How to Earn Huge Profits From Costa Rica Property
Date: 08/18/2008 Author: Ronan McMahon
Tuesday, Aug. 19, 2008
Read more about Costa Rica in International Living Postcards —your daily escape
Dear International Living Reader,
New government infrastructure developments in the works in southern Costa Rica are about to turn an isolated patch of jungle into a land of million-dollar properties.
All of this development means one thing to investors: opportunities for huge profits.
Right now, Costa Rica’s southern zone presents a perfect opportunity for pioneer investing; buy before an apparently isolated region is opened up to everyone else.
Infrastructure development drives real estate prices, it’s a fact. This is particularly so when accessibility is increased within an already established and growing market. Costa Rica has proven its ability to attract tourists and real estate investors to areas close to international airports. I don’t expect the southern zone in Costa Rica to be any different.
Increased accessibility to the Osa Peninsula and other areas of the southern zone will see the arrival of hoteliers and real estate developers…the big boys that will bring bodies and drive the market.
A new international airport and improvements and resurfacing of the Costanera Highway are currently underway. Real estate values will catch up as the area becomes more accessible to tourists. Property values are expected to dramatically increase over the next few years. Now is the time to get in and buy.
Expect to hear major announcements about this region in the coming year…and expect prices to catch up with Costa Rica’s higher-profile destinations within three years. Getting in now will put you ahead of the path of progress.
The beauty of this particular ground-floor opportunity is that the planned infrastructure developments are all government backed. This means that investors can sit back, relax, and allow the government to pave the way to their success—literally.
For now, pricing here is among the lowest in Costa Rica. I found one-and-a-quarter-acre lots close to Ojochal for as little as $75,000. Construction costs are roughly $85 per square foot. So for $245,000 you can own your own piece of this tranquil setting in a custom-built, 2,000-square-foot house on a large lot.
To understand the extent of the growth new infrastructure can bring to a region, you just need to look at what happened when international flights were introduced to Liberia Airport (in the Guanacaste region in northern Costa Rica). Places like Tamarindo boomed due to its proximity to the airport, and good road links attracted hotel groups such as Four Seasons, with a luxury hotel in Peninsula Papagayo; and Steve Case, co-founder of AOL, has plans for a resort in Playa Hermosa. A mega-project north of Tamarindo will eventually have 800 houses...with a starting price of $800,000.
It is amazing what good access can do for property prices. Guanacaste is nice, in a cattle country kind of way. But it is nowhere near as beautiful as the southern zone, with its wild, untamed, raw feel. I know where I would prefer to be...
Ronan McMahon
For International Living
Editor’s Note: The new developments Ronan spoke about here are about to trigger massive growth in Costa Rica’s last backwater. And they’ll do it with blistering speed. We’ve seen this happen time and time before. You can spend your days chasing rare butterflies and your nights dancing to the thumping beat of a local band...all while your money multiplies. Find out how to get an in-depth report from Ronan on exactly where to invest in this area of Costa Rica.
Read related IL Postcards:
- The Switzerland of Latin America
- Costa Rica’s “Forgotten Coast” Could Boom
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