Costa Rica Real Estate: A Smart Investment

Sept. 2, 2015 - PRLog -- Following the 2008 housing market crash in the United States, home sales in Costa Rica were at a standstill. Most of the real estate buyers in Costa Rica are from the United States, so Costa Rican property sales relate to the U.S. economy. However, even in the slowest sales periods, prices on Costa Rican properties did not drop, and investors were not enticed to buy. With the recent upturn in the U.S. housing market, some Costa Rican property owners are making significant price decreases to incentivize potential developers, entrepreneurs, and investors to act.

The Costa Rican housing market is about six to eight months behind the United States. Since home sales hit pre-2008 highs in May, the Costa Rican market is also expected to improve significantly in the upcoming months. Right now, Costa Rica is a developer’s dream. Properties that are ripe for developments are listed at “priced-to-sell” rates—rates that have been virtually unheard of for the past several years. If developers can purchase property now and build quickly, they can take full advantage of the incoming uptick in property values.

Development properties are often sold in large pieces so they can be portioned off for sale or further development. For example, Rio Tranquilo, a property located on the Osa Peninsula, just six miles from Puerto Jimenez, is set up for investors or developers. Originally, this property was priced at $749,000, but its price has been slashed nearly $200,000 to $550,000.

The 20 acre property includes four lots, one of which has a fully furnished home that has never been occupied. The property also features a private well, electricity, and guard. It was landscaped and developed to allow vacation-home owners and tourists total immersion in traditional Costa Rican flavor, walking paths, native animals, and a nearby family-friendly beach.

The most appealing part for investors is that the property has already been permitted and all the taxes are paid—this saves developers at least four years of paperwork. One of the lots also includes 1000 teak trees. Each tree is worth an estimated $500 when it matures in 2024. Even after a potential 20% of loss of trees, an investor could harvest these trees and make $400,000. This kind of return with very little upkeep is staggering.

An investor might live in the home while developing the surrounding lots or rent it out. The three bedroom, three bath home already has a bed and breakfast feel to it. Each room has a direct connection to the outdoor patio/courtyard. It also has a large great room that is perfect for gatherings.

Another option for investors would be to create casitas on the property. Casitas are small, secluded houses that have their own bathrooms, living areas, and kitchens. Vacationers love to rent these properties because they have more privacy than they would in a traditional bed and breakfast. Of course, the other lots are perfect for larger development projects as well.

This property is listed with Ackerman Realty International. The Ackermans relocated to Costa Rica years ago, and now they share their experiences and tips for moving to Costa Rica with others. Visit http://ackermanrealtyinternational.com/ for more information.