Do you feel well informed about the Costa Rica Real Estate Market?
Generally speaking and compared to the US. Market, there is lack of transparency and information, that you can access at one glance.
And, unfortunately, there is no Zillow, no Trulia, or other nice tools you have access to north from Costa Rica.
This situation might cause a bit confusion, uncertainty and difficulty to build trust before a buying decision.
Not to mention that there might be also a language barrier, since the official language in Costa Rica is Spanish.
Not the best situation, when you would like to make a well-informed decision at some point in the future.
No one wants to lose money, having only a low return on investment, or investing or buying homes in an area, that is not suitable to your lifestyle preferences or desirable to (luxury) vacation tenants.
A partner of mine once told me a story about a client who, without analyzing further the location, thought that just buying a nice beach villa would be enough to get a good return on investment from vacation rentals.
Potential home buyers like you are usually savvy, but that was not the case with this client.
So, he bought the villa and didn’t have the return on investment he thought he would have.
While there is a good opportunity of making more than 8% of ROI per year with luxury vacation rentals (when you claim the book you will see), it still depends on the location, how the investor positions the rental property in the market and his marketing efforts.
So now he had a so-so luxury vacation rental property, which he still could use for himself, but his initial intention was rather leaning toward a good investment than a private and personal use.
He felt disappointed, was now afraid to lose money and had to put the villa up not long after he first bought it.
And as you might know, luxury homes don’t move that fast as homes in the median price range.
All this could have been avoided, if he had been a bit more knowledgeable about the real estate market and the different locations in Costa Rica.
Now, imagine if he would have been well informed from the beginning and thus being able to pick the right location and the right property.
This story could have turned out quite differently and with a lot of more rental dollars in his pocket, and not the urge to sell the villa shortly after his purchase.