how to buy a Costa Rican investment property using your self-directed IRA.

Everyone is welcome and no RSVP is required!  So come on out!

WHEN:  Wednesday, March 26, 2008 at 7:00 pm (please show up at least 15 minutes early for registration).

WHERE:  Kiwanis Club - Hermosa Beach
2515 Valley Drive, Hermosa Beach, CA  90254

ENTRANCE FEE:  Free for members, $20 for non-members, $15 for guests of members

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Did you know that there is no MLS in Costa Rica? So finding your dreamhome there (or any other Latin American country for that matter) is not just a matter of contacting any real estate agent in Costa Rica and getting access to the country’s available real estate - that doesn’t happen and won’t for a very long time.Instead, you need to be working with someone who has contacts with real estate agents, property management companies, and developers all over the country!  That happens to be what I can offer my clients.  With my involvement with Compass Properties, I can offer properties in new developments that we have reviewed as being a safe purchase.  Also, my growing network of English-speaking, hardworking, service-oriented real estate agents throughout the country allow me to help you find specific Costa Rica property.

And if you are looking to buy a vacation/investment property, you’ll definitely want to use a reliable property management company that can fill and take care of your property as efficiently as possible.  I can help you there too.

By the way, this goes for commercial property and developers as well.  My contacts deal with strip malls, apartment buildings, office buildings, hotels, and other commercial properties.  We can also help developers find and obtain raw land, as well as assist them with commercial lending.

So if you are looking for any real estate in Costa Rica - from $100K to several million - then myself and my network would be more than happy to assist you!

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Being a real estate investor, I am always curious as to the investment potential that each property holds.  A property can sound amazing, have an abundance of amenities, be in a great location, but I won’t feel comfortable parting with any money until I have some actual numbers in front of me, allowing me to evaluate the income potential.  And of course, I wouldn’t expect my clients to want any less.

So, I finally was able to assemble the information that I needed to perform my analysis on the fantastic Naturalia condo development near Tamarindo in the coastal Guanacate region - rental rates, management fees, property taxes, and unit prices.

Do be aware that some numbers are averaged, like property taxes and HOA fees (condo fees).  I have included comments within the spreadsheet which you should be sure to read, as they often provide information as to how I came up with certain numbers.  But if you do have questions about these number, please feel free to contact me.

And one final note:  this spreadsheet does try to use accurate and reliable information, but it is subject to change at any time.  In some cases, assumptions have also been made (typically noted in the comments).  Please use this spreadsheet as just one of the tools you would use to help you make a decision as to whether you wish to buy a unit at Naturalia.

Find out more about Naturalia.

Inquire about Naturalia.

DOWNLOAD Naturalia Rental Analysis NOW!

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Let me start by saying that just about ANY real estate you buy in Costa Rica would be a good investment, as appreciation rates are high - especially in the coastal areas.  But being a real estate investor myself, I understand that each investor has different goals and investment techniques.  What might be perfect for one investor, may not be so for another.

Now THAT being said, I also have to admit that some properties are more conducive to an investment than others.  In this review, I will point out the features of each property that I think make it suitable for an investment.

Remember though - you make the final call.  I am only offering my opinion and knowledge of several Costa Rican real estate opportunities - you need to decide if that investment is a fit for you.

I won’t explain each property in great detail - you can click the links to each property listing to learn more.

House at Costa Del Sol (Lot 34)

2 bedroom, 2.5 bathroom single family home in a gated community at Playa Bejuco, 20 minutes south of the popular tourist town of Jaco.   Priced at $199,000, recently reduced from $265,000.

Key Investment Features for Costa Del Sol:

• Great rental - property management (very soon - within a few weeks) available, desirable community features, close proximity to the beach.
• Built in equity - Over $60,000 in equity!
• Great location - not only is it close to the beach, but it is also close to the popular tourist town of Jaco, as well as shops and restaurants walking distance away.
• Appreciation - Highest in the coastal areas, where this house is located.

The Costa Rica Real Estate Expert’s Investment Grade for the House at Lot 34 at Costa Del Sol:  A+

Colinas Del Coyolar

Buildable lots in a gated community in the Guanacaste region, about 40 minutes from Liberia’s international airport, 6 minutes to Potrero, and a short drive to other popular tourist spots like Playa Conchal, Playa Flamingo, and Tamarindo.

Key Investment Features for Colinas Del Coyolar:

• Low purchase prices - Lots priced at $35,000 to under $99,000 with sizes ranging from just under a 1/2 acre to over 2 1/2 acres.
• Great location - Close to the airport, beaches, tourist town of Tamarindo, and a variety of other tourist hot spots.  A great place for tourists to come and enjoy.
• Developer discounts - The developer is offering a variety of discounts when you use them to build a home on your lot, using one of their available home plans.  Based on estimates, it is possible to have a new house for under $200,000 - that’s for the lot and the house!
• Property management - When the development is more built up, property management will be provided.  In the meantime, other property management companies can be recommended.
• Appreciation - Highest in the coastal areas.  This development is close enough to the coastal areas to see some high appreciation rates.

The Costa Rica Real Estate Expert’s Investment Grade for the lots at Colinas Del Coyolar:  A for the lot alone, A+ if you build.

Diamonte Del Sol

Diamonte Del Sol is a beachfront, resort-style, condo-tel in the heart of popular Jaco.  It will consist of 5 towers right on Playa Jaco, have a day spa, restaurants, and a casino managed by Caesars.  A variety of unit sizes are available, ranging in price from the $400s to just under a million for a 4 bedroom penthouse.

Key Investment Features for Diamonte Del Sol:

• Great location - Jaco is the tourist spot in the Central Pacific, and Diamonte Del Sol is in THE prime location in Jaco - right on the beach in downtown Jaco, surrounded by restaurants, shops, tour operators, banks, pharmacies, grocery stores.
• Under construction - With the developer financing, you don’t need to come up with the entire downpayment immediately, and your loan payments won’t start until the property is move-in ready.  You can get full ownership-control with as little as 30% of the property price and let the value appreciate during its build time.
• Property management - Property management is already in place and will be able to start filling the finished buildings as soon as they open.  Rents in the area are high, ranging from $240 to over $300/night for 2 bedroom units.
• Appreciation - Highest in the coastal areas.  This development is right on the beach in a very popular tourist town.

The Costa Rica Real Estate Expert’s Investment Grade for condos at Diamonte Del Sol:  B+ to A+ Have to wait a bit to see some income from your investment, as the properties are currently under construction, but the potential is extraordinary.

The Pacific

The Pacific is a beachfront condominium with a commercial center on the 2 bottom floors which will house restaurants, shops, and a fitness center.  Like Diamonte Del Sol, The Pacific is perfectly situated in Jaco in a prime downtown area along the beach.

Pricing has not yet been released for The Pacific, but it is expected in the 2nd quarter of this year.  It is however possible to get on the reservation list for a fully refundable payment of $10,000.

Key Investment Features for The Pacific:

• Great location - Jaco is the tourist spot in the Central Pacific, and The Pacific is in THE prime location in Jaco - right on the beach in downtown Jaco, surrounded by restaurants, shops, tour operators, banks, pharmacies, grocery stores.
• Construction not yet begun - When construction does begin, with the developer financing, you don’t need to come up with the entire downpayment immediately, and your loan payments won’t start until the property is move-in ready.  You can get full ownership-control with as little as 30% of the property price and let the value appreciate during its build time.
• Property management - Property management is already in place and will be able to start filling the finished buildings as soon as they open.  Rents in the area are high, ranging from $240 to over $300/night for 2 bedroom units.
• Appreciation - Highest in the coastal areas.  This development is right on the beach in a very popular tourist town.

The Costa Rica Real Estate Expert’s Investment Grade for condos at The Pacific:  B Hard to evaluate an investment when there is not pricing.  But with everything else that it has going for it, I suspect the potential to be extraordinary.

There are other properties that are available which are also great investments, but these I believe to be in the stellar category.  If you want my opinion on any of the other properties as an investment, please feel free to contact me regarding such.

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Through our travel professionals, we have to offer a 7 day “Taste of Costa Rica” land-only tour originating from the Daniel Oduber International airport in Liberia, Guanacaste, Costa Rica.  Pricing for this tour starts at $769 CAD (similar to US funds), per person.  Airfare is extra.

Arenal

From Liberia, you will head to intimate Arenal Lodge which offers up some fantastic views of Arenal Volcano.  During your 3 day stay you will have a chance to reconnect with nature, as lush landscaping will surround you.

Discover your wild side as you fly through the treetops on an Arenal Paraiso Canopy Tour.  In addition to the thrilling ride you’ll get riding along cables from treetop platforms, the views will be unsurpassed.

On the Wildlife River Cruise, you’ll get to see unique and splendid wildlife that until then had only been seen by you on the television.

Pacific Coast

The remainder of your stay will be at your choice of one of the following hotels along the Pacific coast of Costa Rica:

1. Tamarindo Diria Beach & Golf Resort
2. Barcelo Langosta Beach
3. Flamingo Beach Resort

While here, grab your sunscreen and a beach towel and bask in the warm, golden sun!  Or grab a round of golf before lunch on the patio of a local restaurant.  How about a little shopping?  The point is, take it easy and let Costa Rica take care of you!

And while you are in the area, falling in love with Costa Rica, why not take a moment to visit some fantastic properties in the area.  Minutes from Tamarindo you’ll find Naturalia, a luxury condo that’s just a short walk to the beach.

Not much further away you’ll also find Colinas Del Coyolar, a gated community of lots where you can buy and build for under $200,000!  Colinas Del Coyolar is perfect for any type of buyer - investor, second home owner, or a retiree. 

Your stay comes to an end as you return to Daniel Oduber International airport in Liberia for your flight back home.

Make Your Plans Today!

Are you ready for your break from winter?  Are you ready to find your Costa Rican vacation home?  Then contact us today for a quote to get your Taste of Costa Rica!

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What if I told you that it was very possible that you could build a new home, just minutes from the beach, the popular tourist town of Tamarindo, and under 40 minutes from the Daniel Oduber International airport in Liberia for under $200,000?  Would you believe me?  Well, it’s true at the gated community of Colinas Del Coyolar!

The developer of Colinas Del Coyolar is offering incentives to its buyers for:

1. Using the developer also as the home builder, and using one of their attractive home plans.
2. Having the developer build this new home within a year of purchasing the lot from them.

When you use the Colinas Del Coyolar developer as the home builder, you get an 8% discount on the purchase of the lot.  And when you have them build your home within a year of purchasing the lot, you get a 5% discount off of the building costs.

So, do you want to see how much it will cost for you to build a home at Colinas Del Coyolar?  Then download the Microsoft Excel spreadsheet below and play around with the numbers to see what your estimated building costs will be!

Download this Microsoft Excel Spreadsheet:  Estimated Building Costs & Worksheet for Colinas Del Coyolar

Colinas Del Coyolar home plans from the developer:

• Colinas Del Coyolar Home Plan 2
• Colinas Del Coyolar Home Plan 3
• Colinas Del Coyolar Home Plan 4

Exterior home style choices for Colinas Del Coyolar home plans from the developer:

• Colinas Del Coyolar Home Style #1
• Colinas Del Coyolar Home Style #2
• Colinas Del Coyolar Home Style #3

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Negative movements in the exchange rate can drastically increase the cost of property to Canadians 

If you are a Canadian looking to buy property in Costa Rica, you will inevitably need to transfer your currency to US dollars to buy the property or arrange financing.  Canadian buyers should pay close attention to the USD/CAD exchange rate, as volatility in the currency markets can have drastic repercussions on the final Canadian dollar (CAD) cost of an American property priced in US dollars (USD).

For example, a Canadian buyer wants to purchase a property in Costa Rica priced at $300,000 USD.  In the first week of November 2007, it would have cost approximately $271,500 CAD (USD/CAD = .9050).  One month later in December 2007 the same property would have increased in cost due to the exchange rate to $306,000 CAD (USD/CAD = 1.0214).  In other words, the property in one month became $34,500 CAD (over 12%) more expensive to a Canadian!

Currency exchange specialists like HiFX can help you protect against currency fluctuations that would increase the cost of your property by locking in an exchange rate for up to two years with a ‘forward contract’.  This service can be useful if you have a lengthy closing period or future property payments.  With a ‘forward contract’ you will have locked in the cost of the property in CAD and will be unaffected by any volatility in the currency market.  HiFX provides ‘forward contracts’ free of cost and requires only a 10% deposit.

Canadians have amazing purchasing power today

Fortunately for Canadians, now is an attractive time to look for a property in Costa Rica as CAD has strengthened heavily against the USD over the last few years, making property in Costa Rica even less expensive.  On September 20^th, 2007, the Canadian dollar reached parity against the US dollar for the first time since 1976.  This means that Canadians have more purchasing power now than they have in the last 31 years!

If a Canadian buyer was looking to buy a $300,000 USD property in Costa Rica in January 2008 it would cost approximately $300,000 CAD.  If five years ago the Canadian had been looking to buy the same $300,000 USD property, it would have cost them a staggering $485,000 CAD.  In other words, the same property is now $185,000 CAD (almost 40%) cheaper than it was five years ago!

Use a currency specialist to pay for your property

Working with a currency exchange specialist to make property payments can not only save you time and hassle, it can also save you money. The fact is that many individuals will simply use the exchange rate offered by their personal bank. Currency specialists can typically offer more competitive rates of exchange than personal banks, to save you on the cost of your property. The bank may also charge wire transfer fees, commissions, and bank receiving fees. Many individuals don’t realize there are better alternatives available to them.

HiFX has seen an average savings of 1%-4% of the transaction amount for its clients, and in addition will transfer funds free of charge.  On larger transfers the savings can turn into thousands of dollars.  HiFX does not speculate with funds and all funds are held in a secure private client trust account at the Bank of Montreal in Canada.  It may be worth speaking with a consultant at HiFX to register for no cost or obligation.

If you have any questions about the currency exchange rates, or would like to learn more about HiFX fee-free currency exchange services, please contact Thomas Wight.

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