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Thank you Scott. I would feel a lot more comfortable with your recommendation behind a project. Please provide details as soon as you are able.
I have heard rumors that similar to Mexico, Costa Rica may soon be open to more conventional mortgage options through US and other banks. Any truth to this that you know of?
Thank you for your response and your advice. I respect your opinion based on your experience in the area. Allow me to clarify my position on this project, I’m not depending on the rental scenario for positive cash flow as the focus of the investment. I am sincerely intrested in your thoughts.
It appears to me, that $144,000 is a very competitive price for a new 2 bedroom condo in this area. The fact that an proactive rental program is available, can at least in a minimal way help to defer at a slight portion of the cost of the mortgage. The more rental, the longer I can carry the property. I have enough reserve capital to float it for two years with no rental at all. Does it seem like a bad idea to you considering the appreciation in real estate values in the area to have to resell in two years worse case?
It is a 160 unit project, comprised of one and two bedroom units.
It is in the town of Jaco Beach, with another resort between it and the ocean.
They have not yet started construction, but expect to break ground in April. Phase one completed by the end of 2006.
They are taking deposits with a healthy incentive to commit before Easter at pre-construction prices.
The web site is loaded with information including the answers to your questions. I found it took about an hour to click on and read every link but doing so will make you well informed about the people, area and project. If you are interested, it would be well worth your time. You can also email the developer and he will answer any further questions.
http://www.gardensofdreamscostarica.com
There is a lot of information on the web site.
I’ve been searching for a condo throughout Central America and the Caribbean and at this point feel this is the best opportunity on the market. I’ve conversed at length with Trevor Chilton and believe he is sincere about making this project work as a rental property. From what I understand, Jaco is heavily populated with tourists and is far from the most pristine destination in Costa Rica. If I was looking to retire, I wouldn’t consider it a benefit to be across from the new mall, but in terms of luring tourists it seems right. I’ve read an independent articles that supported the notion that there may be a shortage of rooms in Jaco to support this growing industry.
There are a lot of rental properties in Jaco but many are older properties. If Jardines is marketed as promised, it could very easily become a preferred destination. The purchase price as compared to other new construction projects in the area represents a very good bargain. There isn’t much anywhere in the areas I’ve been looking for under $200,000. I can’t help but think even if the rental program goes bust, that it wouldn’t be possible to sell the condo in two years at a profit.
Costa Rica seems poised for tremendous growth in the coming years. The country has a stable government, it is safe, and they are planning significant infrastructure improvements. Is it a gamble? Most certainly it is. But affordable properties are diminishing rapidly everywhere. I feel like it’s a bigger gamble to do nothing. If I don’t try and grab something now, soon everything will be out of my price range.
If you are looking to maximize your return through rentals you will find very few properties out there that are placing such an emphasis on that angle as Jardines de Esuenos. Most properties offer rental pools as a side business. If you are interested, I can give you names of the runners up. There is a development in Mexico, one on the Pacific called Playa Grande and the other on the Sea of Cortez called Las Nubes San Filipe that have aggressive rental programs, along with a project in Belize called the Belize Legacy. Each has positives and negatives. I keep ending up back at Jardines in Costa Rica.
donbuc,
Thanks so much for this lead. This project does indeed seem credible. The idea that it is being designed with rentals as their primary focus, backed by the fact they intend to remain on as property manager, makes this seem ideal as an investment opportunity. I have poured over the immense amount of information on their web site and effectively communicated via email with Trevor Chilton over the past day and I am about sold.
You say you met with him on site? Do you have any information you can share that would make you believe this is not 100% legit?
One of the links brings you to an article entitles “To scam or not to scam…” Right out of the gate he mentions that their laywer is Jose Raphael Fernandez, supposedly a contributing author to this very web site and aquaintence of Scott Oliver. Any comments on this?
Steve
