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I have just read online from amcostarica.com that the boom on realestate on the central pacific part of the country and all over is declining .That people are pulling out and losing money. They also said that Ticos say that they do not really like foreigners.They just pretend so that they can take advantage of us. This news …is it true? I am upset hearing this .We are leaving Wed. for Quepos to view our land purchase. Do I have reason for concern? Please say this is bull—-.
Garland Baker is a very intelligent human being and I value his opinion, but it is just that – an ‘opinion’ which he is certainly entitled to but, where are the facts?
What facts show us that the Costa Rica real estate “boom” is over? There are none and unfortunately, those facts are very hard to come by. The article is full of suppositions and very little substance.
He states that “The seller’s market is probably over here.” Not exactly definitive is it?
Saying that the “Evidence for slowdown is via word-of-mouth” is convenient but I could also give you “Several candid reports from the Pacific” that clearly indicate that many developers and real estate agents I know have never been busier.
Like every other real estate market, there are areas of Costa Rica that are frothy but you can’t paint the entire country with that same brush without giving us some concrete evidence.
And just because some people in the USA have used “second and third mortgages” in the USA to buy property in Costa Rica, doesn’t mean everybody has…
Buying real estate anywhere is a very serious, long-term decision and if you are managing your finances prudently and not overextending yourself, you should not have a problem.
However, if you are leveraging yourself to the maximum in the USA to buy real estate in Costa Rica, it’s only a matter of time before you will face some serious financial pain.
PS. You do know that there are other people in the world that are buying Costa Rica real estate? More and more Europeans are buying real estate here and real estate buyers there are thrilled that the dollar is plummeting.
PPS. You’ve heard me say it before and I’ll say it again here about how Ticos “take advantage of us.” In the seven years that I have been studying the Costa Rican real estate market, I would say that more than 90% of the scam artists, rip-off merchants and other real estate fraudsters that I hear about have been North Americans ripping off other North Americans and NOT Ticos.
Scott Oliver – Founder
WeLoveCostaRica.comI personally would not be surprised if the Costa Rican market cools down a bit. Being from southern california, we have been waiting for a calming in the real estate market and it is now occuring, not only here but all over the US. The way I see it, many in the US were using appreciation of homes to buy “things”, including second homes, etc. I think this source of income is now slowing as well as the increase in the interest rate which will have a strong negative effect on those who overextended. In addition, the world is now at least somewhat turning into a more global economy which will no doubt have an effect on foreign properties. And lastly, the problem with tracking the trends of the market in Costa Rica is the lack of a MLS (multiple listing service)which makes it quite difficult I would imagine to accurately know what is really happening. I would suggest using caution, do your research, and invest in something that you want to hold onto long term. I would be very careful about pure speculation investments at this time. But hey, thats only my opinion.
The developers created a feeding frenzy by telling everyone to buy buy buy and pay later playing on the fear that if you didn’t get in now you would never get in and using places such as Malibu in the 50’s as an example. Even here in Colorado we are dead in the water with real estate, especially up here in the mountains. I’ve had to get a Bunny Rabbit With Fangs real estate agent to try and sell this house so I can move into the one I built in Costa Rica. Two years ago the market was hot like a poker but now there is a glut of homes and with the gas prices soaring it would cost someone an extra $50 – $75 a week in gas to get to work so who wants to live in a remote area? I’m sure the market in CR will level out eventually, when the sharks are finished preying on those they lured into the shallow waters.
I echo the previous statements:
The real estate market in much of The u.s. is questionable and Arizona is on a downslide after an abnormally high 2005 .
Sellers are selling at high prices and buyers are waiting for everyone to blink so they can buy low.
See the problem? Houses sitting forever unsold! Builders here have been building at a furious pace and now there is no demand for housing and even the builders stock is dropping.
Your news is just what I would expect to hear at this time.
Kenny S>Two years ago my house was appraised at 45 grand more than I’m asking now, so the inflated housing bubble in my area has burst, although Johnny Depp just bought a big piece of property across the road from me, so I guess it still has allure for the Hollywood crowd. I would expect that a similar thing will happen in Costa Rica when a lot of the people who bought on an adrenaline high realize they don’t really want to live there. they will try and sell then there’ll be a glut of homes in the beach areas and eventually the prices will drop and a whole new bucket of chum will be thrown for the sharks . Did I read a stat somewhere that said 40% of the people who move to Costa Rica leave within two years? I won’t be one of them, but I predict there will be a lot of exiters in all areas when they discover the real ins and outs of living in a third world country — you know, all those bugs, the rain, and those stubborn Spanish speaking folks who won’t learn English!
Ha! Ha! I really appreciate your views Maravilla! I always look forward to reading the discusssions but especially like and usually totally agree with you! I plan on moving to Costa Rica and staying for good as well, I’m just hoping to beat the residency deadline.
Have a Great Day!
You may wish to take a look at your news source again today for some excellent ‘letters to the editor’ regarding the “horrible” real estate news you had originally referred to …
I love Jeff Fisher’s sarcastic letter.
I’m sure you’ll have a great trip.
Scott Oliver
WeLoveCostaRica.comAfter I posted that message I started wondering about the people who decide to move to Costa Rica without having been there. Or without having ever lived in a Third World Country. And no, Miami and Los Angeles don’t qualify! For me, I knew immediately I wanted to live there but then I’ve spent lots of time and lived in remote parts of Mexico and the Yucatan — I spent two months once in a little (very very little as in only 5 people) fishing village with no electricity and running water. I was very happy there and didn’t miss anything about the US, even my bed, which had been exchanged for a hammock and a mosquito net. But for the average gringo who picks up and moves out of country to a place where everything is foreign spells future disaster to me. Besides the language one has to have some basic understanding of the culture, it’s mores and attitudes, and I wonder how much prep some of these people really do before taking the plunge? Then when it doesn’t work out, they have negative thoughts about the country they fled — like the woman who said, after two years, she was throwing in the towel for these 3 main reasons: They speak Spanish, it rains a lot, and there are bugs! Where did she move? The JUNGLE!!!!! Well, DUH!! I can only imagine the stories she is telling back in the States about her adventure!
Some of those letters were pretty funny. Some elderly friends of mine went to Costa Rica and when they were in San Jose they left their hotel at night after being warned not to and walked through the park looking for another hotel guest who had gotten drunk and wandered off. The elderly couple got mugged in the park. They weren’t hurt badly but they were soured on Costa Rica. They live outside Chicago, so I asked them would they have walked through a park at night in an unfamiliar area in their home city? Of course not they said, but they thought things were different in Costa Rica. Oh, boy, it harks back to my favorite motto — you can lead a horse to water but you can’t make it think.
My father tells me that the real quote is actually “You can lead a horse to water but all you’ll get is a wet horse.”
Scott Oliver
WeLoveCostaRica.comThere is a very interesting article in I believe the June issue of Fortune magazine on baby boomers and retirement. In my opinion there may be an inverse relationship regarding the U.S. market and Costa Ricas. With pensions near non excistent in the U.S. and 401 k plans looking more like 101 k plans the low cost of buying a house and living in places like Costa Rica should make it an appealing retirement destination.
That who they’re marketing CR to! Us Boomers who won’t be able to afford to live in the US after all the corporate corruption wiped out our savings and retirement plans, and then how many people fell for that scam of ARMs and taking out 125% of the equity in your home to pay off credit card and other debts from buying too much stuff they didn’t need and couldn’t afford. Nobody has any equity in their homes anymore. It’s just a place to store all that useless stuff they bought. Nicaragua and Costa Rica are about the only places poor boomers will be able to afford to live on their meager SS payments. Just wait — in a few years they’ll be pushing El Salvador and Guatemala as retirement havens after the first wave of exiles buys up all the good property!
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