“Are we headed for a worldwide depression or recession?”

Rice is now being rationed in many countries throughout the world;  food, water, power and most base commodities have now doubled and doubled again in price ( and yet our government , in its infinite wisdom, still maintains that “core inflation” remains under control); the presidential election is seeing mudslinging , the likes of which have not been seen in years;  real estate in the States is still ( according to the “talking heads” at least ) in the tank and not likely to recover “for years”.

I visited my parents and daughter a little over a week ago and the mood “back home” is somber…to say the least.    People are not coping well and the news is overwhelmingly negative.   My father, who was recently diagnosed with kidney cancer, was taken to the hospital…he was there one night for extensive tests , one being a colonoscopy…the tab?…over $8000.   Depressing?…damn right.  

And yet, Costa Rica continues to shine …even as an alternative…not only economically …but more importantly ( at least for Rhonda and I )…psychologically.   Simply, Costa Rica , at least to us, is like the States was 50 years ago.   People continue to move here despite probably having less funds than a year ago, when the word recession was not being bandied around or accepted.   With all of its problems as a “second world” country…Costa Rica remains a viable and overwhelming alternative for many seeking a better way of life …both economically and psychologically.  It is relatively easy to be  frustrated here in Costa Rica but almost impossible to be depressed.

My last newsletter, when I advertised two “help wanted” positions for sales and staff positions produced a flood of emails and calls…and I mean we were literally inundated!   My apologies to those of you who have not received a response from me yet .    My guess at this point, although not everyone has been “interviewed” and positions officially filled…is that we now have the help we need.   What this all means to me is that an awful lot of people would love to come here but they have no idea if they will be able to support themselves.   It is easy for me to say “come on down, believe in yourself and everything will turn out.”   I wouldn’t believe that and neither would you.

   What I can say is that there are a tremendous amount of opportunities here but it is difficult to create something from nothing…some kind of nest egg and savings are needed, but probably a lot less than you might think.   If any of you are serious about moving down here and believe that you do not have enough funds and wish to discuss possibilities further, please call me…all calls are confidential and you don’t even need to reveal your last name if you wish.
  
But , please remember, a move to Costa Rica does involve risks and challenges…but please believe me when I say that Rhonda and I are not that unusual in what we have accomplished…most of you have at least as many skills and probably more than we do. 

OK, on to investments…
…at this juncture we are predicating our decisions and recommendations on the following factors ( for the most part ):

. Materials costs are skyrocketing…the government here sets costs for almost all commodities such as cement, steel, etc.  and in the last four months these costs have risen nearly 40%.   And while, labor costs have not risen nearly as much , they are on the rise as well…although we project they will fall back a little with the slowing of new condominium and high end construction in more affluent “gringo” areas as well as along the pacific coast. 

. As mentioned, high end purchases are slowing …buyers are ensuring that they receive value for their purchases or simply tabling them for the time being.    This is definitely not everywhere but affecting niche markets.

. Nearly all other areas of the world have accelerated their moves and purchases in Costa Rica…with the exception of the United States, because of the “subprime crisis” which has affected so many.    Purchases by Canadians have skyrocketed in recent months because of the strengthening of their currency and their strong economy.   It is important to recognize which pockets and areas of investment are showing no signs of slowing and even accelerating.    We are big believers in “keeping it simple” and remembering that more buyers than sellers equals rising prices.    And we are in a unique position of being able to see what is happening on a daily basis.

. We see prices in selected areas continuing to rise…again simple supply and demand factors…but we feel that it will not be long when buyers will simply buy smaller parcels of land to compensate for rising prices .   The areas of Santa Ana and Escazu are prime examples…nearly all homes and land there is in a gated or walled community with much less land.   That will be the trend in Grecia and surrounding areas as well.    Our first home consisted of nearly two acres of land and a 3 BR home of approximately 1500 sf…the total cost was less than $80,000 .  And that was five years ago.    The same home and land today would probably cost $120-130,000 and that is being conservative.    But this means opportunity.

. We have learned from our present and past projects and developments.   We do not like to promise huge returns especially if it means huge risk.   There are always unforeseen problems…we do make mistakes but we do not make them twice …
We do not deal with multimillion dollar projects.   We do not sell $500,000 houses…it is not who we are .    We stay within our comfort zone.   And we are not afraid to say NO. 

All the above being said…here are current offerings:

1. The “waterfall property”…mentioned in the last newsletter…this property , located in the mountains above Grecia , consists of 4-5 manzanas or 7-9 acres of  gorgeous property overlooking the Central Valley and its volcanos, and consisting of the largest waterfall in Grecia and at least  the next five towns…rivers, jungle, and a huge 75-80 meter waterfall  with a large swimming hole directly above it with another small waterfall and river…huge, huge trees, literally hundreds of large butterflies ( how many of you have seen literally hundreds of blue morphos in one spot?).   This property will have its own separate , private and gated entrance and there will be five separate properties on the overall land.   The common area will be approximately 1 ½ manzanas or about three acres and that will include the jungle and waterfall.   It is one of a kind.   We estimate that the lots will sell for an average of $100,000.    Cost of everything including utilities ( topography starts on Monday to determine exact area ) will be approximately $175,000.    Rhonda and I will retain 30% of the net profits for doing the work and the investors will receive the balance.   Estimated period of investment…one year.   Minimum investment is  $25,000 and half of the total is committed.    Please hurry on this one.   It really is one of a kind.  

2. Ventanas San Mateo…we have now sold nearly half of the project and will be attempting to finish phase three before the heavy rains hit.    Those of you who have not seen it …    www.crventanas.com  .   All permitting is now complete and well drilling commences next week and landscaping is ongoing.  Phase two asphalt road is now also complete.  Once construction begins we will be showing updates on our website.    There will be no more “special offerings” here but if any of you have an interest, please hurry.    The responses have exceeded our expectations.   Thanks,  all of you reading this who bought.    And watch for phase 3.

3.  A short time ago we advertised two smaller homes with land, one just outside of Naranjo, the other in San Ramon…prices were $44,000 and $33,000 respectively.    We had a tremendous response but no one has stepped up to the plate.   I am including links to the listings on our website as well so that plenty of pictures are available.    The Naranjo home , in my estimation is priced at 30-40% below market and the San Ramon house is priced at probably 50% below market.   If another realtor were to list them, they would be almost double these prices.    Buy , rent…or hold and resell.    They are steals at these levels.

4.  This is for some of you who want something a little different…we are opening up a souvenir shop in Grecia.   There is absolutely nothing in town and at least 5 tour buses visit daily…everyone assumes that they will buy in Sarchi, the next town over and it is a huge void.   We are doing it primarily to gain exposure for CR Home…we will not be “pushing” real estate…we never do.    But it will present an opportunity to at least introduce ourselves and our products  in a very lowkey manner.    We already have the location and are in the process of meeting with vendors.    Don’t worry , Rhonda is in charge of design, product and decoration…not me!    We honestly don’t know how big a market this is…only that it exists.    We estimate that less than $10,000 is needed.   An equitable arrangement can be reached if this is something that might inteterest any of you.     We do all the work.   Call if there is an interest.

5.  One last property…in San Luis de Grecia…in the mountains…1000 sq. meters of property …already terraced…utilities 10 feet from the property…pads already in…gorgeous views to Central Valley, Sarchi , San Ramon, Naranjo and lights…on a flyway for birds…a steal at slightly less than $27,000.   Only  100 meters off of a main road but on asphalt all the way…private and gorgeous

Will look forward to hearing from some of you.    Rainy season has started…and here are a picture of Rhonda’s new garden!   This is one small part of living here that makes it all worthwhile.

Hasta luego
Randy y Rhonda; Steve y Marzena; Rodrigo y Char, Dolan and Logan; Liffer and Yolanda;  Albert and Francini;  Pedro Coto;  and we always forget to mention Tomata, our caretaker and jack of all trades at Ventanas; and of course, the Woodpecker.  

Office toll free:  1-877-262-8904
Toll free:  home:  1-877-247-3014
Home: 011-506-2-444-8716
Cell:  011-506-8-841-5782