Costa Rica: An Exciting Real Estate Investment Prospect

>

The CIA world factbook clearly states that in its opinion Costa Rica is a ‘Central American success story’, and the government of Costa Rica is keen to expand on the country’s success and have announced the implementation of a seven year plan for the economic expansion of the country.

To this end they are actively encouraging international real estate investors and those looking for a retirement or second home overseas to come to Costa Rica and explore its exciting and affordable property market.

The Costa Rican real estate market is one of the most exciting in Central and South America right now as a direct result of the Costa Rican government’s commitment to promoting the property sector. With the implementation of a series of tax breaks and investment incentives available to overseas real estate buyers the success of the Costa Rican property market is practically guaranteed.

For those looking purely for real estate investment opportunity, Costa Rica offers two main angles for property investors to explore: -

Firstly as the natural beauty of Costa Rica proves an irresistible draw for more and more travelers and those in search of the perfect getaway, so the demand for rental and hotel accommodation in Costa Rica is on the increase. The supply of quality accommodation in Costa Rica cannot meet current demand and this situation is likely to deteriorate as the popularity of the country increases. The government is well aware of this fact and is keen to attract those wishing to develop specifically for the tourism market.

Secondly Costa Rica is becoming increasingly popular with the soon to retire US baby boomers who are actively seeking an affordable and attractive location in which to retire. Because Costa Rica enjoys relatively low crime, is neutral, has a relatively high standard and low cost of living it is gaining a reputation among pre-retirees as a must-consider destination. There is therefore room for the development of real estate to suit this particular market or for the purchase and long term lease of real estate to this market. This particular group of people also represents a strong resale demand for those who buy now, improve property and intend to resell in the medium term to release gains accrued.

The real estate investment climate in Costa Rica is hot right now with the government working flat out to attract sustainable foreign direct investment – those interested in making a move should consider committing to the market sooner rather than later while it remains a buyer’s market and before opportunities for the strongest investment gains are eroded by increased levels of investor awareness and interest.

About the Author

Rhiannon Williamson writes about real estate investment in emerging markets worldwide. To read more about real estate investment in Costa Rica click here.

Web Results for Real Estate : – Tribune

Web Results for Real Estate : – Tribune
Hear from C21’s CEO about the Real Estate Market QUIZZED ON REAL ESTATE Take this quick quiz, and see if Real Estate is century21.com/ Real Estate | Homes for Sale | Houses for Sale | MLS Listings Find homes for sale, real estate

This week’s Real Estate stories – Marketwatch
The housing bust has pushed home prices down substantially, taking a heavy toll on real estate commissions in the process, and is also devaluing the role of the real estate agent in buying and selling, a study from J.D. Power and Associates showed

NEW: County to get Delphi taxes – Kokomo Tribune
Howard County taxing units will be paid the personal and real-estate taxes that Delphi Corp. has owed since it filed for bankruptcy protection in 2005. The court order issued Thursday by Judge Robert Drain spells out how the taxes owed to the county

Is Real Estate A Good Investment?

If you are trying to find a way to make money you may think of the stock market or high interest savings accounts as a place to invest your money in order to get a good return. However, real estate is another option to think about. Is it a good investment?

In the US, most houses increase in value by approximately five per cent a year. Of course, this can vary depending on the geographical location and also the economy so that one year you may not see an increase at all and the next it may leap in value by up to 25 per cent for example. However, research shows that on average over the past decade, house prices have increased by ten per cent a year. The amount of profit on this is actually lower than you could make on the stock market and so those looking for a fast way to earn millions may well be put off this type of investment. However, if you look at the figures involved you can see it is actually a much better investment than you first thought.

If you are looking to buy a house that is on sale at $200,000 you are likely to require a mortgage in order to secure the sale. For this example, let?s say you have a $40,000 deposit in cash to place against the property. This is the amount of money you could have invested in the stock market. In one years time your house will have increased in value by five per cent, meaning its value will have increased to $210,000. This gives you a profit of $10,000 in a year. This level of return is possible through wise investment in other fields but when you consider that you have made $10,000 profit on your initial investment of $40,000 that five per cent increase becomes a 25 per cent increase. This is an excellent level of return on your investment that would be difficult to achieve elsewhere. In addition to this, you always have a level of security with real estate as you have actually purchased something tangible and this will continue to be yours, whereas there is always a high level of risk associated with stocks and shares.

Of course, of you have purchased a home with a mortgage, as per the previous example, you will be making monthly repayments. If you have purchased the property as somewhere for you yourself to live you were probably renting prior to this. When renting you are simply throwing money down the drain so you can be satisfied that your mortgage payments are contributing directly to your ownership of the property. This will allow you to make even more money off your investment in future years should you choose to sell as you will own a greater proportion of the house outright.

If you bought the property as a buy-to-let investment you will need to be sure that the amount of rent you will make from your tenants will cover your mortgage costs. In addition to this, you will need to have funds available to enable any repairs that are required to be completed quickly in order to ensure that you are not in breach of your rental agreement. If you are considering buying a property in order to rent it out I highly recommend you seek professional advice before committing yourself so that you can be sure that it will not end up costing you more per month than it is making you.

About the Author:

The author regularly contributes to Hot Housing Markets where more real estate investing help and local real estate price data is freely available.