Anyone has the potential to succeed in terms of investing in Costa Rica real estate. This is, however, provided you have put in the time and effort to gain the crucial information needed to understand how the process works. If you’re ready to step into the world of real estate investment, follow local advice.
- Get to know the area
- Find out how to use the Registro Nacional – local land registry with lots of great public information
- Get a good attorney
- Bargain, get financing and be creative!
Make sure that you set realistic goals based on the budget that you have. You should not set a goal to buy ten houses in the span of a month if you only have a hundred thousand dollars to your name. Set reasonable expectations to avoid setbacks at all costs.
Always be on time when you set up a meeting with a potential client. This will indicate that you mean business and will show no disrespect to your potential customer. Coming to a meeting late shows that you are unorganized and do not care about your customers, which will cause you to lose them.
Make sure that you devote a lot of time to your investment. There are many issues that you may face with the tenants. If you are getting swamped with trying to manage it all, it can be wise to hire a company to manage your properties for you.
Choose places that are relatively well known where people might want to move or live. Our advice has always been in the best known areas of Escazu – near Multiplaza, Rohrmoser – any area, Santa Ana – but far from the traffic, Ciudad Colon is nice but far and for the ones with no set hours look at the houses near the Route 27. You will find this important when you are addressing the resale value of a property you have purchased. Also, look for low-maintenance properties.
If you are looking into rental property, make sure that the monthly note will be covered by the rent that it will bring in. This can help you get on the right foot. There is nothing worse than paying out of your own pocket because a renter is behind.
Don’t let your emotions cloud your judgement. Choosing a property to invest in should be a business decision, not an emotional one. It can be easy to get attached to a house or really fall in love with a location. Try to always look at things objectively. Shop around for the best deal without getting attached to one of the first few places you look at.
When thinking of purchasing a property, make it a point to get a good and affordable handyman. The money you make will be used on repairs, otherwise. A good handyman can help make sure any tenant emergencies are taken care of after business hours.
Stay away from deals that are too good to be true, especially with investors that you cannot trust or do not have a good reputation. It is important to stick with those who have a good reputation because getting ripped off in this business can cost you a lot of money.
Also there are many good realtors in Costa Rica that can help you avoid pitfalls of doing business here.
You can definitely make a lot of money with real estate investing. Before starting to invest, however, people should learn more about the real estate market. Using the advice presented above, everyone has the ability to launch a real estate investing endeavor.