The Banco Interamericano de Desarrollo (BID) approves Another us$500 Million Dollars For Costa Rica

The Banco Interamericano de Desarrollo (BID) has approved a us$500 million dollar line of credit to the Banco Central de Costa Rica (BCCR) – Central Bank – so that the institution will have sufficient dollars on hand so as to be fully liquid in the currency at all times.

The move is to allow the Central Bank to have sufficient liquidity to meet the needs and demands of the banks of the US currency. The ministro de Hacienda, Guillermo Zúñiga, said that the credit was applied for in October.

Zúñiga, however, did not provide details of the credit, assuring that the interest rate and repayment details have yet to be finalized.

“This is a preventive strategy”, said Zúñiga, which added that the credit still required the approval of the legislators which will come before them in January 2009.

The us$500 million is not the only funds that the government can count on this year. Pending approval are a us$19 million dollar loan by lenders for national parks, also being provided by the BID, and yet another us$850 million dollar loan by the BID for infrastructure. In addition, there is the World Bank loans for us$72 million and us$65 million to be used exclusively to help repair the damanges in Limón by this years rain and floods.

At the end of November, Hacienda had a surplus of ¢97 billion colones, according to Zúñiga, of which ¢58 billion will be used to capitalize the state banks as approved by legislators earlier this year.

Hacienda reports that for the first 11 months of the year, tax revenue was more than ¢551 billion colones, 35% higher than the same period in 2007.

Hopefully these reserves will reflect in some loosening of the Costa Rica Development loans.

For updates on the devlopment status in costa Rica…..

Call Robert Shannon at 1 888 581 1786

Molina comes back for Costa Rica Classic title
Guanacaste, Costa Rica (Sports Network) – Mauricio Molina posted a three-under 68 on Sunday to come from behind and capture his first Canadian Tour title at the Costa Rica Classic.

Molina finished at nine-under 275 and won by three strokes at Reserva Conchal Golf Club.

Overnight leader Rob Grube struggled to a one-over 72 on Sunday and took second place at minus-six.

Robert Gates carded a two-under 69 in the final round and came in third at five-under 279. Sebastian Saavedra fashioned a round of five-under 66 and was fourth at minus-four.

Chris Baryla (70), Paulo Pinto (70) and Byron Smith (71) shared fifth place at three-under 281.

*Clark Burroughs (69) and Hugo Leon (72) tied for eighth at minus-two, while Josh McCumber (70) and Diego Larrazabal (75) were knotted in 10th at even-par 284.

*Clark Burroughs plays out of Cariari Country Club in San Jose.

It is tucked in the volcanic hills of Guanacaste, and two hours from the international airport at Liberia and about one hour and a half to the beaches. A fresh water lake with lots of lodges, restaurants and shops with a fine international flavor as well.  Lots of Arenal Real Estate is popping up all over the area.

Never ending adventures – Puentes Colgantes del Arenal or the Hanging Bridges of Arenal Volcano, is the most beautiful environmental project in Costa Rica. Located within the corridor followed by birds migrating between North and South America, the trails and bridges of this project will bring you as close as you could ever hope to get to the birds, the flowers and the lush vegetation of the primary rain forest. You will be able to walk right into the forest, thanks to the imposing hanging bridges and the beautiful trails that are safe and easy to walk on.

Fishing -You have to try the local lake fishing.  Lake Arenal is world famous for lake fishing trips for the Guapote rainbow bass and world class windsurfing. If your preference is a little exercise and Adventure, you can enjoy the rainforest.  Often you will see Howler Monkeys, Toucans, Parrots and Hummingbirds in many areas.  Lush tropical landscaping and a wonderful view of Lake Arenal. Guapote fishing has been featured by Bass Pro Shops, American Sportsman, Costa Rica Fishing Reports and many other world outdoor fishing magazines. Kayak Fishing On Lake Arenal Costa Rica is also fun. Owning your own Villa on Lake Arenal can be a very exciting experience.

Three hours north of San Jose lies Costa Rica’s biggest and most active volcano, Arenal.
The Arenal Volcano is very active and it’s frequent and spectacular eruptions have made the area a major tourism destination. It is an imposing figure and looms high over the growing town of La Fortuna.  Hotels in the area take advantage of the spectacular lava shows Usually the guests can watch them right from your own hotel room.

As impressive as the Arenal Volcano is, it is the lake that is starting to gain a reputation among bass fisherman. Lake Arenal was formed when a dam was built in 1978 to provide inexpensive hydro-electricity to Costa Rica and neighboring Nicaragua. Originally just a marshy lowland, the 33 square mile lake is now the largest lake in Costa Rica. Fed and sustained by numerous rivers coming down from the mountains and surrounded by the Arenal and Tenorio Volcano National Parks, Lake Arenal is truly a freshwater fisherman’s dream. Fishing on this beautiful lake while listening to the howler monkeys in the surrounding lush, green rainforest – all the while the Arenal Volcano looms in the background – makes for an unforgettable fishing experience.

Costa Rica Retirement Vacation Properties is featuring a very special six pack tour of the whole area for those seeking a rural setting that is close to everything and especially nature.

Please watch for this announcement next week or call 1 888 581 1786 and ask for Rudy or Steve.

If you do, you will do fine. Remember, your profit is made when you buy.

The astute investors that have been on the sidelines waiting are doing their thing now.  They always do.
 
If you loved Costa Rica Real Estate before and now the market has you scared, then you have never been through these times in the past.

How a smart investor deals with this economic crisis.

First, he understands that nothing last forever no matter how bad it appears.
Second, putting money on the sidelines these days will make you nothing.
Leaving it in Banks can be risky.
Third, he knows there is blood in the streets

In the past few years investors have been grabbing up properties at let’s say $100,000. Then, because of the positive upward pressure in the market they immediately put it back in the market at $250,000 and would hardly budge on price.

How did they buy this land? In many cases an equity loan. What does this mean in today’s market? Simply put, the equity loan has become stressful, and his income is suffering and costs have gone up.

Whereby he wouldn’t even entertain an offer of $200,000 in the past, he now begs to get out at what he has in it.

That is how one can buy Cost Rica Real Estate at yesterday’s pricing.

We have people coming to us daily with varying and different scenarios like this.

Clark Burroughs playing out of Cariari Country Club is tied for 3rd

Molina leads in Costa Rica
Guanacaste, Costa Rica (Sports Network) – Argentina’s Mauricio Molina fired a six-under 65 on Friday to take the lead midway through the Canadian Tour’s Costa Rica Golf Classic.

Molina moved to six-under-par 136 for a two-shot advantage over Venezuela’s Diego Larrazabal (69) after 36 holes at Reserva Conchal Golf Club.

Mitch Gillis (66), Clark Burroughs (70) and Sebastian Saavedra (72) shared third place at three-under 139. First-round leader Rob Grube stumbled to a 74 and dropped into a tie for sixth place with Robert Gates (71) at two-under 140.

Molina managed to post the best score of the week so far despite playing the second round in swirling winds.

He did most of his damage on the front nine, making five birdies in a row from the fourth hole. He then played the back at one-under, collecting three birdies and two bogeys.

Larrazabal had five birdies — including four on the back nine — and three bogeys for his 69.

The cut line fell at 11-over-par 153 with 64 players moving on to the weekend and 15 missing the number.

This is the third event on the 2009 Canadian Tour schedule.

Market observations from Rudy

Never claiming to be an expert , I can only share my perspective of Costa Rica central valley real estate.
The central valley is experiencing  a decline in   clients as all parts of Costa Rica are due to
the  worldwide economic conditions -particularly in the states where the greatest number of buyers come
from. There are, however, still viable clients that come here and do buy . The difference now is buyers are much
more analytical ,careful, and have a legitimate concern of the direction Costa Rica will have during these
economic times.  Given the scenario of client base and economic difficulty how can I use the word “stable”
to describe the central valley area .  First of all -the central valley needs to be segregated from Costa Rica beach
property where many condo projects have been constructed and  there are still many in various stages of
development . Prices were high and promises of rental income to cover debt were promoted . Too many units
on the market and a drop in prospective renters is a train headed for disaster -similar to the condo market in
Florida.  Prices will drop some and units will be on the market longer. It is the prime example of supply and demand
combined with bad economic times . Investment beach property is going to take a hit.
Supply and demand impacts the central valley area also but in a more positive way. I live in Heredia in a townhouse community of 100 houses -only one house is for sale .  Value priced,quality construction and location  are reasons why- STABLE.  An Eco lifestyle community in Santa Ana - pre-construction is 60%
sold out even given the economic times . There is not an oversupply in the central area . Houses or condos
in the central valley area that are overpriced will be affected but these units were overpriced  from the start
and need to be reduced.  Given that many projects in planning are on hold – value priced , quality property
will sell and be absorbed by the demand.  STABILITY in Costa Rica is not bad given market and economic conditions. 
(see what International Monetary Fund head had to say about Costa Rica)I  am not saying stable means great.
There will be good and bad pockets as there are in the states . Fire sales in the central I have not seen as
some have claimed. As stated above, this is my personal perspective from someone who works the central
valley area on a daily basis in Real Estate sales.
See what the  International Monetary Fund said about Costa Rica inour blog area.

Rudy Matthews, Is a former Tampa Bay resident with vast and varied experience in marketing properties. We need Rudy with us to round out our products for the greater San Jose and outlying areas. His in depth condominium background will be very helpful in identifying sound projects for pre sale opportunities as well as long term residence.

Costa Rica Golf open features many players that could have been playing on the PGA circuit but for a couple of missed putts.

One such example is Clark Burroughs that is playing out of the Cariari Country club in San Jose. He is currently sharing 8th place in a very tough field.

 During his visit to Costa Rica, the head of the International Monetary fund stated Thursday that Costa Rica is financially sound due to good economic policies.

Dominique Strauss Kahnn cautioned that no country is immune from the impact of the world financial crisis and that the international monetary fund is standing by in case Costa Rica needs aid.

If one is to visit the malls here, it doesn’t appear they are affected as yet because there isn’t parking space, no spectacular discounting like the USA and the restaurants are always jam packed.
The Costa Rica Real Estate industry is feeling the impact of the USA crisis as it has evolved to the worst in the history of America.

The Costa Rica Real Estate industry is trying to fight back with special promotions by redesigning product at lower retail price points. The problem is the investor is too preoccupied and have taken a hold stance.  People are totally frozen and cannot make a move at this time and understandably so.

As a result, inquiries for property have dropped significantly and naturally so.  We are finding pockets of buyers that look to parking money safely in Costa Rica Land. Their attitude is that they can hedge doing this as it can be sold in any currency they choose and it certainly will be there in two or three years.

The Costa Rica Retirement market is still very much alive but fewer. For the time being anyway they are showing the same preoccupation and caution.

We will have a better prognosis of the situation once Obama is in full swing and being tested. People react like the markets, on perception and the Baby Boomer is still lurking out there.  Costa Rica is still the number one offshore destination for retiring Americans and that is a big plus for us.

Costa Rica is fairing pretty well in light of recent USA and world events which bodes well for people seeking stability these days and Costa Rica Real Estate offers that over many other countries.

Prices of  the better projects remain fairly constant. We are hearing about some discounting that will scare one more than attract.  Mainly, we are finding some  individual land owners that have recognized the premium days are over for a while are putting realistic pricing on their property. Houses that were advertised on the basis of  ”if I sell ok, if not OK” at premium pricing are now more realistically priced for the ones that have need to sell.

The retirement market is still very viable here coupled with a keen investor seeking good values to sit on for asset protection.

For those considering Retirement in Costa Rica, it is interesting to note the views of economist Jorge Guardia which was part of a recent interview.  (see excerpt below)

Both Naranjo and Guardia agree that production in 2009 will be lower, income will be lower and exports will increase only by 4%, as well the country will see lower foreign investment and lower credit lines for business.
“We are not in a crisis, nor will we be. There are worse”, said Naranjo.
The economist added, despite the world economic crisis, the impact in Costa Rica will be light.
Naranjo predicts that the Ministerio de Hacienda (Finance Ministry) may end up with a slight surplus for the second year in a row and that inflation in 2009 will be lower than this year and there will a more diversified export market.

We will be happy to answer your questions relative stability,  economy and investing here in Costa Rica.
Costa Rica Retirement Vacation Properties , toll free 1 888 581 1786 ask for Robert or Steve