January 8, 2009 – In this installment of, How to Buy Property in Costa Rica at Half Price”, we will go in to the next 5 steps that are crucial when buy property in Costa Rica at local prices.
STEP FIVE: decide the type of property you want and the area you want to live in. Find a local to scout the area and assemble your prices…then knock on the same doors yourself a week later. The differences in price will be astounding. Two or three to one… remember, Ticos believe that gringos have “money trees” back home… they don‟t believe this bunk about an economic crisis. We are so “out of touch” that we will pay whatever the asking price is. Remember, large numbers of gringos DID, in point of fact, pay ridiculous prices for a long time.
STEP SIX: if you want a “gringo style” house, the odds are pretty good that you will not get a huge discount from a realtor. If you DO seek out a realtor ask him or her up front whether or not they have any heavily discounted properties. Some do. (don‟t forget… NET SELLING is a possibility here… so if you see something you REALLY like, it never hurt to make an offer or at least talk about it. Right now, the buyer is king and offers are rare.
Watch other sources for offers such as Craigslist… occasionally there are some really great buys there. And if you see something that really strikes a chord… call or write… you never know how truly desperate a seller might be until you start a dialogue.
STEP SEVEN: developments… this is a totally separate subject… you need to make sure that ALL is in order here and that takes in a lot. The rules and regs here in Costa Rica are many AND they are stringent and a lot of builders and developers simply ignore them… until they catch up… and they usually do. And right now… after the “credit crisis” an awful lot of developers are shut down… there is simply not enough money to continue to lines of credit have dried up and the buyers have gone the way of the dodo bird.
IF you see a project you like AND you have checked all out… it is almost a guarantee that the developer will work with you on terms and price. Margins in most developments are pretty high and cash flow now is at a premium. Doesn‟t hurt to try… you might be surprised. Half off might be a stretch but then again… a pretty good discount is almost a certainty.
STEP EIGHT: use your head… a good example here is the price of houses on the beach in the Central pacific (a good beach)… a good lot with a so so Tico style house cannot be found for less than $150,000 (or at least it is very rare). And these are houses that most of use would say need a decent amount of remodeling… and most of us simply don‟t have the time or connections to accomplish that. BUT… lots of the same size in the same area may go for $40,000… that coupled with the fact that you can build a decent sized home in the area for perhaps $65,000 puts a new light on construction. Can you do it? Hey, we did it and we didn‟t have a clue. It obviously requires a little research but here you have the opportunity to save almost 40%. It can easily be done. Just be methodical, do your research and ask questions. Not only will you save money, but it is a great investment.
Remember, just because you see a good discount in a “presale” or “preconstruction” offer, doesn’t mean that it really is. ASK A LOT OF QUESTIONS and know that pre anything is a risk. At least half of the developments from five years ago that were offering presales are now defunct and monies are totally gone… although most people don’t know it yet.
STEP NINE: be aware that finding good value in real estate takes work… whether on the net or in the field. We have “scouts” (property finders) working for us and they have people constantly calling them PLUS they knock on a lot of doors. They don‟t find good values every day… but they find them… because people NEED to sell. And right now… there are not many buyers out there. It takes work to find value. But I guarantee… you will find it.
In next week’s article, we will go into the last 7 steps on how to Buy Property in Costa Rica at Half Price.
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