Guys In The Zone: Costa Rica Real Estate

August 15, 2010

About Crime in Dominical Costa Rica I

Filed under: Crime, Info & How To's, News — Ben @ 7:27 am
CAP on Crime Security Dog Presentation

Demonstration of How Security, or Protection Dogs Work

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”.

If you are interested in reading about my experience, click here.
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Click here for Latigo K9 Protection Dogs website
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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 (more…)

May 8, 2010

Rainy Season In Southern Costa Rica

Filed under: Info & How To's, Relocation — Tags: , , , , , — Tigre @ 4:34 pm

With the rain comes the color...

If you’ve listened to our recent Talk Show #7, you have heard us convey how much we enjoy the rainy season down here in Costa Rica.  As Ben mentioned in that video, “Four out of five people who live here would probably say they prefer the rainy season.”  (Disclaimer- this estimate is not based on scientific data.)  However, there are those visitors to our blog and websites who see the rain as a deterrent for buying here, a sentiment that serves as my motivation to write this article.

First, the rain here is different than in most areas of North America and Europe.  It doesn’t bring a shiver to the bones; it’s refreshing and a welcomed break from the heat.  Warmth is just one of many characteristics that make this tropical precipitation so vital and so magical.

Six Months Of Rain?

Climate is a significant factor for most buyers when determining where to buy their piece of Costa Rica real estate.  In fact, one of the most popular questions Ben and I field is “How many months per year does it rain?”  The quick answer is around seven; however, that number doesn’t tell an accurate story.  The rainy season starts in mid-April and usually runs through mid-November.  Most days start out cool, clear and sunny with some rain in the afternoon and evening.  Rainfall in September and especially October can be heavy.  These September-October downpours, aguaceros in Spanish, lead some residents to make plans to be elsewhere during that time.  That being said, even in October the sun will come out at some point during the day.  We do experience the occasional tropical storm, but hurricanes on the Pacific side of Costa Rica are a rarity.

One of my favorite benefits of the rainy season is there aren’t as many people.  It’s not that I have anything against tourists; we were all tourists at one point in the Costa Rican journey.  However, if you live here full time or part time, the small town, pura vida is easier to absorb without the extra traffic, both automotive and human.  Tourism, and the vacation rental market, is still strong between June and August as most kids are out of school.

I spent most of my life in the relatively dry Bay Area of California, my love of the rain comes as a surprise to friends and family back home.  I try to explain how the rain cools things down, how it takes the dust out of the air, how it replenishes the fresh water tables, and how it summarily brings this place to life.  The southern Pacific zone is SO GREEN that at times it seems like someone has adjusted the color balance.  The tropical flowers and budding fruit pop against an ever-changing jungle backdrop.  Simply put, rain helps everything grow, and that includes the wildlife and the humans walking around.

Like buying real estate in Costa Rica, living here is relatively easy with the right contacts.  It can also be a very enriching experience with some understanding of Spanish.  If you want to be on the Pacific Coast, you have to enjoy the heat to some degree (pardon the pun).  Thanks to the heat, I am now a morning person.  Thanks to the rain in Costa Rica, I am now living a dream.

April 21, 2010

Costa Rica Real Estate Chit Chat

Filed under: Info & How To's, MLS, News — Tags: , , , — Ben @ 5:30 pm
Training for Costa Rica real estate certification.

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 (more…)

April 3, 2010

Education In Rural Costa Rica, Part 1

Filed under: Culture, Info & How To's, Relocation, Stories — Tags: , , , , , , — Tigre @ 2:34 pm

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., 1st through 6th 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 5th 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.

[1] http://www.oclc.org/reports/escan/images/edpercent.swf

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

March 23, 2010

Water In Costa Rica, Part Two

Filed under: Construction, How to buy, Info & How To's, Processes — Tags: , , , , , , , , , , , , , , — Tigre @ 3:37 pm

Water is a necessity.

If you ask the World Bank or one of the mega-water corporations (e.g., Coke, Nestle, Vivendi), fresh drinking water is a commodity.  If you ask virtually everyone else in the world (including the United Nations), fresh drinking water is a basic human right.  Whether it is the encroachment of privatization or Nicaragua’s plan to divert the San Juan River[1], water in Costa Rica is an increasingly lively topic.

One of the most popular questions for potential property owners is, “What is the water situation for this property?” Most of these new investors come from North America and Europe, areas that have hundreds of years of infrastructure development.  However, this southern Pacific region of Costa Rica is still early in the cycle of development.  We continue to see rapid growth in communications (cell phones and high speed internet), power (high tension power lines), and roads (the newly paved Costanera between Quepos and Dominical).  That being said, cell phones are a luxury, but water… is a necessity.

Property In A Development

Most quality developments have a water system that has been installed by the developer.  The most common sources for these systems are high flowing springs, and in some cases surface water (e.g., creeks and rivers).  Some developments, like Osa Estates in Uvita, even have back-up systems and extensive water storage capabilities.  The interesting thing is very few developments actually have a concession (permission to extract water from the ground).  The good news is the majority of them are “in process”.  Either way, the developer usually provides the property owner a prevista (water right document) which guarantees use of water into the future (assuming the property owner is in compliance with established CC&Rs and other laws).  Proof of a water document, like a prevista, is also required by the local Municipality before they will approve any construction project on a property. (more…)

March 10, 2010

The Most Precious Real Estate

Filed under: Info & How To's, Just for Fun, Relocation, Stories — Tags: , , , , , , — Tigre @ 2:06 pm

I want to tell you the ocean knows this,                              Yo os quiero decir que esto lo sabe el mar,
that life in its jewel boxes                                                         que la vida en sus arcas
 is endless as the sand                                                               es ancha como la arena

Isla Ballena in the Paque Nacional Marino Ballena

As a teenager, I was as inspired by the poetry of Pablo Neruda.  So much so, I decided to study English and wrote extensively during my college years in San Luis Obispo, California.  I had the good fortune to rent a house on the beach with two friends, who were brothers.  The younger brother would frequently bellow, “Thar she blows!” when he spotted a whale’s spout.  His brother and I would always drop our books and run to glimpse one of Nature’s great spectacles.

Perhaps fueled by this touch of nostalgia and the fact that I spend almost everyday at the beaches in and around Uvita, I wanted to highlight some of the most precious real estate in Costa Rica— Parque Nacional Marino Ballena.

Parque Nacional Marino Ballena

Created in 1989, the Marino Ballena National Park was the first national marine park in Costa Rica.  It was created to protect the marine ecosystems associated with the beaches, mangroves, islands and a fragile coral reef that turns out to be the largest on the Pacific Coast of Central America.  The park itself stretches from the southern end of Playa Hermosa to the northern end of Playa Piñuela, and a triangular area reaching 9 miles out into the Pacific Ocean.  That triangle also includes the famous Uvita Whale’s Tail, Tres Hermanas (The Three Sisters) and Isla Ballena.  In addition to enhancing ocean view of property in the area, these landmarks are home to thousands of aquatic and terrestrial species.

Whale breaching in the Pacific.

“Ballena” means whale in Spanish.  That’s right… this area is visited every year, primarily between the months of November to early March, by southern and northern hemisphere female humpback whales.  They arrive to give birth and nurture their 14-foot?!! newborn calves in the warm, calm waters of Costa Rica.  Although there are daily whale sightings in the peak season, this majestic mammal is still on the endangered species list.  If you haven’t seen one up close, you might want to consider putting a whale-watching tour out of Uvita on your Bucket List.

Even if you aren’t into the idea of being on a boat in the open ocean, you can still enjoy the experience from land.  I vividly recall one morning at La Parcela (which used to be my favorite spot for breakfast until they stopped serving it!) when my parents were visiting.  We were enjoying our gallo pinto and eggs when a dark blue whale suddenly breached in the middle of the bay.  Over the next half hour, it continued to rise out of the water, twist, and crash down on its side at least 20 times.  It’s safe to say, this was the most memorable breakfast my parents and I have ever shared together.

Return Of The Ridley

The humpback whale is just one of many creatures inhabiting the marine park.  Sea turtles are another ancient animal that return to nest on these specific beaches every year.  Thanks to conservation efforts, Olive Ridley numbers are actually rising in the southern Pacific.  You can see them while snorkeling around the Whale’s Tail or one of the aforementioned islands.  But, let me tell you… if you haven’t seen a baby sea turtle dig out of its sandy nest and instinctively scratch its way to the water, you’re missing out on a truly wondrous experience.

Without question, the great outdoors, including the multiplicity of marine life found in Parque Nacional Marino Ballena, is at the center of this amazing life in The Zone.  It is one of the primary reasons tourists visit and why many of those tourists eventually invest in real estate and/or relocate in this part of Costa Rica.  The immediacy of wildlife in the southern Pacific zone, like a 50-foot whale breaching during breakfast, adds value beyond measure.

February 12, 2010

Water In “The Zone” (Part One)

Filed under: Info & How To's, Projections — Tags: , , , , , , , — Tigre @ 4:15 pm
Costa Rica, Uvita, water, creek, lead, reflection

Ample surface water in The Zone.

Recently, I had the good fortune to visit a friend who gave me an excellent book called “The Heart of Dryness” by James Workman.  Although this particular book is about the socio-political struggles of the Bushman of the Kalahari Desert, it sparked a deeper exploration into a topic I believe will jump to the forefront of everybody’s conversation in the near future— water.  Access to fresh drinking water is already one of the “big three” infrastructure necessities (along with electricity and good roads/access) when looking for property in Costa Rica, hence the motivation for this article.

I will save my thoughts on the impending collision between over population and global warming (two forces which, in a nutshell, will have a dramatic effect on fresh water availability and global food production).  However, I do want to share a few thoughts and discoveries about water in Costa Rica, as I believe it will continue to move up the list of positive reasons why people will be moving to the Southern Pacific Zone.

Unlike some of the coastal areas in Guanacaste and Nicoya, The Zone has an abundance of fresh drinking water.  There are two main reasons for this fact— (1) rainfall and (2) less development.

Rainfall

For the Southern Pacific Zone of Costa Rica, rainfall ranges between 120-160 inches annually, with the rainy or “green” season (May-October) supplying the majority of this annual total.  My experience has been that the sun shines almost everyday in the rainy season, typically in the morning to mid-day hours.  Residents of The Zone thoroughly enjoy the 20-30” of rain we do receive in the dry season (3 hours last night, in fact), and the lush, green vegetation it stimulates.  In contrast, the popular coastal region of Guanacaste (Tamarindo, Flamingo, Papagayo) receives only between 40-60 inches of rain annually.[1]

Population

Approx. 35,000 people live in the Osa Canton of Punta Arenas (think of a canton like a county within a state), which roughly includes the coastal area between Dominical and Palmar.  Unlike The Zone, Guanacaste’s coastal region developed rapidly over the past 15 years.  According to the Minister of Tourism, it is the #1 Canton for tourism, specifically the coastal areas.  This influx of world travelers, especially in the peak dry season, puts an added demand on water resources.  Without question, the agencies and residents are benefiting from these growing pains experienced by our neighbors to the north.

Fresh Drinking Water

Part of the reason for this “gold star” is the government structure.  AyA (Aqueducts and Sewers) is the main government agency that manages water in Costa Rica.  Although many subdivisions and larger farms in the Southern Pacific Zone have their own water sources (springs or surface water like—rivers and streams), most of the towns and pueblos get their water from AyA-managed water delivery systems.  Those smaller, rural communities in the region have been encouraged by AyA to form ASADAs (Administrative Associations for Sewers and Aqueducts) to become eligible to receive AyA assistance in constructing and operating water systems.  ASADAs make up nearly ¼ of the water provisions in Costa Rica.

Rain and a rainbow over Uvita.

“At 82.2 per cent, Costa Rica has one of the highest rates of population with access to safe drinking water in the Latin American and Caribbean region.”[2]

The vast majority of water in the Southern Pacific Zone is either (1) safe to drink from the tap or (2) treated with chlorine and safe to drink from the tap.  There are cases of people living below cattle pasture or near commercial industries where run-off has led to water-born illnesses and toxins, respectively, but these are few and far between along the coast.  I live on a farm where we drink our water from the tap, and I feel very fortunate to have clean, chlorine-free water on demand.

Properties that are served by mountain spring water tend to be fresher and with a reduced risk of water contamination.  Over 50% of the property we sell is located in a development of some kind.  These developments range from those that have received a water concession and those that are at some point along this process.  Either way, these developments have invested in basic infrastructure, or the “big three”– water, roads, and electricity.  We also have many clients requesting information on these larger properties with independent fresh water sources, when they become available.  One beautiful 50-acre listing, Finca Uvita, has two springs on the property and touches the Ballena River for over 1/2 a kilometer (or 1,660 ft).

Whether you buy a large farm like Finca Uvita or a viable commercial piece in central Uvita, you will intrinsically benefit from a growing area and an abundance of water in The Zone.

[1] Toucan Guides, http://costa-rica-guide.com/Weather/WeatherMap.html

[2] STATEMENT BY THE UNITED NATIONS EXPERT ON WATER AND SANITATION, March 2009

October 13, 2009

Now What’s My Land Worth?

Filed under: How to Sell, Info & How To's — Tags: , , — Ben @ 5:51 am

I’m going to go out on a limb here and define some specific points that we at Guys In The Zone use to evaluate a property.  At the moment, this practice tends towards the black arts since the basis for land values in the zone went right off the cliff with the rest of the world’s economy.

Jesse over at Green Leaf Real Estate has come up with a rather interesting formula for property evaluation:  take what was paid for the land and add 25% annually, and then reduce that number by 40% to get today’s market price.  I find this technique to be ingenious, not so much for it’s accuracy, (that would be a subject of much debate), but due to the fact that Jesse actually came up with a method for evaluating land that sounds like it’ll put you somewhere in the ballpark.

The problem is, we’re not sure where the ballpark is these days.

Rod & I have been working more with the other real estate agencies in The Zone as we move towards a more cooperative real estate profession.  John Wieland of Coldwell Banker invited us out to look at a couple of houses in Ojochal and we got to listen to how he addressed the question “what’s my house worth?”.  He answered: “you can follow the market, be right at the market, or lead the market”.  To “follow the market” would be to realize that others have dropped their price and so you follow suit.  “Be at the market” would be to stay in the trajectory, up or down, that you feel the market is in.  Now, to “lead the market” means that you anticipate the market and blaze a trail with new prices that are compelling to the type of buyers that we now are seeing here in the zone.  In today’s “down” market, this means doing extraordinarily low pricing to get a timely sale. (more…)

February 19, 2009

A Brief History of Real Estate in The Zone

Filed under: How to buy, Info & How To's, Projections, State of the Market — Tags: , , , — Ben @ 6:24 am

“The Zone” is made up of a stretch of coastline starting from Hatillo in the north, and stretching south to Palmar Sur.  Included in that zone are the following towns, noted from north to south:

  • Hatillo
  • Dominical
  • Uvita
  • Ojochal
  • Palmar Sur

The inland portion of The Zone is a leg that runs from Dominical to San Isidro de el General, also known as Perez Zeledon.  In between Dominical and San Isidro is the town of Platanillo.

The Southern Pacific Zone of Costa Rica

The Southern Pacific Zone of Costa Rica

A word about pricing:
When dealing with ocean view properties in Costa Rica’s southern zone, the usual criteria of looking for a “per square meter” pricing fails us.  This becomes evident quickly as one familiarizes themselves with the market place.
Evaluating an ocean view property in this area is a combination of attributes, or virtues that come together to give the property its value.  Based on observing land buyers over the years, I rank these virtues in roughly the following order:

  1. view
  2. access
  3. size
  4. infrastructure
  5. amount of usable land
  6. proximity to the beach or a river
  7. privacy
  8. air motion

As an example of this, I once had a 10 acre property that had a window view of the ocean.  Of the 10 acres, perhaps 1 ½ were usable, the rest falling away in jungle covered hillsides. Price: $115,000
Across the way from this property, perhaps within 500 meters, I had another property of 2 acres with a sweeping ocean view, (more…)

February 3, 2009

Relocation – Surviving the Transition Financially

Filed under: Construction, How to buy, Info & How To's, Land For Sale, Relocation — Tags: , , , , , , , — Tigre @ 5:32 pm

domrestaurant.jpgAre you an entrepreneur who wants to relocate in Costa Rica? Many of you have ideas of what you would like to do but you don’t know if it is feasible. Do you buy a well-priced piece of real estate then develop it to your liking? Or, do you buy a turnkey business in one of the small towns of the Southern Pacific Zone (SPZ)? Those are two questions The Guys In The Zone are asked often, and I thought I would shed a little light on the possibilities.

Buy land, build structure, announce grand opening.

Relocators who lean toward the Buy & Build model are the most common brand of investor. Rarely, does the building process go perfectly smooth especially if you are a “first timer” in Costa Rica. Even with a good contractor, we encourage most owners to be on-site often. In fact, the more you can be there to answer questions and provide direction, the better. There’s nothing worse than flying down to check on the status of your building only to discover the size of your custom kitchen and bathroom have been interchanged?! If you follow this advice and move down to oversee the building process, then there are the obvious costs associated with living here (rent, bills, food, gas, etc.). However, this increases your chances to end up with the small (or large) business you always dreamed of. I have attended a few “Grand Openings” in the past few years, and most owners smile with pride, albeit with a touch of fatigue.

Most of our commercial land sellers are open to negotiating price and/or carrying paper (seller financing) as long as there is a significant down payment. Currently, we have excellent “raw land” properties that can accommodate businesses ranging from a small hotel-restaurant (listing #224) and one of the best “large commercial” pieces on the Costanera (listing #312).

Or, buy a landmark!

surf-shop.jpgUntil just recently there were very few businesses to buy in the SPZ. Over the past five years, the ticos and early bird gringos have successfully (more…)

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