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[quote=”caliskatari”]Garland seems to ruin every thread he enters.[/quote]
Do you have anything to contribute to the reason i started the thread?
Versatile, i honestly think the author of the article got it right and wrong (no one is perfect). i think you should do as you have been doing, gather your information from multiple sources. of course, feet on the ground in CR is a must.
the main question in your OP, “are there huge discounts on coastal properties?” in this market, it sure seems there would be especially since they had to turn jaco-one into some sort of hotel. i’m thinking the level of the discount would depend on the owner’s situation so it could seriously be huge whereas some might be the typical 10 to 15 percent. for me, if i see jaco-one become something other than a hotel, i will feel the market has truly turned.
many will probably disagree with me, but i think whatever the discount is now, it will get even better with time. just my own opinion based on my own general knowledge gained through listening to people in CR talk as well reading.
I have been a real estate investor for many years (not a speculator/there is a difference). And very successful at that.
I’ll keep it simple (but not short)
One: many see real estate as a speculative investment: a way to make money on a commodity. That’s sad because speculating in real estate ruins communities and skews housing markets. This prevents people that need a place for their families from finding one because lenders do not want to lend in an unstable market. Witness the present.
Two: You have to be a maverick, which means not running with the heard. This is most difficult for most people. This year looks like the best year I will ever have in the stock market. That is because of last year. I bought stock in most remaining banks after the crash. Need I say more?
Crisis brings opportunity but most folks don’t have the fortitude. They have to run with the heard.
It’s obvious that real estate is the place to put your money. Why? Because it’s cheap. Its the most valuable commodity (you can live on or in it – unlike gold), and unlike gold it’s not oversold.
I am selling my metals right now (I bought silver at $6 quite some time ago). (This leads to my third point about real estate investing). I am also selling some lots in the US. I am also buying more real estate in the US.
Selling and buying? What goes?
Price, that’s what goes. I am selling lots I paid under $1000 an acres for at $5000 an acre. Do I think the price on these lots will go up? Yes. Why am I selling? Its called 400% profit… You can’t go broke taking a profit.
Why am I buying, because there are other “depressed” property that are magnificent that will never be seen at this price for a long time if ever.
Real estate speculating, as all speculating, is for professionals with the guts to buy low. If you are an ordinary person, play it safe and [i]invest [/i][u][/u](not speculate) by buying your home because you love it and will use it. Not for what you think you can make on it.
Also, Costa Rica lifestyle is one of a kind. It’s found nowhere else. It’s rewarding to those who move here to be like the Ticos. It’s frustrating to those who wish to replicate their lifestyle in the US. Erin Van Reean and Phil Baker have the two best books written about Costa Rica. Van Reeans [i]Living Abroad in Costa Rica [/i]is written best but I like Baker’s book ([i]Phil Baker’s Costa Rica Now[/i]) because of the real estate angle and owner’s manual chapter, and the way it’s laid out, but both point out that you need to integrate with the culture. If you like the culture, beauty, and lower cost of living, as I do, especially the beautiful people, than this place is unbeatable. If you can’t handle “different” and don’t want to speak Spanish, I would say don’t buy here. Baker hits the nail on the head when he says most should not buy real estate to speculate, especially if you don’t want to live here and don’t want to speak Spanish.
Last thing I have to give Baker’s Costa Rica Now credit for is where he says, “follow the infrastructure.” That’s simply golden advice. Where did Costa Rica boom last and why: Liberia airport. So where is the infrastructure being built today: San Jose and the central west coast.
So to sum it up, all the anecdotal evidence is fine, but if you don’t love the country, and you don’t have the guts to buy when nobody else is buying, and you need to be sure of the exact bottom of the market before you buy than I doubt you should invest at all, let alone speculate.
On the other hand, if you love the country and you want to own here, than now through 2011 will be the best times to buy (because of the double dip recession). When gold and stocks become oversold, the money eventually moves to real estate.
Ecellent comments by 2BNCR. This is the philosophy that has worked gangbusters for me for three decades. All of these points are spot on!
The excellent opportunities now offered in Costa Rica are enhanced by the pleasure of living in and experiencing the culture of this remarkable little country!
great reply 2BNCR. i liked this part best “Why am I buying, because there are other “depressed” property that are magnificent that will never be seen at this price for a long time if ever.”
i don’t know about CR because there is no systematic valuation for RE in CR, but in the US market, in some markets, housing is priced lower than it would cost to build the house. this is an amazing time for buying. you can also buy, then rent, and rent will actually cover mortgage, insurance and taxes.
with that said, i’m still favoring stocks. considering the DOW was at 14000 not so long ago, getting back to 14000 once the economy picks up, shouldn’t be that difficult. of course, i can’t say where the market will be in 5 years, but i’m thinking it will be beyond 14000 so i’m willing to stay put in stocks (less work, less hassle). i don’t want to be a landlord, because as i said before, for me RE is about buying to living in. i really can’t get passed this feeling toward RE “the more you own, the more it owns you”.
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