DominicalRealty

Costa Rica will turn your realty dreams into a reality but there are a few golden rules you need follow to make them come true. With over 13 years’ experience in the Costa Rica real estate industry I have a fair few stories about property investments gone wrong – so please take my advice.

Make sure your realtor is well connected….

I am the Master Franchise holder for Coldwell Banker in Costa Rica and the co-founder of Coldwell Banker Vesta Group one of the oldest and most recognized firms in the South Pacific of Costa Rica. Since my early beginnings I gave great importance in establishing long lasting relationships with not only my colleagues and clients but also competitors.

…Has a real interest in selling your property

It may sound far-fetched but I have seen it time and time again. Realtors ask you to send photos of your property but never make the effort to see it! My colleagues and I have a distinct advantage – it is mandatory for us to visit all the properties we represent. Anyone can sell real estate by putting up a website and posting listing but I believe that something is to be said for firms that have been around for many years. Ask you broker how long he has worked in the zone and it will make a tremendous difference in what you actually see.

….Is qualified and knowledgeable

James Drews, John Weir and I are members of the Costa Rican Global Association of Realtors and the U.S based National Association of realtors. We’ve created a unique boutique realtor firm where you get access to the experienced minds of 3 professional brokers who actually listen to your needs and are not just driven by commission.

We are all family men and have integrated into the South Pacific community and this is where our children attend school. We believe so much in this location that we have decided that the South Pacific is the best place environment for our families.

…Knows their Portfolio

Time and time again I see realtors taking on more properties than they can handle. Whether you are looking to make a property investment or sell your Costa Rica real estate you need to ensure you are properly represented. Realtors that make the effort to get to know the properties they are selling in detail are more likely to find the property that matches your specifications.

….Understands the potential of their area

The South Pacific of Costa Rica is the hotspot for real estate investment but don’t just take my word for it. The area has benefited from a relatively slow paced development and this has ensured that the tropical landscape has remained intact. With the absence of high rise building’s blocking out the ocean views this is a prime eco tourist destination. At the end of 2011 the Costa Rican government announced that a new international airport would open Palmar Norte in the South Pacific in 2014. As tourism arrivals so will property values. Here are a couple of examples of the best deals on the South Pacific property market.

* A Small Stylish Hotel reduced from $2.1 to $1.2 million positioned overlooking Playa Uvita. Featuring five luxury cabins with ocean views and within walking distance to the beach. This is a top rated hotel on Trip Advisor and gives investors the perfect opportunity to capitalize on the growing tourism industry in the area.

* Priced at $685k this classical colonial design coastal retreat is only 5 minutes away from the beach. With dramatic ocean views, a spectacular infinity swimming pool, 2,760 square feet of living space this is the ultimate beach property.

And lastly a few real estate myths

Choose the right realtor and you won’t need to work with several – it really is that simple. Pick an experienced, qualified regional realtor who only works for you is the best way to go. Life is based on relationships and nowhere is this more evident than in the real estate world.

Choose to work with one realtor and they will do all the hard work, reviewing listings, carrying out research and finding the best possible deals. Whatever you do, don’t go with all the realtors in the market place – you’ll only become a commission number and the can affect the quality of properties you are shown.

Don’t assume that going directly to the developer will get you a better deal. Qualified realtors will be able to research developments in the area and assess which properties offer the most for the best price.

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If you are looking to make a foreign property acquisition now has never been a better time. Even though it is currently a buyers’ market, what strategy do you need to follow in order to negotiate the best Costa Rica real estate deal?

With a wide range of properties to choose from, at knock down prices, it’s a fact real estate owners no longer have to fend off multiple offers as soon as they decide to sell. Of course, if you are a wise investor, you’ll know that now is the perfect opportunity to acquire property in the Costa Rica, more specifically the South Pacific.

So how can I make such a declaration? Well, economists make a close connection between employment and real estate and the South Pacific is experiencing a significant amount of both residential and commercial development since the opening of the Caldera highway. At the end of 2011 the Costa Rican government announced that a third international airport would be built in Palmar Norte another insight into the pending rise of property values in the South Pacific.

By all indications the South Pacific is gearing up for a real estate boom and this is the pause that will allow many investors the opportunity to acquire value appreciating property in exclusive coastal communities such as Dominical, Ojochal and Uvita.


So how do you negotiate a real estate deal in Costa Rica?

1. Don’t ever disregard emotions – property owners will continue to believe their house has something special regardless of how the real estate market is behaving. Contact a qualified regional realtor and decide on what sort of property you need and how much you can afford. You’re realtor will then be able to search the market for suitable properties and negotiate fairly.

2. Check the Costa Rica real estate market and compare properties of a similar size to help ascertain what offer you are going to make. Comparable sales have proven to be the best bargaining tool when it comes to closing a deal, insult a seller and they won’t be interested in negotiating.

3. Why are they selling? Ask your realtor to find out why the property owner has put their residence on the market and this will help you negotiate a better deal or know when it’s time to move onto another property.

4. Ask your realtor to find out how much the seller owes on the property. Compare an owner who owes more than the house is worth with an owner has a long list of investments and you’ll soon see how motivated the seller is.

5. After about two months of keeping their home spick and span property owners get tired of people traipsing through their residence. After the initial flurry of viewings fall sharply this is when a property owner might be more willing to negotiate.

6. Don’t invest in doer uppers – there are plenty of properties on the market that are up to date and require minimal investment. Many properties that require updating are not reduced enough to warrant a worthwhile investment.

7. If all is going well, ask the seller to add the closing costs to the price of the house.

8. Ask the seller if they are willing to include appliances with the deal – many will agree just to close the deal.

9. But, don’t ask them to paint or carry out any kind of job that requires skilled workmanship. The chances are it won’t be completed to your liking and you’ll just have to do it again.

10. Pay close attention to the world real estate market. Don’t get emotionally attached to one property and don’t get engaged in heavy negotiations for a couple of thousand dollars.

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If you are looking to invest in income generating real estate in Costa Rica you most probably already have an idea of how you want your property to look. Buying a home abroad can be a nerve-wracking experience so it’s understandable why you would want to avoid properties that don’t necessarily fit your criteria.


Costa Rica Real Estate – Finding your Diamond in the Rough


However, many experienced investors would agree that you need to look beyond the superficial to find your diamond in the rough. I’ve seen a fair few decorating disasters in my time as a realtor not only in the South Pacific of Costa Rica but also the U.S.


I’ve also seen a fair few first time investors walk straight out of a property because they simply don’t like the luminous green walls and funky light fixtures. They often don’t realize the true potential that lies beneath!


Unrealistic Property Dreams – Intelligent Budgeting


Don’t we all want to own the multi-million dollar property that sits on the hill overlooking the ocean? But how much can you really afford? Make sure that get pre—approved for a loan before you begin your search. Don’t consider homes that are 5 percent over your maximum, all you’re doing is setting yourself up for disappointment.


The First Visit – Looking Beyond the Superficial
There’s no doubt that some people have the knack of walking into a property and knowing straight off the bat that it’s a winner.


* I cannot emphasize enough that the shell of the property is the most important detail you need to look at. If the property isn’t well distributed but can be rearranged, consider whether the cost of renovation will allow it to reach its full potential and be sure to add this onto your offer.


* When you look the walls ignore the color, they can always be painted and revamped. You may also find the floors surfaces are outdated; once again this can be easily replaced.


* A room with a view – pay close attention to what surrounds the property to get a better idea if it fits in with what you want to use it for. Don’t worry too much about the landscaping and if there isn’t any at all this look at this as a blank canvas, you’ll get to design it how you want.


* Look at the size of the kitchen rather than the outdated color schemes. If the rest of the property is up to scratch you can always give the kitchen a little face lift as this is the most important room in the house.


* If you want a swimming pool, buy a home with a pool already built in. Pools are expensive and you will not get a full return on the cost when you go to sell. Let someone else lose the return. The cost of repairing a pool is less than putting one in, so if you’re looking at a home with an old pool that looks like it’s in bad shape, it’s still a better bet than putting one in later.


* Before you make an offer, hire a professional property inspector and take heed of his/her advice. If the home is in generally good condition and fully functional look beyond the owners designing skills.


A Business and a Home – Fixer-Upper in the South Pacific


Built in 2000 and located in Lagunas Dominical this property is the perfect affordable escape to paradise. Positioned close to the beach and surrounded by tropical greenery this charming cabin with swimming pool sits on 5644.95 sq m of land. The one room cabin with loft and full bath can easily be redistributed. There is also a pool house with small kitchenette and two baths. With a motivated seller this property is the perfect fixer-upper, you could even live in the cabin while you build your dream home.

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It came as little surprise when I heard the news that several regions in Costa Rica had topped the Global Real Estate Index. On the 27th March the highly esteemed online resource, International Living, featured an article in which Ronan McMahon placed the Southern Zone in his top three best real estate markets for 2012. Furthermore, Arenal was awarded 8th position and the Caribbean coast 20th position.

In compiling his Global Real Estate Index, McMahon explains, “In pockets all across the planet, you’ll find amazing opportunities to make money from real estate. I’m talking about beautiful places tucked into lush jungle-clad hills, on white sandy coves, in bustling cities, and in small colonial towns. These are markets on the upswing. The mainstream hasn’t heard of them yet. And in them today you’ll get excellent bang for your buck as well as great profit potential.”

The Southern Zone Ticks All the Boxes for International Living

Preceded only by Ecuador’s North Coast and Tulum Mexico, Costa Rica’s Southern Zone caught the eye of McMahon. The real estate investment expert explains that his Global Index is composed of locations that boast the most attractive, and potentially lucrative, real estate opportunities and the South Pacific certainly ticks all the boxes.

Narrowing his list down to just 27 locations around the world I can see why he placed this quite unknown region of Costa Rica on his list. Benefiting from a relatively slow paced development in comparison to its northern neighbors the South Pacific features unspoiled tropical landscapes, ocean views and almost deserted white sandy beaches.

Thanks to the opening of the Caldera Highway which connected the Central Valley to the Central Pacific, the South Pacific has never been more accessible. Reporting an increase in tourist arrivals the region is developing commercially and creating employment opportunities. As many economists would point out the best place to acquire land is where new jobs are being generated.

The South Pacific Offers Ease of Buying and Value for Money

In the McMahon Global Real Estate Index comparisons are made between “value for money,” “appreciation potential,” “income potential,” “costs,” and “ease of buying.” The South Pacific scored particularly high when it came to value for money and ease of buying. As McMahon explains

“Costa Rica has done a great job selling itself. That’s why, in places, a half-acre lot could set you back up to $600,000. Costa Rica’s Southern Zone stayed off the radar, though. And it’s nicer than up north, the area most folks know….The entry price for a lot at the gold-standard project in this area is a modest $40,000. It’s very good value for money. Because of the new road, I expect prices will rise. And that makes the appreciation potential strong.”

I am also sure that the property investment also took into account the fact that Costa Rica’s 3rd international airport is earmarked for opening in 2014. Considering what a new airport did to property values in Guanacaste, it’s little wonder that investors are turning their attention towards the South Pacific.

Costa Rica Real Estate in Arenal and the Caribbean Coast



While Arenal is a more established real estate location the Caribbean coast is an emerging region that has also remained largely underdeveloped although. Both of these areas rely heavily on tourism arrivals and as the country continues to innovate in this industry these regions will evolve.

Not Just a Google Search – How Did McMahon Create His Index?

Ronan McMahon has spent the past eight years travelling the world in order to ascertain the best real estate investment. His research has been collated out in the field, not from his desk and this adds further credibility to his Global Real Estate Index.

Explaining how to interpret the index, McMahon explains that what’s right for one investor may not be for another. Whether you are interested in generating an income, short term gains or long term hold, there is something to suit every investor’s needs.

As he concludes, “Appreciation potential is my view on the prospects for values to rise. But that’s the point of this Index. It’s meant to give you a useful window into the world of analysis I do…and help point you to the markets that might make the most sense for you and your portfolio.”

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The United States will always be hailed as the land of opportunity, but ongoing economic uncertainty has seen attention turn south of the border.
With stunning tropical landscapes, white sandy beaches and an abundance of wildlife it’s hard to believe that Costa Rica has even more to offer than meets the eye – but there’s something about this little Central American country that is both unique and astounding.


Ranked No.1 in 2009 on the Happy Planet Index for the highest life satisfaction in the world and the second highest average life expectancy of the Americas (second only to Canada) it’s time to take a closer look at Costa Rica.


Politically, socially and economically Costa Rica is one of the most stable countries in Latin America. Abolishing the army in 1948 and securing its position as an innovator in conservation and eco-tourism. An incredible 26% percent of Costa Rica’s land is comprised of natural reserves and national park systems that protect an estimated 4-6% of the world’s biodiversity and contribute to the countries flourishing $1.92 billion tourism industry.


Inevitably, as Costa Rica evolves the country weighs up the importance of infrastructural improvements and the environmental consequences. As development and expansion endures Costa Rica also has to tread carefully when it comes to international relations. The recent donation of $100 million stadium from the Chinese government has certainly raised a few eyebrows around the world.


However, the country continues to grow in diverse ways. In the South Pacific of Costa Rica, the announcement that a new international airport will open in 2014 has sparked the interest of many international property investors eager to capitalize on a rapidly progressing region.


For as little as $249,000 you can own a 5570 sqm piece of paradise, a prime ocean view lot located in the exclusive South Pacific community Escaleras, Dominical. This lot, with access to full services is one of many beautiful ready to build home sites in the South Pacific.


But it’s not just real estate that foreign investors are interested in.
Thanks to a high amount of qualified professionals that graduate from Costa Rica’s world ranked universities, this is prime recruitment territory. During the first nine months of 2011, Costa Rica received a total foreign direct investment of $1.5 billion. The arrival of technology and telecommunication companies has significantly contributed to this 52% increase investment compared to the same period of time in 2010.


This continued development has also seen the entrance of many of the Western food and apparel giants. With the recent announcement that Starbucks is setting up shop in Costa Rica it remains to be seen whether Ticos are going to move away from their already established coffee culture.


One thing remains true for many who have made the move to Costa Rica. Opportunity thrives on optimism, and with this, this Central American country certainly has a promising future.

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