Earn Up To 24% In Costa Rican Real Estate

In today’s world the value of assets is not always obvious. It is often latent, and has to be unlocked through financial and human capital. We recommend Gap Investors, who focus on unlocking this latent value in Costa Rican property development.

Gap Investors specializes in brokering syndicated loans, which are loans offered by a group of lenders, to provide funds for a borrower to start a real estate development project on properties with high potential (known as latent value) in Costa Rica.

The goal of this form of lending is to get development plans off the ground. These loans will not be given by risk-averse banks without a significant amount of collateral and a high income, so we come in by bringing in a group of enterprising lenders to provide enough short-term funding to get the development to the point where banks will be open to financing.

Because of the nature of the loan the interest rates are typically higher than regular bank interest rates. Collateral is provided in the form of a mortgage lien on the borrower’s property, which is shared by all lenders in proportion to the funds invested by each, through shares in a corporation holding the mortgage.

Bridge loans are usually short in duration and effectively create a financing bridge from the start to the point where banks are interested in the project.

The loans use multiple lenders to allow maximum flexibility. At Gap Investors, a single investor can finance multiple syndicated loans at one time, therefore diversifying their total investment portfolio.

Contact us for more information on offshore investments, or feel free to visit the Gap Investors web site.

Gap Investors chose Costa Rica because it is one of best environments to be investing in real estate right now. The value is good, development and construction is booming, and the economic climate makes investing something you should consider.

CENTRAL VALLEY Climate: The temperature usually fluctuates between 65 and 85 degrees Fahrenheit depending on the time of the day.  Temperature will also vary according to the altitude above sea level.  We try to locate properties that are about 3,000 feet above sea level or higher, because in our experience, it results in the most comfortable climate.  Humidity is also lower at this altitude.  Air conditioning is almost never used.

Costs: If you choose to buy property and build a home, a property of approximately 1.25 acres (5000 square meters) or greater, with a home will run between $135,000 and $235,000, depending on how large or how luxurious the house is.  Lot prices will vary from as low as $10 per square meter to $50 per square meter, with larger tracks of land costing less.  Construction costs for a higher quality home will be between $45 and $60 per square foot.  Again, it is always possible to spend more if you so choose.  It is also possible to find extremely cheap land or construction quotes, but we have found when the price seems too good to be true, it usually is.  We have spent many hours screening various properties, weighing price and quality, in order to find property priced well, without sacrificing quality, location, clear title, etc.   

The prices of resale homes will vary widely depending on the size of the house and lot, location, quality of finishings and other factors.  Keep in mind that many resale homes may have been originally built for Costa Ricans and may not have the features North Americans expect such as bath tubs, large bedrooms or in some cases, modern showers.  However, newer homes built specifically for foreigners are becoming more widely available.

Infrastructure: The Central Valley’s infrastructure is far superior to that of the beach.  Most streets are paved with asphalt and are considerably wider.  While beach areas sometimes suffer from droughts and power outages, these are usually not issues in the Central Valley. You will also have easier access to public transportation, taxi services, a wider variety of grocery stores and other shopping, and the main Inter-American Highway.  

Location: Most areas of the Central Valley that we introduce you to are about 45 minutes to the nearest beach.  Most towns are also about 45 minutes to San Jose’s international Airport.  Things to do in the Central Valley include canopy tours, horseback riding, various nature trails, bungee jumping, fine dining (both international cuisine and typical Costa Rican food), and more.   Most towns in the Central Valley are also between 1.5 to 2 hours to the famous Arenal Volcano where you’ll find a variety of tourist attractions such as hot springs, horseback riding, and hanging bridges.

Type of Client: We find the majority of Central Valley tour clients enjoy the ambiance and tranquility of this different life style.  Those, especially from the Northeast, find it to be an alleviating escape from the rat race back home.  Foreigners living in the Central Valley are usually not “beach goers,” but instead have a higher interest in natural surroundings and outdoor activities.

PACIFIC COAST

Climate: Due to its lower elevation, areas surrounding the ocean tend to be hotter and more humid.  Temperatures tend to range from 80 to 95 degrees Fahrenheit during the day, cooling off into the mid 70s at night.  Due to the humidity, it may also feel warmer.  Air conditioning is a must.

Costs: Prices of homes and condos we show tend to range from $250,000 to $1,000,000.  Lot prices will usually cost over $100 per square meter (compared to $10 to $50 in the Central Valley).  The cost per square foot to build is also substantially higher due to the high demand for materials from the recent construction boom.   For quality, home construction costs generally are between $60 and $100 per square foot. 

Infrastructure: Beach areas are well known for their poor roads; however they have been improving in recent years.  Lower water supply and more frequent electricity cuts occur than in the Central Valley.  It is extremely important to be assured of access to such services before purchasing property.  Our goal is to introduce you to developers or real estate agents with a track record of establishing residences without any of these major issues.

Location: All properties we show are within minutes to the beach.  There is also a larger array of finer restaurants with dishes from many parts of the world.  Things to do include boating, fishing, golfing, and walking along some of the world’s most prestigious white sand beaches.

Type of Client: Clients for the Pacific Coast tour will spend substantially more to live at the beach and to purchase property.  The higher prices are due to the enormous demand.  The supply of quality developments with breath taking views and a good location is relatively small for the thousands of people who are trying to get a piece of this paradise.  Almost all activities are predicated around the beach, and therefore, we wouldn’t recommend this tour to anyone who is not a beach lover.  If you are looking to live less expensively, this tour probably isn’t for you, rather, the Central Valley tour would likely be more appropriate.

Today investors from all across the globe are flocking to Costa Rica to invest in the real estate market. With the giant payoffs available, it is easy to see why so many investors are choosing this country to invest their money in.

With giant payoffs available for investors, the time is definitely right to invest in Costa Rican real estate. Although North American real estate seems to be shaky these days, investors can still find excellent returns on investments if they look to Costa Rica. Property prices are affordable, and investors from across the globe are thrilled with the bargain prices and amazing profits available in the real estate market in Costa Rica today.

In the past five years, the real estate market in Costa Rica has taken off and is now in the middle of a boom. With the excellent prices that are affordable and the investment incentives being offered to foreign investors by the Costa Rican government, this is a paradise to investors looking for a new place to invest their cash.

All throughout Costa Rica there are many excellent investment opportunities, and one excellent company that caters to high end investors interested in this market is Gap Investors. Gap Investors Ltda is a Costa Rican company specializing in brokering syndicated loans, which are loans offered by a group of lenders, to provide funds for a borrower for real estate development in Costa Rica.

There are many reasons that Costa Rica has become such a prime spot for real estate investors. Of course first of all is the low price of real estate, which even though it is rising, is still cheaper than places such as the United Kingdom and the United States. The cost of living in Costa Rica also is a drawing point, with the average cost of fine living costing between $900-1200 a month. Property taxes are quite low as well and many times investors are able to cash in on predevelopment prices, both of which make investing in Costa Rica even more attractive to real estate investors.

To learn more about investing in Costa Rica real estate, visit www.gapinvestors.com

Am I legally allowed to own property in Costa Rica?

Costa Rica is a great place to invest because Costa Rica acknowledges investors from other countries and grants them the same rights of owning land as Ticos (Costa Ricans). Most the property you encounter will be fully-titled, meaning that the land deed will be signed over to you in full allowing you to develop, sell, rent, trade or will. The only exception to this law is with “Possession” and “Concession” land. See “Concession and Possession land” below.

I hear about using a corporation to purchase property… what are the advantages of that?

Corporations, like in any country, are designed to protect the consumer. A corporation or in Costa Rica, an S.A. is a legal entity which stands legally on its own reconnaissance. A corporation is legally recognized by the government of Costa Rica. A corporation usually contains positions similar to a fully functioning company allowing several members to partake in a single corporation, i.e. President, Vice President, Chairman, Board of Directors, etc. In essence, most corporations are divided into “Shares”. The Articles of Incorporation or Bylaws of the Corporation will declare the shareholders and to what amount of shares are entitled to each party member. For instance, one corporation could contain countless numbers of shares but the three Corporation representatives (President, Vice President, Chairman for example) may agree in the Bylaws to the Corporation being divided as 50% for the President, 25% for the Vice President and, of course, the remaining 25% for the Chairman. Any goods, deeds, cars, phones, properties, homes, etc that are in that Corporation are split equally by the divisions of 50%, 25% and 25%. It is possible to have only one person in a corporation just as it is easy to have 15 members in a corporation. There are certain other advantages of using a Corporation in Costa Rica. Most will use a corporation when transferring the ownership of one property to another. In Costa Rica, there exists a fee for sending a deed to a property to the public registry for transfer but there isn’t a fee for transferring the shares of one corporation, containing that property, to another. In this event, most investors save themselves the cost of transfer which, depending on the amount of property, can cost hundreds of dollars. The transferring of shares from one corporation to another is completely legal, recognized, practiced and preferred in Costa Rica. Too, you may find it difficult to open a bank account in Costa Rica or obtaining a telephone because each is very difficult without your residency card. However, a corporation has no problem obtaining a cell phone or bank account and this is how most bank accounts and cell phones are acquired. It is true that in some banks in Costa Rica they require your corporation to be at least 6 months old to open a new account. Most Attorneys have numerous corporations formed and ready to sell. Most corporations are under $1000 (U.S.) If you’re interested in a corporation at least 6 months old these may cost you a little more.

Do I need an Attorney in Costa Rica or can I use my attorney from my home country?

Some would say that you can never have enough attorneys. However, we firmly believe that having local representation is a must! The legal proceedings in Costa Rica are definitely unique to Costa Rica. To have a local Attorney will be an invaluable asset. Not to mention the language issue. Even if you speak Spanish fluently, legal Spanish is a whole new ball game. Most contracts here are done in Spanish but translated equivalents can be provided by your attorney. Don’t be afraid to shop around for an attorney. Ask for references. If you’re using your attorney solely for Real Estate, then make sure the attorney specializes in Real Estate transactions or at least has some experience. Most of all be sure that you can communicate with the attorney and that you feel comfortable using his/her services.

What is a Hectare? How do you convert that to feet and acres?

A Hectare is a unit of measure used in Costa Rica. Simply, a hectare is approximately 2.5 Acres. If you’d really like to break it down, a Hectare is 10,000 m2. There are approximately 11 ft2 in 1 m2…so, there is approximately 110,000ft2 in a Hectare.

Are there any limitations or regulations for building?

For the most part, each region and, potentially, each piece of property may have its own stipulations and regulations for building. Most of these stipulations govern the construction of buildings over 3 stories tall. 80% of people investing in Costa Rica tend to settle with a two-story home or its equivalent, but to those looking to build Condominium or neighborhood and gated community projects; you’d want to discuss any possible limitations with your attorney and your architect. Also, you will find specific restrictions with Right of Possession and Concession land (Land within the first 200 meters of shoreline).

If I purchase property in Costa Rica do I own it forever?

You do own the property forever if the property is “Titled” property. Most the property you encounter will be fully-titled, meaning that the land deed will be signed over to you in full allowing you to develop, sell, rent, trade or will the property to your next generation.

What are the laws that pertain to the purchasing of land on the coasts? Are there any other rules and regulations I should know about?

The laws pertaining to the coastal shores of Costa Rica are very specific and convoluted. It is our advice that you fully understand all aspects of coastal land before purchasing. With a good attorney, most of the buying process can be handled. For specific information, please refer to our “Buying Property in Costa Rica” article.

What are Squatters and how do I make sure there are none on my land?

Squatters are people who find a nice little place for a farmstead or home for themselves on land that they do not own. The problem arises when their presence is found and they have certain legal rights to obtain that piece of land due to the improvements made on the land (i.e. garden, home, small farm, livestock, coral). Squatters are legally recognized by the Costa Rican government because it is a law that dates back to the times when common stakes for land were common and routine. The theory states that a person can really only make use of so much land. So, if another family moved to the opposite end of a 500 acre farm, that family had rights to their home and livelihood. In present times do squatters exist? Yes, they certainly do but present laws and awareness have made it very difficult for squatters to possess land. By law, a squatter must occupy land under the pretenses that no one else owns the land. A sure way to settle this matter is to put up a fence around the perimeter of your property. It’s difficult to believe that the property belongs to no one when the potential squatters have to cross a fence. The law also states that the squatters must be notified of their eviction within 90 days. Most investors find a friendly neighbor, caretaker or renter to look after the property if the property will be left unattended for long periods of time. There are companies such as Stewart Title who offer Squatter’s Insurance to protect against this type of situation. All in all, it is good to know that the property doesn’t contain squatters but, too, it is a fairly simple thing to keep your property clear of Squatters.

Why is Costa Rica a good place to invest or live?

There are several opinions on what makes Costa Rica a great place to visit, invest and live. Yours will be the best one. Many will answer it’s the laid back lifestyle and pace of things. Others will tell you that it’s because Real Estate in Costa Rica is “Booming”. Some will tell you that because of low taxes it is appealing. The absolute natural beauty of the country is an obvious answer. The best advice is to form your own opinion. Spend some time here and find out what makes Costa Rica such a wonderful place for you.

How difficult is it to obtain residency or citizenship?

The Costa Rican government has focused their immigration department to aid those in retirement. If an individual with a fixed income would like residency in Costa Rica, the forms and procedures are pretty straight forward. With the assistance of an attorney, you can process this paperwork with ease. If you are not on a fixed income or are attempting to work in Costa Rica then the government makes things very difficult for you. There are companies who specialize in Immigration law in Costa Rica and they each have their strengths. Research them well. It is common practice for foreigners in Costa Rica to exit the country to either Panama or Nicaragua before the expiration of their 90 day Visa. By Costa Rican law, if you exit the country for at least three days you may be allowed to re-enter the country and will have successfully renewed your 90 day Visa.

Do you suggest I use the services of an Escrow company?

Although it is not mandatory to use and Escrow company for purchasing your property, it is highly recommended. The nominal fee for these services can’t be bickered over considering the overall protection that you receive. And, most Escrow companies have conducted thousands and thousands of real estate transactions. They are true professionals. In Costa Rica, we suggest Stewart Title.

How does Title insurance work?

Title insurance is offered to ensure that the property in question has no liens or financial encumbrances. In Costa Rica when you purchase a property you inherit all aspects of that property. For example, if a property was ever used for a financial loan in the past and the mortgage has yet to be paid, you, as the new proprietor of that land, would inherit that mortgage. Good attorneys will automatically research a title for you to ensure the property is clear and available to sell. If not, feel comfort that escrow companies, such as Stewart Title, can do the background check for you. To most, this step of the negotiation seems basic but there have been instances when a property wasn’t properly researched and issues have been inherited. What happens if you find that the property you are interested in DOES contain financial liens? Your attorney should include a clause in the contract that the sum owed be paid from the monies given as the selling price for the property. Again, a good attorney will instruct you on all of these matters.

Do most properties come with electricity and water?

Most properties with homes will have electricity and water. However, most lots or small farms that are purchased do not have electricity OR water. Nearly every property you come upon will need to have a well dug somewhere on the property. Some larger farms can use one well to feed many lots… it all depends on the layout of the property. There are certain seasons to dig for a well and not dig for a well. You want to make sure you hit your “True” water source. Any well digging professional can easily advise you on finding water. As for electricity, you need to provide your own wire (and quite often, poles) to your property. Having a power source near a property can save a lot of time and money.

How do you obtain electricity and water and how much does it usually cost?

If you’re providing power down a public road, the government requires that you place a pole every 50 meters (160 ft)… you can guesstimate that cost to be about $1000 per pole. It’s really important to pay special attention to local power points when looking for property… you can really save yourself a bundle. A well’s cost can range anywhere from $1,500 to $10,000, depending on how deep the well needs to be to reach water.

Why are there so many realtors in Costa Rica? Is there any type of licensing?

If you’ve traveled through Costa Rica then you’ve probably noticed that every waitress, desk clerk, hotel maintenance worker and taxi driver are trying to sell you property. It is true that in Costa Rica there are no licensing requirements whatsoever. This does make it very difficult as a customer interested in Real Estate!! So, who do you trust? It’s easy to go for the names you know and trust. Nearly every large Real Estate Company has some sort of representation in nearly every city of Costa Rica. That’s not to say that the small, independent companies don’t have their fair share of properties, either. The reality is you really need to meet a person that you trust. Stick with someone you feel comfortable with and make sure it sounds like they know what they’re talking about. There are definitely horror stories on both ends. The more researched you are on realty in Costa Rica the better off you will be.

Are there advantages to owning property on a Public Road? Any disadvantages?

We should really make a calendar of “Public Roads of Costa Rica” because many of them aren’t roads at all. In fact, many public roads dead end into mountains and rivers and are just waiting for some one to revive them and bring them back to use. What is considered a “road” here doesn’t necessarily have to be. But, according to Costa Rican law, if you have property touching a public road you have the advantage of splitting up your land into as small a lots as you’d like. In accordance with this law, Condominiums are ONLY allowed to be built on a public road. Don’t plan to buy a mountain, create a private access and build condos. It’s against the law. If the bottom of your mountain property touches a public road then you can put condos wherever you’d like. Condominium projects are excellent developments and have a huge return. Therefore, land on a public road tends to be very sought after. The only disadvantage of a public road would be the fact that you can’t build within 5 meters (16ft) of the public road and you may encounter a large amount of traffic because it is a public road. I suppose that could be an advantage, too, depending on your situation.

If I own a lot, can I divide it up to sell again?

Yes! You absolutely can! In fact, it is a very common practice. There are a couple of stipulations, though. If the land that you own doesn’t connect to a public road then the smallest you can divide your land is in 5000m2 lots (approximately 1 acre). If your property is connected to a public road you can divide your property in to lots of any size. When planning a large development, make sure to keep in mind things like roads, drainage for the roads, water supply and power. Proper planning can eventually save you time and money!

Are there any Capital Gains taxes in Costa Rica?

Currently there are no capital gains taxes in Costa Rica. Capital Gains taxes are taxes on monies earned above and beyond the buying price of your land… i.e. profit. When you purchase a piece of land for (example) $100,000 and you sell that property two months later for $150,000, you will not be taxed separately as Capital Gains. However, there are several tax laws and regulations that you should understand both in Costa Rica and your home country.

Are there regulations against tearing down trees and destroying rainforests, rivers and wildlife?

Costa Rica realizes that the heart and soul of their tourist industry relies on the natural beauty and wonder of Costa Rica. The wildlife in this country is so special and so diverse that it is mind blowing. To preserve this beauty for generations to come, the government of Costa Rica has implemented many laws to protect the habitat and the wildlife. Here are some examples of those laws. If there is any type of running water on the property; know that you cannot build within 15 meters from either side. Too, there are certain trees that exist in Costa Rica that are protected, such as the Pochete tree and the Guanacaste tree. These trees are very important to the ecology of Costa Rica and cannot be molested or destroyed for any reason. Mostly, they are loved habitat for the monkeys, birds, lizards and other animals that inhabit the country.

Do I need to speak Spanish to buy land in Costa Rica?

Of course you don’t have to speak Spanish to purchase land in Costa Rica. A difference in language can be a pretty intimidating thing, especially when you’re conducting business of this magnitude. The important thing is to be surrounded by those you trust who are bi-lingual to assist you. Easily found are attorneys. Most attorneys are bi-lingual and can really assist you through the processes. A bi-lingual realtor will also be a large help. All in all you’ll find that now a large number of Ticos are picking up the English language with some incredible proficiency. Hopefully, you’ll find that one of the incredible parts about living in Costa Rica is learning and using another language! It’s a challenge but it should be a fun one!

Is there financing for those investing from other countries?

Most of the transactions that occur in Costa Rica are cash transactions. And by “cash”, we’re referring to wire transfers. Most money is wired into an escrow account of some sort. Once the money is in the country, then the escrow company will transfer the funds to their appropriate destinations. If a foreign investor is looking to have financing, it is provided by Stewart Title of Costa Rica. I believe the interest rate is approximately 9%. You would need to contact Stewart Title and ask for more information on their financing options.

Costa Rica now boasts a thriving real estate market today and investors are taking this opportunity to invest and find quick returns on real estate in a time when the U.S. economy is failing. The economic problems in the United States seem to show little effect on the market in Costa Rica, and the country continues to see a real estate and economic boom that has astounded many.

Costa Rica has recent shown itself to be the investors’ paradise and a great place for those wanting to invest in their own piece of paradise. Regardless of the falling economy in the United States, the real estate market in Costa Rica is flourishing; in fact, such a real estate boom has not been seen abroad in some time. Not only is the market thriving, but as Costa Rica continues to be an extremely popular tourist destination, more and more people are considering investments in this Central American country. Even though the prices are on the rise, investors and retirees alike now have the chance to cash in on this gold mine of economic prosperity.

The real estate market, and even the entire U.S. economy is struggling right now, leading to serious real estate investors looking for opportunities for investing abroad, since the U.S. real estate market appears to be so shaky. While some may think that the serious decline in the United States would affect the real estate boom in Costa Rica, no such thing has occurred, with prices continuing to soar and the market continuing to rise on in this small country unaffected. For those looking for an investment paradise to sink their money in abroad, Costa Rica has truly become their investment paradise, with prices continuing to climb, bringing investors excellent profits.

Of course not only does Costa Rica offer great gain to investors, but a tropical paradise with reasonable prices to vacationers and retirees. In fact, various retirees from countries around the world are choosing this country as a place for retirement as they see that the investment is well worth it and better then opportunities offered in their own countries.

To learn more about the thriving Costa Rica real estate, investment opportunities, and more, visit www.gapinvestors.com

Costa Rica has recently caught many eyes as a hot tourist spot but also as a great place to purchase real estate. With so much public attention and a vast number of tourists visiting Costa Rica every year, the country offers a great investment environment for real estate. Below are seven great reasons to invest in Costa Rica Real Estate.

1. Stable Government:

Costa Rica is a democratic republic with three branches of government and has enjoyed one of the most democratic governments in Latin America. As of 1948, Costa Rica abolished it’s army and since 1949 has enjoyed its peaceful democratic existence, often being referred to as the “Switzerland of Central America”. The government is one of the people and one that very much sees the value of tourism. Over the past few years the government has incentivized foreigners to come and retire in Costa Rica. Stable government ensures that the money you put into your property is safe. Political turmoil will never be a reason for illiquidity in your Costa Rican investment and also provides reason why Costa Rica is a great place to buy. There are many other locations around the world that investors think of to go and buy, but stability is very important and should play a huge factor in anyone’s investment decisions.

2. Stable Currency:

Investors want to know if their money is safe in Costa Rica
Stability of the government has helped to maintain a solid and stable currency.
The Costa Rican colon, also denoted as CRC is the official currency of Costa Rica. (Currently $1 USD = 516.245 CRC). Colones come in notes of 1,000 up to 10,000.
US Dollars are also accepted as legal tender in Costa Rica. Both are widely accepted and exchanged throughout the country with approximately 90% of the places of business in the country accepting the US Dollar.

3. Tax Incentives:

This seems to be the one everyone loves! As mentioned earlier the Costa Rican government has created one of the most attractive investment environments in Latin America.

Capital Gains Tax= 0% in Costa Rica. The capital gains taxes are exempt for a business if the money is derived from an activity that is not the normal course of business for the company (This exemption is established through the use of SA, or Sociedad Anonima). Property Taxes in Costa Rica = .25%. This rate is significantly lower than most places in the world. As a result people are buying in Costa Rica which increases demand and ultimately increases value. There are not many places where you can buy a piece of property that has incredible appreciation potential with such low holding costs.

Corporate Tax: The Sociedad Anonima (S.A.)
These forms of corporate structures allow owners of property to keep their names away from the corporations they own (literally translates as “anonymous society”). Ninety percent of all property in Costa Rica is purchased through these S.A.’s. When a property owner purchases property through these S.A.’s they use a shareholder’s loan to fund the purchase. Rental income generated is taken out of the corporation as dividend income and deducted against the initial investment and thus no taxes are paid.

Income Tax: Only income generated in Costa Rica is subject to income tax
Costa Rica offers large amounts of income to be deductible and free from any tax

**all tax information should be verified by independent tax professionals **

4. Proximity to Major U.S. Cities:

When investigating vacation destinations and environments for second homes or investment property, it is important to factor travel times to the destination. Costa Rica’s proximity to major US Cities gives even more reason why investors are buying property in Costa Rica. Great tourist destinations need to be close and easily accessible.

Major US Carriers offer direct flights to and from Costa Rica from the following international airports (3-5 hour flight times)
-Miami
-Houston
-Atlanta
-Dallas
-Chicago
-New York
-Los Angeles
-Toronto

5. Healthy Local Economy:

For baby boomers and entrepreneurs, spiraling costs of living abroad, oppressive taxes and government regulation in the US have placed Costa Rica high atop the list of places to retire without sacrificing standard of living. This is what savvy investors are looking for!

6. No Ownership Restrictions:

Foreign Ownership is promoted in the country of Costa Rica. In many foreign countries fee simple title is only available to locals and without titled ownership your investments can be at great risk. All foreigners enjoy the same rights as Costa Ricans when it comes to real estate ownership. Titled, fee simple properties are all registered in the National Registry of Costa Rica properly protecting your ownership rights.

7. Excellent Lending market:

Prior to 2006, there was no market for lending in Costa Rica and investors bought and sold property on a cash basis. With the recent surge by worldwide and US lenders as well as the strengthening of the Costa Rican market, financing at reasonable rates is now an available option. This addition to the real estate industry has made it possible for many more investors to buy property in Costa Rica and will only increase the demand over time.

As you can see there are many great reasons to invest in Costa Rica. Many people believe that it is too late to make any money. This is not the case! The time is now to invest in this beautiful country and incredible vacation spot.

Costa rica real estate has been a hot market for quite some time. It’s thriving tourist industry brings millions of people here every year from all over the globe. As a result, thousands of people foreignors are taking advantage of Costa Rica’s foreign friendly investment policies. Well the bubble is about to burst with the slow of the US Economy and Real Estate Prices are finally stabilizing. However, there are still many areas that are just too expensive for most of the middle class. There’s of course a large amount of the Baby Boomers that want to retire in quiet safe communities and enjoy the wonders of nature that Costa Rica offers. Many baby boomers are quickly discouraged about making Costa Rica their final retirement location when the find out how much “overdeveloping” is happening in these areas. There are also many people, foreign and local, looking to make a quick few hundred thousand dollars off of naive foreign investors. Many developers have no experience and can’t even speak the language let alone understand the laws of the country. Yet still many boomer’s purchase for the sake of investment. So, will Costa Rica be the next big speculation market? Or will more people follow the example of a long term developer here in Costa Rica. One Developer, Grand View Estates Costa Rica, has put all it’s effort to keep low prices while still offering the amenities that other developers do not offer. William Ogen is in charge of the 640 acre development where less than 40% will actually be developed leaving more than 340 acres of untouched land filled with toucans, monkeys, sloths, rivers and waterfalls for the entire community to enjoy. This development is also adjacent to an adventure park and has areas on one end of the development to train and stable horses. Grand View Estates is a unique land development in many ways. One of my favorites are the large lot sizes (1-5 acres) where you can only build on 15% of the lot making it impossible for the community to become over crowded. The other unique bonus that Grand View Estates offers is the fact that the security, roads, water, irrigation, electricity, gardening services etc. is all in place. There’s even a community center that you can take a dip with the owner and employees while picking out your ideal property……Yes, there are many places that have this same thing…….with lot prices starting at ridiculous prices and small lots. These lots range from $55,000.00 to $160,000.00! Their idea was very simple……..start out slow and get your local permits first. Then start construction and spend as little money as possible on advertising. One other tricks Mr. Ogen has managed to accomplish is the fact that he single handedly created this wonderful community which I believe is and will continue to be the foundation of his success. Grand View Estates really does have what nobody else can offer at such affordable prices.

Guanacaste, the jungle-covered coastline of northwest Costa Rica, is attracting some heavy hitters. AOL founder Steve Case is developing a resort in the province, and there are projects in the works anchored by Ritz Carlton and JW Marriott hotels.

Last year Mel Gibson reportedly paid $25.8 million (€17.6 million) for a 163-hectare (402 acre) ranch on the coast, adding a little extra celebrity luster.

The latest residential project to come online in Guanacaste is the Hyatt Regency Azulera Resort & Spa, an eco-resort with Michael Graves-designed condo units and a Greg Norman golf course. The first phase of 64 units went on sale last month, priced between $780,000 and $3.9 million (€537,400 to €2.7 million).

Another 800 to 1000 residential units are planned for the property, according to Anil Kothari, founder of Global Financial Group, the New Jersey-based developer. Condos ranging from 960- to 5,000-square-feet (89 to 465 square meters), will include private terraces with plunge pools and ocean views.

Overlooking Brasilito Bay on the Pacific Coast, the $300 million project will eventually cover 557 acres (225 hectares), including a spa and retail space, in addition to the golf course.

Posted by Kevin Brass in General, News

Everywhere you turn, you bump into someone who has either been to Costa Rica or at the least, knows someone who has bought property there.

All of the developments and real estate salesmen throughout Costa Rica will tell you that “CNBC says that Costa Rica is the hottest real estate market in the world today.”

Is land in Costa Rica a good thing, and particularly, “is property in the literally 100s of developments throughout Costa Rica as good as everyone says?”

This is a short primer in what to watch out for when shopping for land or property in one of the many developments being sold throughout the country. There are a huge number of developments, some good, some great, and, unfortunately, a great many that are not so great. In fact, the representations made by some of them border on out and out falsehoods.

So how do you tell the good from the bad?

A potential buyer, should INSIST on answers to these questions:

1. If you are buying a predevelopment or preconstruction property, what guarantee do you have that the infrastructure will be completed? Do you really want just a pile of dirt with a view?

2. Are you certain that all of the amenities you WANT and NEED are available? Don’t assume anything in Costa Rica. This ain’t Kansas, you know. The Internet and the satellite TVs and even good medical care or a good mechanic are not things that exist here with any assurance. Make a checklist for yourself.

3. Are you positive that your lot can, in fact, come with water, electric and telephone? There are more than a handful of communities in Costa Rica where water shortages are preventing building permits from being issued. Talk to the municipality and a good attorney and insist upon proof of these simple questions. Utilities and roads in Costa Rica are not items to be taken for granted.

And a salesman’s assurance of a new highway or road to the property is definitely not a guarantee.

4. If your salesman tells you that you can subdivide the property and resell it for a quick profit, don’t just take his word for it. Tell him you want proof. Many municipalities have minimum size lots and sometimes the promise of quick profits can cloud sound judgment. Oh, how are you going to arrange for utilities to your new subdivided lots? Do you think realistically that you can arrange these items with a phone call? Think again.

5. If you are one of the many potential buyers who is thinking about buying a property sight unseen, THINK TWICE. You wouldn’t do it in your own hometown. Why would you do it in a foreign country?

6. Don’t be dazzled by a salesman’s promise of quick profits, a new marina or a hospital or highway “right around the corner.” Time moves slowly in Costa Rica, and installing the infrastructure you are counting on could realistically (and probably will) drag on for years.

7. If you have responded to an e-mail, TV ad, or Google ad, you will get a telephone call extolling the virtues and profitability of the property in question. Ask the salesman where he is calling from. The odds are very high that he is calling from Florida and that he has not even seen the property. Go ahead, ask him. And ask yourself what kind of credibility this person could possibly have if he has not even seen the property or doesn’t even live in Costa Rica.

8. Ask the person selling the property for his cédula or basically his license to sell here in Costa Rica. This is important.

You may also be asking yourself “if there is something wrong with this property I should have already seen something negative about it, right?”

Actually, this is one side of Costa Rica that almost no foreigner knows about. Any negatives or “badmouthing“ of specific properties can result in lawsuits. Slander and libel in Costa Rica carry huge penalties.

Costa Rica IS a fantastic place to live or to visit. And it can be a great place to own property. But it can also be a nightmare for many who don’t do their homework. Make sure you do yours.

Story By A.M. Costa Rica