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I am considering new construction options in Jaco and have the list narrowed down to Concasa, One Jaco, and Jardines de Ensueno. I am looking for a one-bedroom property that is likely to yield positive rental income. Anyone have feedback?
Thanks!My boyfreind and I are doing our homework and want to know, does anybody know if the Trevor Chilton of the Gardens of Dreams project http://www.gardensofdreamscostarica.com in Jaco is the same Trevor Edward Chilton that has the “enforcement order” against him with the Saskatchewan securities division? http://ftp.sfsc.gov.sk.ca/ssc/enforcementorders.shtml
I am not investing one dollar (Candian or US) until I know
Edited on Jun 01, 2006 17:07
Scott:
I only have information on ONE JACO. Management is squirly and things are very unsettled right now. Some one named Beau and another person named cookie split ways and the deals seem very unsure right now.
I have also been talking to one jaco people for over 6 months now ( before it was called one jaco ) I have put on the brakes and am takign a wait and see attitude.
I guess they are only building 200 units now and the additional 100 unitss on the front of the property will be built by some other group.
Like I said, somethingds not right, I am waitign until I hear further or see them break ground.
When you say that management is “squirly” and something is “not right” what specifically do you mean by that? I don’t understand what you are referring to…
Scott Oliver
WeLoveCostaRica.comI just read the website for the “Gardens” project. Advertising these expected returns front and center on a cash investment or IRA purchase is really very aggressive. What bothers me is Trevor has blasted other developers as charlatans for making questionable claims and he is making wild eyed assumptions about returns on a project that has not even broken ground? The bottom line is no one knows what you will be able to earn, especially with all the competition you will be facing from within your own project, the established hotels and all the competing projects. Jacos hotel vacancy rates apparently are about 50% most of the year except major holidays. I know this as I spend about 6 weeks a year in the area and have several friends who own hotels just south in Playa Hermosa. Even if somewhere in the small print it warns you about the speculative nature, the bold predictions are what will stick in prospective buyers minds, this is how advertisers tap into our greedy nature and more or less manipulate us.
I must say it is difficult to get a feel for the market when not onsite. I was particularly alarmed by a rather lengthy article on the “Gardens” website:
http://www.gardensofdreamscostarica.com/articles/9-ConstructionforDummies.pdfOne Jaco is a solid project. It is being developed by the developers of Riverside Condominiums (http://www.RiversideCondo.com/eng). This is an experienced company this is an actual video of what we do http://www.riversidecondo.com/tour/riverside.wmv
We are not associated in any way with Mr. Fred Hansen (aka Beau). Cookie is still working with us and part of the sales staff.
We will be pleased to give any reference needed to customers.
Debbie,
Thanks for alerting everyone to the website link highlighting the SEC violations against Trevor Edward Chilton who is one of the proprietors of the development you mention. Once again that website was:
http://www.sfsc.gov.sk.ca/ssc/files/enforcementorders/trevoredwardchiltontemp-aug14-01.pdfImagine that…a shady, hypocritical, jealous, double talking, snake oil salesman developer in Costa Rica who buries the competition while peddling his own property. Did anyone see the developer’s website? The home page looks like something you would find on any get rich quick scheme late night infomercial splashed with big bold letter quotes like:
“Quality living with cash flow…”
“Have you built a tidy nest egg to invest in your dream, but are worried your hard-earned cash might evaporate…then worry no more.”
“Don’t miss the opportunity of a lifetime…”
HHHmmm…these quotes sounds like something straight of a boiler room sales office.And yes, if any of you have not I would encourage you to read the above mentioned article on the Gardens website in which Mr. Clinton throws Scott Oliver and I under the bus (but be willing to get terribly bored by the 27 page rambling in the process). I cannot wait to challenge Mr. Clinton’s unfounded plethora of misinformation. But wait a second, what else would we expect from someone who touts themselves as a former “broker of financial services” that was given in an 8 year sanction by the SEC in his home country of Canada. No wonder he ended up living in Costa Rica. Does this scenario sound familiar (see Paragon Properties)?
Lotus, I wholeheartedly agree with your thoughts on buying into pre-construction developments. At this point we are all speculating and hoping to capture a higher profit margin for the extra risk associated with buying in at the early stages of a project. Yet, if you were to listen to Clinton you would think he has bottled this magic formula for rental money in Costa Rica and you can’t go wrong making $1744 a month in passive income by investing in his garden of dreams. Never mind the fact that he has not moved any dirt yet -that’s irrevelant…just trust this SEC rules violator that everything he says will come to fruition. C’mon Slick Willie (I mean Mr. Chilton), who are you kidding?
For all of you who read my article and then Mr. Clinton’s remember that there is one major difference between the two of us. He is trying to sell you something and I am not! Like many of you the genesis of my relationship with Scott Oliver started through correspondence on his website and a subsequent live meeting in Costa Rica. I offered to write Scott an article (my idea not his) about my buying experience in CR real estate for his website because I noticed a lot of the web forum participants were asking a lot of the same questions I was. I thought it would be a nice token of appreciation to Scott for liberally giving his time when I was in CR. I wrote this article for FREE and expected nothing back in return. Instead, I was verbally bashed by some bozo who is pitching a competing development adjacent to the one I bought in (One Jaco). Stay tuned…as Mr. Clinton says the rest of the story is sure to follow!
Edited on Jun 03, 2006 20:09
I also wanted to comment because when we were there right before Easter (5th trip). The caretaker for the house we usually rent in Hermosa when we were there said that he was in Jaco talking to several of the Hotel owners and they said Jaco has been very quiet lately. He said the house development we rent from may need to reconsider the prices it is charging. He was saying that prices will need to be downward adjusted both in Jaco and Hermosa because they are not getting the occupancy rates they want. Of course makes you wonder with the development of hundreds of more rooms and condos going into Jaco, what kind of rental income could you expect? We too are interested in investing in the area but are waiting to see what happens with airplane prices going up etc. You can get to Hawaii much cheaper these days on a charter and with Jaco turning into a big city you might as well go to Oahu. Just a thought.
Koty I have been wondering the same thing…where are all these people who are buying? We have also been going to Playa Hermosa for about 5 years and for instance in December we rented a small one bedroom apartment on the beach at a small place called Costa Nera for $45 a night for 3 of us and the place was half empty all but Christmas week. I think it will be some time for the tourist business to catch up with the building hype. When I hear 50% sold at 1 Jaco pre construction I only hope most of these folks are buying for personal enjoyment and not counting on renting it out to justify the expense. If they are going into the “hotel” business they may be in for a surprise. My girlfriend and I often walk by the hotel Terra Pacifica in Hermosa and wonder how they stay in business, (maybe just the super low overhead?)The place is always empty! And it’s a nice full service hotel on a pristine black sand beach! Where do you guys stay?
We stay in the bungalows on the beach, those little raised houses on stilts just south of Hermosa. They are individual houses and BEAUTIFUL but kind of spendy and almost always deserted. I keep hoping they will lower their prices to be busier. Love them though and we have a 4 year old so we like having 2 bedrooms and a separate living and kitchen etc. Also the pool and ocean. We also stayed at the Timarai resort in Palo Seco last time and we were only one of 2 couples there for the whole resort. Again kind of spendy, small. We have stayed in Jaco quite a few times as well and only one time during my Spring Break was it busy (I am a teacher). We have been there 2-3 times per year now for going on 3 years. I don’t know, it makes you kind of go HMMMMM. Love the idea of a rental place but I wouldn’t bet on it. Bet the upkeep on anything in that climate is horrible too. Salt air and humidity. Hey dont mean to be negative but I know when we have been looking at investments they really try to push the rental income thing as a way of justifying the cost etc. But then most rental agencies also take 60% or more on top of fees etc. HMMMM….
Unless you have SIGNIFICANT experience in renting out vacation type properties, I don’t think that buying any home at the beach and relying on the monthly rental to cover your basic costs is a smart investment move, especially from a distance.
There are just too many variables.
All ‘projections’ are just that – ‘projections’ and if a builder is wrong with any of his estimates, or if construction costs are more than he anticipates – which we all know happens often to experienced builders never mind first time builders – then the whole idea of enjoying $XXXX per month in ‘income’ becomes mute.
I would encourage a real estate investor to think of it as a long-term growth investment where the idea is to buy at one price and hopefully sell at a higher price at some stage in the future.
Obviously for many real estate investors in Costa Rica, this has been very profitable but, it’s important to have enough money set aside to cover all of your monthly expenses whether you have any rental income or not.
“If” there is solid, no-headache income, then great! That’s icing on the cake but unless you already have some king of a long-term rental agreement in place when you buy the property, I would suggest that it’s ‘speculation’ to think that you will definitely have enough rental income to pay all your bills.
Scott
WeLoveCostaRica.comKoty: I know those little key west style bungalows well, not only are they pricey to rent I believe the ocean front units are $350k and rear units are about $250k(they are approx.600sqft.). You guys should check out http://www.casapuravida.com Wayne and Millicent are a lovely couple and have a young daughter as well. There mediterranean style villa has a few two bedroom apartments ocean view with a terrace. There is also a great common area with pool and restaurant style kitchen(the apartment also has a kitchen). The rooms are clean and comfortable with a tv, free local phone and real comfy beds. About $60 a night.
I whole heartedly agree with Scott, long term buyers (or perhaps short term for those getting in early)should see there investment appreciate. It seems people are buying to get in before it really gets expensive…only time will tell.
Edited on Jun 06, 2006 05:16
Edited on Jun 06, 2006 05:20
Thanks for the information about Casa Pura Vida. Looks nice, although I have been spoiled by the Hermosa Bungalows. We always go there last so we can wash and dry our clothes and just stick the dishes in the dishwasher. Its decorated like pottery barn so we always feel a little luxurious there. I agree with Scott as well. We are looking for something we maybe someday could get some rental income from or pay some expenses while we figure out how to move there or spend some more time there, if we had a successful rental pool going. Jaco is getting too commercial. We are patient. We’ll see as the real estate slows down in the states if people will be selling down in CR. Then we will jump in.
Koty
For pampering here are a couple of nice places to begin or start your Costa rica trip. FYI: two doors south of Casa Pura Vida a very nice women does laundry.
http://www.xandari.com and http://www.villacaletas.com you may know of them.
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