January 27, 2010 – In this next to last installment on how to buy property in Costa Rica at half price, we go into step 10 thru 14. We will discuss locations as well as taking the initiative to find the ideal property.
Do not sit and wait for sellers to walk in our door. A lot of them do but most of them want ridiculous prices. We work at it. You will have to too. But it is worth it.
STEP TEN: there are a huge number of fantastic locations out there that will satisfy you. Sure, you remember the vacation you had in Playa Flamingo and you loved the area… but hey, that area is REALLY expensive. Take a look at alternatives. People are always surprised that there are so many choices.
It is all a matter of supply and demand. Look around… you will be pleasantly surprised. The more popular areas of Tamarindo, Samara, Playa Portrero, and Nosara are in demand because people have great memories of fantastic vacations there. Prices are sky high in most of these areas.
Take a look at alternatives… you will be shocked. And don‟t shut out alternatives to the beach. Just because you “think” that you want to live on the beach or nearby… keep in mind that over half of the people who buy there end up moving in five years.
The Guanacaste area of northern Costa Rica has always been in huge demand… thus pricing has risen disproportionately in comparison with many other areas of the country… sometimes by a factor of 5-6 to one.
STEP ELEVEN: Avoid trendy areas… see step ten. You will also read on the net about areas such as Santa Ana, Escazu, Ciudad Colon and other areas where gringos enclaves are common. But sure that you see these areas first… crime is much higher because each of these areas has a high concentration of wealth and obviously prices are higher. These areas are nice and many people prefer to live there…but there are a huge number of other alternatives.
STEP TWELVE: Condos… many gringos prefer condos simply because of the convenience. But because of the high start up costs, you really don‟t think that these guys are going to give them away do you? It will REALLY pay off for you NOT to buy new here. Buy from someone who absolutely has to sell. You will save big. And check to see what kind of inventory is available in the area… it is all about supply and demand. Right now, there are huge amounts of unsold condo inventory… and we all know what that means.
STEP THIRTEEN: remember our earlier admonition about commissions? Well, sometimes being careful does NOT pay off. If you have an attorney that you don‟t know, he may NOT be taking care of you by telling you NOT to be a property that you found. WHY? Simply because he wants to steer you into one of his own properties where he can collect a hefty commission. Happens a lot more times than it should.
STEP FOURTEEN: sometimes it pays to do your own digging and investigation. A good example here: approximately 90% plus of all beach properties are without title or concession (which is a lease by the municipality). Most gringos wouldn‟t touch one of these properties and yet gringos who live in Costa Rica or Ticos actually prefer them. Why? Well, preconcession properties are actually almost totally risk free.
If you talk to an attorney about this matter, ask him or her what the risks really are to buying property on the beach which is preconcession.
Odds are that he won’t even know what it is. (actually on a par with concession properties) except that concession properties pay about 2-5 times as much tax. Can you protect yourselves? Yes, if you know how. Ask. The other upside to this type of property is that when they finally receive their concession property values soar.
This is it for this week’s installment on how to buy property in Costa Rica at half price. Next week will be the final installment of this useful and must know series on buying real estate in Costa Rica.
Randy and Rhonda Berg have been living in Costa Rica for over 7 years and have a wealth of knowledge when it comes to buying a home in Costa Rica. You can contact them at: This e-mail address is being protected from spambots. You need JavaScript enabled to view it