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Back to Basics- Income Producing Properties
With the economic crisis on everyone’s mind, it is no wonder that every investment opportunity these days is getting a twice over (just generating a positive return is now considered good)! The trouble is finding them. We have all heard that the real estate bubble has popped…blah blah blah, but if you are a serious investor you understand the age old principle that my Real Estate Professor once said “Buy when there is blood running in the streets.” There are lots of deals out there right now and being in the trenches and close to the action, I can tell you this, PEOPLE ARE MOVING OUT OF THE USA at an alarming rate…many of them are heading to Costa Rica and this can lead to a positive investment return for the right investor! Sound interesting? Consider these points:
1. The world is now Internet based. What does this mean? No longer do people need to show face in an office building, instead, they can work out of the comfort of their own home. Coincidentally their home can now be located in Jaco or Playa Hermosa (wink-wink). The number one request I get for long term renters is ” Does it have Hi-speed Internet?”, for the most part we have it here in Jaco, and as the infrastructure improves in anticipation of free markets opening things up a bit (CAFTA), you can bet that Costa Rica will be wired from coast to coast very soon.
2. Time for change. Obama lead a campaign based on this simple concept, yet what I hear most from my clients is that they are changing where and how they do business. Let’s be honest, the US has a less than favorable tax structure, strict rules and regulations, and Wall St has proven it can’t manage itself. Job losses are mounting, unemployment is at an all time high and as we enter a recession, nobody is sure when it will end? Wow, maybe now IS the time to move to Costa Rica and try something different? Why not, you have a myriad of reasons just mentioned (well this is just what my long term renters are telling me anyway).
3. Tropical tourist destination. As the Internet shrinks the global economy, living in paradise has fast become a reality. With warm ocean temperatures, consistent waves for surf, sand, palm trees and 3% of the world’s biodiversity, it is no wonder that Costa Rica has become the #1 eco-tourism destination in the world…and with that comes opportunity and job growth. As tourism grows, so does the support system of travel operators, hotel staffs and dining facilities and the like, which is exactly what is happening here in the greater Jaco area. Jaco is quickly becoming Costa Rica’s booming resort town. Don’t forget, all of these people have to live somewhere!
One of the most basic principles to investing in real estate is renting out to cover the mortgage. In times of crisis and uncertainty, going back to the basics is exactly what can yield you the return you are looking for! Please contact me to learn more about investing in income producing properties in the greater Jaco area. Clark@jacorealty.com
Clark Kreston is a sales associate for ERA and long term rental specialist at Rent Costa Rica Homes. He has been living, working, investing and renting in CR for 3 years and is a specialist in the Playa Hermosa - Jaco area. Clark is also our leading listing agent for multi-unit and income producing properties.