Investors/Developers/Homebuyers
Atenas, Costa Rica, June 15th, 2009 – As the U.S. real estate market continues its decline, more Americans are looking for safer investments in popular offshore locations like Costa Rica. Costa Rica, known for its ecotourism and environmental purity, is now booming with sustainable developments. Until recently, exotic real estate has typically been considered exclusively for experienced investors. The newly released book Real Estate Investing Guide – Costa Rica provides a fresh resource for the average person to learn to purchase, finance, develop, and invest in Costa Rica real estate.
In 2006, author Jeffrey Hickcox, recognized the deteriorating market conditions in the U.S. and moved to Costa Rica. “Ultimately, supply and demand dictates any real estate market. Easy mortgages created a record inventory bubble in the States, while the financial crisis and declining job markets burst the demand,” said Hickcox.
As the U.S. economy continues to show job losses and mortgage lending becomes even stricter, experts believe U.S. real estate may be in for a long, slow recovery. This June, Peter Goodman and Jack Healy of the New York Times reported, “As more foreclosed properties land on markets, real estate prices are falling further, adding to the losses and uncertainties confronting banks.”
U.S. stock markets have also proven to be volatile, although they have rebounded from March lows spurred by unprecedented government stimulus spending. However, the foundation of the financial industry appears uncertain and concerns about a weakening dollar are causing everyday investors to move their dollars into foreign assets.
“Good deals can still be found, but it is increasingly difficult to value real estate in many parts of the United States due to high inventories and uncertain mortgage availability,” said Than Merrill, host of A&E’s Flip This House. “Desirable real estate markets can be found where job markets are stable, where supply-and-demand ratios are leveling off, and where other obvious attractions exist.”
Baby boomers, who previously considered retirement in Mexico, are now seeking a more peaceful country, and Costa Rica may prevail as their best option. A March 2009 study by The Economist Intelligence Unit ranked Costa Rica the 8th most stable country in the world, citing its strong social structures, stable economy, and welcoming culture.
Costa Rica is also winning environmental accolades as the world leader in land preservation (27%) and renewable energy production (95%). Yale University’s Environmental Performance Index (EPI) ranks Costa Rica as the 5th cleanest country in the world. The government has committed to being the first carbon neutral country by 2021. If future oil price shocks occur, Costa Rica is well positioned to weather the storm with its prolific capacity for renewable energy and local food production.
This eco-conscious atmosphere in Costa Rica has led to a boom in sustainable projects. Daniel Harris, CEO of The Project Office, a sustainable development company in San José, claims that “Costa Rica’s wonderful climate and supportive government allows us to develop some of the greenest projects in the world at a time when sustainable living is becoming common sense to the mainstream public.”
In the current global economic climate, intensive due diligence is crucial for success, especially when looking to invest in foreign real estate markets. As Hickcox writes in his book, “You make your money when you buy, not when you sell.”
Real Estate Investing Guide – Costa Rica is an easy-to-read, comprehensive guide with contributions from experienced local experts. The book provides detailed information to new investors about purchasing, financing, building, and developing Costa Rica real estate.
The world economy has slowed making it difficult to find solid real estate investments in the developed world. Fortunately, stable developing countries, like Costa Rica, are destined for economic growth out of necessity. The World Bank says Costa Rica is "one of the most stable and robust democracies in Latin America . . . with a healthy economic growth rate . . . and some of the best social indicators on the continent! Costa Rica offers such tremendous potential to real estate investors not only because of economic and political stability, but also because of attractive investment fundamentals:
