There is certainly enough to be concerned about these days in the world of real estate and finances.  Real estate is essentially the foundation of an economy, local or global.  It is obvious that in Costa Rica, we are closely tied to the world economy and especially in terms of the world’s credit markets.  If you’re one of the many people or businesses who have been seeking financing from a Costa Rican bank in the past six months, you know all too well what I am talking about.

However, according to the local bank managers that I’ve spoken with, they say they will begin lending in January of 2009.  We shall see.  And on a side note, I would like to forewarn anyone seeking a mortgaged credit through a private lending company.  Not all private lending is predatory.  But there are some unscrupulous outfits around, and it is easy to be taken advantage of in Costa Rica, especialliy when fine print is involved (and super-especially if the fine print is in Spanish and you are relying on a translation!).

Anyhow, beyond the “credit crunch” Costa Rica’s real estate market is still, in my consideration, quite robust.  If you are one of the lucky ones out there with liquidity, now is truly the best time to buy in Costa Rica.  ‘Why?’ you ask… Simply put, there are some fantastic deals around.

We all know that prices in Costa Rica have been, in some markets, inflated.  But now as I browse through my agents’ new listings, I’m very pleased and impressed to find a plethora of properties in desireable locations with charming characteristics for under $200,000.  While I myself have enjoyed focusing on the luxury market, it seems that everyone else has had the same idea for the past few years… touching on last week’s subject, everywhere you looked, “luxury condos” are being sold, that perhaps were not really luxury, just priced that way.

Anyway, in today’s market, we are seeing some great priced homes that are truly affordable and competitive to the awesome characteristics that you can find in other resort-area locations such as in Florida, California and the Carribbean.  The original real estate boom in our area occurred as one could purchase a beautiful home for under $200,000 in a charming neighborhood.  Many buyers from the South and Western US came and took advantage of the properties on the market that “would cost a fortune back in California” (a phrase I formerly heard quite often). 

After a brief large-scale lapse of judgement on behalf of many homesellers and developers, we have returned to “common sensicality” and can offer you truly quality properties for great prices.  I am a value shopper myself… Although I do love nice things, I don’t have enough money to be able to not spend it wisely.  And in this day and age of financial trouble, many of us are in that same position.

Anyhow, some of my favorite best buy properties this season are:

Tres Regalos Oceanfront Luxury Condominiums in Jaco (this property truly earned its adjective) with three bedroom units starting at $315,000

http://www.jacorealty.com/component/option,com_hotproperty/task,view/id,9/Itemid,26/

Single family home on a lovely lot with a pool in gated community 10 minute walk to the beach listed at $225,000

http://www.jacorealty.com/component/option,com_hotproperty/task,view/id,261/Itemid,26/

Two homes just five minute walk to the beach in Jaco, each with a pool in a lovely residential neighborhood listed at $385,000

http://www.jacorealty.com/component/option,com_hotproperty/task,view/id,288/Itemid,26/

Surfer House a 10 minute drive to the beach on a spacious 1/4 acre wooded lot in a country setting, listed at $150,000.

http://www.jacorealty.com/component/option,com_hotproperty/task,view/id,364/Itemid,26/

And many more homes available to remodel and rent out for investment can be found at:

http://www.jacorealty.com/component/option,com_hotproperty/task,viewtype/id,7/Itemid,26/

Thanks for tuning in!  Let us know your comments or feelings… write to wendy@jacorealty.com

Cheers,

Wendy Brown

Hello again world..

In these troubled times, we are very conscience of our problems and perils, but often not so focused on our blessings… I have heard “experts” say that in troubled economic times, one way to reduce stress and the negative impact the economic crisis may have on your life is to spend more time with family.  Family is a constant in everyone’s life, and will not come and go such as business relationships, or money.

Anyway, being a new mom, I take this particularly to heart and really cherish this time right now with my family.  I urge you to do the same!

But onto my choice real estate topic this Thanksgiving week, misnomers.

I get very upset, irrationally so, when I read the word “luxury” on every single residential property being advertised in Jaco and Costa Rica for that fact.  Why?  What is a characteristic that qualifies something as “luxury”? 

With real estate a fashionable industry in the past 15 years, the word luxury has become increasingly common.  To the point where nowk, when I read a “luxury” condo, it really means nothing to me unless I know the property myself and can assure that it is indeed luxury.  People assume that if you throw a granite countertop onto a three bedroom / one bath residence a short walk from the beach on a paved road, you all of a sudden have a “luxury” property.  Well, not so my friends.  It takes alot more than a few key bullet points (like granite counter tops and 24 hour security) to be luxury.

Buyer beware, just because that condo for $450k on the beach in Jaco says that it is a luxury property, you’ve really only got about a 50/50 chance of truly being a luxury product by international and luxury property specialists standards.

But the misnomers don’t end with the incessant bastardization of “luxury,” the newest and trendiest misnomer is “eco-friendly” and any array of “green” products on the market.  Wow, this is a never ending leaky faucet of misleading representations flowing into a vast sea of consumerism designed to make you feel better about your purchasing. 

Well, if you’ve met me, you probably knew very quickly that I have been an avid “eco-warrier” as my friend Ron would say it.  Although I’m not really an eco-warrier, I do fully sympathize with the cause and promote it as much as possible and addmittingly convenient for my on-the-go lifestyle.  So obviously, I am very enthusiastic about the new consciousness that our society has developed for living a lower carbon foot print lifestyle and using less.  I grew up on Recycle, Reduce and Reuse, and often remind myself of that everytime I go to throw away a plastic bottle.  It may take a little more effort in the long run, but recycling has a world of benefits for our children (literally).

But eco-estates and eco-friendly development in Costa Rica and world wide is fashionable, and unfortunately more often than not, simply a catchy adjective that the marketing team concocted to reach a new earth friendly demographic.

I am not going to discount all real estate developments in Costa Rica that claim to be eco friendly, but I am going to propose that you do some research before buying into a property for its eco-friendliness. 

When researching “eco construction” here are some things to look out for:

1.  What kind of materials, especially wood, are being used.  Although Teak is a fast growing hard wood, it is also a destructive crop to the top soil of the natural tropical forest, and seriously disrupts the previous ecosystem.  Bamboo is a much preferable alternative.

Don’t buy an eco-friendly home and stuff it with rustic wood furniture!  If you’ve visted our area in Playa Hermosa or Jaco, you probably know what I’m talking about.  Like oversized dining tables with a massive top made of a 6 inch solid piece of beautiful wood.  Although striking, this furniture is made of 200-400 year old trees.  You connect the dots.

2.  When possible, add a water filtration system to your home.  This will reduce water bottle waste as you consume many plastic bottles of water.  Water that does not come from a plastic bottle is also better for you too!

3.  Research water treatment systems available to you in your area.  Many homes in our area are on septic tanks, all of which, are not created equal.  Be sure that your tank is the appropriate size for your home and that it is not near any watersheds.

4.  Don’t cut down the trees!  And don’t purchase a lot that will require many trees to be cut!  Many MANY MANY Costa Rican based developers are offering lots with fantastic ocean views in the forest, but you will have to cut down the trees to do so.  Not only is it illegal, but it is also very irresponsible.  Trees cut down on erosion, and on any mountain property, this is the most threatening aspect to development.

5.  Plant native species to Costa Rica in your garden.  Many tropical plants here were imported from Asia and other parts of the world.  By planting native species, you help out the local ecosystem.

6.  If you are building on a mountain property, or trying to sell a mountain property, or looking to buy a mountain property BEWARE OF EXCAVATION!!!!!!!!!!!!!!!!!!!!!!!  This is just as important for the ecosystem as it is YOUR INVESTMENT.  Many (if not most) of the mountain developments in the Jaco and surrounding areas were excavated without proper permits and/or engineering design.  Therefore, when water slides down the mountain in a new path, it often takes down parts of the mountain with it.  Be very careful of who you depend on to do excavation.  You can lose your farm, literally, and destroy water shed ecosystems at the bottom of the mountain in the process.

I’ll continue my eco-building and buying tips in part two of Misnomers. 

Have a happy Thanksgiving everyone!

Cheers,

Wendy Brown

Hi again world,

In the past few weeks I have been getting alot of the same question.  Although varying in its form, it usually has something to do with, “I guess the real estate market in Costa Rica is in the can?”  Whether it’s a question or an assumption, the response, to which even myself is slightly amazed at these days is, “Surprisingly, we are quite busy and new markets of buyers are emerging.”

It is very true, that in this week alone, I have watched as three agents from my office have been showing so much property they can barely attend to their emails, and two other agents have put a home under contract within the past two days.  I do hear complaints from our neck of the woods of other agencies not being busy, so I must assume that the market has generally slowed down.  But quite frankly we are not feeling it.

Sure, people are not getting ridiculous premiums for homes that they thought they could last year.  But at ERA Jaco Realty and Playa Hermosa Realty, we are realists and will sell things for real market values, skipping over listings that seem over - priced.  And admittingly, we did lose around three to five deals under contract in the month of October to people who had a good portion of their money tied up in one of the “toxic” companies that recently had problems.

But really, Costa Rica in and of itself is opening up to the world.  Although the ramifications of the US recession are being felt world wide, there are still markets that are not as hard hit, such as the luxury market and local buyers.  Tapping into those markets can be tricky, and sure you have to know how to fill your pipeline when times are down.  But all in all, we are seeing a surge amongst bargain hunters, and non-US based buyers that is quite encouraging.

The best deals these days, in my opinion, are ocean front vacation rental properties (my favorite is Hermosa Palms single family homes in Playa Hermosa), and rental income properties for long term renters (high and low end).  Jaco’s nature will always lend itself to having a strong long term rental market, due to the transient nature of this town.  And there is a wide gammot of renters available to match any investors’ plan, from low income housing to high end $2000+ / month rental homes and condos. 

Fortunately for you world, we have some fire sales available right now, because the world wide financial “crisis” has hit some of our sellers, and they are cashing out.  Some of my favorite listings include an 8 unit apartment building for under $250k, a luxury fully furnished home in Hermosa Palms for $519k (will hear offers), and a great 2/2 in Opera Salvaje for $225k with a pool and large garden.  The former to homes are the lowest priced in their respective neighborhoods. 

Anyhow, this is the time for bargain hunting if that’s your game, but if you are more interested in resort - style vacation properties, not to worry, our books are getting full for vacation rentals this high season.  We expect tourism to stay on track with steady growth in the Jaco area.

Until next time,

Wendy Brown

Hello World…

Today is a special day in our neighboring country to the north (the USA).  Today is election day and thank goodness for that!  I won’t get into a political discussion here, but I will confess, that I have wasted SOOO many hours of precious time watching news programs on Obama vs. McCain.  Liberal media vs. “no spin zones”.  Elite media vs. silly interviews with silly people trashing each other.  Enough is enough!  Thank goodness hopefully this whole thing will be over soon and we can get back to our real lives!

Well, part of the reason that I moved to CR in 2001 was to escape the crazy media, trashy politics and over hyping of disasters and tragedies in the US media.  So, I really shot myself in the foot getting so wrapped up in this ‘08 election.  

Onward and upward, I was given a wake up call about two weeks ago on my way home from work one day in Jaco Beach en route to my home in Playa Hermosa.  It was a typical October day, rainy and sunny simultaneously.  For those of you who have been here, you know that the drive between Jaco and Hermosa is a spectacular one, with a blue ocean vista the entire route to the west, and fantastic jungle year round greenery to the east.  Needless to say, when rainbows fall, they can quite often be spectacular.  This day was no exception.

I believe that on this particular day I had been to the electric company, and I probably was not in the best of spirits.  All I can clearly recall now is that all of my stress was washed away with the realization that I was driving right through the END of a beautiful rainbow!  It was surreal.  However, my delight only multiplied when I saw the end of another rainbow within feet of my car on the ocean.  Whipping around the bends in the road we found another rainbow, but this one had concentric rainbows, three in total whose ends were also in my driving path.  Well, at the risk of dampening the explanation of this majestic site, versus boring you with my sun-shiney blab, I will only say that I litterally lost count of the rainbows that JJ and I drove through that day.

All along the road, cars were stopped and marveling at nature’s visual gift.  And this is one of the many pleasures of living on the Central Pacific coast of Costa Rica.  Where we are blessed with healthy and affordable coastal living in one of the most beautiful and diverse places on Earth.  Costa Rica is not for everyone, true.  But if you do fall in love with this place, !tengan cuidado!  (Watch out!)  Because you may fall very hard.

Lovin life,

Wendy Brown

WHY I LIVE AND INVEST IN COSTA RICA

by Leon R. Johnson

Playa Hermosa, Costa Rica

For the first twenty five years of my professional life I played by the rules.  The rules taught to me by my Parents, my Church, my Schools, and most of all my Government.

America the land of the free and the home of the brave.  Free Market Capitalism will be your path to a better life.  Work hard, educate yourself and believe that your government is of the people, by the people and FOR THE PEOPLE.

It took me twenty five years of blindly following these principles before I finally woke up one day and found that the FIX WAS IN.

I became a CPA to better understand and follow the rules, then a CFO for six different companies before I realized that the way to a better life through economic freedom was an illusion as professed in the USA.

I put on my CPA hat and began to add up all of the money the government was reaching into my pocket and misappropriating, in other words, taking under false pretenses, in other words, STEALING. 

Once I added up the federal income taxes, social security taxes, unemployment taxes, gasoline taxes, sales taxes, state income taxes, capital gains taxes, I realized that the game was rigged, when it all added up to over 65% of my income.  The harder I worked the more they stole and the more they stole, the more they wasted.  I was never going to get ahead under this system.  I was never going to leave behind a little economic nest egg for my children and grandchildren.

I watched the economic meltdown of the Carter years, 18% interest rates, 12% inflation, and 9% unemployment.  The average American got wiped out and watched their investments, and retirement nest eggs disappear.  Reagan cleaned up that mess and then came the Savings and Loan CRASH and Bailout of the 80’s.  Sound familiar my friends??  The US Government spent billions to purchase over valued commercial property, bail out the Savings and Loans and then resold those assets at a tremendous loss.  They promised to make that money back also….. they lost everything and we watched the deficit explode, inflation grow, interest rates rise and the decline of the dollar and our purchasing power.

Then came the construction recession of the early 1990’s, banks cut lending and credit dried up for almost four years. Remember that???

Don’t forget the DOT.COM bubble created by easy credit and its subsequent crash.  Again the average person watched their retirement money disappear and the FED destroyed the market, and available credit by raising interest rates until they were out of reach to the average American. Thank you Mr. Greenspan, I read your book, you are the biggest scam artist ever to work for the US Government.

Then Mr. Greenspan lowered interst rates so low that this whole sub-prime mess was created and nurtured Washington fat cats and their Wall Street friends, and just as the bubble was about to burst, he bailed. Just in time to watch his mess collapse from the sidelines.  Great job, Mr. Greenspan, you should be in JAIL.

And now I am living and watching history repeat itself with this sub-prime housing mess, which was created by the same people who are stealing your money once again.  But this time they are not just stealing your money, they are stealing your children’s and grandchildren’s money.  Once again while you stand there helpless ,watching your retirement money, your real estate equity, and most of all your faith in the system destroyed.

Well, I decided 15 years ago that I had had enough of this never ending cycle of economic roulette and began to look for another place to live the American Dream.  And it ain’t in America anymore. 

I read and traveled and educated my self about the emerging markets throughout the world.  I looked for a democratic government that had a history of transferring power without bloodshed, I looked for a place that held family values in high regard,  I looked for a place that had eliminated their armed forces and decided to get along with the world and negotiate with their neighbors.  I looked for a place that protected property rights and rewarded hard work and risk taking.  I looked for a place with low taxes.  I looked for a place that provided health care for the poorest of their people.  I looked for a place that provided free education for every child.  I look for a place that was warm, lush with rain forest, and bordered by oceans.  I looked for a place that was not at war with nature.  And I found it.

Sure it isn’t perfect, sure there are growing pains, sure there is corruption.  But compared to where I had lived the first 45 years of my life, Costa Rica is the land of opportunity.  Costa Rica is the American  dream,  The Latin American dream.

Since I was privileged to become a legal resident of this precious little jewel of four million souls, I have lived and prospered while the poor citizens of the US have suffered through three recessions.  IN spite of the economic problems of our GIANT to the North, I have continued to make money and Costa Rica has experienced an economic miracle.

This economic miracle is just beginning, and as much as I want to keep it all to myself it is apparent by the development that the secret is out.

If you are considering investing and becoming a part of our US refugee community here and are scared off by the negativity bombarding you daily by the US media think again my friends.

Where are you going to put the money that you have left???

The US Stock Market???  You’re crazy.

The US Housing Market???  Not me my friends… sure there may be some good buys out there, but it is obvious the bottom is not there yet.  It will be years before your equity returns.

A Money Market Account???  At a taxable return of 2.5% and inflation soon to be over 4% and growing you will be throwing money away.  Where do you think the US Govt. is going to get the trillion dollars needed to bailout Wall Street?

They will get it from CHINA, EUROPE, JAPAN, SAUDI ARABIA, and others who will purchase our BONDS at a higher and higher rate, or they will simply print the money and INFLATION will begin to kill the dollar… Look at history, you don’t need to be a PHD like our Treasury Secretary to see this coming…

My money is staying right here in Costa Rica.  Fully invested in beach front property.

And I am buying more.

I have invested and made money right on through three different US recessions.

Where else in the world can you purchase a fully titled Beach Front Condo for under $350,000

Where else can you get in on the ground floor of the new Riviera??? 

Where else are your property taxes paid in hundreds of dollars and not tens of thousands of dollars per year.???

Now you know why I live, invest, and prosper in Costa Rica.

Come on down and join me, there are plenty of opportunities, do your homework, be cautious, have a good Broker show you the ropes, and a honest lawyer by your side and you can’t go wrong. 

Even in this difficult economic situation, Costa Rica is still well positioned to enjoy further market growth and fame on the international tourism scene, adding value and necessity for a growing resort real estate market.

Editors Note:

Mr. Johnson has lived and invested in Playa Hermosa and Playa Jaco for more than ten years.  He is a friend of Exclusive Realty and also one of our dearest clients.  Any views or opinions expressed by Mr. Johnson are not necessarily the views or opinions of Exclusive Realty Network or our affiliate  businesses.  Exclusive Realty Network does not assume responsiblity for the statements in this article.

Hello friends, clients and colleagues.

It has been a long time coming.  Our blog is finally a reality.  We have some excellent contributers lined up and some very exciting topics to tackle in this time of US economic turbulance!  I hope that you will be checking with us periodically to see what new items we will be proposing for discussion.  Among our first issues of discussion, definitely the US economy and its impact in the Costa Rican credit market and real estate markets.

It is truly an interesting debate to explore, the effect that the US has on the Costa Rica real estate market and economy.  But there are also many more topics to tackle, such as the myth or reality of an “eco development” in Costa Rica and sustainable development, regulatory zoning plans and their impact on the area, foreign investment scales, new projects and my favorite topic, new trends in the luxury real estate market.

So stay tuned, and look for some interesting outlooks and ideas on this fantastic market of real estate and dynamic little corner of the world, I love to call home, Costa Rica.

Thank you for your continued support! 

Wendy Brown

Broker & Owner

Exclusive Realty