Guys In The Zone: Costa Rica Real Estate

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:

1. High prices
2. 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.) Continue Reading

Rod being attentive at the Camara de Bienes Raices course in San Jose Costa Rica.

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 Continue Reading

or – How Media Saturation Robs Us Of Our Joy
or – an Original Thought is a good thing

We humans find ourselves intriguing, in fact – fascinating. Theories explaining the experience of being human abound .

One theory that I heard as a young man has stuck with me through the years. This theory now finds a rather interesting application in my life of living as an expat here in Costa Rica. I see the possible truth to this theory as I observe what I have come to know as “4th Day Original Thought Syndrome” or “4DOTS” in Costa Rica. Based on this thing that happens on day #4, many decide that they would like to either make Costa Rica Home, or to at least make it a big part of their life.

Observation:

Thinking Man Fires Off a Brain Circuit

4DOTS is simple – it’s really nothing more than relaxation. But I need to do a footnote definition here of what I mean by relaxation. It’s more than just having our neck muscles relax and our shoulders lower down by a couple inches, (which they do on day 4). 4 DOTS relaxation has to do with the mind.

The Theory:

It is thought that when we first have an experience as a baby, we fire off a unique circuit in our brain. The experience is profound and frequently pleasurable. We are drawn to the subject experience again and again to get better acquainted. We call this learning.

Let’s say that at the age of 1 year our Mother puts us on the warm, sunny lawn in our back yard to crawl around. A new circuit is fired through our brain and we are fascinated by the greenness of the experience and the warmth of the green. The texture is slightly prickly but not unpleasantly so. There is a humid component and a wonderful smell that we will later on associate with the word “earthy”.

From this point on in our lives this same circuit fires every time we experience warm green grass, causing a familiarity with the experience, and this we call memory. So the theory goes.

(As an aside, i t is thought that the psychoactive drug LSD causes variations in our established and familiar brain circuitry. This can be profoundly pleasurable (or disturbing) and cause fascination with what we adults would consider to be mundane things. This would explain why people on LSD can be seen studying their hand, or marveling at the grass they are standing on. ) Continue Reading

Education… it elicits warm images of smiling children, colorful classrooms and fundamental ideas like opportunity and a brighter future.  I am happy to say I see all of those elements unfolding here in Costa Rica, albeit sloooowly.

Did you know that the Costa Rican government is constitutionally required to budget at least 6% of the country’s GDP on educational programs?  In fact, the only countries that spend more on education (as a percentage of GDP) are Saudi Arabia and Norway at 9.5% and 6.8%, respectively.[1] Costa Rica also sports the highest literacy rate in Central America at 95.8%[2].  That said, there are a couple of gaps this learning curve, and I’m specifically referring to the parents and educators in this rural region, not the kids.

Elementary school classroom.

Ben and I often receive school-related questions from potential clients.  So, here’s a quick synopsis of public and private education in our region of Costa Rica.  Public school is free and for children between the ages of 6 and 13 (e.g., 1^st through 6^th grade).  Unlike most of the public schools in the United States, Canada and Europe, students are required to wear a uniform, typically dark blue pants with a white or light blue shirt.  The curriculum includes the usual core subjects of Spanish, Math, History, and Science.  Since 1998, English and Computer Sciences are also standard.  After kids pass their final elementary school testing, they have the option of a five-year stretch in colegio (i.e., high school in North America and Europe).

Judging from the local tico parents I have spoken with, their public school system offers a decent education for their children.  Judging from the growing number of expats living in the area, the school system is far from acceptable.  Leveraging my sources, namely my girlfriend (who has an 11 year old son) and a variety of local parents with school-age children, I embarked to uncover the real education story.

Frustration In An Emerging Country

“They don’t have school today… again!”  My girlfriend was beside herself.  Apparently, the parents of her son’s public school (he was in 5^th grade) chained the front doors of the school demanding the removal of an (allegedly) drunk principal.  This comical Latin American story quickly turned ridiculous, as the protest went on for almost a week?!   Then, there was the teacher’s constant infirmity with no substitute.  Then, there was the partial flooding of the campus for a few days during the rainy season causing… yep, no school.  In reality, her son probably only attended half the number of days scheduled.

On top of that… the school didn’t have any books.  The teacher cited the importance of learning dictation and penmanship, but at what expense?  Early in the first parent-faculty meeting of the year, my girlfriend asked for an explanation?  The answer was they didn’t have any money.  Then, education in rural Costa Rica came into focus when each of the parents decided to budget money ($2.75/month for 10 months) for a “Christmas Party” for the kids.  The party turned out to be a success; the kids sang a few songs, played a few games, and ate what amounted to $20 worth of candy and cake.

This year, her son is attending a new “better” public school in Uvita.  The only problem is they don’t have any text books either.  But, hold on… before prospective mothers and fathers cross Costa Rica off the list, please allow me to share another option available.

Multi-Cultural, Global Citizens

“By learning you will teach, by teaching you will learn.” – Latin Proverb

I remember when I first met Ben, and he told me the main reason he moved his family of five from Colorado to Costa Rica was because he wanted his kids to be bilingual and have an enriching life experience.  In fact, those are two of the main reasons most families move down here.  The third being… it’s a tropical paradise.  They lived in San Isidro, and they homeschooled their children who turned out happy, healthy, and yes… fluent in Spanish.

All that being said, we understand home schooling is not a viable option for some parents.  In Part 2 of this article, I will share arguably the best educational option in Costa Rica— private school.  It will also include continuing education for adults specifically, learning Spanish!  Until then, please feel free to share your questions and comments in the space below.  Saludos.

[2] United Nations Human Development Report 2007/2008 (Unfortunately, in some countries literacy is defined as being able write your name.)