First drop in Costa Rica prices in 20 years and is significant
Is the glass half full or half empty
You are probably aware Costa Rica is a big Brand world wide and one of the leading destinations for retiring Americans. With all the uneasiness in the USA, and 77,000,000 Baby Boomers poised and ready to retire, we are going to benefit greatly from this in Costa Rica. Americans like the lower cost of living, great health care, peaceful democracy, the climate, and proximity to the USA. Costa Rica is still the number one choice for retiring Americans offshore. We have more Americans here per capita than any other Country in the world.
By the way, they are not just baby Boomers either that are interested in coming here to live and work.
We have just experienced the first significant drop in pricing in Real Estate in over 20 years which makes this an opportunistic time frame. There people out there with property that are now desperate to sell.
Whether you are a beach or inland person, one can now capitalize on what was once described as “I wish I had bought 4 years ago” attitude.
Today with what has happened, Costa Rica can help you get the IRA back on track and fast . Or, people with cash that are seeking this type of refuge and safety also can take advantage of the opportunities.
People are leaving the market in great numbers. Good financial planners have a very low percentage of portfolios in stocks. For people retiring 2 to 10 years out, using your IRA smartly can be the one of the best things you can do.
One of the best hedges against dollar and inflation today is Costa Rica property. Given the sheer number of Baby Boomers alone and with an eye to lowering costs, living in a nice climate and peaceful country, it is a no brainer. If you buy a property today with your IRA and hold it through the onslaught of the Baby Boomer explosion it will have a profound gain by sheer pressure of numbers, not to mention the income during the time you hold it. (You still must buy it right)
Read all about the use of self directed IRA’S in Costa Rica and get checkbook control of it. Join in on our Webinar for self directed IRA’s.
There are also some fine land opportunities that relate to the eminent growth forecasted above. We have seen some discounting that has never been experienced here before.
Costa Rica Retirement Vacation Properties has always strived to be ahead of the curve in retirement and investment property concepts.
We are convinced that the Country is so well positioned at this time, that careful purchasing Costa Rica land now can lead to very respectable gains near term for the foregoing reasons. Unlike buying foreclosures that still have the unchanged mill rates, (taxed at former levels) no idea if these are bottom out totally yet and having to realize that this at best what the real value is today. With all that is being put in place in north America, property gains are going to be small at best in the next years as there is no redemption for the losses of the past and they will continue to haunt institutions and buyers alike.
It is the best possible time to make investment moves whether they be for longer term or your retirement. We have carefully identified some serious opportunities in property for investment or retirement. These are deeply discounted and in good areas.
If you have a group of individuals, professional or developers and would like to develop a feel for Development in Costa Rica, we can make a mini seminar upon arrival and set up a very specific tour for your group.
Call us and let us discuss our strategies with you to get a first hand feel for things. Toll free 1 888 581 1786 ask for Robert
September 11th, 2009 at 9:27 pm
Montezuma, et al.
Recently we visited Montezuma, in the Nicoya peninsula, and stayed in an exotic hotel with bungalows scattered in a mango grove. A very unique experience! Two weeks later we went back and stayed in a boutique hotel above Montezuma. Beautiful place, but my wife felt a bit uneasy because we were the only guests. One morning, while eating breakfast in the open and spacious dining area, the owner told us that the hotel was for sale. Later we found out that the first hotel we stayed at was also for sale, and I started to wonder what was going on. I did some Internet research and was astonished at the amount of hotels that are for sale in all areas of Costa Rica, especially in Tamarindo, Jacó, and Manuel Antonio, some of them at what I would consider very reasonable prices. The list of such hotels for sale at the Don Elias Real Estate website, for instance, is huge. And if you look up at condos or lots for sale in any real estate website, you will find that their listings are very, very long.
It seems clear to me that the days of the Costa Rica real estate bonanza are over. Investors want out, some with finished and some with unfinished projects. Many common folks want to get rid of the property they bought two or three years ago, at the top of the bubble. Real estate agents, incredibly, continue to use their “priced to sell fast,” “own a piece of paradise,” and “the Baby Boomers are coming” clichés. But buyers are nowhere to be seen.
What went wrong? Was this simply an upshot of the U. S. economic melt down? Was it investors’ excessive greed? Did the Costa Rican government overshoot its mark with ad campaigns about “the Switzerland of Central America” that created impossible expectations, and with promises of first-rate roads and world-class marinas everywhere? Has the country become too unsafe?
Any comments?
Gerald.
January 28th, 2010 at 5:40 pm
HI Gerald:
It is a fact that many Hotels are for sale.
Often, it is because people start Hotels on a romantic whim and don’t understand what it takes to make one operationally successful. This is usually an opportunity for the astute buyer as long as he knows the business.
There are a few businesses that people tend to think that they can operate easily such as Restaurants, Hotels and Real Estate. I guess it is that they seem simple because everyone needs these services. One thing they don’t realize at the time of deciding to enter one of these business is that these are probably the most competitive of all businesses and the market is usually saturated. People in these businesses are constantly adapting and adjusting to current situations that will affect the outcome for next season. The new people entering these markets may spend years before they realize how to adjust to things to survive and make a living.
Because of the major disaster in the USA, there are probably far too many Hotels to serve this current market.
We sell Hotels both large and small and for the most part people cannot justify the price they ask and as a result they stay on the market for years. Where the numbers work, we usually find early success.
This is not unique to Costa Rica by the way.