Guys In The Zone: Costa Rica Real Estate

In this episode, we start with a Q&A session and share a few tips for those retiring to the southern Pacific zone of Costa Rica. We also share specific ideas about property features that may not be on a buyer’s radar. Whether you are ready to relocate and retire or, like many of our Canadian clients, simply want a warm and sunny place to escape to when the weather turns cold, this Talk Show provides basic information and (hopefully) stimulates your desire to visit. Pura vida.

Uvita Costa Rica is a Diamond

The popular movie series of the – what was it – the nineties, eighties? Well, whatever it was, Back to the Future illustrated well the point that knowing what is going to happen in the future is key to making a lot of money. The problem with this tidbit of obvious investment data is that none of us have the ability to know what is going to happen in the future. So we deal with our inadequacy by analyzing data, conditions, information, trends and rational thinking to come up with a picture of what we feel is going to happen.

Now, if I haven’t lost you by my utilizing a sensational title and then reneging, let’s move on.

Ben’s Data, Conditions, Trends and Rational Thinking as it Relates to Real Estate in Costa Rica’s Southern Pacific Zone

There is an interesting change happening here on planet earth. Old rock-solid institutions and unmovable, immortal entities have gone the way of the dodo, they’ve died, and we inhabitants find ourselves looking around – hmmm, how to say? a bit disoriented would be a gentle way to put it.

I had a guy come into my Uvita office the other day to explain to me in great detail why buying gold is important, and that the major banks in the U. S. are going to be going under shortly: Bank of America, Wells Fargo and others.

This wasn’t some lunatic. This was a credible man in his sixties that has found his way in life that any of us would characterize as “successful”. The point, however, isn’t to debate the vitality of these North American institutions, but instead to illustrate the time of change that we are living in, and how this relates to real estate in the Dominical, Uvita and Ojochal zone of Costa Rica.

Quality of Life Yearnings -

Dominical is, for many, symbolic of an agreeable life change, a step back in time and a step towards a simpler way of things. Its perpetually non-improved dirt “main street” and lack of growth facilitates the little town to be likened to something worn and comfortable – an old shoe perhaps?

Talk with some of the vacation rental owners in the area and you’ll hear of the regulars that come every year and stay for a month. Talk with the folks that come and stay for the month and you’ll hear how they love the laid back, rustic, simple feel of the towns. Talk with all the above and many will confess to the desire to move here.

More on this data point later.

Geographical Data -

"Pizza Town" Dominical Costa Rica

Dominical is situated on land that is configured like a slice of pizza, with the wide part of the slice being where most of the buildings are. The slice is defined by the Baru River at the wide end, the pacific ocean along one of the sides, and the coastal mountain range on the other side. The sides both converge to make a point right at about where the restaurant and hotel Roca Verde is situated.

Uvita is like a diamond shape – well loosely like a diamond shape. It has a lot more flat space around the town. Our guessings of some years back was that Uvita would eventually become the social/economic center of The Zone, and indeed it has. However, back at that time, Dominical was the place to be and was the only place known in countries other than Costa Rica, so one might have thought this prognostication to be a bit adventurous at that time.

For the first six years that my family and I lived in San Isidro (inland from Dominical about 30 minutes), we did homeschool and I worked on Internet technologies from home (when I had a connection to the Internet). Part of our weekly schedule was a beach day. We had it down. We had a box with cooler, towels, hammocks, adjustable straps for the hammocks, and receptacles for seed and shell gathering. We almost never went down to the beaches of Uvita, even though they are arguably nicer than Dominical. The reason? The road was sometimes impassable. It wasn’t paved and the trip could take 45 minutes.

Dominical Costa Rica as a Slice of Pizza

This would be a bit difficult to accept if all you have known about the Dominical / Uvita link is the current highway, but I am not describing an ancient era. This era in fact ended a mere 7 years ago with the paving of the highway.

In my next installation here, I will look at some more trends and data points, as well as my read on what all this indicates about how to get rich in Costa Rica real estate.

More on how to Get Rich in Costa Rica Real Estate Coming Soon!

I was excited to find the Poll functionality on LinkedIn a couple of weeks ago. The question I came up with “What is the top reason to buy land in Costa Rica’s southern Pacific zone?” seemed like a good jumping off point for this regular feature on the blog. Although the sample size was small, the responses were revealing.

Low Property Tax
Costa Rica’s property tax rate is .25% on registered value. That means if you buy a $400,000 house in Uvita, you will pay $1,000 in property tax, plus another $1,000 (or .25%) for the new Luxury Tax passed in 2010. Your total annual property tax bill will be $2,000 which is a third of what you will pay in Houston, Texas.

Investment Value
If we can agree that people want safe, beautiful, and affordable environments to live in, then the southern Pacific zone of Costa Rica has to make that list. Clearly, “affordable” is a relative term. Some clients have $50,000 for a house, some have $1.5 million; however, this market has dipped according to the simple dynamics of Supply and Demand. An ocean view property (only 8 minutes from Uvita) listed for $30,000 was unheard of five years ago, yet now we have it (Sunny Josecito). In fact, we have access to just about every type of investment in every property category.

Growth Potential
I can’t tell you how many times per week people ask me when the International Airport will be completed in Palmar. Given the fact that construction has not started, it is a difficult question to answer. Eventually, it will be constructed (for better or for worse), and the area and property values will grow as a result. I state this with a fair degree of conviction because I’ve seen what paving the Costanera (Coastal Highway) and re-paving the road between San Isidro and Dominical has done for the area. I believe if it weren’t for those two improvements, the downturn would have hit our area much harder.

Walking the dog on your favorite beach.

Weather and Beaches
Today (Sept. 29th, 2011) marks the middle of the rainy season, yet we had sun with its accompanying ocean breeze all day long. The evenings are typically cool, especially if your house is strategically located facing the Pacific Ocean and its beaches. Speaking of beaches, The Zone has something for every sun lover. You want to surf or watch surfing, go to Dominical. You want a good dog-walking beach, go to Playa Hermosa. You want to do some cave exploring, go to Playa Ventanas. I’ve spent more time on the ocean the past 4 years than in my entire life in California, because the water is warm, dare I say perfect, year round.

Relaxing Lifestyle
According to our voters, this is the top reason to buy land in Costa Rica. You don’t realize how stressful life is in the progressive Western world, until you move here. Both Ben and I came from Santa Cruz and Aspen, gorgeous towns in California and Colorado, respectively. We lived the typical cycle of working hard and playing hard, and then right back to working hard again. We were surrounded by friends, family and neighbors who were stressed by this same cycle and material pressures. It all added up to a simple yet consistent desire for change. Without question, Costa Rica presents an opportunity to slooooow down and simplify. Sometimes I surf in the morning, sometimes I walk a big farm. There’s no rushing to Starbucks on the way to pick up the dry cleaning. Here, we sit down and enjoy our coffee. We wear shorts and flip flops. If anything, life in The Zone is indeed relaxing.

So, yes there are many reasons to buy land in Costa Rica. Whether as an investment, as a relocation destination, or simply as a place to visit and unplug for a couple of weeks in the winter… The Zone will not disappoint.

This episode focuses on the most popular features people look for in Costa Rica real estate– the ocean view and proximity to a river/waterfalls. We explain how whether your desire is to buy an existing home or buy raw land & build, both of these quintessential property features add to the quality of life. If a picture is worth a thousand words, these video clips shot “on location” in two of the best developments in the area will speak volumes. Enjoy.

Episode14 by GuysInTheZone

“Innovation distinguishes between a leader and a follower.”  – Steve Jobs

I bet your wondering how that idea relates to real estate in Costa Rica?  Well, simply put… if there was ever a time for property owners and real estate agents in this marketplace to be “innovative,” it’s now.

We all need to think outside the box...

LISTING IS ONLY THE FIRST STEP

Here’s how listing a property usually unfolds in The Zone—

• Step One: Call up The Guys and set up an appointment to preview the property.
• Step Two: Determine if an Open Listing or a Modified Exclusive Listing is appropriate for you.
• Step Three: Wait for The Guys to bring you a buyer.

The problem is that Step Three is taking much longer than most Sellers anticipated.

LOOKING BEYOND PRICE

We all know reducing the list price is the easiest way to increase property showings, offers, and sales.  However, if your property is in the ballpark of current market value and it is being shown but not selling, there could be other reasons limiting the sale.

Here at the Guys office, we continue to ask ourselves what can we do to speed up the sales process?  At the risk of sounding trite, one answer is: “think outside the box.”  Here’s an example of how The Guys have applied this idea.

Ben started his Costa Rica blog in 2003 (before many of us knew what a blog was) Read the full story

A typical conversation in a-day-in-the-life of a Costa Rica real estate agent.
Visitor – Hey Ben, howzit going?
Ben – Good man. How’r you?
Visitor – Good. How are things in The Zone?
Ben thinking to himself – (Translation: Are properties selling? Are prices going up? What is this season like? What is the coming season going to be like? How much is my property worth? What is the effect of the global economic crisis on Costa Rica? I’m thinking of selling my property, is now a good time to sell? I’m thinking about buying a property, is now a good time to buy? Etc etc…)
Ben talking – Going fine. We’re not in a boom by any means, but by contrast with the last couple years, we feel encouraged.
Visitor – Sounds good. What’s selling?
Ben thinking - (or – Are prices going up? What is this season like? What is the coming season going to be like? How much is my property worth? What is…)

It is like having a super-power. Perhaps a bit overstated, but essentially true. The nature of the business of real estate does give one an ear to the ground on how things are going with the economy, social trends and by extension, the quality of life In The Zone. We all are curious to some degree about “what’s going to happen” and so we are on the watch for data, for information that’ll give us a clue as to what the future will be like.

To illustrate: Pre-Super Bowl talk shows. These popular shows are really about nothing more than guessing what is about to happen in the next few minutes. Player’s strengths and weaknesses are analyzed, their past injuries are discussed, and notable personal traumas might even play a bit into the picture. And this is all around what is about to happen with something that really isn’t going to impact the quality of anyone’s life to any appreciable degree! We humans love to speculate on what is going to happen in the future.

So, I’ll give you my read. I’ll tell you what my crystal ball says regarding what the future might look like here in The Zone. To do so however, Read the full story

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

This gorgeous natural swimming hole sits below one of the nicer homes in Uvita.

It’s one of the most popular questions we, the Guys In The Zone, field— “What’s been selling? We get this question from both buyers and sellers.  Generally speaking, the answer is— great deals.

PRICE

Price is the #1 determining factor for a great deal, but there is another factor that is equally important— the living experience.  Ben, my business partner in Costa Rica real estate, phrases it this way, “do any unique features of the property significantly affect the quality of the living experience?”

There are very few remaining places on the planet where things are (1) inexpensive and (2) incredible.  During the boom years of 2004-2008, Costa Rica real estate was inexpensive and incredible.  Large farms were purchased $1.00/meter squared and nice ocean view lots were under $100,000.

Three years after the peak of 2008, property values across the border came down between 40-50%.  Many houses are now selling for replacement cost or less.  Once again, we have large farms for $1.00/m2.  The obvious reason was the global economic downturn and continual 10:1 ratio of sellers to buyers.  Basic economics tells us that price, or in this case property value, had to come down.  Our listing database is now filled with good properties in every category—houses, land, large parcels and commercial.

THE LIVING EXPERIENCE

For most people, buying real estate in Costa Rica isn’t just about getting a great deal.  You can move to Orlando, Florida if that is your only goal.  It is about the unique features that significantly enrich the living experience.  When Ben and I get a new land or house listing that has an ocean view and a trail to a nearby river… Read the full story

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 Read the full story