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[quote=”DavidCMurray”]”brutality and home invasion are the norm”. I wonder who is closer to the truth.[/quote]
David, the truth has many heads. Whose thruth are you seeking?
I have been a real estate investor for many years (not a speculator/there is a difference). And very successful at that.
I’ll keep it simple (but not short)
One: many see real estate as a speculative investment: a way to make money on a commodity. That’s sad because speculating in real estate ruins communities and skews housing markets. This prevents people that need a place for their families from finding one because lenders do not want to lend in an unstable market. Witness the present.
Two: You have to be a maverick, which means not running with the heard. This is most difficult for most people. This year looks like the best year I will ever have in the stock market. That is because of last year. I bought stock in most remaining banks after the crash. Need I say more?
Crisis brings opportunity but most folks don’t have the fortitude. They have to run with the heard.
It’s obvious that real estate is the place to put your money. Why? Because it’s cheap. Its the most valuable commodity (you can live on or in it – unlike gold), and unlike gold it’s not oversold.
I am selling my metals right now (I bought silver at $6 quite some time ago). (This leads to my third point about real estate investing). I am also selling some lots in the US. I am also buying more real estate in the US.
Selling and buying? What goes?
Price, that’s what goes. I am selling lots I paid under $1000 an acres for at $5000 an acre. Do I think the price on these lots will go up? Yes. Why am I selling? Its called 400% profit… You can’t go broke taking a profit.
Why am I buying, because there are other “depressed” property that are magnificent that will never be seen at this price for a long time if ever.
Real estate speculating, as all speculating, is for professionals with the guts to buy low. If you are an ordinary person, play it safe and [i]invest [/i][u][/u](not speculate) by buying your home because you love it and will use it. Not for what you think you can make on it.
Also, Costa Rica lifestyle is one of a kind. It’s found nowhere else. It’s rewarding to those who move here to be like the Ticos. It’s frustrating to those who wish to replicate their lifestyle in the US. Erin Van Reean and Phil Baker have the two best books written about Costa Rica. Van Reeans [i]Living Abroad in Costa Rica [/i]is written best but I like Baker’s book ([i]Phil Baker’s Costa Rica Now[/i]) because of the real estate angle and owner’s manual chapter, and the way it’s laid out, but both point out that you need to integrate with the culture. If you like the culture, beauty, and lower cost of living, as I do, especially the beautiful people, than this place is unbeatable. If you can’t handle “different” and don’t want to speak Spanish, I would say don’t buy here. Baker hits the nail on the head when he says most should not buy real estate to speculate, especially if you don’t want to live here and don’t want to speak Spanish.
Last thing I have to give Baker’s Costa Rica Now credit for is where he says, “follow the infrastructure.” That’s simply golden advice. Where did Costa Rica boom last and why: Liberia airport. So where is the infrastructure being built today: San Jose and the central west coast.
So to sum it up, all the anecdotal evidence is fine, but if you don’t love the country, and you don’t have the guts to buy when nobody else is buying, and you need to be sure of the exact bottom of the market before you buy than I doubt you should invest at all, let alone speculate.
On the other hand, if you love the country and you want to own here, than now through 2011 will be the best times to buy (because of the double dip recession). When gold and stocks become oversold, the money eventually moves to real estate.
Paradise – just exactly what is that? I’ll tell you what it is – it’s what you make it. Sure, there are various versions of paradise that we all have in our heads, but what we make, create and live is the real version.
David’s point about living here without a net is important for physiological reasons.
H Richards remark about Americans screwing up Costa Rica resonates with me. They disregard the social customs by acting as if US big brother is watching their every move. They spread government paranoia when all around them most Tico disregard the rules and try to keep government small by contributing as least as possible. Aw but the American are sure that if they “Pay their fair share” that the potholes will disappear. Money solves all problems, right? (LOL) Why don’t they just buy a shovel and fill them. Cheaper and faster.
Countdown’s data collections from the movers is very insightful.
The indomitable Maravilla – The Molly Brown of Costa Rica, makes great points. Especially this:
“The unrealistic view of paradise and how it is sold as a concept to people who refuse to do their own research on what the reality is here.”
Doom the deal to failure? There are some common threads like not speaking Spanish, but I know people that live here for years and speak very little.
Soldier alluded to character traits.
I think what dooms the deal is the inability to reconcile your character with the culture. If you are an isolationist, then it’s easy to live here and not speak Spanish.
If you are extroverted then you will want to take part in the culture. That means speaking the language and doing as the Ticos do.
The character issue probally explains why some people can come here, buy property on the first or second visit (I did), and prosper. These people know their character.
If you want to win, you must know the enemy better than you know yourself. The thing is that many times we are the enemy. Therefore, you have to know yourself before you know the external enemy/challenge.
I put forth that the people who make it here first know themselves. As such, they have an intuitive knowing that they can make it here.
Next, you must know the challenge. That means reading, research, and not being too cheap to pay someone to do investigation before buying a property (in a land without property disclosure laws, it paramount to investigate).
[i]Phil Baker’s Costa Rica Now / A travel Guide to Living and Owning in Paradise[/i] is a great planning tool. It takes a realistic look at living, buying and owning here. Baker hits the nail on the head when he says that the three most common mistakes are not knowing the geography and what area might suit you best, not knowing the culture, and “buying a problem when you thought you were buying a property.”
If people pick a suitable area, know what to expect from the culture, and then buy right, I believe that there would be less people returning, and less people coming here in the first place. Investigating the culture and all that can go wrong here would discourage many. Although the book uses “Paradise” in the title, it is still by far the most realistic look at living here.
Baker reveals a lot of negative aspects about Costa Rica, and does not follow the just don’t say anything bad about Costa Rica mindset that most authors use when writing about Costa Rica. It’s a realistic view of paradise and not “the unrealistic view of paradise and how it is sold as a concept to people who refuse to do their own research on what the reality is here” to which Maravilla alluded.
So according to that line of thinking, the most important aspects of a successful transition to Costa Rica living are:
Know the land
Know the culture
Know the rules of buying and owning real estate hereAnd most importantly… know yourself
Tiocs won’t pay the luxuary tax. I bet they ignore it. Does anyone know any Ticos that are worried about it? That would be a facinating insight.
Has there been this kind of hysteria in La Nacion? I read a bit of Spanish and although I hardly read the site daily, I can’t remeber one article. Does anyone remeber an article about the Luxuary Tax in La Nacion?
Still no answer as to where to buy earthblocks in Costa Rica. I checked out the website, They still require cement although it was hard to figure out the savings from the the amount of cement used in earthblocks versus the amount of cement in regular blocks.
Have you ever heard of a deposit in advance? Were you that hard up for a tenant that you let him move in without a deposit? Improper previous planning on your part has created a problem – on your part.
Cheat a Tico out of money is a “no no?” (let me get out my violin). Do you live here? Everybody cheats everybody if you allow them to. Cheating knows no ethnic limits.
Look. Live and Learn. Why did he move? Obviously he wasn’t afraid of losing his deposit. Oh and he was an American! Obviously they don’t cheat…
Wake up and smell the [i]cafe con leche [/i]my man. You need to review your rental policies.
I think there are two bottoms several bottom liners here:
1 The high price of mal practice insurance that is passed along to the patient.
2 Doctors greed and the notion that they have the right to be multi-millionaires because they studied for 8 years.
3. The ridiculous amount of work and money it takes to become a doctor. In this sense, the university system is failing. Look how many doctors Cuba has.
There needs to be more doctors, less mal practice suits and more discipline to those doctors that commit mal practice. There needs to be criminal penalties for malpractice.
It all starts with the cost of doing business and then it goes to greed.
Doctors cost of school
Doctors cost of mal practice insurance
Lack of doctors
The lack of ability to EASILY compare prices.Where else do you go to spend money on service with no guarantee and without knowing the price?
Just like a menu, prices should be posted so there will be some competition. But to create competition, we must have more doctors, that means cheaper schools and eliminating the overkill education required to become a medical doctor. This is just a way for universities to make more money.
I guess my last question is: are PM’s moderated? That is could they have not been sent, or is it that when they appear in the sent folder that they “have been sent.”
Thanks Scott. really enjoy your site. Seems like less fourm activity latley though.
Do you think it the layout change?
Eyvone,
Read all you can. I suggest the yahoo group Costa Rica Living as a good resource. Also Phil Baker’s Costa Rica Now http://www.cr-now.com. I think its the most complete and comprehensive book written on living and owning in Costa Rica to date. its about 500 pages. The best guide book I have found is Moon Costa Rica guide http://www.moon.com . The most important thing you can do besides reading is learning Spanish. Very important to start accumulating vocabulary. This site features a Sapnish course. If you end up wanting to buy, then check out Scott Oliver’s book. Its filled with practical info you will need to know. He also offers some DVD”s that appear very helpful. Information is your ally, so stock up. Costa Rica living resources are easier to get in the states than here, so buy there.
Don’t worry about the bugs and you can get an awesome home for 3000 a month.
