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We are thinking about purchasing one-bedroom apartment in OneJaco project. The price is 165,000, on the second floor, about 1 mi from the beach.
We will not be able to use this apartment for several years except for 1-2 weeks vacation. Would it be a good investment, will it be appreciated as they think, will the property management work well?
Please give us advise.
Thanks!!!!!I will be writing about this specific project next week. I was in Jaco this week and actually slept on the property that they will be building on…
It’s gorgeous and only about 1KM from the beach. Second floor apartments will not have an ocean view but the apartments from the fifth floor up should have a good ocean view.
I can tell you that the apartments they have built in Escazu are now being resold for about 40% more than they were bought for about one year ago… There is no doubt in my mind that this unique “luxury condo RESORT” project will be a good investment which may be one of the reasons they have already sold 53 of them
Unlike most developers, Josh (the developer) has a PROVEN rental program in place with a full-time person to handle it. Their project in Jaco will also have a convention centre which will attract a lot of people that will “have to have” somewhere to stay.
There are also plans to have a casino on the project. If this was in Las Vegas, you would be paying $600K+ for that $165K apartment
Scott
Thanks a lot!
Can I deal with them directly or I need some kind of middle people (agent, attorney) to slose the deal. Are they reliable?I have full faith in these people and recommend their Escazu project here on my site.
Having said that, I would also encourage you to visit their project in Escazu which would give you the confidence you need to make a sensible decision.
The last people I took there on Friday bought two apartments in Jaco and they are pretty sophisticated real estate investors from the US.
Let me know if you would like me to arrange for someone to pick you up and take you over there.
Scott
I’d save your money and invest closer to home.
If you can’t use the property except for 1-2 weeks a year, what’s the use? If anything should happen that requires your sudden presence in Costa Rica, you are up a creek. Remember, the more you own (especially property) the more it owns you!
The other thing I don’t like about this property is that it is just a 1 bedroom. A 1 bedroom is like a hotel (and a prison) so as a rental you are competing with hotels. It is different when you are renting a large home for a group where the group wants to save by doubling up (like sleeping 4 to a room) and wants to save by eating in. A 1 bedroom in a foriegn country that is likely more than 2000 miles away from your home-base *to me* has a lot of minuses especially since you can’t use it for more than 1 to 2 weeks a year. Even when you can use it, do you really like Jaco enough to want to be there day in and day out? Jaco is outrageously expensive and it is more “American” than anywhere else in the country so are you looking for a “foriegn” experience or an “American” experience far far farrrrrr from home? There are better places to buy in Costa Rica and better places to buy (for investment) in the USA.
Also keep in mind that the RE market is cooling in the USA and it will cool in CR (my opinion… lots of opinions out there). RE profits in the USA were likely invested in CR and with less USA profits to be made the less CR will get. Sure you’ll still get retirees going to CR, but not as much the casual investor. Do take into account that many retirees don’t buy since many of them (something like 60%) return to the USA after just 2 years in CR.
Also consider that a condo is a condo is a condo – nothing special about a condo so when you want to sell, if that should happen, your condo will likely be on the market with a lot of other condos. Maybe the beach will be to your advantage, however there are many huge condo developments in SJ where the developer has been long gone for 2 years and yet the developer STILL has empty units for sale.
These units in Jaco are selling, but step back from the hype for a moment. Realize that many many many more developments will come to Jaco in the years to come so you’ll have plenty of opportunity to invest and live in Jaco if you choose later in life. Future new developments will keep the prices in check – it won’t make sense for property in Costa Rica to cost more than property in the USA for God’s sake. Keep in mind that, as a rule of thumb, future developments are always better than their older peers because construction materials get better and technology gets better and all this can come at even a lower or very competitive price with respect to the older peers. New construction usually tries to out-do what is currently available so this could hurt your investment. Like any investment – the risks are there.
People will tell you “these things are selling fast” so get yours while they are cheap – CAREFUL!!!! Bottom line is just be careful and consider investing closer to home. The USA is still very profitable (long term and in some cases the short term) and will continue to be profitable.
I’m not completely down on CR – just careful about investing there.
You are right in part but there are a few things that are not correct and one statement that’s just bloody silly…
1. They are NOT all one bedrooms at all so let’s do some research before we start making those kinds of statements. There are plenty of two bedroom apartments at One Jaco but they obviously do cost more than the one bedrooms.
2. What exactly is “outrageously expensive” in Jaco? Compared to what? Real estate in Jaco is dirt cheap compared to Playa Hermosa and many other areas in Guanacaste, dirt cheap compared to Tamarindo and a pittance compared to Grand Cayman, Bahamas or any other Caribbean real estate. And if you want to compare price per square metre, these projects are very competitive indeed with what’s presently available in Jaco.
3. I don’t honestly think there are many “better” places to buy in Costa Rica as far as quality and price is concerned otherwise I would not recommend it but would be delighted to review your suggestions. I travel up and down this country looking at real estate, meeting with developers and real estate professionals, write books about it and can’t honestly think of developers that I have a higher degree of confidence in …
4. There may be some developments in San Jose with many apartments left for sale but that would NOT apply to the two developments that I am recommending – CONCASA and Riverside (the people behind One Jaco) have sold everything they have built. The people behind Riverside have sold all of their Tambor homes and they haven’t begun construction yet and both of them have already sold a significant number of their Jaco apartments and they have not yet begun construction.
5. I explain that they are selling fast because they are selling fast and if you could have bought one for $90K six weeks ago and see that they are now selling for $120K is that “hype” or is that “fact”? Take a look at the front cover of last months’ Inmobilia magazine and you’ll see the CONCASA Jaco apartments advertised for $90K. This month $120K That is NOT “hype.” And having spent part of my day with the One Jaco people, I can assure you that their prices will be rising soon too…
6. And yes “like any investment, the risks are there.” My goal as you know, is to show our members high probability, low risk real estate investments and that’s exactly what we have here.
7. Costa Rica real estate investors that have followed my advice over the past couple of years have done very, very well indeed and seeing apartments being sold for $120K that they paid $90K for six weeks earlier makes them feel pretty damned good.
8. And finally, your statement that “it won’t make sense for property in Costa Rica to cost more than property in the USA for God’s sake.” That’s just bloody silly and incredibly narrow minded. You honestly believe that only the USA deserves to have real estate that sells for high prices? Have you never been to London, Tokyo or any of the exotic beach locations around the world. Do you think we should ask them to lower their prices because they are higher than the USA?
Scott Oliver – Founder
WeLoveCostaRica.com and author of ‘How To Buy Costa Rica Real Estate WIthout Losing Your Camisa.’1. They are NOT all one bedrooms at all so let’s do some research before we start making those kinds of statements. There are plenty of two bedroom apartments at One Jaco but they obviously do cost more than the one bedrooms.
>>>I addressed 1 bedrooms because that is the subject of appossek’s post.
2. What exactly is “outrageously expensive” in Jaco? Compared to what? Real estate in Jaco is dirt cheap compared to Playa Hermosa and many other areas in Guanacaste, dirt cheap compared to Tamarindo and a pittance compared to Grand Cayman, Bahamas or any other Caribbean real estate. And if you want to compare price per square metre, these projects are very competitive indeed with what’s presently available in Jaco.
>>>When in Jaco “outrageously expensive” is what I hear. I wasn’t only talking about RE, I was talking about the cost of living too. I was also saying that it is outrageously expensive compared to a lot of other places in CR since this forum is about CR. Sure you can refer to a town or two or three that is more expensive than even Jaco, but there are a lot of towns where the cost of living is less than Jaco.
3. I don’t honestly think there are many “better” places to buy in Costa Rica as far as quality and price is concerned otherwise I would not recommend it but would be delighted to review your suggestions. I travel up and down this country looking at real estate, meeting with developers and real estate professionals, write books about it and can’t honestly think of developers that I have a higher degree of confidence in …
>>>I trust your recommendations, but again the apossek was talking about 1 bedroom condo so I was narrowing my response to 1 bedroom and Jaco and Costa Rica in general and with consideration to apossek inability to spend much time in CR.
4. There may be some developments in San Jose with many apartments left for sale but that would NOT apply to the two developments that I am recommending – CONCASA and Riverside (the people behind One Jaco) have sold everything they have built. The people behind Riverside have sold all of their Tambor homes and they haven’t begun construction yet and both of them have already sold a significant number of their Jaco apartments and they have not yet begun construction.
>>>I believe you though I do think more condos and hotels are to come in Jaco and this could hurt one’s investment. After so many are built, they become a dime a dozen. I’m also afraid that the cooling USA RE market will have an effect on CR property values. Maybe I’m just paranoid?
5. I explain that they are selling fast because they are selling fast and if you could have bought one for $90K six weeks ago and see that they are now selling for $120K is that “hype” or is that “fact”? Take a look at the front cover of last months’ Inmobilia magazine and you’ll see the CONCASA Jaco apartments advertised for $90K. This month $120K. That is NOT “hype.” And having spent part of my day with the One Jaco people, I can assure you that their prices will be rising soon too…
>>>No, the price isn’t hype, but the marketing of investing in property abroad has a lot of hype involved. I was suggesting that apossek should step back and take another hard look. These condos that you are recommending might be a good value, but apossek is talking about putting out 120k and there is a lot one could do with 120k that might be of better value closer to home.
6. And yes “like any investment, the risks are there.” My goal as you know, is to show our members high probability, low risk real estate investments and that’s exactly what we have here.
>>>For some, those that have more time than apossek, investing in CR might be a great idea. Apossek doesn’t seem to have much time so again I’d invest closer to home (what I’d do).
7. Costa Rica real estate investors that have followed my advice over the past couple of years have done very, very well indeed and seeing apartments being sold for $120K that they paid $90K for six weeks earlier makes them feel pretty damned good.
>>>This is great. Remember that I think the CR market might cool like the USA market, but one never knows. I’d just rather wait for a while after the USA RE market cools before jumping into the CR market.
8. And finally, your statement that “it won’t make sense for property in Costa Rica to cost more than property in the USA for God’s sake.” That’s just bloody silly and incredibly narrow minded. You honestly believe that only the USA deserves to have real estate that sells for high prices? Have you never been to London, Tokyo or any of the exotic beach locations around the world. Do you think we should ask them to lower their prices because they are higher than the USA?
>>>Yes, very narrow minded indeed. I’m assuming that apossek is from the USA so this is why I mentioned investing in the USA and not Tokyo or London. I shouldn’t have assumed apossek was from the USA (sorry). If he is from Toyko, I suggesting investing in Asia. Since I assumed apossek was from the USA, I thought it better to invest closer to home since apossek seems to have little time to be in CR. Also, I’m assuming apossek has some liquid cash in “at least” the 150k range since this is how real estate is purchased in CR (cold hard cash usually). With 150k, apossek could probably do very well investing closer to home.
Sincerely,
DwayneI hope appossek does’nt live near me (NYC) I just sold a condo here unfinished for $1.8k and the parking space was an additional $180K! One thing I know for certain you are not even going to get a studio condo for anywhere near $120k in the states near the ocean…I’m no big fan of Jaco but compared to just about anywhere in the states it is cheap!! Just avoid the tourist trap restaurants (where the food stinks)!everthing else is reasonable. These Concasa condos may not be for everyone but based on what I have seen in the area over the last few years this is a great way to get into a luxury condo at a rock bottom price. If you are in this for the mid to long term I don’t see how you can go wrong? Costa Rica is in it’s infancy of development as a big tourist destination whether you like it or not.But buy because it’s a beautiful country with lots to offer not just your bank account but your spirit and that kind of investment is immune to market fluctuations and will never diminish.
Oh! My God!
You gotta’ tell me more about this P-L-E-A-S-E! Lotus…
If you prefer to email me privately, I have just got to hear about this… I left Manhattan in 1996 after eleven years there and loved the first three…
Parking space for US$180K.. I feel faint!
Scott
This is true…In a building called “The Grabbler” at 48 Laight Street in Tribeca. And you get a lovely view of the trafic circle leading to the holland tunnel. Crazy, how ever things are starting to cool off a bit, that said prices are still about $1000 per sqrft. and in some of the new developments upwards of $1400 sqrft.!! You should have bought and held Scott you would be a rich…um Richer man…lol! All things are relative, he bought about 2 years ago “pre constuction” and by the time he closed it had almost doubled. We actually had to fight for the parking spot, it helped that he was a cast member of the sitcom friends…and no I can not tell you who!! Although I know Scott does’nt watch tv anyway.
Dear friends,
I am very-very greatful for all these answers. It is really great site and people are taking time to explain everything in details.
To tell you the truth, I was dealing with one marketing representative in OneJaco, who called me every day and prices were changing like this: initially 140K for 1 st floor, they were all taken, after it it was 165K, they were taken as well, $185 and last one was $215K. I just stopped and told I will pass.Now I will confess to all of you: I have never been to Costa Rica. We are coming in December. And than I will deside what we are going to buy and where. Everything I read about the contry sounds just great.
The marketing rush is terrible, but if the opportunitie will not be available in December, it means that it is not for us.
We live in Seattle, and our cash is from hard work, salaries, not just spare money we have nothing to do with.
If we love the contry we will move, rent and find our home later.
Besides, we have a small son (5 yr.) who will need a private school near San Jose.
And if the RE will be too expensive for us, the life will become too expensive too.
Thank you for all the information you presented, it’s just priceless.And to answer somebody from NY: our house on Eastside Seattle area is still less than 500K, it has 5 bedrooms and nice yard. And things are cooling down here.
You have a very mature attitude apossek – thank you for that …
You should absolutely stay with your budget and your long-term plans and NOT allow yourselves to get carried away with any buying frenzy that might occur.
But please note that there is no “marketing rush” – what we are seeing with One Jaco is simply the forces of “supply and demand” at work.
Josh hasn’t really started marketing properly yet and I haven’t even finished my article about this project for this site and we’re normally way ahead of the crowd.
I can tell you from my personal conversations with the developer Josh ten Brink that the Jaco market has taken everybody by surprise. Developers did not see the demand there is for condominiums and they have all been surprised at the level of sales.
While there is always some speculation of real estate, the vast majority of customers are buying as a second home.
In One Jaco the lowest priced units sold out very quickly and certainly as you go up in floors the price goes up and they in turn, are starting to sell out. That’s what happened to you.
One Jaco has sold over 60 units in 45 days.
Scott Oliver
Founder – WeLoveCostaRica.comPS. The best choice in international schools for your five year old is in & around San José.
This is a great discussion. I too have been watching the real estate situation in CR and just got back about a month ago after my first visit and fell in love with the country. I am concerned though over several factors. 1. The housing market in the US does seem to be slowing and many people have over extended themselves. I am from southern california and am seeing the prices beginning to stall, and in some areas, decrease. Southern california has been through this before and although hopefully not as bad as the early 90s, is due for a correction. 2. The feds have apparently not finished raising rates. Many, many people are at risk due to this as well as many of the higher risk home loans are due to kick in for increased payments.
3. The gas prices look like they will not be going down anytime soon. Although I realize that the prices are not as high as certain times in the 80s adjusted for inflation, and are lower than many countries, this has an incredible psychological affect on americans who may wish to tighten up their belts.So I do think that taking a good look at various factors and investing and making decisions maturely is a great idea. It is easy to get the “fever” for costa rica.
All,
Good thread – I was out of pocket a few days, but wanted to briefly chime in on the discussion.
Full disclaimer here: I am one of the buyers Scott is referring to earlier in this post who he met two weeks ago, and am part of a group of like minded investment friends who bought two 8th floor, 2BR condos in the One Jaco Place project. I mention this because obviously I have a biased opinion about this project, but I am very happy and confident with the purchases we made. I just finished writing an article outlining our buying experience at One Jaco that I think Scott will be posting soon, so I want go into any detail here.One of the nice things about a discussion forum is people with differing opinions can both make legitimate, intelligent points which is what we have here.
Dwayne/Rankingee- what I think your hitting on is risk tolerance and if the real estate bubble is going to burst in the US and the domino effects it may have globally in subsidiary real estate countries like Costa Rica whose economy depends on tourism activity. There could be an entire book around that debate, but your point is and should be well-received.I am huge proponent of buying real estate and do think the Costa Rica market is going to continue to prosper in the long term. My group of investor friends and I own condos and/or a cross section of property throughout the US (Las Vegas, Florida panhandle, Biloxi, Atlanta, New Orleans, Orlando, etc.) and I will say we left Costa Rica just as confident as we did investing in these US markets. Again, this is just an opinion and one certainly needs to feel comfortable within their own buying criteria.
If anyone is contemplating buying in One Jaco and wants to discuss my first hand experiences your more than welcome to contact me offline.(daveterry73@juno.com)
Thanks, Dave
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