Our ten day trip to Minnesota was an eye opener. Sometimes those of us who live away from the States cannot see the forest for the trees.

Outside of family, where situations grow steadily worse (parents’ health failing, children’s financial problems)… we see widespread unhappiness which is morphing into rage. In a nutshell, without seeming to delve into psychobabble, the public psyche is one of helplessness and lack of control. We are watching the things that we held dear and that we believed were inviolable… being destroyed.

We all believed that our social security benefits would be something we could rely on…and now the majority of the public believes that their benefits will “most likely” not be available. The “bailout” funds which were “necessary” are now unaccounted for and we are being told that literally tens and maybe hundreds of BILLIONS of dollars were given out for bonuses. Pardon me, but this is OUR money. The trust given to our public servants? Where did it go?

We are seeing the beginning of a health insurance debate which has already degenerated into near mob violence. And that is only the beginning of the debates. Billions of dollars ( witness the “clunkers for cash” program) are being commandeered at the snap of a finger…e.g., what is another couple of billion in the scheme of things?

During our visit Rhonda and I pulled into a parking lot in front of a Starbucks…a car was backing out and just sat there…I motioned him forward…he immediately sped up , slammed on his brakes in front of my car and began yelling and screaming obscenities. I’m sure that he thought he saw something else (a raised middle finger comes to mind) but trying to talk to this guy was completely impossible and I believe that if he had a gun he would have used it. I have seen road rage before but nothing like this. A discussion with my daughter yielded the conclusion that this type of behavior has become a lot more commonplace in the past several months… a huge difference from the “tranquilo” attitude which prevails in Costa Rica and definitely something that we are not used to.

I think that an awful lot of people are not only confused and angry but are just now starting to explore alternatives. Many know that these huge influxes of money will ultimately result in inflation…which will hurt us even further. And many of us , while exploring alternatives to past investments such as real estate and the stock market have definitely been left with a bad taste in our mouths…and not too many like the fact that fraud and misrepresentation is rampant in many areas of our investment options. (take a look at the Madoff scandal as well as countless others which have eroded our trust in the “so called investment system). None of us can say with any degree of certainty when the stock market or the real estate markets will recover…many say that they have already started. All we know for certain is that more and more people are considering Costa Rica for retirement…for an alternative lifestyle …or for investment.

A great deal of noise is also being circulated about the many developments which will NEVER be completed…and how many people will lose their entire investments. And I am continuing to see projects advertised that are basically shuttered…and closed. Given the country’s libel and slander laws, we cannot obviously say which developments these are…but what we can say is this: if you have any doubts about your investment, GET AHOLD OF THE DEVELOPER. Tell him or her your concerns and make sure that you receive answers that you need and want. We know people that have lost literally hundreds of thousands of dollars that, unfortunately, will never be recovered. Will the laws ever change to protect buyers? Probably not…but this simply brings up the need for each buyer to be fully informed and aware. And yes, there are a lot of specifics that CAN be done to fully protect yourselves against fraud AND loss of funds. Be careful out there!

We repeat what we see in the near future for Costa Rica:

• The “boom” days of the past are possibly gone forever for Costa Rica’s real estate market. The boom that was fueled by easy credit and the home equity market is gone…not to return for a long time, if ever. We think that those who are waiting for the markets to “recover to past levels” will have a very long wait.

• We think that the next couple of years will see huge opportunities here. We are already seeing homes and properties priced at levels not equaled for 5-8 years ago … and in some cases even 10 years ago or more. It is a buyer’s market. We just purchased a beach home from a distressed seller at less than he paid for it 10 years ago…we also purchased a parcel of raw land for prices equaling 5-6 years ago but which also included a cash crop, which in two years will equal the price of the land!

• We are seeing developers and other realtors contacting us because of our price points. Surf the net and see the competition’s prices. For the most part, these people have not had to work very hard for the past few years…and they seem to have forgotten how. We DIG for properties and values and have a good handle on what people are willing to pay and what a true value is…not what realtors consider a good price, but rather what the markets dictate. People that were willing to pay $250,000 to $400,000 two years ago and now spending in the $150-200K range…or less. And we are one of the very few firms that offers any product in those ranges.

• We know how to build and we know what true construction costs are. Most people that would ordinarily consider building do not do so here because of the horror stories. And frankly, we don’t blame them. We have paid our dues to and in many cases though, it definitely DOES pay to build. Ask us if you want comparables. Sometimes you can buy for less than replacement but oftentimes not. Remember… there are not a lot of “gringo” style houses here.

• Remember, if you are seeing prices on the internet anywhere… many have substantial “play” and are still priced at a significant premium to today’s market. Ours do not have that much room for negotiation but we usually have an idea how much more “play” is available.

• If you are serious about buying…talk to us. We will absolutely NOT push you into anything just to get a sale. Our prices indicate that we are about as “cheap” as they come and we will always tell you if we think that a property is priced at market, below market or just simply “overpriced.” We know that there are some properties which are “one of a kind” and those have their own niche and only a buyer can determine what the worth is …and, whether or not you are paying too much or too little. We have a fairly substantial number of people looking for distressed situations and “fixer uppers”…watch our site and the newsletters…because these go VERY quickly.

• Remember too that the road network in Costa Rica does not have the best reputation…but that is changing. The road along the pacific coast from Jaco on down to Ojochal and Uvita is now almost complete…after 30 years of promises. And the new tollway from San Jose to Puntarenas will be complete next year ( it is 90% completed now and tolls are being collected). The road situation is markedly better and will continue to improve , making tourism and ultimately an easier situation for buyers (unless of course, you are an “off the gridder” ).

• We also see demographics and changes occurring among buyers…those who formerly wanted Grecia and perhaps Atenas are now looking a little further out…for safety reasons, for privacy, and simply to be less crowded and to recapture the “old Costa Rica.” We look for San Mateo, Esparza, Desmonte , San Ramon, Turrubares, and other areas “a little further out” to become more popular. The new roads have a lot to do with these changes… but they are happening. People who formerly would have been satisfied living in Grecia are saying “ why would I want to live in a busier town just for convenience when now I can be the same distance away and have more privacy and be safer?”

Look for more changes for CR Home in the coming weeks: new developments, more construction options, more coverage for properties (pacific coast, south and north)… oh, one more thing: there is a lot of gossip about competing realtors… we do not badmouth ANYONE and we want to make it perfectly clear that we abide by all securities regulations in Costa Rica, all banking regulations, the department of taxation (yes, we pay taxes in Costa Rica) , as well as various other regulatory bodies such as INS and CAJA. (hospitalization and pension)…oh and immigration too. (we now have permanent immigration status). And yes, occasionally someone is unhappy… we leave their complaints on the Forum on our website (www.cr-home.com ) and our side of the story. We believe that our readers have enough brains to make their own decisions and can ascertain whether we are trustworthy or not.

Only a few properties this letter as the scouts don’t tend to work as hard when we are away…

1. House in the process of being remodeled…upstairs is 4 BR and one bath and the downstairs is kitchen a living area. Just a shade over 200 meters to the ocean on a great surfing beach ( property is concession , not titled). Fantastic older gated area with 24/7 security and great reputation. Lot is a little over 800 sq.

Great price at only $82,500 and only 75 minutes from San Jose. (Click the image for enlage)

2. Home in same area as no. 1. Smaller lot of 800 sq. meters or a little less than ¼ acre. Newer construction, two level , 3 BR, one bath, 1250 sq. feet. Only 150 yards to the beach! Great surfing and great area. Price is only $100,000 . (Click the image for enlage)

3. Approximately 1000 sf home in one of the best areas in Grecia…and this view cannot be equaled by any home selling for less than $100K! 3 BR, one bath, home is in decent shape and livable now. Enough space to put in a decent sized garden and still room for parking. Almost 600 sq. meters of land…the view is unparalleled and unequalled anywhere in Grecia or the Central Valley. This is a true distress sale…only $35,000. Last time we featured this home was two years ago and we were inundated with calls…don’t let it get away. (Click the image for enlage)

4. Great beach home near Parrita…not a bonafide steal but a good price and we think that the owner is negotiable. Short walk to the beach and home is in good shape. Good sized lot of 1500 sq. meters or almost half an acre. Three BR and one bath. New owner will probably want to put in a few bucks but it needs nothing major. Property is concession. Priced at $130,000 but we think the owner is hungry. (Click the image for enlage)

5. Beach home near Parrita…super beach and neighborhood. Land is approximately 1200 sq. meters. Owner distressed (Tico) and we believe that an offer a little over $100K will take this home. In good shape, 3 BR, one bath and in excellent shape…only steps from the beach. Hurry on this one. (Click the image for enlage)

“Little summer” still hanging on and we are glad to be “back home”.

Randy, Rhonda and all of us at CR Home...

Traditions and Legends of Costa Rica

This Issue "La Llorona".

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