Nearing the End of 2009

As the end of the year quickly approaches, we quickly see mental vacation syndrome starting to set in. You all know it, but here in Costa Rica it often takes on a new meeting.

In a phone conversation with a developer two weeks ago, I overheard him telling his accountant, "well, if I don't speak to you before the New Year, have a happy and healthy one." Well, certainly, there is nothing wrong with the best wishes, it is the timing that was humurous to me. 45 days before year's end. Why is everybody saying goodbye, see you next year. The kindness is pleasant.

It is the mental dismissal of the rest of the year that gets me. I live in Costa Rica, but this certainly has not changed my work ethic and dedication. It has always been why our company has been successful here, with efficient response time and constant communication. As the end of the year approaches, as much joy of the holiday season as it brings, it seems to breed "early departure" which seem to get earlier with the passing of each year.

It is funny. At this time of year, when we are planning closings, we have to plan them around when the attorneys are going on vacation, when the national registries is closing until mid January and when the banks are open. To those clients of ours who are listening, don't worry, we always find a solution.

Working under the Radar

I feel as if I must type quietly....as if the sound of the buttons on my computer will wake up one of the precious ones sleeping nearby.

It's 500am here in Costa Rica, on Saturday September 5th...As I sit at the barstool sipping my coffee as is customary for me every day, my newborn (3 week old this morning) daughter Samantha is resting in one of the greatest inventions in modern day, the baby papason chair. I only wish the grown up version also vibrated and had such calming music.

In the other room, my wife, whose birthday is today, and my near 5 yr old daughter Maya are still resting.

What has become customary to me, the morning coffee and lightning work ritual before the crew arises, allows me a unique time to work, but also to reflect on the silince that is so rare in a household with two young children. Silence can be so calming, but at the same time, so cautionary (sp, word?>)....The mere silence reminds me of how quickly this will change to livelihood any moment, when one of the ladies in the house starts to stir...

Well, enough morning philosophy, cleary this coffee has not taken its affect.

Back to work....Plugging away on some interesting deals right now, so back to the drawing board.

Perception

Interesting, in today's market, the first question that I get now from buyer's is always regards to how the market is behaving. Loaded question of course, but the answer is transparent in my opinion, but often times, a buyer in today's market looks for security to know they are buying at the right time.

In the market here in the Central Valley, both commercial and residential real estate are on the rise again, but it is interesting to see how both buyers and sellers seek to confirm their perception, to ensure their timing is right. The sellers, well, they hope to confirm that the market is on the rise so that they can either move their property, or move their price :)
Buyers, well, they want to know that the market is moving in a positive direction, but not too fast so that they did not miss the chance to buy at the best price.

The good news for the market in general, both on buyers and sellers side, is that the perception of current economic conditions and how they will affect us has changed dramatically. People have now decided that they must continue living, making decisions, investing, and buying that first, second or third home, or opening up that next office space to continue to expand their business.

The Synergy of Manuel Antonio…..

A ray of hope and a story of success in a real estate market which has been marred by dropping values and stagnancy. Manuel Antonio, Costa Rica, arguably the most beautiful and complete destination in all of Costa Rica, is in the midst of redefining itself as the premier coastal destination in all of Costa Rica combining the best in luxury, infrastructure, services and amenities, with an authenticity which an increasing number of international investors are seeking.

Manuel Antonio, located on Costa Rica’s central Pacific coast currently has several synergetic forces converging which are driving continued real estate sales and development during the most challenging of economic times. The construction of the Marina Pez Vela, a 300 plus slip full service Marina is nearing completion of its first phase and will be the finest boating facility in Central America. The area is the home to the world’s best sportfishing, with flat water year round and some of the finest bill fishing waters on the planet. Marina Pez Vela will boast the nation’s first full service boat yard facility catering to private yachtsmen and charter boats and will also include an extensive commercial area with boutique shops, restaurants and services. While the Marina charges towards completion with the first slips being set to open in late 2009, the Costa Rican Government is also making huge advances in the construction of a new highway linking San Jose and the principal international airport with the central Pacific coast and the completion of the Costanera Sur linking Manuel Antonio with the untouched beauty of the southern zone. These major infrastructural improvements make this area even more accessible for tourists who can opt for a much shorter drive or one of the many 20 minute commuter flights to the region. Finally, Manuel Antonio is seeing the completion of its first two condominium projects and the ground breaking of the first branded resort in this region, the Jade Condo Resort Residences and Beach Club. This project, offering a 190 unit condo hotel, plus 50 luxury residence condos and a world class beach club, will be an inconic figure on the Central Pacific coast. The active investments of Jade, Marina Pez Vela and the nearly completed condo projects in the area represent a capital investment in the area of superior to $100,000,000 which combined with the tens of millions which the government is spending on area infrastructure make for a dynamic future.

Though no one and no market is immune to the global economic slowdown, like many of the best businesses in the world, Manuel Antonio is investing in its future and building the foundation for it to continue to flourish into Central America’s most sought after destination. There are fantastic opportunities in the area for those with the vision and desire to revel in the beauty of Costa Rica, within a real community fusing luxury with authenticity, and an investment environment poised to be a leader in the future of Costa Rica.

the happiest nation

Well, by now I am sure you have all heard about the story. Not sure whether it was CNN or MSNBC, but the report was clear: Costa Rica just earned the number one spot on the Happy Planet Index.

That makes me feel better. After nearly 12 years of living in Costa Rica, someone worthy of a CNN report has justified my decision to be in Costa Rica. I was seriously doubting my life for a while there, but it all makes sense now. You can certainly understand my confusion I am sure... First and foremost, although I met my wife and have a beautiful daughter and one on the way, I was still not convinced that one could be happy down here.... With a successful and growing business, I was not convinced that happiness could be achieved. With a lifestyle hard to achieve in most parts of the world, I was still not sure about the place that I call home.

But, here comes a report on CNN. I can finally sleep at night. I can finally wake up in the morning with an ear to ear grin. And it has nothing to do with the gorgeous backdrop, the tropical weather, the laid back lifestyle, my lovely family...it is all thanks to our good friends at the Happy Planet Index, who I now cordially invite to my real estate office, where I ensure we can make them even happier :)

This one Makes a Fire look Cold

Well, all of us abuse the term...Fire Sale. A term too often used by agents and sellers to pawn anything that has been reduced from an already overpriced property back to a realistic level.

Not this one. A hectare of land, at the peak of the mountain in Escazu, offering dizzying panoramic views of the entire city, central valley and surrounding mountains...A breathtaking estate, private entrance, surrounded by coffee plantations, 600 sq meters of construction including a master suite designed main home, a guest quarters, employee's quarters, plenty of room for expansion....

JUST REDUCED From $1,050,000 to $525,000! Yes, and there is nothing wrong with it....Buy now, remodel, hold, move in, no way to go wrong on this one...

Check it out:
http://www.2costaricarealestate.com/San_Jose/Central_Valley/Homes/Escazu/Escazu/Agent/Listing_696861.html

Psychology of Buying Real Estate

In these unique times as some markets drop, other show signs of increased value and therefore start to show signs of stability, I have been forced to watch an entirely new side of my clients...Their heads. Yes, it is is tough to look in there, but it seems like people are now wearing their neurons on their sleeves, and although thoughts, logic, and decision making are always the key factor in making smart real estate decisions, this aspect is being taken to an entirely different level.

In our office, we deal with a wide variety of clients from residential buyers, commercial developers, transnational businesses, retirees, speculative investors and every other category that you can imagine. In today's market, each one's analysis of the market, in conjunction with the education and insight of our team of professionals, has become more intriguing.

With our international buyers, no one wants to be guilty of buying the wrong property, at the wrong time in the wrong place...the brunt of the dinner jokes, the cocktail party, the business meeting or the guys' night out. At the same time, with opportunities that have risen from the challenging market, no one, either, wants to miss that deal....You know the one...the one that everyone looks back on and says, yeah that was a no brainer. I wish I would have done that. Man, he's so lucky, he picked that up for a song....Of course he's happy, he got a great deal and bought that in yesterday's market...

Well, you gotta make a move, to make a buck. I know, easier said from the real estate broker, than the one forking out the money. The true success in real estate comes from buyers who find a broker or agent that they can really trust. A PROFESSIONAL in any business, is the best company that you can find. Many people erroneously believe that by digging on their own, they will somehow gain the insight and knowledge that a real estate professional has learned both in their studies, and in their extensive experience. A real broker/agent should take the time to truly understand your investment criteria, before "selling" you anything. Finding the right trusted advisor can make or break your investment, and the right one, can cut through weeks and months of research, and take your investment goals and turn them into a reality.

For the clients who are out in the market place today, if you do not have the trust and confidence in your agent to tell him your realistic goals, realistic expectations, budget parameters, then you are probably not working with the one that is best for you. Once you feel that level of trust, know that your agent works for you and that you should find comfort in knowing that when he brings that opportunity to you, along with your own analysis, you want to pay attention as those true opportunities may not come back around.

I know these are not easy decisions. They require time, patience, care and often times, life savings. A professional will understand this, and will guide you through the process, and seek out the property that not only fits your criteria, but falls into your timeline so that you can buy the rihgt property, in the right place, at the right time.

As opposed to hiding behind the curtain, I prefer to come out and discuss it. Yes, the current global economic situation has an effect on the real estate market in Costa Rica. However, it is important to understand clearly what those effects are, and whether or not that will affect your personal, or investment goals.Although I am not one for cliches, there is much truth in the overused statement that crisis breeds opportunity. UNLIKE many places in the US, Costa Rica is not experiencing across the board price drops, nor are we suffering from a saturation of unmet bank committments, short sales and foreclosures. One of the biggest advantages of the Costa Rican market today, is its overall stability due to historic sales being cash, as opposed to leveraged. This has allowed banks in Costa Rica to keep their balance sheets on the positive side, and likewise, allowed for the market to maintain stability.The coastal market is most directly affected as the bulk of its buyer's have historically been foriegn investors, either looking for their place in the sun, or simply looking for a solid investment. Lucky for Costa Rica, both of those still exist down here...the sun, and solid investments. During the rush in Costa Rica over the past years, many developers were able to be successful selling products which in a slower market, would have never made it to the marketplace. Vacationers became investors as their dream to take part in this paradise, took them to a level that they may have never dreamed of entering.In today's market, savvy investors and retirees are looking for secure places to place their money, and are being more selective, more intellgent and more demanding of the products and developments that they seek. That is not a negative. This is part of the natural correction which allows buyers and sellers alike a more confident time in the market. Developers who do not believe in what they are doing will no longer take those risks, therefore, buyers will have a higher quality product to choose from. Developers and sellers, although unlike the states are not dropping market prices drastically, they are becoming creative, and offering the buyer more. Some developers are offering non-qualified owner financing, while others are offering free HOA fees, etc...There are a number of people on the coast who used their leverage in the US to play in the sanbox in Costa Rica, and some of them need out. Opportunities like this are out there now, and provide new investors both foreign and Costa Rican alike, a chance to buy a quality product at a price at the low end of the market. We are seeing this as a continuing trend and have had dozens of clients take advantage of these opportunities to get into their dream property.We are also seeing some of the most innovative and attractive developments come online, as developers are now doing more, and wanting to deliver more to today's investor. One such project, is the Wyndham Jade located in Manuel Antonio. (for more info, www.costaricawyndham.com). From the design of the building, the level of amenities, finishes, and perhaps most importantly, solid financial and managerial backing to not only create the development, but make it a success.In the Central Valley, we are not seeing a drop in demand, but rather, cautious banks holding interest rates a higher figure, slowly stunting the demand. However, liquid buyers in today's market are finding solid opportunities, and the luxury rental market is seeing never before seen demand. Likewise, and probably the strongest sign of stability in this market, is the current demand in the commercial market. As you drive around areas like Escazu and Santa Ana, although many of the residential cranes have stopped, the two largest commercial projects in the area are not only moving forward, but are seeing record absorption and prices in the development, as retail demand is still very strong.....Talk soon....

Costa Rica as a Nearshore Solution

I know, no one wants to hear more about the infamous crisis...looking for ways to save money, cut corners, increase profits, however, it is a reality in today's marketplace and the way that many are not only surviving, but growing.Over the past 10 years, Costa Rica has proven to be a leader in the world marketplace for nearshore solutions. WHY....An extremely educated workforce, bilingual employees with a very fast learning curve, a strategic location and easy access, economic and political stability, and attractive free trade zone incentives are just a few of the drawing factors.The areas in which growth has been noted in the most dramatic sense are the service industry, medical industry and the manufacturing industry. The list of success stories in Costa Rica is endless but starts with names like Proctor and Gamble, HP, Intel, Amazon.com, Amadeus, Sykes, Pfizer, Allergan, Microsoft, LL Bean, and dozens of others...

Fore more information about how to save your company money, by placing nearshore solutions in Costa Rica, take a look at www.envisioncostarica.com or give us a call toll free at 1-866-374-7798

Where to Live in Escazu?

Many of my clients seem to ask "Where is the Best Place to Live in the Central Valley?"

Like any other destination in the world, the answer depends greatly on your personal lifestyle criteria. Without a doubt, the area that has become the focal point for most foriegn and local residents alike are the suburbs of Escazu and Santa Ana. The reasons are quite simple.

Like many cities around the world, in today's society of fast pace work, busy schedules and less free time, people are looking for the most convenient location, eliminating extensive driving, and maximizing either work or pleasure. Escazu and Santa Ana fall directly into that category. Both areas have become the hub for the most affluent residential sectors, Class A Office Space, bilingual schools, banking district, finest shopping and international restaurants. The geographical backdrop in the area has only added to the draw, with striking mountains just beyond the commercial growth on the lower levels, providing hillside residences with striking evening views of the skyline, yet just minutes away from all of the conveniences of our daily lives.

These two areas host the best hotels, both current and those under construction or in the planning stages including the Hotel Real Intercontinental, Marriott Courtyard, Marriott Residence Inn (opening 2009), and several others on the way. Additionally, the most recognized shopping icon in the area, Multiplaza, which is currently undergoing its 5th and final addition. This shopping mall is surrounded by two of the most sought after office parks in the area, Plaza Roble as well as the Meridiano. Down the road, you will find the newly inaugurated Multipark, and heading over the hillside and into Santa Ana, there are several new commercial complexes such as Momemtum Lindora, as well as the innovative office parks Forum and Forum II which host multinationals such as HP, Proctor & Gamble, Walmart amongts others.

Choosing which area is best for you is likely to be a matter of personal taste, and coming down and actually getting to know each area. The most sought after gated communities are Cerro Alto, Villa Real, Cerro Real, Bosques del Lindora and Valle del Sol. Each offers the highest level of security, some offer views, others golf, but all share the common denominator of offering a secure environment and community for the member families to enjoy for the coming years. Other clients prefer the lifestyle of vertical living for increased security, ease of maintenance (or lack thereof), and the highest profile options in this category would be MontePlata, Valle de Tamarindo, Central Park, Acropolis, and dozens of others currently under construction both in the area of Escazu, as well as the area of La Sabana, which is quickly become a "third" destination, and alternative for those who wish to be closer to the city's downtown area.

At the end of the day, the most important thing is that your agent on the ground understands clearly your criteria in order to assist you. There are excellent options here in this area, and our agents have the experience in listening to your needs, to better assist in the search for the right property for you, your family, and/or your investment.

Free Trade Agreement....The waiting game

Well, after I don't remember how many years, and how many street blockades, angry media seeking politicians and taxi driver protests, the Free Trade Agreement in Costa Rica is finally moving into effect.

I am no politician, and try only to follow what is going on, without getting too opiniated. I do know a few things in my short life experience. It would be nice not to have wait one year to get a phone line. It would be nice to be able to walk into a store, buy a cell phone, and walk out talking on that phone. It would be nice to be able to call the phone company (of my choice) and complain about a current problem, and actually have someone provide a solution. Well, my friends, this is called competition and I can tell you that I may or may not understand the intricacies of a free trade agreement and their short and long term effects, but from an egotistical standpoint, I can tell you that I am looking forward to.

I always laugh when my clients ask me: Todd, where can I pick up a cell phone when I am down there. They see my smile and ask what is so funny....I explain that now only is there a long waiting list to get a line, but also, that as a foreigner, they cannot get a phone....Of course, we do not like to dissapoint our clients therefore, I follow that intro with the explanation of how we can assist them, and we are able to get them a phone and a line through some of our sympathetic local connections....

Also quite comical when a client asks, who do you recommend that I contact about insuring my house, or car, etc....The answer, in the past, has always been easy. Does not matter, price is the same anywhere you go....Monopolies...it was always much more fun when you were playing with fake money as a kid, and all you had to do was pass GO and COLLECT $200. Now, it feels like you are being sent to the local prison, without your GET OUT OF JAIL FREE CARD.

So, ladies and gentlemen, get prepared...Those who have never had to compete in Costa Rica are being forced to do so. The effects are already being felt although the competition is not yet here. WIFI services are increasing, BLACKBERRY service is finally here for the addicts, and an amazing concept in communications is actually starting to be felt like a shockwave across the country: service. Special business centers are being set up by the previous monopoly (ICE) to tend to businesses, and business people to provide them with attention, service, and even a warm cup of coffee served by a smiling young latina, as opposed to a disgruntled, heavyset, bearded lady named Olga, who sends you to end of the line b/c your passport is blurry.

Oh, yes, times they are a changing down here....

Hotel Opportunities, Costa Rica

Many of my clients have been asking me about where I think their money is best spent in the current real estate market. Certainly where to spend your hard earned money/savings, is a personal decision that will depend greatly upon the type of use/investment/returns you are looking for.

We have clients who are speculative by nature, therefore, now is a great time to shop for bargains from specifically motivated sellers. There are currently some opportunities both in land deals, as well as residential homes and condos, whose sellers are either motivated due to ties to the US economy, or perhaps already achieved their profit margins and are willing to sell at very attractive prices. Other clients, who are looking for a more conservative investment, with solid cash flow, are more often seeking turn key, cash cows, with a solid history such as vacation homes for rent, or hotels.

These opportunities provide real estate investors with a "real" gaurantee, even in the worst of times, in addition to the IMMEDIATE ROI the day that the transaction is closed. Investors here are not looking for 200% returns, but rather a solid 10% cap rate, in addition to the opportunity to improve the current operation either via expansion, efficiency, higher occupancy rates, etc... There are dozens of these opportunities currently on the market, and a handful which are truly difficult to pass up, which provide strong revenues, turn key management and staff, high occupancy rates, excellent historic reputation and the opportunity to improve.

If you are interested in more, feel free to contact me for more information....

How to Find the Best Opportunities in Costa Rica

In today's market, there is only one way to find the best deals...Talk to your agent in Costa Rica. As discussed in a prior post, once you have confidence and trust in your local agent/broker, educate him/her as to your investment criteria. Let him know clear data about price, location, property type and overall investment goals.

There are excellent opportunities right now in Costa Rica from coastal properties, Escazu homes and condos, as well as raw land and commercial properties. Tireless internet searches will often run you in circles, and again, tell you nothing about the sellers of each property, their current condition, any flexibility, etc...At our office, www.2costaricarealestate.com, both in Escazu and Manuel Antonio, we are constantly in touch with our seller clients to ensure accurate pricing and up to date status on their current position. We survey them to understand their timelines and expectations, and this information can be vital to making the perfect match between buyer and seller. Often times, we will have buyers call and explain in detail the criteria for which they are willing to committ and invest. At the time of the call, we might not have exactly what they are looking for, however, with this vital communication between our office and our sellers, our buyers are truly the first ones to know about a particular deal. When it hits, our buyers are made aware immediately of the reasoning, and current offering to be able to jump on this opportunity.

Certainly, today we are more involved in a buyer's market than a seller's, however, now more than ever, the best deals move very quickly as an astute buyer recognizes them and moves quick. Contact one of our agents, at info@2costaricarealestate.com or call toll free at 1-866-374-7798 and ask about our incredible opportunity at the marina, commercial development opportunity, and reduced price on prime vacation homes on the Pacific Coast!

The Morning Cup

When I lived in the States (now almost 11 years ago), the taste and smell of coffee was so unappealing. Maybe it was the direct correlation of the morning cup of coffee with the work force, something that perhaps subconsciously I wanted to avoid. I can't really say it was the taste that turned me off, as I could never really bring myself to do so...

Who knows....As they say, when in Rome. Costa Rica has become famous for it's world class coffee and it did not take long before this became part of my routine. When I lived on the coast, the coffee generally had to have a little milk, to take away the bitterness. Now, serve it black with 2 splendas and I can start my day. Funny how life is a matter of habits, as without my coffee, my day is missing something. Not sure if it is the caffeine which I have grown accustomed to, or just a nice morning ritual. My daughter who is now 4, wakes me up to eat an early breakfast, and as she eats and watching cartoons, I sit on the terrace of my home overlooking the city, and surrounding mountains. It is a breathtaking site, and although I am not sure the steam from the coffee enhances the feeling, but it sure feels like it. Perhaps as I get older, the coffee simply makes me feel more mature....All I need now is a pair of reading glasses, and a set of dentures :)

If you are looking for a recommendation for coffee, you truly can't go wrong with Cafe britt....I think that they simply have the best quality and best overall variety....www.cafebritt.com

If you like a lightly flavoured blend, try Vanilla Nut from Cafe Leyenda....Great

How Do Find the right Property for me?

With the internet power of the twentieth century, comes the positive and negative of mass marketing. Certainly, the positive is that it is truly easy to publish your message and reach the public. The negative is that anyone can do so. This makes a real estate investor seeking information about properties in a foreign country, a little challenging. Who to trust? Whose information is up to date, helpful, and truly accurate? How can I tell? There are literally thousands of real estate sites for Costa Rica, all claiming to be "honest, professionals, working for you!"

In my experience (although I am a broker, I have purchased real estate and dealt with brokers/agents in many countries), there is no better way than picking up the phone. The phone is not a crystal ball, but engaging in a free conversation, with no predicted responses that can be easily manipulated in an email, is the best way to get to know your professionals. Ask tough questions. A good broker will not only know how to answer, but as opposed to getting frustrated as many novices would, he/she will respect that they are dealing with a serious client, who knows what he wants, and what is important to them with regards to their investment.

Make sure that the professional that are talking to understands the market...not just a specific property that you are inquiring about, but market trends, history, pricing, values, etc to ensure that the experience that they bring to the table is going to be an added value for you. A professional broker/agent understands that your investment is not only important in the short term, but that your long term success is vital not only to you, but to the success of their business. Look for a professional with a long term mentality, who wants to build relationships, as opposed to the short term profit. Sure, we are all here to make money, but building relationships with our clients is the key to long term success.

Once you have found that agent, let them do the work for you. Your job is to know what your criteria is (and of course, write the check :))....Other than that, your agent should be able to translate your criteria into 1) the right area 2) the right type of property 3) the right property

Be sure to work from this macro mentality to micro...If you are not familiar with the country, or the specific, don't jump ahead to look at a specific property (especially if this is more than an investment). You can find the dream property, but if you are not going to be happy spending time there, the investment will be about as good as your patience...Let your agent get to know you...The more he knows, the more he will be able to understand your profile and best fit you into the perfect property.

Just a few tips, but keep them in mind, and feel free to give us a call in Costa Rica and we can assist, www.2costaricarealestate.com, or if you are interested in other opportunities, stay tuned for opportunities in Panama, and Medellin, Colombia as well!

Costa Rica Opens Again

Well....For those of us who live and work in Costa Rica, the yearly "closure" of the country is almost up. Starting December 1st, the yearning for the holiday season is felt throughout the country. The workplaces are filled with busybodys rushing around, trying to get their work done before the end of the year. As the days pass towards the middle of the month, although the work force is physically present, they have already gone on mental vacation.

On the 19th of December, government offices are closed, no more lawyers, no more architects, no real estate transactions with the absence of the National registry, etc...

Being a workaholic, I always play stubborn and assume that the biggest deals are going to take place when the rest of the world is asleep. I take a one week vacation, this year to Colombia with my wife and daughter, only to come back to the office on the 29th...As I arrived at the office on the 29th, I felt like I was the last man standing. A strange aura surrounded the generally packed office complex...After working from teh 29th - 31st, and getting some organizational work done, one slowly starts to see the return of the life to the city of San Jose. A mass exodus of the beach travelers head back to the city...the grovcery stores start to fill back up, restaurants start to open, and of course, the shopping centers and movie theaters are back to capacity...

Well, 2009 is finally among us, and time to get back to work. From the balcony of my home, I watch the traffic pass along the highway, heading through the main thoroughfare of Escazu...Time to get back to work. So, pack your bags, come to Costa Rica, and seek out the best opportunities that 2009 has to offer

Latest Real Estate Trends, Costa Rica

Well, with the news cameras focused on the spiraling market in the US, there is not a client who does not ask the question. So what is the real status of the Costa Rican real estate market?

I think for this conversation, it is important to separate the discussion in two parts: 1) Coastal real estate and 2) Central Valley real estate (San Jose/Escazu). Simply put, the coastal market is and has always been a destination for second home buyers, investors looking for cash flow properties, vacation homes and of course, those looking for retirement in such a tropical paradise. With the market in the US in the current condition, it is expected that this market would take a hard hit as buyers with money are watching their investments much closer. Additionally, with credits limited both in the US and Costa Rica, those who do not have the liquidity are currently out of the market, and those who have, and do not want to spend it, are likewise, looking for alternatives. However, on the coast, the buyers that are active, and competitive in the market place, are those who are looking for strong deals. These buyers are looking for sellers who are somehow tied to the US market, perhaps drowing on a second mortgage, or just needing liquidity to get out. There are sellers in this position, however, important to note, this is not the United States. At times when people criticized the CR banks for being very conservative both with interest rates, and strict lending requirements, this conservative mentality is paying off. Costa Rica does not suffer from a high default rate as low interest mortgages were never offered, and historically, this market has always been a cash market. Therefore, although we can assist in finding excellent opportunities on the market due to individual seller's needs (www.2costaricarealestate.com), this is not a global condition.

Certainly times on the coast are slow now, as buyers are smarter, looking for solid deals, and are weary of preconstruction projects full of promises. Strong sales are taking place at higher rates in projects that are finished, whose developers are offering incentives to close, or incentives to purchase. Owner financing, extended down payments and vacation clubs are trends that are being seen in today's market on the coast. With many of the previously announced 5 star, branded hotels on the fence now, buyers intelligently are asking the right questions to ensure their investment as the market settles. Myself, I look at this as a positive, as educating sellers to the realities of the market is a positive. Will Costa Rica see a blanket price drop like other areas...not likely, however, certainly, prices will become more buyer friendly, and the market for now, is a buyer's market. Therefore, get in touch with a real professional as now is a great time to acquire at strong buyer conditions...

In the Central Valley, the conditions are different. The market in the Central Valley, comprosing the suburbs of Escazu, Santa Ana and Ciudad Colon (the most popular areas both for foreigners and middle/upper class locals, bears very few speculative buyers and is truly driven by economic factors at a local level. The population has seen tremendous growth over the past few years due to a rapidly growing commercial sector, and with the passing of the free trade agreement, this growth is likely to continue at a rapid pace. People are choosing to live in these suburbs as they combine the conveniences of the best residential area, most affluent commercial office complexes, as well as the finest restaurants, shopping, bilingual schools, hospitals, etc... The only temporary crutch in this market has been the more recent tightening of residential finance programs, whose interest rates are currently over standard rates, haulting many buyers...Most insiders believe that early 09 will bring those rates back to a normal level, and the existing demand in the market, who are awaiting these news, will bring the market back into a much more competitive situation.

Likewise, with the release of these credits, the players in the high end commercial development market are likely to get involved, as most are waiting on the sidelines for some of the high profile land opportunities for construction of hotels, commercial centers, malls, etc...

Stay tuned, as I will be keeping you posted on some of the latest updates, trends, as well as my lifestyle down here in paradise....