Do we think these types of returns will continue?
Frankly, no. But keep in mind that I and Rhonda tend
to be pretty conservative, Midwest types that don’t
like to take large risks with our funds. We feel
that the subprime crisis in the States is already
having an effect here …albeit in a minor way. Many
developers are affected by Stateside influences and monetary events and thus being squeezed financially.
Guanacaste is already affected…as are certain areas
along the pacific coast. There is a 2500 condominium
inventory in the Jaco area alone. We are seeing
buyers that wanted to buy but are forced to wait for their homes to sell…and given the state of the housing situation in most areas of the States…that is a big unknown.
Now…onto the main topic…
Many of you know that we are setting up “sales people”
( defined loosely) to help us market Costa Rican real
estate in the States and in Canada. These people
have all responded positively in that they “know” that there is a huge market and they are willing to help us
( for pay of course ! ) tap into it.
In the past two weeks we have had potential sales people from Florida, Alabama, California, Texas and
New York visit us. They have seen some of our
properties, our constructions, and our new
developments. And here , in summary, are their
findings:
1. The baby boomer phenomena really has not even
started. We are still a few years away from a true
increase in numbers of visitors and buyers…and the potential numbers are downright scary.
2. Prices of vacation homes are still dirt cheap here by comparison to almost anywhere in the States or in
Canada. People may not be as apt to buy a condo in
Jaco…but that is more a function of wanting a
different environment rather than price. And this
market is still huge and has just started to be
noticed.
| 3. Buyers of vacation or “part time” homes , casitas, or cabinas are becoming more selective and more aware of surroundings…they are becoming less likely to buy in a condominium development which shelters them from the “real world” and more likely to want to get involved in activities and local surroundings.
Younger people tend to be more active, more interested in flora and fauna as those are precisely the reasons
which drew them to Costa Rica in the first place. |
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4. Many potential buyers are still nervous about living and building for themselves in a foreign country…the point here being that a turnkey situation is exactly what they are seeking, e.g. , Ventanas del Pacifico , Pueblo Escondido ( our new beach community
) or Las Brisas del Cielo.
5. Many buyers need to be shown specific items for purchase; I.e., people are not as apt these days to buy real estate sight unseen…which is obviously a good thing.
6. Obviously the thought of a foreign country scares many people…particularly when it comes to risking
money. We like to think that we can allay those
fears and put a great many misgivings to rest. And
we have seen a great many people who have moved here and gone out on their own…make many mistakes which have cost them individually tens of thousand of
dollars. Our experience can be passed on so that
these mistakes can be avoided. Believe me, nothing
is better for learning than being hit in your own pocket book!
Consensus: the “boomer” influx has not even begun and select properties with good locations will outperform almost anything in the States for the next several years.
Lesson: don’t put off buying any longer …if at all
possible. Investment, vacation, or retirement.
AND…as always…do your homework, pick your areas of investment carefully as we are seeing shifts in areas ( our attorney, who is as “connected” and savvy as they come…believes that San Carlos represents the next “wave”).
Normally this is a quiet time of year…rainy season and the start of the summer holidays in the States and
Canada. However, activities here have bordered on
almost manic. Several properties in Grecia and surrounding communities have been sold and we are stepping up our scouting activities locally. |
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We have nearly completed our preparation for Las Brisas del Cielo, our community in the mountains above
Grecia. The new website, http://www.ldufrane.com/randy/preview/ , is not quite ready but here is a link to
the site that is 95% complete. Initial response to
the property has been outstanding and completed sales
have already begun. If you have considered living in
Grecia, especially in the mountains overlooking the Central Valley, call or email for more details quickly. |
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We are reorganizing our operation in San
Mateo…Ventanas del Pacifico. We have bought out our
partner and have made the decision to sell individual lot sand only six smaller properties with casitas.
The properties
will vary between 2000 and 10,000 sq. meters . All
utilities will be provided to the properties and we will assist with providing builders and architectural services and all other construction needs if desired.
Our assistance alone will probably save each individual a minimum of 25-50% of construction costs alone.
The first six properties will be on sale at a large discount of nearly 20%…and remember, these properties have some of the most awesome ocean views available
anywhere! …oh, and don’t forget about the teak that
the property contains…because of the reorganization , each buyer will actually receive much more teak and
the revenue it will generate…than before. |
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| Ask us
for details. http://www.caughtinthewebb.com/cr/ |
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The first six properties are offered at a discount and the next 12-15 or so will be offered at higher prices, but with financing.The casitas, as originally offered,
will be on sale for only $99,999. Selling will begin in earnest in approximately 45 days.
Most of you know that Playa Azul ( our “fixer
upper”area ) is nearly sold out. One last lot has
been “discovered”…about 75 yards from the pacific waters…it has one of the best locations in the area, contains basically a shack on the property with all
necessary services. This simply means that a new
home can be constructed here with no problems while
the new zoning laws go into effect. The lot is
approximately a quarter of an acre and surrounded by
newer homes. Priced at $33,000 ( many of you also
know that we are beginning a new community in this area…approximately 25 homes to be built about 300 meters from the ocean …it is in the early phases but we believe that construction and presales will begin in less than 90 days …affordable …and for those who want to be part of a beach community and experience the real Costa Rica the way Ticos have been experiencing it for the past 50 years…) |
We have discovered two additional properties locally which have huge potential for investors…one is a property of nearly three manzanas or almost five acres
of stunning views in Calle Lilles in Poas. The
property is flat, almost entirely buildable and is perfect for a small development or for one or two
homes ( or more, of course ). The property is
private and truly one of a kind. Priced under
$90,000 which is about 25% undervalued ( if you can even find such a comparable land!… and property in this area sells VERY quickly.
The other is a property in Grecia of approximately 2 ½ manzanas , or about 4 ½ acres…huge view, heavily treed, and contoured absolutely perfectly to suit construction of as many of 4-5 homes and still retain
totally privacy. One of a kind. Priced at around
$110,000.
Those of you who are interested in these properties either for investment or outright personal
purchase….please call us for details. We will be
happy to furnish cash flow projections and cost estimates of project details. These two properties are absolutely superb for either building and reselling, keeping for personal investment or residence…we also will discuss joint venture proposals for those more ambitious and wanting some degree of
partnership.
Several other properties in the local area have been uncovered recently including a small home with a river
on the property …less than $20,000 and a great ,
smaller piece of property in Atenas with privacy , great views….and a cost of less than $20,000
( unheard of in that area! ).
For beach lovers: we also have one additional property less than 100 meters from the Pacific waters in our "fixer upper" area...about 800 sq. meters of land...house with all services although it needs extensive repair...about as close to the beach as you can get without violating the maritime laws...only $30,000.
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Investors also note: we will entertain a partnership with someone interested in working with us on building a home for resale on our Las Brisas del Cielo
property. Plans are tentatively drawn up and profit
projections are excellent. Ask for details.
Personal notes: our house is within a month and a half of being complete…see the front page of our
website for details ….
Rhonda and I will be visiting Minnesota for ten days beginning July 13...the youngest and last is getting
married! Is her fiance acceptable to the family?
Well, you know how fathers are…no one is good enough.
But of course, we will give him a lot of rope…
Our dog, one of our new chocolate Labradors, got ahold of some poisonous animal…whether it be snake or toad or other, we don’t know and Snicker died by the time
we could get him to the veterinarian. His sister ,
Hershey , is bearing up well but obviously misses her brother. Is this type of thing common? No, not
according to neighbors or the veterinarian.
Countrywide, children currently have two weeks off
from school . So, wherever you go, you see mothers
, fathers, and grandparents spending time with their children…kind of reminds us again of why we came here.
Families come first here. Nothing is more
important.
Cambio, one of our workers from Nicaragua, had to rush his daughter to the hospital in San Jose as she had developed some form of tumor or cyst which was just discovered . Luckily , medical care here is free for everyone, so she will receive the best care possible
here. Prayers are welcome. His daughter and wife
accompanied him on his last trip back to Costa Rica from Managua and they have already found work here.
One thing that is little known by outsiders is that Nicaraguans or “Nicas” are subtly discriminated against by locals but still admitted to be “honest and hard working” and actually preferable as workers to many local Ticos.
To those of you who also are just beginning to explore the possibilities in Costa Rica…don’t be afraid to ask
questions. And if you do not get a response …keep
trying. You don’t get answers unless you ask questions.
And remember…if you can, try to accelerate your buying here if you are seriously interested in Costa Rica…in 5-10 years prices may be totally out of sight.
Hasta luego
Randy and Rhonda, Steve and Marzena, Hanz and Denise, Javier and Gina, Rodrigo and Char ( and Dolan and Logan ) , Liffer, Yolanda ( and their two little ones
) and of course, the ever present Woodpecker and his
children and women, wherever they may be.
p.s. those of you that have indicated an interest in selling for us in Canada or the States …please rest assured that we have your contact numbers and that you will be receiving information as it becomes available…websites are being constructed, promotional materials are being assembled and sales tools are
being put together. We have, in the past two weeks
had several “potential “ sales people visit both Ventanas del Pacifico AND our Playa Azul project…and were awed. Only one person did not like Playa Azul and we are the first to admit that it is not for everyone…it is not for the Los Suenos type of person…it is more for the person who wants to experience the “real Costa Rica.”
Please write if you have further questions.
And we hope to see you all soon…. |
