Guys In The Zone: Costa Rica Real Estate

Episode 12 features a candid look at community in the Southern Pacific Zone of Costa Rica. If you’re considering relocating, buying a house, raw land, or a commercial business in the greater Dominical or Uvita areas, we encourage you to watch. And, please feel free to share your comments or questions. Gracias.

Talk Show – Episode12 by GuysInTheZone

A look at 2011 Costa Rica real estate trends as perceived and shared by Ben Vaughn and Rod Martin, the Guys In The Zone.

Guys In The Zone Talk Show – Episode 11 by GuysInTheZone

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.

[This article is a continuation of Education In Rural Costa Rica, Part 1]

Bilingual teacher offers a hands-on lesson.

Private School

Simply put, the reason most tico families do not send their children to private school is the cost.  The best private elementary school in San Isidro runs around $275/month.  Even by gringo standards this can be viewed as a lot of money; however, most parents understand the benefits are significant, like— bilingual studies, text books, well-equipped teachers and classrooms… to name a few.  “After school” extra-curricular activities often include— art, dance, and sports.  These creative activities teach kids so much more than memorizing dates in history.  They prepare them for life beyond the farm, should they choose to pursue it.

To give you an idea of how “private schooling” has become synonymous with success, there are currently 6 public and 60 private universities in Costa Rica.  The southern Pacific region is fortunate to have the Int. University San Isidro Labrador, only 45 minutes drive time from Dominical.[1] According to StateUniversity.com, “…higher education is free for nearly 50 percent of the enrolled students.” My guess is that scholarships are a significant part of the aforementioned $2 million (6.3%) of budgetary spending on education[2].

The task of the modern educator is not to cut down jungles, but to irrigate deserts.
– C. S. Lewis

Escuela Verde

The increase in private universities is a good sign for the future of the Costa Rica, but what about options for the parents of younger kids?  Let me share a quick story about Escuela Verde, a new private grade school that opened in 2009 in Uvita.  The school was founded by a couple of parents who were unimpressed by the public school options in the area, and their mission statement is clear,

“Escuela Verde prepares children to be resourceful and independent while inspiring them to give back to their multi-cultural community and the natural environment.”

After securing a building in Uvita Centro, they quickly rallied support from the parents and community.  The teachers follow guidelines for Costa Rica and U.S. grade level guidelines, and many subjects are taught in both English and Spanish.  Unlike many of the public schools, the kids are even responsible for completing regular homework assignments.   They even have scholarships for tico families that want to expose their children to the best educational option available in the area.  It is my understanding that they already have a long waiting list.  For more information, you can go to Escuela Verde’s website.

A Melting Pot Of Ideas

Compared to crime and politics, education does not receive a lot of publicity in the media.  However, it is a hot topic for parents who want to make Costa Rica their new home.  Perhaps the best news I can offer our readers and potential clients is that the Southern Pacific Zone of Costa Rica is a melting pot, ala the United States of the 19th and 20th centuries.  A blend of ideas, talents and energy has created a lively, international community… one that is keenly focused on sustainability, preservation, and education.

[1] http://education.stateuniversity.com/pages/300/Costa-Rica-HIGHER-EDUCATION.html#ixzz0ix0kJIPU

[2] http://www.ticotimes.net/dailyarchive/2008_09/090208.htm#story1

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.)

Talk Show – Episode 6

Talk Show – Episode 6

Welcome to our full video Talk Show format!  In addition to this new look, we share new information on Costa Rica real estate including, a recap of 2009, recent activity in the southern Pacific zone of Costa Rica, and new issues for buyers and sellers.  This post comes in advance of the new www.GuysInTheZone.com website, where you can find all of the best resources for the area in one place.  The most notable addition to our new site is the forum.  It’s there to give us all a place where we can discuss the various topics that are going on around The Zone.  To all our readers, watchers, and listeners, thank you for your questions and comments, and please feel free to get involved over at our new forum.

Uploaded by GuysInTheZone. – Explore lifestyle, fashion, and DIY videos.

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. Read the full story

I was standing in the outfield at the Saturday Softball game in Uvita, when the feeling hit me. It was the warm feeling you get (and I’m not referring to the direct sun variety) when you are with a group of people having fun. In a word: community.

We have a special one down here in the Southern Pacific Zone of Costa Rica. Perhaps it is the international mix of ex-pats— Germans, French, Italian, Swiss, Argentinean, Canadian, Mexican, African, Chinese, and the list goes on. A variety of backgrounds and personal stories better than any television series— the crazy Italian chef turned humble bread maker, the ex-radio personality turned successful bar owner, animal activists, people activists, retired couples from Atlanta to Ibiza…. the list is long and varied. It’s diversity meets adventure meets pura vida, and we love it.

For many investors, Costa Rica has been (and continues to be) primarily a smart place to put your money. And, that’s fine; investing is encouraged given the bright future of the country and region. But, for those people considering a permanent (or semi-permanent) move down to Costa Rica, the reasons stretch beyond democracy, economy and sunshine.

Variety evolves culture. This is especially true with the exotic cuisine found in the area; there is even a restaurant named Exotica, and it is excellent. In addition to numerous Tico restaurants, international options include—French fusion, organic Italian, Japanese sushi, Curry Night, and yes even elements of “the western diet” satiate the The Zone’s inhabitants.

In addition to these restaurants dotting the landscape, a staple of any conscious community is the farmer’s market. There are in fact two weekly farmer’s markets in The Zone—Thursday and Friday in the fast-growing city of San Isidro, and the Saturday Farmer’s Market in our sleepy beach town of Uvita. This relatively new farmer’s market offers an increasingly broad array of (mostly) organic produce, baked breads and pastries, homeopathic elixirs, and hand-made gifts. I consider all of these wonderful vendors “artists”, as you only need to grow or create something and share it with others to qualify. In fact, we have more photographers, painters, writers and musicians per capita than any place I’ve ever been. Perhaps it is this artistic quality that blends so nicely with the laid back, friendly nature of the Ticos.

Most of the people living here agree that the economic downturn is no excuse to lose sight of the importance of doing what we love. In fact, it compels us to re-adjust our sights on something uplifting and sustainable. Simply put, Ben and I love helping people invest in property in the Southern Pacific Zone of Costa Rica. We love every aspect of this service—putting deals together, hiking around large farms, chopping tall grasses with machetes, designing new websites…. all of it. In fact, work doesn’t feel like work at all. Experience tells us the recent drop in property prices will soon hit bottom (if it hasn’t already), and another long rise will begin.

This coastal area, as my friends in California like to say, is golden. The reasons are many—low population & construction density, great value, the Coastal Highway is almost paved between Quepos and Dominical, an International Airport in our future, it’s a tropical paradise. And, let’s not forget the original inspiration for this article—community. It’s not something you can put a price on. It’s something you feel.

Especially on days when you observe 20 gringos cheering for a Tico kid who hit his first home run.