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Maravilla…another way to look at the situation. You said your home in Costa Rica is paid for. The money you have invested in the CR home isn’t making any money for you except for the fact that it is probably appreciating in value. But…you cannot spend the appreciation and if you ever want to replace it with another home in CR anything you would buy will have probably appreciated at a comparable rate so unless you downgrade you will essentially be swapping dollars.
Your home in Colorado is costing you money every month….mortgage, insurance, utilities, taxes and so on. This is money that comes out of your pocket every month. Let’s assume it’s perhaps $2000 per month. This money is not really adding value to your house other than reducing the mortgage.
Look at the “opportunity costs” of the money that you don’t have now that you will have when you sell the home in Colorado. Assuming you have a 2000 sq. ft. home and as you stated the building costs in your area are $264/sq.ft.. That’s roughly $528,000 that you could invest at let’s say 7% which comes to $37000 per year added to the $24000 out of pocket costs that you have a grand total of $61000 per year in income that you are not getting right now.
Add to this the peace of mind factor, and consider all of the pains associated with owning 2 homes (especially in 2 countries) and perhaps this will help justify that fact that you you may have to cut the price drastically but you will be in CR and it won’t be your problem anymore!! (just food for thought)
But dwaynedixon, didn’t your friend who “lives near Santa Ana in a condo” know that his builder would be building morte units? Or are you saying that it’s the same units …?
Scott
yep, we’ve done all those figures, and of course i’d rather have the capital working for me in costa rica than having it tied up in a house i don’t want to live in. the real estate agent will be here in an hour so maybe all of this will be a moot point by then — i hope so. i do have plans to build another house down there, so it would be good to have the money to do that, but now it seems that we have more work here now than we’ve ever had, so both hubby and i will have to commute back and forth for the next year or so, so that’s where keeping the house here just as a base seems like a good idea, regardless of the cost, which, luckily, is far less than two grand a month. still. . .it’s been a frustrating process in a difficult market. thanks for your input. i appreciate that.
Units are within the building that he resides. They’ve been empty for over 2 years and it is a nice place.
Posted in the wrong place and reposted here….
Posted Jan 20,2007 9:57 AM cliff mcleod
Two real estate sales ladies from Prudential talked me into holding out for top dollar and I picked up my check yesterday.At one point I called and suggested we lower the price not for any reason other than I didn’t want to face the coming hurricane (the house needed a lot of work)season,insurance,maintenance cost etc.I owned the property outright so no other pressure on me.Since I own another waterfront property and home I’m hoping this is a sign of the market picking back up,moving me closer to my goal of moving to Costa Rica.
Buena Suerta
Cliff Tampa,Fl.Clif Where is you other property? I am looking for Florida property. Could you email me?
Stan Putra
studly26@hotmail.com
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