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https://www.welovecostarica.com/public/1900.cfm
This latest article is quite surprising. This was one of the biggest factor that helped fuel the biggest real estate market crash in the US today. Probably most people don’t know, the people in trouble right now are not only the subprime borrowers but also those that took out home equity that they thought existed, when it was just an overly inflated real estate market.
I see several things happening here with this new home equity offering in CR: it MIGHT just get people in more trouble and thereby lose their property for a small amount of equity loan (why: because RE here in Costa Rica is even less solvent that in the US, which can truly get you in trouble if you are in need of cash); it MIGHT start promoting tapping into equity (which was called “making your house an ATM machine”).
Just some thoughts.
New banking products and better banking services are supposedly a sign that an economy is developing and improving.
What many people find puzzling and you can include me in this is that the US has always been on a mission to export it’s financial expertize (Ha!), it’s form of capitalism and plastic democracy around the world.
Why the rest of the world even listens to us anymore, I have no idea.
What was it that was said in this forum that was the definition of insanity? Something like you keep on doing the same things, the same way, you will keep on getting the same results.
Like the US, I guess Cost Rica can look forward to massive unmanageable debts and deficits with a crumbling real estate market and numerous bank failures but at least Costa Rica is not in a position to start the third world war.
We in the US are far more capable than anyone else to do that, in fact we’ve already started it.
Pura vida!
But why do you think real estate is less solvent here than in the US?
my guess is cause in CR there is not a long and stable history of a proven market thats going to last
one of the things the usa does is has home ownership as part of many industries that make it stable…….banks own part………lend money to buy it with reasonable repayment terms which people are willing to risk
appraisals… title insurance……laws that favor the owner…..not the squatters.. ..jails for people commiting fraud….and all backed up by a kick a** military
(no im not a war promoter…just stating the fact)
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