Article on buyers and sellers

I would be inclined to agree with the article and the author. In October of this year, we made an offer for a four year old, two story, 3 bedroom, 3 bath, 2,500 sq. foot beachfront property, 20% below the asking price. The seller accepted the offer without hesitatation. There were smaller ranch style homes in our gated community, that had an asking price of $313,000.

I don’t agree either.
Of course the [i]’realtors, investment specialists, etc'[/i] are going to tell us that thing are improving.
I know a few people around different areas of the country that have dropped over $20,000 from $100,000-$150,000 properties and still can’t sell them. Or the more expensive ones. Those who have interested parties are being asked to provide financing.
Friends that are ‘agents’ have only sold 1 property in over 6 months. This was inexpensive, before the price dropped again.
Prices definitely have dropped…and they still are for sale.
I see on some website the ridiculous asking prices that are advertised that are [i]’junk’,[/i] many of them belonging to ex-pats who have lived here for many years and bought the properties for almost nothing, and they themselves have not improved the facilities.
And things are going to get worse once the new immigration rules go into effect in March and [i]’wanna be residents'[/i] don’t have the cash to obtain residency, plus purchase a house.
How many get $1000 in SS or pension?
People already are having problems opening bank accounts if they do not have a [i]cedula[/i], according to posts on various forums. Those of us that live here know an ex-pat that purchased multiple acres of land, and have put funds into subdividing them a few years ago, and have they sold many or any at all?
So ‘who’ is going to purchase the homes that are presently on the market? When they do sell, where are the sellers going. Home.

i read this on another site:

I actually think now is a good time to buy in the states and CR. I know several in real estate who say its a buyers market. Signs that I see that are promising:

1. The largest condo project in Escazu is empty. El Cortijo Las Laureles. They were selling tiny first floor units for $200k. A ripoff at that…. I bet the price is down by 40%. The Spanish firm that built this DIURSA is loosing their ass very quickly. I wouldn’t want to live there, but the fact that they can’t sell them, is probably a good sign for the buyer.

2. Several condo projects up the hill in Bello Horizonte ran out of money and just stopped building. I feel bad for the investors… One project has squatters….. locals that have moved in to bare cement construction. They were hanging clothes out to dry the other day. Sort of a symbolic gesture. Its ridiculous seeing half-built luxury condos… with poor people watching TV inside… cuz there are no walls. But, its a sign that the general market is at a bottom.

3. I have a friend who works for Coldwell Banker. He sold a house in CR in 2009. In his office of 20, he is the ONLY agent that made a sale in his office ALL YEAR LONG.

4. Chinese investors bought a condo project in Trejos Montelegre. Put up a big sign in Chinese letters… Banners in Chinese all over the friggin’ building. Three months later, the signs came down. I assume they thought they could sell the empty building to Chinese people at a firesale. The place is still empty. Either that – or the locals who dislike chinos scared them away.

Hire a good attorney. Put it in a legit corporation. Do a thorough title review. Make sure the zoning around the place is residential…. you don’t want a gas station to move in next door.[/b]

sadly, the trouble with any article when written by someone in the RE industry is that they have a vested interest in making claims that are far from reality.

better to get information from actual buyers and sellers. one should never be in a hurry to invest so there should be plenty of time to find real people who have bought and get it from the horse’s mouth. with the internet, it research, locating real people, is easier than ever before. you can also go knocking on doors where it makes sense, of course.

the article focuses on florida, however america is bigger than florida. i can get a nearly new 3bd, 2ba home north of dallas for 130K in a nice neighborhood. rural areas in many states offer the same opportunity. these days, i really don’t understand “investing” in RE abroad when there is so much opportunity at home with far less effort.

i do agree, however that buying a home to “live” in for those relocating makes sense, but still, there really isn’t any reason to rush into buying a home abroad.

[b]some of the article mentioned doesn’t make sense.[/b]

[b]article said:[/b] [i]”Costa Rica’s lifestyle benefits attract droves of newcomers from all over the world, which continues to fuel the market.”[/i]

what lifestyle, a foreign and unfamiliar lifestyle, a get it done tomorrow or the next day or the next day or the next day lifestyle? i guess that is appealing to some. america is huge!!! i can’t imagine not being able to find a community where one can not fit in.

[b]article said:[/b] [i]”Abandoned homes in Florida are a dime a dozen, while Costa Rica’s inventory of quality homes is almost a just-in-time pace (albeit a slower pace) in most areas.”[/i]

so from a supply and demand point of view, florida would offer a much better deal. quality of homes in america… come on, they are built to local codes where inspectors actually visit job sites to inspect. for a buyer, i don’t see any benefit in the “just-in-time” pace.

[b]article said: [/b][i]”Lending has become nearly impossible on U.S. homes and more difficult in Costa Rica.” [/i]

that is true for condos in america, but completely false for homes if the buyer has good credit. good credit: something that was a routine expectation in the past and now the expectation has returned as it should.

[b]article said:[/b] [i]”A $100K home in Florida might seem like a great deal, but it has a much higher cost of living associated with it with higher health care costs, significantly higher property taxes, high home insurance costs and there’s the need for A/C in a difficult climate, etc.”[/i]

home insurance rates still aren’t that bad in america. higher property tax for far greater services (get what you pay for… like smooth unbroken, handicap enabled sidewalks and bridges that aren’t made of wood planks for example…. the list is long when compared to CR). florida is a no income tax state, gasoline is fairly cheap there, many fruits and veggies are grown there so cost of living in FL isn’t so bad compared to other places in america.

My we’re full of generalities, assumptions and pure BS here..

“I bet the price is down by 40%”

“I assume they thought they could sell the empty building to Chinese people at a firesale…”

“Friends that are ‘agents’ have only sold 1 property in over 6 months.”

“I have a friend who works for Coldwell Banker. He sold a house in CR in 2009. In his office of 20, he is the ONLY agent that made a sale in his office ALL YEAR LONG.”

I also have friends at Coldwell Banker and I’ve just got off the telephone with one of the owners of the Master Franchise for Coldwell Banker in Costa Rica who confirmed quite categorically that there is no Coldwell Banker office in Costa Rica that has even ten agents never mind 20 so it’s your information Garland that is “far from reality.”

And having been through process a few times, I can assure you that getting a mortgage in Costa Rica to buy a property in Costa Rica even for someone with superb credit is NOT at all easy.

Scott

PS. And “… better to get information from actual buyers and sellers” is NOT at all easy to do in Costa Rica.

Costaricafinca,
Thanks for your input. I am cautious by nature when it comes to the stock market and properties. My friend in CR, and also a business owner in CR; formerly owned a series of construction companies in the U.S., basically he told me the property deal was so good, if I did not buy it, he would. I practice the following with caution and research, “Buy when others are selling; sell when others are buying.” Take care.

Has this “Garland” guy even been to Costa Rica??

“the coldwell banker claim did seem a bit over the top, i agree. ”

Over the top, or straight BS? Did you just happen to make that up? Is that how you back your opinions, with BS you make up??

I am not going to say I agree nor disagree with the article as I am not a professional involved in Real estate and any viewpoint offered would just be an opinion. However I can note a potential buyer new to Costa Rica could learn a lot from reading it. It is true that its more of a buyers market then a sellers market right now, just like pretty much everywhere else in the world for that matter, so always make a lower offer first and then go from there.

Everyone buys property for different reasons. I would not advise purchasing property as an investment while properties are declining, as you well never know where the true “bottom” is in the market until it happens.. But if you are looking for a more affordable home, or beautiful property, to live on and to enjoy, I think there is no better investment then a property you can use and live on, or live off of. It will always be yours, (given your not in debt), and unlike fiat currencies – even if it losses value, it will still have plenty of uses and offerings for the future (plant fruit trees, and your property will always be giving you ‘somethin”!)

Property in Costa Rica is very desirable for many reasons – and none of those things have evaporated. WIth the current economic climate it may not be the “double your money in a few years” invesment.. But Property is still affordable, the country is still beautiful, all the things that drew people here before have not disappeared, plus, its more affordable to buy property now. Its also true that the market here (unlike much of the world) is not tied to mortgages that should never have been issued.

Though its obvious that no part of the world is “uneffected” by the current economic crisis, Costa Rica included, Costa Rica is far better off then many pats of the world, for many reasons.