Guys In The Zone: Costa Rica Real Estate

July 26, 2010

Education In Rural Costa Rica, Part 2

Filed under: Relocation — Tags: , , , , , , , — Tigre @ 6:16 pm

[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

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…)

February 23, 2010

Houses In Our Future

Filed under: Construction, How to Sell, Land For Sale — Tags: , , , , , , — Tigre @ 6:09 pm

What does the future hold for The Zone?

The crystal ball… standard equipment for psychics and investors, alike. Ben and I are constantly observing the trends and then peering into the future of our little Costa Rican real estate market.

The First Wave

Around 1995, the first wave of developers arrived to the area. These early mavericks (let’s call them environmental-preneurs) benefited from a combination of vision and cheap land. Development was easier back then. Buy a big farm and segregate it into smaller farms (or lots). As the news of cheap land and low costs for materials and labor trickled out to the world, there was a 10-12 year rush on land that led to spiking prices for ocean view home sites. At the beginning of 2007, there were no quality ocean view lots left under $100K, at least not any in developments with good infrastructure (roads, water and electricity). Well, it’s now 2010 and we suddenly have many ocean view properties that can be purchased for under $100K. This quick “land in The Zone” recap is an attempt to set the table for the next trend I believe we experience, moving forward—Houses in The Zone.

Ben and I estimate over 60% of the people who inquire about property want to buy a house; however, over 60% of those house hunters end up buying raw land. There is a very obvious lack of supply in this economic equation, and the reason is we are simply at an early stage of the development cycle. According to CFIA (Colegio Federado de Ingenieros y de Arquitectos de Costa Rica), compared to 2007, the province of Puntarenas experienced decrease of -67% in total square meters constructed compared to the January–April of 2008.[1] Safe to say, the global economic downturn effected everyone investing in Costa Rica.

Gorgeous villa in San Buenaventura.

Yet toward the end of 2009 to present, we find ourselves busier than ever! We currently have 40 house listings on the coast (which means not including the mountain towns of Platanillo, Tinamastes, and the regional capital of San Isidro) ranging from $66,000 to $3.2 million. And, it’s no surprise that 90% of home buyers want an ocean view.

For those with construction experience and a desire to build houses in a foreign country, this where there may be money to be made. The crystal ball formula is– buy a cheap ocean view lot, no more than 10 minutes from the Costanera (our paved coastal highway), and build an affordable house with a swimming pool. The main question we anticipate from potential builders’ is “What kind of house do I need to build to guarantee a sale?” Unfortunately, we cannot provide a “guarantee” only guidance based on our personal, feet-on-the-ground perspective.

Price

The $weet $pot in our house market is between $200-250K. There are folks looking for houses on the coast in the $100K range, but they quickly realize those days are over. If you their budget is fixed at $100K, then we show houses up the mountain in towns like Platanillo and Tinamastes. We do have a couple of nice coastal properties with old tico houses on them for under $100K, but most of these are “tear downs” and re-building on these footprints is generally un-advisable.

Floorplan

Swimming pools sell property.

In this $250K price range, one effective floor plan is the 2&2 en suite (e.g., double master), central kitchen and small living area, and a large patio outside to enjoy the view. Most of the living experience in Costa Rica is done outside. Without question, one of the key rental amenities is the swimming pool.

IT doesn’t need to be huge, or have an infinity edge. But, it really helps a sale because it really helps rent-ability. Even thought there is a bathtub-warm ocean with miles of empty, gorgeous beaches just sitting there for people to enjoy, vacationing groups, couples, and especially families, love the pool.

I could offer a few more building suggestions, but I’ll leave those details to those with far more experience in spec building. What I do know is… Ben and I need houses, and I see them in our future. Thanks for reading.

[1] Indicadores CFIA de la Construcción. Costa Rica, Enero-Abril 2009


December 5, 2008

Uproar Over Project Shut Downs

Filed under: Info & How To's, News, State of the Market — Tags: , , , — Ben @ 5:50 am

Yesterday started off as a typical, glorious Costa Rica morning. Rod and I got an early start with San Buenas Golf Resort Project Manager Larry Breau, walking the golf course project. This involved a drive from our Uvita Costa Rica office towards the south about 20 minutes. There was a slight delay in travelling south due to to ICE (pronounced ee-say), which is the monopolistic agency here in Costa Rica in charge of telecommunications. They are running a new grid of lines to accommodate the rapid growth in the zone. No problem, just a 5 minute wait.

We had a full morning of rubber boots, machetes, broad rimmed hats and a liter of water reviewing the project.

In driving back to the office we encountered a line of cars backed up. Thinking it was ICE we sat patiently waiting. A number of people had turned off their cars and were milling about in the road, talking, some with exaggerated arm gestures. One gal walked by and upon seeing the lighter shade of our skin (assuming that meant English is spoken) she approached us and asked what the hold up was. We very authoritatively informed her what was going on with ICE. Turns out we were dead wrong. This was a road block caused by angry protesters out in front of Crystal Ballena, a local hotel and restaurant where a high level meeting was in its second day.

Costa Rica government officials met with developers and the local Osa government departments to discuss some of the project closures that were the result of an inspection sweep (more…)

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