My SEC attorney recommended I chat with real estate sales and loan broker, attorney and American ex-pat George Furnald. Here is what he has to say to the investor looking for opportunities to invest in Costa Rica:
Here's the problem in Costa Rica. Unlike the U.S., real property sales figures are often not recorded in the Registro. Many times the buyer buys the shares of the Sociedad Anonima (S.A.) which holds the title for an undisclosed sum. Other times, to save on transfer costs the lawyers use the "fiscal value in the records" as the sales price. Some lawyers won't do this as they can charge a higher fee if the sale is recorded using the actual sale price.
It takes the local broker with knowledge of property activity to guide the buyer and seller as to fair market value. How about appraisals you may say. Most appraisers base their fee on the amount of the appraisal. A higher number results in a higher fee! A built in conflict! Case in point, right now I have a loan application on one of my listings. The borrower says it has a bank appraisal of over $2.5M, yet it can be bought for $1.5M. Just off by a million or so!
If you have clients interested in CR, I suggest they avoid certain areas and stick with good locations where the home is in a gated community. Otherwise, they'll be looking at hiring and keeping staff to watch the house in their absence and perhaps difficulty in selling it a later date.
I do recommend gated communities in the central valley for those who would like a moderate climate all year around, proximity to the best hospitals and medical/dental care, choices in shopping and restaurants, theatres and museums.
For those who want to be near the beach, I highly recommend Playa Flamingo and nearby beaches. For those who want to see a good cash flow from weekly or monthly rental all year around, I suggest the Manuel Antonio area.
Here is an example of a vacation rental property for sale right now in the area that George Furnald recommended for investors:
http://www.hiddenbayrealty.cr/listings/casa-de-luz/
I am happy to provide additional information to anyone interested in investing in Costa Rica. For more information, please message Wendy Ceccherelli at HomeLandInvestment@gmail.com
For additional information on living in Costa Rica, check out these links:
http://www.internations.org/costa-rica-expats/guide/living-in-costa-rica-15466
http://internationalliving.com/countries/costa-rica/
http://www.therealcostarica.com/
https://www.youtube.com/watch?v=Fou20wUrVpI
Happy Investing!
Photo courtesy of National Geographic
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