Over the past few years, many investors, whether intentionally or accidentally, have achieved incredible success as more and more vacationers and baby boomers flock to Costa Rica. Everyone “knows” about the beauty of Costa Rica and the friendliness of its people … and people keep returning to Costa Rica at an extraordinary rate. People just come back time after time!
However, fast forward to the present.
In Jaco Beach alone, there are 2,500 unsold condominiums … at least 25 development projects have been stopped and closed due to lack of buyers and lack of funds. Pacific Coast realtors say they’ve never seen anything so bad, and buyers don’t even look.
So how can real estate be a good investment in Costa Rica these days?
To answer that question, we must travel inland … to the Central Valley, on the outskirts of the capital city of San Jose, to gain a better understanding of investment …
Many baby boomers do NOT buy on the beach simply because it is too expensive for many … the hot, humid weather AND the lack of amenities. They turn inland, into mountains that offer lower prices, higher temperatures, better views and greater convenience.
So what does this mean for investors?
In short, this means that baby boomers over the next few years will largely contribute and, in fact, become a huge factor in the imbalance of supply and demand for land and homes. Let me give you an example:
There are very few American-style homes in the area described above, ranging from $ 100,000 to $ 200,000. THESE HOUSES ARE HUGE DEMAND, AND NOBODY FILLED.
Why not? … well, everyone talks about it, and some do one, maybe two a year, but nobody does it on a consistent basis.
The margin is much better than the States or Canada … usually around 50% … sometimes more. Risks are low and virtually nonexistent IF you can control costs and know how to value land and construction.
SO … WHY IS NO ONE DOING THIS?
There is no simple answer other than to say that most gringos (non-Costa Ricans) do not fully understand the markets here and do not realize that the real estate markets are much simpler here than in the States or Canada. Those who are in no rush … make money.
If you would like to continue exploring investment opportunities in Costa Rica … you may need to travel here to see the common markets and their opportunities for yourself … but well worth it.#Costa #deal #Fools #gold #Investing #real #Rica