Have you ever built a home?

Have you ever built a home in a foreign country where everyone speaks a different language?

If you no to either one of the previous questions, do us all a favor, and don’t try it in Costa Rica.  Why not?  It sounds like a fun adventure.  You could build your dream home, just the way you want it.  Think about how proud you would be to say in some future moment, “I built this house” with a BIG smile across your face.

Well my cyber friends, this is really an evil illusion that some real estate agents try to sell to unsuspecting clients who just want to have a nice vacation or retirement.  ’Evil?,’ you may ask.  ’Why evil?’.  Okay, so evil may be a harsh word.  But the truth is, very few real estate agents in our area have been through those ropes themselves, let alone are qualified to lead their clients through the process.  

Building in Costa Rica is just a little different than building back home, wherever your home may be.  Let’s start with standards.  This is not just a North American - Central American culture clash.  This is a world wide phenomenon.  People in different geographical areas just have different ways and standards of living.  Costa Rica is no different.  

There are a million snaffu’s that I have seen, and though it may be funny to recap, I really don’t have enough space in this blog.  So we’ll just say that through EVERY STEP of the construction of a home, the owner should be present to catch and correct all of the weird little quirk that comes along.  

“Come on,” you say.  ”It can’t be that bad”. Let’s just say that in my handful of projects, I have seen a breaker box for the entire house placed in the center of the main wall of the living room;  The light switches rarely placed beside the door way on the side in which one enters the room; an actual light switch INSIDE THE SHOWER; need I go on?  And I have not even begun with the good times you’ll have BEFORE you begin building during the permitting process.

The point is, it is really not at all as romantic as it sounds to build in Costa Rica.  So take it from me, keep it simple.  Buy a home or condo that is already built.  There is PLENTY of inventory to choose from, and in almost any part of the country you can find a wide variety of styles to choose from.  

If you do decide to take that leap of faith into the depths of construction, then make sure that you are going to visit every 2 weeks minimum, have a translator ready at all times, and hire a contractor with an impeccable reputation. Yes, there are a few out there.  BEWARE of contractors that charge 30% less than all of the rest, they may be spread too thin or knowingly under bid but cannot possibly finish the job for the price quoted.  And always be friendly with your neighbors.  

As I said, I’ve been through the ropes a couple of times, and would be happy to help if you or anyone you know are thinking of building.

All the best,

Wendy

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

Take care,

Clark

Editors Note:

 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.

Hello Friends,

Something that we thought was completely unimaginable is finally within a stone’s throw of legislation coming into effect in Costa Rica.  I’m talking about real estate brokerage regulation.  Wahoooo!!!  This is a huge triumph for all of us hard working, tax paying and honest real estate professionals who are tired of having to excuse the whole lot of us for our terrible reputation, lacking professionalism and sometimes completely unethical activity.  

Sure there are some great agents out there.  But there are probably ten scoundrels for every legitimate agent, give or take another ten.  If you were not aware, it is not obligated that real estate “brokers” receive any formal training or certification from any governing bodies to practice real estate in here in Costa Rica.  And I often get offended or put off by the new broker in town bragging on credentials that they have accrued in the US or Canada.  Bottom line: Costa Rica is a soveriegn nation with unique laws and procedure to ownership.  A top perform broker in California has no idea what is going on in Costa Rica unless he or she takes a long time to figure out procedure for property trading here in Jaco.  

Or he or she could attend a course offered by the Costa Rica Global Association of Realtors OR the Camara Costarricense de Corredores de Bienes Raices, which would afford that person the legal right to refer to him or herself as a ‘BROKER’ or a ‘REALTOR’, two catch phrases that are as bastardized as luxury and eco friendly in Costa Rica.

When purchasing property in Costa Rica and your real estate agent refers to him or herself as a Broker or a Realtor, ask up.  Did he or she pursue their license with the CCCBR or the CRGAR?  Because if they are not card carrying members, they are not Brokers, nor are they Realtors in Costa Rica.  

The Costa Rican government and populace has finally had enough of the scruples and is ready to commit to a mandatory licensing procedure that will be granted through either of the regulatory agencies.  Details are still being negotiated in the Congress, but one thing is for sure; the time is coming.  And it will be soon.  So if you have not been licensed, but continue practicing real estate in Costa Rica, then you may want to go ahead and take the course.  Frankly, it is not very long or difficult with either agency.  However, you will at least cover the basics of what not to do and how to keep your transactions safe and legal.

And for buyers, please use a licensed Realtor with credentials from either the CRGAR or the CCCBR.  For more information on licensing courses in your area, send me an email for the latest schedules.

Until next time…

Happy bargain hunting.