So, the Guys have moved, once again.  We are now located in the commercial center across from

Guys In The Zone New Real Estate Office in Uvita Costa Rica

La Corona and Banco de Costa Rica.  We’re right next to Sonia’s Uvita Information Center.  If you are checking out at La Corona, and you look to your right across the street, you’ll see this image –>

So, why’d we move?  Well I’ll tell you, and in the process you’ll not only get an idea of what rents are going for in Uvita Costa Rica, you’ll gain some insight into the basic differences between men & women, so read on!

We moved from the second floor spot we had because we found that prospective clients simply didn’t want to go upstairs.

The capper was when I noticed that my gal Natalie would come to the parking area and call me on my cell phone.  I asked her why she did this.  Why didn’t she just come on in and talk vis a vis?  She said because she had a sun dress on and so Continue Reading

Property Values In The New World

It would seem that life has settled into a routine now in our “new world” setting here in Uvita Costa Rica.  What’s it been, 2 years since the global economy went into the stink house?  My how time flies.  Our real estate company is cooking right along actually doing some business.  The business that happened so rarely during the recession was mostly for under $100k  lot sales and $300k was the upper edge of house sales.  The prices in our market have dropped 40% – 50% across the board.  And there are still some highly motivated  sellers out there.  I’ve started a list of these sellers.  Originally I was going to call it the “Desperate Sellers” list, but I have re-thunk it and come up with the “Motivated Sellers” list.  Right now I’ve got 5 properties on the list.  The top deal there at this writing is the 57 acres farm in Uvita for $250,000.  Click here if you’d like to check it out.

The point is that the market has definitely re-defined itself and numerous sellers are adapting.  We went through a time here in The Zone when it was pure death, nothing sold and there was no one looking.  Some real estate offices closed down and others (like GITZ) tightened their belts and survived.  Now we are watching and learning what the new world looks like.  Here’s some of what we’re finding out.

Money is tight (duh!).  But, there are buyers here, and they aren’t just the $100k lot or $300k house buyer variety.  There is a recent sale of a Lagunas house for $750k and an Ojochal house at $850k, so we seem to be breaking out of the old restraints.  This isn’t to say that things are hopping again here in the zone, but they are a sight better than they’ve been for a couple of years.  The Guys In The Zone are enjoying doing some business, but again, it’s all been for steeply reduced pricing.  We had a client come down looking for a $100k ocean view property, of which we have some to show, but these clients morphed their criteria while here, and were enamored with some very fine properties at great prices.  End of the story? 2 lots at just a little over $500k.  If you’d like to see what the properties were, click here for one, and here for the other.

Conversations about current values abound.  Methods for establishing the values Continue Reading

The Guys are doing quite well, thank you very much.  We are currently made up of 4 official Guys, as well as a smattering of several honorary “Guys”.

Ben - Living the Life

My name is Ben Vaughn and I am no longer the oldest Guy, since Chan has made his business acumen available to the Guys on a consultant basis, and he is older than I am.  Rod & I are the originators of Guys In The Zone and we have now also been joined by Richard, a very welcome presence in the Guy’s office as he brings his enthusiasm, energy, and of course, solid business practices into the fold.

Our office is located in what is now known as the BM Supermercado (Supermarket) building. We are where the Rainforest Internet Café was located. If you go to the south end of Uvita, and look to the left (inland) side of the highway, you’ll see our blue spiral staircase in between two rather garish yellow background Farmacia signs.

We stand a good chance of moving to a ground floor location over next to the Marino Ballena restaurant. Stay tuned on this, but if we do, we’ll be just that much easier to find.

Richard - Guy In The Zone

We, like the other agencies in The Zone, are gearing up for what promises to be a rather busy “busy” season.  Our business barometers are the vacation rentals and hotels, who are all saying that their bookings are strong for the coming season.  We are setting up property viewing appointments and understand from our competitors that they are doing the same.

The general feeling is that we have endured the worst of the global economic downturn.  It is felt that our world has definitely changed here in Costa Rica, just as it has in

other parts of the globe, but that there is a newly defined and emerging system taking shape.

Basis for Optimism

At the very core of any successful market is the element of human

Rod - Happy Living

desire.  You can analyze a market every which way, but if the product or service lacks a strong appeal, it is likely going to do nothing more than flash (as a result of a marketing effort) and then burn out.

Properties in Costa Rica have always had, and continue to have, a strong desirability.  Couple this with a return to much more affordable prices, and you get what we feel we’ve now got, a genuine, non-boom real estate market place.

We aren’t looking for the white-hot action of the early to mid 2000’s.  We are looking for buyers and investors who peruse our online listings, e-mail us, come into our offices and shop what is available to initiate what for many, is the achievement of a life-long goal – moving to, and owning a property in, Costa Rica.

It is interesting that we seem to be returning to some of the demographics of years past.  We have been working with people that have 3 – 7 years as their projected timeframe for moving to Costa Rica.  It may be that retirement is on the horizon or kids will be getting out of school, or there might be an aged parent that needs care, and so on.  These folks come down now while the prices are low, and secure their property.

At the risk of repeating what I’ve written before: there are 5 basic reasons why people buy property in Costa Rica:

1. Relocation to be a full time resident
2. Migration lifestyle.  Live part of the year in Costa Rica and part elsewhere.
3. Income generating property. Use it as a vacation getaway that rents out when you’re not here.
4. Land bank.  Buy land at a good price, wait 5 years and sell it at a reasonable rate of return.
5. Build a community, retreat or family compound.

This last point (#5) has been enjoying a surge of activity as of late with what I like to refer to as the Escapists.  These ones generally are looking for larger parcels of land that can accommodate numerous structures.  These folks predict a crashed economy or currency back home.  Or an un-payable national deficit promising increasing tax hikes. Or simple uncertainty of what the future holds as society’s former standards and immortal icons topple and go by the wayside.  Going off-the-grid is frequently in the mix for #5. Oh, and the year 2012 prophesies helps a bit with this group as well.

What’s Selling

Our message to sellers is always the same.  If you want to sell, you have to lead the market in lowering your pricing.  There are basically 2 groups of sellers: those that know they have to lower their price in order to get listed with the real estate agencies, and those that REALLY have to lower their price in order to convert their land holdings here in Costa Rica into cash.  These are motivated by the need to protect something “back home”.  It is this second of the 2 groups who is mostly selling here now.

We are enjoying the re-appearance of under $100,000 ocean view single family lots.  These were gone for a number of years as the ocean view category’s bottom pushed up to somewhere around $150,000. Good quality houses in the $300,000 to $400,000 range are selling briskly.

There are some gorgeous luxury homes on the market but activity is soft in this category.  One could say it is a great time to buy a luxury home in Costa Rica’s southern pacific zone.

This is an interesting category since there are definitely capable buyers around, but the availability of credit is low. If a buyer is liquid to the tune of $1,000,000 or more, they may be reluctant to spend it in a single acquisition.  Consequently, we feel that seller financing is going to play a larger role in the coming season than ever before.

The Guys are enjoying life, and are here to serve.  Please let us know if we can help you achieve your goal of making Costa Rica your home.

Is the price commiserate with the worth?

“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. Continue Reading

Hydroelectric power is BIG in Costa Rica.

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.

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, Continue Reading

A longtime associate in Costa Rica real estate stopped by our office after being out of the country for an extended period.  One of his first questions was, “So, what’s going on with the international airport?”  My response was, “What airport?”  He found that amusing considering the broker he just spoke to was talking it up like the asphalt trucks were lined up and ready to pour the tarmac.  We both had a good laugh.

I’m not saying major infrastructure projects aren’t being completed here in Costa Rica.  There have been many projects completed in the past two years—

• San Jose-Caldera Highway
• Quepos-Dominical Highway (affectionately known as, “The Dirt Road”)
• Re-paving of the Dominical-San Isidro Highway
• The Bridge at San Buenaventura
• The Bridge at La Cusinga (almost)

From that list it is easy to see the progress and the progression.  What I mean by “progression” is the land routes need to be completed first before an international airport is built in The Zone.

International Airport In Paradise?

Rumors to Reality

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.

In summary, Costa Rica’s third international airport will be located in the same exact spot currently occupied by the Palmar Regional Airport.  To comply with Aviacion Civil (the FAA of Costa Rica) standards, the runway will be extended 400 meters and facilities for immigration, customs, and security will be constructed.  The “facilities” will include extra hangers, buildings, and even a terminal that will provide hangers and services for commercial shipments.  The price tag on this project is quoted at $25 million dollars, half the proposed cost of the mega-terminal in a new location.  They did not release a projected completion date, but I would be shocked if it was ready in two years.

One of the most interesting points in the announcement is the Minister of Tourism’s call for more hotels to be built in the area.  It is a similar point echoed by the longtime mayor of the Osa Canton, Alberto Cole.  It’s safe to say, major hotel projects are going to get the green light, moving forward.  One of the more interesting things to me is exactly how they are going to accomplish this with no Plan Regulador (e.g., zoning plan) for the area?  Where are these new hotel-resorts going to be located?

What Does It All Mean?

It means that at some point in the future there will be international flights landing in Palmar.  It means there will be more hotels, and the beaches will be alive with activity.  It also means there will be many, many more investors buying in the area.  People look at me funny when I say this area is poised for another b-o-o-m, but all of the regional signs—improved access from every direction and significantly lower property prices— point that way.

It means property in areas like Tres Rios and San Buenaventura, once thought of as “too far south of Dominical” will be a 15-minute taxi ride from the terminal.  Check out Tres Rios Estate and Tres Sandalo 17 as examples.  We only have a few listings in Palmar (see photo left), but I guarantee that number will double before the high season.

Most of the expats in The Zone have adopted the “I’ll believe it when I see it” philosophy.  We have also been surprised by the recent completion rate of infrastructure projects.  Safe to say, the completion of the 3rd International Airport in Palmar will be the crown jewel for the region.  If you are interested in buying Costa Rica real estate, this recent news bodes well for smart investors.

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 Continue Reading

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

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.) Continue Reading