E-Bay marketer does steady business in Sixaola lots

By the A.M. Costa Rica staff

Who says land prices are sky high in Costa Rica?

Why a clever purchaser can get a 1.75-acre lot with ocean view for several thousand dollars via an eBay bidding process. Or at least that is what the Internet posting says.

Included is a photo of a pristine beach with palm trees.

The most recent sale, which took place Thursday, came in at $2,045, according to eBay records. Two other persons made lesser offers.

Despite the photo of the beach and the palms, the seller says that the property is near the village of Margarita in the Canton de Sixaola “only a few miles from the pristine beaches.” That’s adjacent to the border with Panamá.

According to the eBay listing, “I have seen lots in the same area selling at much much higher prices, but I have to sell some of my properties to assist my elderly father,” said the seller.

According to other documents provided by another purchaser, the seller identifies himself as Michael Leu of U.S. Land and Investment Co. in Mentor, Ohio. Leu was not available by telephone Thursday night. However, an answering machine said that successful eBay bidders could leave contact information. Most of the sales appear to be via credit card.

U.S. Land seems to be working on a second section. One section had 109 lots, numbered from 231 to 340. The sale Thursday was for Lot 402.

Although buying land sight unseen via the Internet might not be a good investment strategy, the most recent sale validates a perception that North Americans have a renewed interest in Costa Rica despite economic problems there. Several other indexes that monitor interest in the country have shown a small spike in the last few weeks, including readership of A.M. Costa Rica.

Monday is Labor Day in the United States, traditionally the last holiday of the summer. Soon the season there will turn to fall and then winter.

As the Sixaola land dealer points out in eBay literature, Costa Rica’s weather has been described as eternal spring. This is inviting for Canadians and those from the chilly parts of the United States.

A handful of development companies have been telemarketing Costa Rican land to North Americans. Sometimes potential purchasers are invited to make a free visit.

U.S. Land appears to have been maintaining a steady sales business via eBay to persons who have not even visited the properties. At least one purchaser who visited later said he had trouble finding and then entering his property.

The complexities of Costa Rican real estate weigh heavily against impulsive purchases, via the Internet or otherwise. Property access can be a problem, as previous articles here have pointed out. Unregistered easements can freeze construction plans.

Utilities are a problem. U.S. land suggests “well and roof automated cisterns using rain water catchment” for fresh water. Land owners all over the country frequently have trouble getting electric lines installed, and long waits for telephone service are traditional.

Then there are the land invaders, individuals who move into untended property, build a rough dwelling and use legal maneuvers to gain possession. Some land owners have spent hundreds of thousands of dollars protecting against such invasions and sometimes successfully evicting the culprits.

Additionally, either through lack of legal knowledge or premeditation, land owners subdivide properties without official sanction and quickly unload the parcels. That leaves buyers in limbo. Even some well-financed and highly reputable development firms have had this type of title problem due to the legal intricacies of Costa Rican law.