What Area Is Best For Me?

[swhibley]

Hi guys, these discussions are just what I need. I am looking to buy a place in Costa Rica, Dominical region actually. I am just wondering how you all decided on which area’s to buy property in. What was the determining factor? Did you hear about your respective investments via ads in Canada, USA or where ever you are from?
Who are the primary foreign residents of Costa Rica? how do developers advertise, cus i havent seen anything around here (British Columbia, Canada)

I would appreciate your replies.
Cheers
steve

[jasman]

Many, many times I have seen messages from people who say, basically, “I want to buy property in Costa Rica and then move there.” To me, this seems like a bass-ackwards approach. I think the smart thing to do is to move to Costa Rica, rent a house or apartment for a year or two, and during that time explore areas where you would like to live permanently, do all the research and “due diligence” stuff, and THEN buy the property. It’s a lot easier to do all of that when you’re in-Country, rather than trying to do it in absentia while living somewhere else.

Never, never buy property from an internet or TV ad, or pay any money for anything you haven’t personally seen.

Edited on Apr 27, 2006 12:45

[Andrew]

Here are just a few of the questions we ask BEFORE recomending a real estate professional at

1. What is your ideal temperature? There are many micro-climates in Costa Rica
2. How good are your Spanish speaking skills if any?
3. Is education a factor? Do you need schools nearby for young children?
4. Are there physical considerations? Does the home have to be on one floor?
5. How much land do you want?
6. What amenities exactly are important to you to have nearby? Shopping? Movies? Theatres?
7. Do you have pets that will be here with you in Costa Rica?
8. How many hours do you spend online weekly?
9. What hobbies and or interests are important to you?
10. Are there any medical requirements or disabilities that must be considered? Do you have to be close to good medical care?
11. How many minutes would you be willing to travel to buy your groceries & supplies?
12. How far (in time) would you be willing to go to the nearest international airport?
13. Would you prefer to live near a specific church or a temple? Is that important to you?
14. Is this a property that you will live in full-time or only part-time?
15. Will you be retired? Or, planning to work or start a business?
16. Some area s are MUCH more affordable than others so knowing your budget is crucial.

Scott Oliver – Founder
WeLoveCostaRica.com

[swhibley]

Hey jasman, thanks for your reply. Of course I would never buy without looking at the property. But in a simple search for Costa Rican properties online, hundreds upon hundreds of options pop up. I want to know how people narrow the field.
Also, while I do appreciate that it would be ideal to live for a couple of years in a location prior to buying, for some, such as myself, that is not an option. I have already been told, on several posts, ‘Never buy from a Costa Rican real estate sales person’ though I am not entirely sure why, except, perhaps, due to the total lack of regulatory bodies. But regardless, I had already determined that I would be buying from a developer in a location that I could rent my villa out when I am not using it.

I was wondering about how developers advertise, who do they advertise to? do developers have billboards in Costa Rican resorts? Are guests taken on real-estate tours similar to the Mexican ‘time share’ tours (i hate those things)?

[swhibley]

Thanks Scott; so do you get many people coming to you (as the founder of this site) for recommendations? Where do you get your ‘top picks’ from (so to speak)? How do you determine which ones to recommend? Are there developers that are notoriously bad?
–I would really like to know the answers to these questions—

For myself personally; I think (I stress Think) that I have narrowed down the location to the Dominical region. I liked the ‘sleepy’ feel, good surfing, and close proximity to some eco-reserves. And I am confident that my Spanish will come. But even still, the dominical offers several options. Any suggestions.

[Andrew]

I have hundreds of people per month asking for recommendations and where possible I recommend the best possible real estate professional in an area or, as you can see from the new section about developers at , we will recommend a specific developer.

This new feature was created at the request of numerous VIP Members who have asked us repeatedly to recommend proven Costa Rican real estate developers building quality homes.

These Costa Rica developers have been INVITED to participate and I will have personally met with them, I will have taken the photographs and after significant research (which they do pay for) must conclude without doubt, that the developer has PROVEN experience in Costa Rica of delivering a QUALITY real estate product.

If during our investigation, it becomes apparent that for whatever reason I feel I can not recommend them, our contract stipulates that I will refund 100% their money within 30 days.

For legal reasons I can NOT state which project are “bad”. Libel and defamation are CRIMINAL offences in Costa Rican law and not civil offences. This means that I can get royally screwed even if I am telling what I feel is the truth about something.

Scott

[swhibley]

Brilliant, i would be extreamly interested in knowing if, for one, you recomend the dominical region, and two, if you have a particular development in this area that you would feel comfortable recomending.

thanks for your help
steve

[DaveT]

Hello,
I just got back from Costa Rica last week and these are the screening type questions I used when I talked to various developers.

* Tell me about some of the other development projects you have worked on specifically in Costa Rica? How long have you been developing in Costa Rica?
* Can you provide a cross-section of references to me from buyers, lawyers, etc. that you have worked with on these past projects?
* Why did you decide on this location?
* Who is your target audience/market? I like to ask what percentage of existing or prospective buyers are investors v. retirees, families, etc. remember too many investors buying in one area is a key ingredient to a real estate bubble.
* What kind of other development activity is going on in the area or who would you consider your biggest competition (I like to know this in order to get comps)?
* What is the status of the infrastructure on the property? This is particularly important if you are buying raw land.
* How was the price of the land/property determined a good developer will have quantifiable data to support their prices…then go out and research the area yourself – talk to people familiar with the area, especially anyone who does realty for a full time living, etc.
* What does the developer foresee as the biggest challenges that they will be confronted with (i.e. try to pick up on things that could go wrong or that could be interpreted as red flags)?
* Will my reservation money be used as working capital or put in escrow?
* Do you receive titled land with a folio number or shares in an existing corporation?
* What makes there project different do they offer a competitive edge (i.e. larger homes/condos than are typically available, better communal amenities, multiple floorplan options, etc.)?
* What is timeline for completion of the project?
* Do they offer in house financing for the project they are working on?
* Is my reservation money refundable and tell me the worst case scenario of what can happen with the money I invest with you?

You are on the right track though. One of your first priorties should be to focus on a specific region within Costa Rica based on the questions that Scott has listed. You will get quickly overwhelmed if you focus on too large of an area.
Good Luck!

[swhibley]

Thanks Dave, i appreciate your reply. i never even thought about some of those points; i will now though.
most appreciated

mind if i ask what area you were looking at and why?
one more thing; mind if i ask how you determined which developers to talk to? did you search on your own? see some advertising? get a mass email? how did you narrow the field?

cheers,
Steve

Edited on Apr 27, 2006 14:52

[jasman]

Steve, since I like a moderate climate, enjoy “small town” type of living, while having easy access to the advantages of the city, I have decided to use Heredia as a home-base when I explore Costa Rica. Any of the smaller towns around the Central Valley, within a half-hour bus ride to San Jose, would work just as well. I am going to take MANY vacations to Costa Rica before I actually move there, probably two weeks to a month at a time, and that will give me the opportunity to do a lot of “touristing” while also scouting for locations to settle. That’s my plan. That may or may not work for you.

[swhibley]

did you just use the internet to search for places in Heredia? or did you ask someone for advice? how are you planning on figuring out which place you will buy? are you just planning to do a lot of foot-work?
that is my main issue.

[jasman]

When I find it I will know.

[Author]

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