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The state of real estate in Costa Rica
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For the past several months we have had public debates about whether or not the decline of real estate in the States and in Canada would affect property values here in Costa Rica. Those of you that know us know that we are probably the most careful and conservative real estate investors in the country… so it follows then that, those of you who know us…know that our opinions do hold some weight. We have attracted very very savvy investors and individuals who are now working with us who have very enviable track records.
With that said… here is our take on property values and investments here in Costa Rica: |
1. Properties primarily in Guanacaste and other “tourist” areas will see property values stabilize and maybe even decline slightly. After all , values the past five years have seen “Florida-like” real estate increases. These areas are most affected by interest rate increases and less liquidity. Be careful of these areas. Of course, there are still “bargains” but they are not nearly as easy to come by. 
2. Central Valley real estate…( we classify this as areas that we are familiar with such as Grecia, Poas, Sarchi, Naranjo and San Ramon). We are just beginning to see the influx of retirees trickle into these areas. Readers know why we are proponents of these areas and why they are becoming so popular with expats. ( see our website for details… www.cr-home.com ).
Three years ago we saw properties in the mountains sell for $20,000 for two acres ( yes, with views , coffee and trees AND the perfect climate )…now the same properties are being offered for as much as $75,000. ( a good source to verify is the local real estate firm www.poasrealestate.com ).We are now seeing locals and retirees that had initially settled in the more affluent areas of Escazu and Santa Ana now settle in Grecia and Poas. Why?… security, beauty and the infrastructure is much much better. We have become “trendy”.
3. Specific beach and ocean view areas…we continue to look primarily in the Central Pacific coast and parts of the Nicoya Penninsula for areas which we KNOW that “gringos” will buy. We initially recommended Parrita, and then later the area of Bajamar and Guacalillo for purchase . Why?…not simply because prices were low, but because of the beauty of the areas and the convenience of the areas. We continue to recommend those areas but prices have risen dramatically in some cases and have become unaffordable to many. Keep watching our site for new areas. |
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| We have friends from Mexico, Honduras, Guatamala and Ecuador who have visited us in the last 12 months. Without exception , they all would prefer to live in Costa Rica rather than in either their home or adopted country. They ALL say that the advantages that Costa Rica offers make comparisons almost ludicrous. We know that groups such as International Living and others are continuously recommending Nicaragua, Uraguay, Argentina, Honduras and Mexico over Costa Rica , which they simply discard as being “overpriced”. And yet when I compare prices of buying and building in gorgeous Central Valley and /or beach locations…I find that IL is simply not being truthful, or at least not disclosing “real “ prices in Costa Rica. |
With 77 million baby boomers due to retire in the next decade or so…if only one percent retires overseas that will have an enormous influence on prices here in Costa Rica. And those who choose…can make a great deal of money being in the “right place at the right time”.
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Those of you who have followed the progress of Rhonda and I and CR Home over the past few years have watched us grow almost by accident. We moved to Costa Rica to retire and to enjoy life. But the word retirement means different things to different people. And when we started CR Home, it was with the intent of educating people so that they did not get “taken advantage of” in a foreign country. And , with the ensuing publicity from sources like Newsweek…we grew. And sometimes it has become a struggle to remember why we came to Costa Rica ! But …today , we would not trade one moment of our time in Costa Rica and cannot imagine life anywhere else. |
| Now…investments… |
| 1. We are building spec homes for resale. We have had excellent response to our last month’s posting. If any of you wish additional information or missed last month’s details….they can be found on our site in the October newsletter and addendum. Contact us for details. We have specific areas chosen for cabinas and for more upscale homes that we will be building. This is one area which we feel will continue to offer superior returns ( see the newsletter for specifics ) for the next several years. We are just beginning to market our cabinas and those who have seen them have literally raved about their construction as well as liveability . ( not to mention the prices ). We feel that the potential here is huge. |
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| 2. Specific land and home purchases. We know good values. We have five scouts continually canvassing the Central Valley areas as well as specific and new beach and ocean view areas. Occasionally we find “deals” that are too good to pass up. A perfect example is the land that Rhonda and I are building on now… I had been trying to buy a smaller piece literally for years and the owner had always overpriced the land. One day six months ago he came to me and confessed that he was “forced” by his bank to sell 5 manzanas ( 8 ½ acres ) at prices which were probably 50% below market value. I was in the right place at the right time. But the point is…opportunities like this happen at least once monthly. We cannot take advantage of them all. Please…if you wish to be kept posted on specific offerings like this…let us know…or watch our Forum on our website. If you wish to be apprised of opportunities like this, please be aware that , if you are notified of an opportunity, it is imperative to move quickly. And that is true of any opportunity of this nature anywhere in the world. |
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| 3. Land for development. We are currently developing two areas which we will be building homes and selling homesites…one is ocean view and the other is Central Valley. Both are stunning sites and were priced right. Development costs are low in both cases. We have two others that we are considering and still evaluating but will not move until the time and values are definitely in line and right. We have several people who have indicated interest here in the land AND building homes for resale. If you are one of them, please let us know. |
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| Rhonda and I do not pretend to have all the answers to all of your questions. What we offer is a combination of ( for lack of a better definition ) Midwest common sense , and extreme caution. And we also have the advantage of hearing almost daily what people moving to Costa Rica want and what they look for… so, we know what appeals to buyers. And we now have additional help with our daughter and son in law ( Rodrigo, born and raised in Poas ) and newcomers, Steve and Marzena and Jeff and Melissa. They are all here because of the opportunities that exist here and are happy to pass on not only their opinions but specific findings and opportunities as well. |
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| In summary… if you have an interest in Costa Rica and wish to participate in specific investments , you have a wide variety of choices. We highly encourage you to visit and to examine options. Those who have , have become good friends and return regularly ( yes, partly because of the beauty of the country AND partly because of the success of the investments! ). |
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Please take the time to indicate, if you have an interest, which investment area is of most interest to you…
Click here to go to our website and fill out a very short form |
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| NOW…onto monthly comments… |
| Many of you ask …do you celebrate Holidays such as Thanksgiving , which is a uniquely American holiday? Yes. We have many local expats as well as family over to our home for turkey ( yes, you can find it here! ) and all the trimmings including pumpkin pie.. Cranberries are still difficult to find. |
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| Christmas season is also nearly upon us. Many of our readers may recall or know that Christmas in Costa Rica is nearly a month long celebration and the country basically shuts down the last two weeks of the month of December. It is a time for nightly concerts and programs in the central park as well as parades…all time to be spent together by families. Christmas trees are already appearing in windows and outside on terraces decorated and lit. Nativity scenes are common. Children and teenagers have a month long holiday which stretches into January. And, if the families can afford it…trips to the beach are common the latter half of December. Oh, one more thing…presents here represent the thought rather than the price… and the important thing is that families spend time with each other. Quality is more important than quantity. |
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| Our new office in Grecia is nearly complete. We are not so much trying to upgrade our image so much as offer a central meeting place for locals and visitors who need information on what homes and land “really cost” in the Central Valley. Rhonda has done a great job of decorating and everyone is invited to drop in during their visits….behind the red metal church in downtown Grecia. |
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 We have many changes for the upcoming season. Obviously personnel and a new office are in the forefront. In the background is a new “scout” we call “the woodpecker”. He is phenomenal property finder . Buyers of properties in Grecia and Poas will be rewarded this year. Our selection of Central Valley properties this year will far exceed last year’s. Alvaro , the “woodpecker” is also quite the ladies’ man…gringas beware!
Responses to our investments have been fantastic. We do not want to take on more than we can handle…so… if you have an interest in any of the above , want to talk with us personally , or simply want to be informed of specific investments…let us know. And please also be aware that sometimes we do become so busy that emails sometimes get overlooked…yes, sad but true. No excuses from this end..but if you want information and are not getting the attention you need or want…be persistent! Persistence is not a bad thing. At least not at CR Home! We try to take care of everyone but sometimes responses and answers get lost in the cracks. Keep trying…it is appreciated! |
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Recent offerings:
 A bed and breakfast within 15 minutes of Jaco Beach. Needs some repair but HUGE potential. Within 150 meters of the pacific waters and gorgeous, clean beach. Several cabinas, main house, pool , restaurant bar area…over 1800 sq. meters ( almost half an acre ). This is a huge bargain for anyone looking for a beach property for a business or a personal retreat. The price is ridiculous at less than $75,000!
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 Half an acre in Poas, about 10 minutes from town…gorgeous property with manicured lawn , flowers and trees…the hugest and most panoramic view you will ever see of the Central Valley. Only $25,000. |
 Almost two acres in Grecia…gently sloping to a river complete with waterfalls and pools. Private and yet only 12 minutes from downtown Grecia. Planted in coffee with many many trees. $28,000. |
 Ten manzanas or almost 18 acres of gorgeous land facing toward the sunsets of the Central Valley and the towns of Sarchi, Naranjo, Palmares and Atenas and the surrounding mountains. Slopes to a river. Pasture and heavily treed at the bottom by the waters. Next to a private, yet public road so utilities are no problem. Best yet, the property backs up to a reserve. Price? ….less than $75,000. |
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 The best for last…. Titled property within 200 meters of a secluded beach. An acre of land, beautifully landscaped, two guest cabinas of 2 BR each and bathroom and small LR and kitchen area. Terraced and sidewalks throughout. The main house is approximately 1000 sq. feet with a large main room which has NOT been sectioned off into a BR ( the new owner can do what he or she wishes ), good sized kitchen, great bathroom. AND…a good sized pool with a newer filtration system with a BBQ area and large deck with overhang and shade. Fantastic views of the ocean. Macaws, anteaters, monkeys and too many birds to count… one and a half hour drive from San Jose. Private yet good access. Price? Only $175,000. ( this one will definitely sell quickly….probably as soon as high season starts!… if this interests you , call …. Very quickly. |
| Many more fantastic properties. Our listings will be updated shortly . Keep watching the listings pages AND our forum. And let us know if you wish to be updated on specific investment options…or if you wish to participate. |
| We hope to see a great many of you in the upcoming high season! |
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Hasta luego…
From CR Home Realty…Randy , Rhonda, Char, Rodrigo, Marzena, Steve, Melissa, Jeff and the boys, Dolan and Gray…and a special hats off to “the woodpecker!”
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Office/Home: 011(506)444-8716 |
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Cell: 011-506-841-5782 |
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Toll-free: 1 (877) 247-3014 |
