Price Vs. Worth

April 28, 2017October 30, 2010 by

“I need to sell my property. What should I price it at?” is the common question heard in our real estate office in Uvita, Costa Rica.

“Whatever someone is willing to pay” is the universal response that drives the free market evaluation system the world over. However, is a price that is determined by this method a clear indicator of a property’s worth in Costa Rica?

The obvious answer is “of course”. However, in this uncertain world we live in, even this un-arguable standard of evaluation is sometimes brought into question and results in what can be described as quirky or illogical scenarios.

“El Diquis” Hydroelectric Dam in Costa Rica

October 27, 2017October 12, 2010 by Tigre

The Costanera Highway, The Caldera-San Jose Highway, The Cortez Hospital, The International Airport and The Diquis Hydroelectric Dam… it is easy to see that Costa Rica is serious about improving its infrastructure and securing a bright future.

Over the past decade, the dramatic increase in tourism and investment has sparked a bit of a power-struggle between proponents of economic growth and socio-environmental protection groups. In this case, the “power” is the proposed billion dollar hydroelectric project called “El Diquis” near Palmar in the Osa Peninsula. This isn’t recent news, but I believe it is worth mentioning as it will affect life in various ways in the southern Pacific zone of Costa Rica.

HydroDamCRsml — Hydroelectric power is BIG in Costa Rica.

The Zone Is HOT

This large-scale project, facilitated by I.C.E. (Instituto Costarricense de Electricidad), is calling for the construction of a dam on the Térraba River in the greater Boruca Canyon. The dam will create a lake equaling approximately 25,000 surface hectares (over 6 million acres), the largest of its kind in Central America. By comparison, Lake Arenal is roughly 8,500 hectares.

This station will generate up to 630 megawatt units capable of providing over one million families with electricity! This project is about Power, both electric and economic. According to a Continuum report commissioned by the Costa Rican government,

NEW-Old Plan for the International Airport in Costa Rica

March 3, 2018September 17, 2010 by Tigre

The list of rumors regarding the southern zone Airport is long and varied— operational for international flights by 2010, moving to a new site in Sierpe, moving south closer to the border in a joint venture with the Panamanian Government… to name a few. The reason I am sharing this news story released by La Nacion a few days ago and forwarded by a reputable broker in the area is it actually sounds like the government has a (more) realistic plan.

About Crime in Dominical Costa Rica I

March 2, 2020August 15, 2010 by

I was invited to speak at the monthly CAP meeting in Dominical. My experience as a survivor of a violent crime in Costa Rica has created a slight demand on my time for public speaking about the experience. So much of what I’ve been through has caused me to re-think my place here on planet earth and especially the beauty and power of my “community”.

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I used to have a link for Latigo K9 Protection Dogs website. I have not heard of them in some time and their website appears to be down or gone. I leave this note here until I hear something conclusive about them. They were immensely helpful to me in my incident and would like to promote them if they are still around.
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(Links open a new browser window.)

Clarifications:

CAP stands for Crime, Awareness and Prevention
Saying that I was a survivor of a violent crime can convey the wrong impression about Dominical and The Zone. My event has been well publicized, but I need to clarify that violent crime isn’t really our main concern around these parts. I’m one of the very few that has incurred bodily harm due to crime in the area.
I should mention that I chased my criminals when I caught them in the act of breaking and entering, which puts me squarely in the “bad example” category of how to behave with criminals. They tried to flee the robbery scene and I chased them. When I cornered them, they attacked.

Moving On:
I have the experience nearly every time

The Memo

April 28, 2017April 28, 2010 by

Disclaimer: the following is not necessarily what some sellers of Costa Rica real estate want to hear.

It was sometime in 2008 when the world changed. Our globalized economy demonstrated, for the first time, the extent to which we (all us humans) are interconnected. When one falls, we all lose our balance.

Some of the bigger economic minds in the US got going with an illusionary slight of hand called “derivatives” and in so doing, yanked the rug out from under the U.S.’s, and then the world’s economies.

Costa Rica land sales stopped. Here in the southern pacific zone many of the agencies have closed up shop, and the surviving agencies went 9 months with no business.

Why “no” business instead of “low” business?

2 reasons:

High prices
No credit

The fall of the world economies was rather sudden. The prices on our real estate here in The Zone were high. All of a sudden our prospective buyers were standing flat footed with not much money, no real way to get money, and even if they could get money, land was expensive.

The above 2 reasons that explain our 9 month freeze on the real estate business here in The Zone have both seen some activity and change. Prices have come down by 30% – 50% across the board, and this has stimulated the market. If this isn’t obvious to you, dear reader, it may be that you have been cruising websites and listings by sellers that don’t want to lower their price, but instead wish to wait for the market to come back up. (or you may have seen one of the numerous and un-maintained sites from now defunct Costa Rica real estate agencies)

About the “Hold Out” or “Old World” Sellers:

Their listings in the various real estate agency’s web site databases likely pre-date the fall of the world markets. Sellers who insist on pre-fall pricing are finding it harder and harder to find an agency to list their property. (One of my peers at a competing agency told me recently that they had rejected 9 listings in 3 days.)

Costa Rica Real Estate Chit Chat

October 27, 2017April 21, 2010 by

Training for Costa Rica real estate certification.

The Guys just got themselves certified! Rod & I are now card carrying Costa Rica real estate agents. Imagine that.

I know – you’re saying: “I didn’t know that there was such a thing”. Well, in fact there isn’t, yet, but there is about to be, and so we have joined a number of our peers in anticipating the coming change to the U. S. (and elsewhere) model of licensing for real estate agents.

The organization is called CBR or “Camara de Bienes Raices” (Chamber of Real Estate). Perhaps you’ve seen the CBR logo around on various websites. You’ll be seeing it on ours as well now. It is a 4 day course of 8 hours a day. We did it, enjoyed it (for the most part – butts are a little sore.), met & networked with lots of people and now feel just that much more entrenched with our chosen industry in Costa Rica.

CBR has proposed a law that they feel will become adopted this year of required licensing of Costa Rica real estate agents. Our position is that this will be

Did Taxes & Tourism Blow Costa Rica Real Estate Out?

April 28, 2017February 6, 2010 by

Costa Rica Real Estate Listings

I just received an e-mail from a reader that shamed me into sitting right down and writing.

I have read your face book page and articles on the tax issue there.

I had been planning to take a trip in March in the hopes to travel to Domincal and Uvita nd look at some land that over looks (has view of) the playa. But with all this discussion of election and no tourism and the tricky tax factor it sort of puts a damper on it. Was this a major blow to the real estate and tourism market, and did it blow you out?

I’m sorry but I’m not aware of the negative effect that the election could have on a land purchase in Costa Rica so I’m not able to address that.

As for tourism – well now that’s an interesting topic.

Tourism has been as hot here over this last holiday season as I have ever seen. With the new road from Dominical to Quepos, I think that we’re really in for it here. I understand that the status of tourism is currently anybody’s guess. Around here it feels like we are in a growth mode. Granted, I haven’t read a lot of media recently and I don’t have a TV, so as a news source I’m limited to what I see and feel.

Over the holidays Uvita was caught by surprise. The grocery shelves were bare and we spoke with people everyday looking for a place to stay. I think that everyone found a bed and it felt like one big party around here. I think that it is notable that the beer supply seemed to hold despite what appeared to be a gargantuan demand.

Although the crowds have left, the festive feel continues with a good strong tourist presence. So, without reading an article to the contrary, I’d say that tourism is alive and well in Uvita and Dominical Costa Rica, and that the prospects for the future are bright, especially with the two new segments of road making the drive from San Jose to Dominical a 2 hour and 40 minute affair now, instead of the former 4+ hours and some of that on teeth loosening dirt roads.

I have not seen an article written from your blog or website in February on your website so I want to know if you are still in business down there?

Well, I thank you for getting me off of my butt to get this article posted. I sure don’t want to give the impression that we’re out of business. Our lack of posting is a testament to our being busy. Rod and I have been doing quite a bit of real estate business. We’ve done some deals, and more are coming our way. All of the agencies are reporting the same, some with best ever numbers – (I heard this last part through a third party, but I hope to confirm it shortly.)

2009: In The Rearview Mirror

October 27, 2017January 9, 2010 by

Rod & I have decided to write a few words about the year just past. We did so without consulting each other or giving any clues regarding what we’ve written.

First off is Rod

If you subscribe to the idea that life is a series of ups and downs, then last year was a harsh reminder of how challenging the “downs” can be.

“Unemployment soars to highest level in 16 years.” – New York Times
“U.S. Foreclosures to Reach Record 3.9 Million in 2009.” – Bloomberg.com
“New car sales a ‘disaster,’ says Sergio Marchionne, CEO of Chrysler/Fiat.” – NY Daily News

While people were losing their jobs and houses in record numbers, they still had the time and interest to search for Britney Spears and WWE (World Wrestling Entertainment, which is fake wrestling, right?) making them the top two search terms on Yahoo! for 2009.

Although I have no idea what Britney was up to in 2009, I do know that most of us here in Costa Rica felt the impact of this economic downturn. After a decent start to sales in January and February, most real estate companies saw offers dry up during the following 8 months.

Like many people around the world, the Guys In The Zone shifted gears to “beans & rice mode” (luckily, we both like beans and rice). We tightened up the expenditures and found new streams of income. [Ben deserves some kudos here for his quick mastery of the hard money lending business. He, (leveraging his experience, contacts, and bilingual-ness) saved more than a few local families from economic disaster. This lending experience taught us that putting good food on the table is important, but to literally save someone’s table (and house it sits in) from foreclosure is a genuinely rewarding experience.] While we didn’t sell any property during the middle of the year, we did put a lot of time and energy into new listings, our websites, and the Talk Show feature which we will continue to work on in 2010. Ben also started writing articles for Montana al Mar, a new monthly magazine focused on health, sustainability, and community.

The old adage “When you love what you do, the money will follow” proved true in 2009. The end of the year found activity picking up noticeably. Three excellent deals

Confusion Around Costa Rica’s Luxury Tax

April 28, 2017October 21, 2009 by

[singlepic id=10 w=320 h=240 float=right]So, I get this great e-mail from some super in-the-know real estate guys the other day that answers a number of my questions regarding the new Luxury Tax law. After this “clarification” I post to my Facebook page and Tweet the news where I stated “I have determined that the new Luxury Tax in Costa Rica is for construction only and does not include the value of the dirt under the house.”. This is wrong.

Today I wake up to find out that I had posted incorrectly and in the process cost thousands of people their homes and livelihood – OK, well it wasn’t quite that dire, but still…

I read an article in AM Costa Rica that says:

The biggest issue appears to be if land should be included in the valuation to determine the amount on which tax is to be assessed. Some say yes and some say no.

Well, the law says yes, but that appears to be a late change by the legislative staff without the knowledge of some of the key legislative players.

Consequently the title: “Tico and expat confusion reigns on new luxury tax” In it the author explains how the law is poorly written, and the “Hacienda de Tributacion” (Costa Rica IRS) has not communicated the law well through press releases (there have been none to date) nor through their website where it is mentioned in a cryptic and hard to find form. So, even for those well meaning, law abiding tax payers who want to comply, they aren’t really sure what to comply with.