I know, I know.., as a potential investor you have heard the promises, read the firesale articles day after day, and you’re still having a hard time trying to figure out when and what is truly a great deal here in Costa Rica.

I see this problem time and again with our coastal clients who with each passing year are more and more educated.. and at times miseducated.. when they arrive to our inbox or doors here in terms of knowing what is out there for sale, pricing, length of time on the market, etc.

The internet and the availability of information both correct and incorrect, have dramatically changed the way our clients look at potential investments. In today’s market where Realtors and sellers have desensitized the meaning of words like “firesale” by applying them to any property which has seen a price reduction of any significant value.

It is important for investors to stick to a few basic principles when they are evaluating Costa Rica real estate investments, which not even the smoothest of real estate sales persons can out “talk”.

• Supply and demand rules: When you are looking at a potential investment here in Costa Rica or anywhere that is anything but a personal use purchase or dream home, in which case you can and should shop with your heart and find something you love at a value you are comfortable with…
• The key to making sure you are making a solid investment is understanding – or finding a Realtor who can help you understand – the supply and demand dynamic of the area you are purchasing and why the property you are considering is a good value.
• If it is a condo… how many others that are the same or similar are for sale? And at what prices?
• If it is for rent.. how much rental competition is there? And what kind of numbers are they producing?

I have the pleasure or working in Manuel Antonio which is a very small market in terms of total product, but with an incredibly high demand ratio.

Pricing can vary greatly depending on the motivation of the sellers and types of properties, but it is quite simple to make a market analysis here and realize when properties are simply being reduced from a grossly overpriced point or if they are truly values in any given market.

Your investment should hit a unique price point, design quality, location, etc. that sets it apart from other product for sale or rent in the area of interest. If it doesn’t make sure those huge price reductions are enough to warrant the investment.

Know what your goals are for investing. A great deal on a property that will not serve your investment goals is not a good investment. My wife, whom I love very much, and I had this argument once. She came home.. look at what I found on sale.. just $10! Can you believe it? Yes, a true value, great price, etc. but I simply don’t need and won’t use the do it yourself hair clippers… Especially at the rate my hair is falling out!

In short, don’t ask for the best deal on the market, work with your Realtor and find the best deal that suits your vision and goals for investing.

Know that most of Costa Rica is not chalked full of financed backed price gauging like the USA where the market rises and collapses in unison. As this market, especially on the coast, was driven almost entirely by cash purchases with very little holding costs, there are simply many sellers who can and will wait for better days to sell.

Don’t be distraught or confused by all the variance in pricing, where at time you can see one house at $2,000,000 and one next door at $750,000. One has a seller who needs to sell, the other represents where the market was and one day might be again.

It is tough to analyze markets in Costa Rica as you would in the USA or Canada so find an experienced Realtor who listens! Who asks you questions to help truly define your goals and who can be your head while your heart leads you to a good value and purchase.

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If you have ever dreamed of living in the Manuel Antonio area and would like to know more about real estate for sale please contact our Recommended Costa Rica Realtors Daveed Hollander, John Wieland and James Drews by using the simple form below: