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Just came across this article from “insde CR” any thoughts (first I heard of this and was under the assumption that most property was bought in full)
Buying Foreclosures in Costa Rica
Foreclosure properties in Costa Rica might just be the lucrative investment deal you’ve been waiting for in today’s waning real estate market. Property foreclosures are just as common in Costa Rica as are anywhere else, and as always, they are an excellent option for a serious investor.The depressed real estate market which is currently taking its toll on the USA and UK is also finding its way to Costa Rica, increasing the number and variety of foreclosures on the market.
This ideal buyers market creates the perfect opportunity to find excellent deals on foreclosed properties in Costa Rica. Why pay normal market value when there is such a great selection of foreclosures to choose from?
For both national and international investors Costa Rica has always been a strong market, with a good ROI on development and rental businesses related to upscale and luxury housing, second homes, and large infrastructure in the city centers. A recession may slow down the boom, but its growth has a momentum which will continue to fuel development for years to come, hopefully long enough to leave little trace of any recession before the market turns up again quickly.
Once the market stabilizes, Costa Rica’s popularity will return to its normal attractive state, and the resilient development drive will continue to spread throughout Costa Rica’s rich green land. This is the time to invest in Costa Rica foreclosures, right now and for the next 6 months, and receive the highest potential ROI in the natural cycle of any economy.
It is easy and legal for foreigners to buy property in Costa Rica, weather they are foreclosures or not, foreigners have the same legal rights as a Costa Rican national.
Foreigners can own property outright under your own name, or you can make the purchase through a Costa Rican corporation. Anyone can set up a corporation in Costa Rica and this is a common strategy for buying property in order so that any profits from rentals or capital gain are taxed as a Costa Rican company rather than as personal income, and allow for expenses including travel expenses to be deducted before net profit is calculated, although this may depend on where you are from.
When buying foreclosures in Costa Rica, as everywhere, it is important to remember to be open to the best investment opportunity, and not enter into your search with something too particular in mind.
Time spent browsing through the announcements will serve you well while you look for a property in a suitable area, within your planned budget. It may take some patience and commitment to checking the ads on a regular basis, but buying foreclosures in a depressed real estate market is one of the best investment opportunities available, and property investment in Costa Rica is certain to maintain strength and value for years to come.
Most property bought by foreigners in Costa Rica has been paid in full but Ticos like mortgages too… However, I would suggest that the impact of the US problems on the type of real estate that the Tico would normally buy has been tiny.
This is an incredibly general article with no specifics and which doesn’t give one single example of what’s possible and yes! There is money to be made in foreclosures ‘if’ you know the area like the back of your hand, ‘if’ you know the people that you are doing business with and ‘if’ you have an attorney who is an expert in this specific area.
Scott Oliver – Founder
WeLoveCostaRica.comThe foreclosures are listed for auction in La Gaceta, or more precisely El Boletin, under “remates”. You can look up the property in the National Registry to get the exact location and then go see them. Have a lawyer check it out that everything is OK. On the day of the auction, you need to have a certified check ready for half the base amount. Then you need to settle the rest in three days.
http://historico.boletinjudicial.go.cr/2008/09/bol_09_09_2008.html#_Toc208649722
Jon
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