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http://www.jacobeachtowers.com/fractional.html
If sales were brisk, would they bow to this? Just wondering.
This website does not appear to be working this morning… Could you please explain what you saw otherwise I may as well delete this thread
Scott Oliver – Founder
WeLoveCostaRica.comWebsite worked for me and it is about “buying” 1/4 share in a condo allowing 13 weeks throughout the year. Ownership is through a costa rican LLC and fees are pro rated. prices start at $125K
Seems to me to be a “timeshare” type deal.
I’m not involved in this project… but if memory serves me correctly they marketed these units this way from the start. No change to “fractional” ownership due to a slowing market. I may be wrong but I looked at this project a while back while in Jaco. I seem to remember this was the plan from the start… and as such didn’t interest me. If the point is that they changed the marketing structure because of a slower market (which I agree we’re seeing) I think you might be mistaken.
Edited on Aug 29, 2008 19:54
Adding that level of complication to condos that people were supposedly lining up to buy doesn’t make sense to me. I mean, think about it, you are a developer, all you want is your cash, if a line of qualified and willing buyers has formed at the door (this is the hype from what I’ve read), why offer to make your sales task much more complicate by having to deal with 4 buyers instead of one?
If the developer has the line at the door, he doesn’t have to make the deal more attractive. I mean, if there are buyers who can’t afford a condo and others buyers according to the hype are supposedly beating down the door, why cater to the poor? If I was the developer, I would tell those that couldn’t afford a condo on their own, tough luck. From my experience, developers aren’t usually out to help the poor saps who can’t afford a condo, but developers do stoop to anything when the market is in a downturn.
To me, it is just another sign that CR is no different than any other place in the world, however since there are no official sales records in CR, any claim can be made.
Looking at their website: startingprice $ 124,750 (3 months) means 4 x 124,750 = $ 499,000 for a ± 1,045 sq ft (97m2) apartment. That’s a very nice price for a small furnished apartment. And the monthly fees ???
They try to sell a part of a small and far too expensive apartment to the “lower-upper-class” for a “nice price”.
OK, it is a formula like time-share and there is a market.
But also: buyers are not in line for buying real estate in Jaco.I think this can be a great option for people that are looking for a great unit without having to pay full price for it when they only use it a few weeks out of the year. This give someone the opportunity to have more than 1 vacation home. This model has been very successful in other luxury products such as Jets and Yachts. It might be the way for everyone but I wouldn´t say this option is available because of the change in market but more because the deveoper is looking to fill a void in the market. As for condos in Jaco. All the projects that are under construction on the beachfront are 70% sold out and alot of them more than 80%. The new projects are not selling because the developers are greedy and looking to make 40% returns and there units there overpriced. If the units where priced right then they would be selling. Also if you look at all the developing beach towns in Costa Rica Jaco is the only one that is Titled Beachfront and we are not seeing any drops in prices. And I don´t see them dropping either as everyone knows Titled Beachfront is a unique thing here in Costa Rica. So I would say that Titled Beachfront in Jaco Beach is dfferent from the rest of the world. We are definately seeing a slow down in overall people buying but I strongly believe that is because of a lack of quality product because the quality product that is priced right is still selling.
Edited on Aug 30, 2008 11:36
JBT has been offering the fractional ownership from the beginning. It is actually a very popular concept, but just hasnt taken off in Costa Rica. I dont think its fair to say that because they have not succeeded that all of Jaco condos are struggling.
We have two articles covering this topic on the site, one rather unfavourable article written by yours truly:
Fractional Real Estate In Costa Rica – Does paying 50-100% more than fair market value make any sense? Scott Oliver – 4th February 2008 which you can see at: [ https://www.welovecostarica.com/members/1705.cfm ]
And another more favourable article:
Costa Rica Fractional Real Estate Ownership which you can see at: [ https://www.welovecostarica.com/members/1698.cfm ]
Scott Oliver – Founder
WeLoveCostaRica.com
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