Why Costa Rica Real Estate?
Calculating Value
Investment Potential
Investment value is an appraisal made based on potential and future value and income capacity.
In a tropical or beach home. Does the government have a history of exercising expropriation rights? Does the beach or the rainforest have commercial potential? (safe swimming and recreation) Is there a push for future improvements in infrastructure. (new airports, roads, services) Is there access to a public bus route?
For developments, many individual investors buy plots of land pre construction. Do the developers have a track record of doing all of the legal leg work to ensure that they do not get shut down? What is the legal leg work that should be done? (Get a good lawyer with real estate experience for the transaction! They will ask the broker for all of the right things, titles, notaries and concessionary documentation) Is this land in a flood plain or susceptible to erosion? Are there the kinds of stores and resources in the region or on site that you require to consider a place livable?
Renting potential is important for a solid long-term investment. Does this region or specific building have a solid rental history? What is the going rate per week or per month? What is the distance from the main road?
For rentals, does it have the selling points to close consistent business and maintain healthy occupancy: internet, cable, piped water, hot water and local attractions.
Follow the big investors. If Warren Buffet invests in Costa Rican real estate, it is a good idea for you too. If your region is seeing significant resort and commercial development from the extremely successful international developers, it is probably a good place to be!