Costa Rica tops our list coming in first and second. In fact, 3 of the 7 regions fall within Guanacaste, Costa Rica’s northern state. The data is based on our database of real estate developments in Costa Rica, Panama, Belize and Nicaragua. Nicaragua, being a cheaper destination than the other countries, did not make the list.
1. The stunning coastline of Coco, Hermosa and Papagayo in Costa Rica’s Guanacaste region tops our list. Here the median price for an ocean view condo is $340 per sqft. The region is packed with amenities from tennis clubs and marinas to championship golf courses and luxury spas. It has some epic surf breaks, good infrastructure and is very accessible from Liberia’s international airport. Celebrity purchases, major hospitality brands and top class attractions abound in the region so it’s not surprizing that it tops our list.
2. Just next door, also in Guanacaste, lies Flamingo where the median price for an ocean view condo will set you back $305 per sqft. Tourists are attracted to the spectacular beaches, the world-class sport fishing (there’s an international tournament every year) and the numerous dive spots.
3. Ambergris Caye comes in third. It’s the most visited part of Belize and offers the picture postcard Caribbean experience - sparkling white sand, azure waters, swaying palm trees and a great barrier reef just off shore. For a median price of $290 per sqft, you’ll be on your way to owning an ocean view condo in this important tourism area. The added bonus for many international real estate investors: you won’t have to learn another language as Ambergris Caye is English speaking.
4. Fourth on the list is Tamarindo located, wait for it, in Guanacaste Costa Rica. Long recognized by surfers for its great waves, Tamarindo now offers something for backpackers, luxury travelers and everyone in between. You can take advantage of lovely local beaches - some with turtle nesting areas, dive spots, golfing, numerous night-spots, restaurants and, of course, plenty of sunshine year round. An ocean view condo clocks in at $285 per sqft.
5. Jaco lies on a wide, grey-sand bay on Costa Rica’s Central Coast in Puntanrenas. Well known hospitality brands such as Sonesta, Ramanda and Wyndham have set up store along the beach front and you’ll lose count of the internet cafes, curio stores, tour agencies, souvenir stands, bars, restaurants and nightclubs that jostle for position on the main road. You’ll find ocean view condos here for around $280 per sqft.
6. Our second Caribbean region, Bocas del Toro, in Panama comes in 6th. If you want an ocean view condo here you’ll be looking around $275 per sqft. The cluster of islands that make up the archipelago have become a key tourist destination for visitors to Panama. Unusually for the Caribbean, you’ll not only find great local dive spots but also some good surfing waves.
7. Cosmopolitan Panama City with it’s soaring skyline of glass and steel comes in 7th. The town is a world class financial center and business hub that offers a range of exciting experiences to visitors. You’ll find a vibrancy here that is rare in Central America. Investors looking for US style infrastructure, excellent health care and a benefit-laden retirement program tend to look no further. You’ll need to lay out around $265 per sqft. for an ocean view condo.
The data was collected during 2008. We’ll be updating for 2009 and tracking the trends.
So tell us, would you buy in one one of these property hotspots?
Tags: Belize, Costa Rica, Panama
Posted in Comparison shopping, Regional statistics and data | 1 Comment »
Is living and investing overseas right for you?
February 24th, 2009
Life is good for many people living abroad. The benefits include a lower cost of living, more affordable real estate, a sense of freedom, the experience of a new culture and warm weather. Moving abroad can also be an opportunity for reinvention and a way to escape from the drudgery of 9-5 living.
Still, living overseas isn’t for everyone. If US-style convenience, a first world infrastructure everywhere you go, access to the food products you are used to at home and a fast paced life are important for you, then life in a developing country may not be the right choice. And talking to American expatriates in Central America we found that missing family and friends in the US is the most common downside to living abroad.
But as with most things, it’s what you make of it. For example:
- If you decide to move to a Spanish speaking country, will you put in the effort to learn a new language?
- How willing are you to embrace change?
- Are you inspired to learn about new cultures?
- Are you looking for adventure?
- Are you comfortable making new friends?
If you answered yes to most of these questions, you may be ready to make a move overseas.
Before you jump in, remember to get to know a place more than in a passing fashion. Visit during the off-season as well as during peak times to make sure you still like the location and that you can access the local services that you need.
Then, arming yourself with objective market information will help you make the right investment choices. Market comps will help you determine fair value, enabling you to negotiate better deals with sellers and agents to leverage the current buyer’s market.
Do you research, take your time, get all your questions answered, and you’ll be right on track.
Posted in Property news | 1 Comment »
The key to cutting a great deal in Central America is getting hold of objective market information to determine fair value. Trouble is, in Central America investors can’t draw on industry databases like the Multiple Listing Service. There’s no equivalent to zillow or trulia and local sources of information can be prone to exaggeration and hype.
Our goal is to shed some light on the market by aggregating real estate prices from developments, comparing them against the median for the country as a whole, and putting the information online. Savvy buyers will also want to know how far a development is along with its master plan and its proximity to services. So for each development we track whether the community amenities are completed or still in planning phase and provide an estimate of driving time to the nearest town and international airport.
So what can you get for $50,000 less than 90 minutes from the international airport?
Here are 9 projects that fit the bill. We’ve based our analysis on median asking prices for property in real estate developments collected between July and September 2008.
Starting in Belize, you can pick up a home-site at Belize Reserve, an eco-community located in Cayo, around 15 minutes from San Ignacio for under $25,000. A swimming pool, hotel and restaurant are planned. You’ll find similar prices at Camino del Rio, a 63 acre development also located in Cayo, this time east of Belmopan. Sticking to Belize, both Progresso Heights a residential community in Corozal located on Progresso Lagoon which leads to Chetumal Bay going out to the Caribbean Sea and Waterside at Flowers Bank on the Belize River have lots available for under $50,000.
Moving to Nicaragua, for $20,000 you could be the owner of a green lot at Club Alegria located near Granada with views to Mombacho volcano. Close-by you’ll find Club Vistalagos peering over the eastern edge of Lake Apoyo and Villa Lagos a community located in a green setting near the port of Asese, Lake Nicaragua. At both projects you’ll find serviced home-sites for under $50,000.
In Costa Rica, around four miles west of the tourist town of Tamarindo, you’ll find Lomas de Santa Rosa and lots for sale in the low $20,000s. And, if Panama takes your fancy, then Rancho los Suenos a project located 45 minutes from Panama City and close to Espave and the beaches has lots with a median price of under $30,000.
We’ve based the above on median prices for individual real estate categories. We’ll broaden the search in future posts to include real estate projects further away from the airport.
For now, what have we missed? We’d love to have your views.
Posted in Regional statistics and data | 1 Comment »
Should you buy in an overseas property hotspot?
February 13th, 2009
Real estate activity is not uniform across a country. Different regions will have different properties for sale at different price points. That’s why on revealrealestate we’ve identified a number of real estate areas for each country that we cover. We then focus in further on the ‘hotspots‘ - those areas generating the most interest from international real estate investors.
Each property hotspot has a different risk/reward profile. Some are early-in opportunities, some are established real estate areas and others fall somewhere in between as middle markets - not quite emerging, but also not yet developed. Despite these differences they all share three characteristics (defined in more detail, here):
1. The tourists are coming
2. A good range of local attractions
3. Infrastructure improvements
Property hotspots in Central America
Nicaragua hotspots: San Juan del Sur, Granada, Tola Riveria & Popoyo, and the Central Pacific
Belize hotspots: Ambergris Caye, Placencia, and Corozal
Panama hotspots: Panama City, Coronado & San Carlos, Boquete, and Bocas del Toro
Costa Rica hotspots: Jaco, Flamingo, Tamarindo, and Coco, Hermosa & Papagayo
Some investors will argue that it’s best to avoid hotspots altogether if you’re looking for the ‘real’ bargains. This can be a tempting proposition to the pioneer investor with a speculator’s stomach. But, before jumping in, remember to ask why there is a price differential now and whether this is likely to change in the future.
Momentum effects are important
Remember the mantra: location really is everything. Hotspots tend to have inherent appeal - perhaps it’s the views and geographic features, the ease of access, the local attractions or the climate - which is why interest and development gravitates there.
That’s not to say that we’ve defined all the property hotspots in Nicaragua, Belize, Costa Rica and Panama or that there won’t be price appreciation and development in other areas. But momentum effects are important and it’s worth asking whether a significant price differential that exists now is due to something inherent about the area. If it is, then a price differential could remain well into the future.
Which of these 5 types of overseas property investor are you?
February 4th, 2009
There are many ways of investing in property overseas but often investors are not clear enough about what they are looking for.
Defining your investment goals - what you want to get out of your investment - at the outset is vital. Once you have narrowed down your goals, the whole process becomes easier.
Here are five goals for international property investing:
1. Buying for capital gain
In emerging markets it’s common for investors seeking capital growth to purchase in ‘undiscovered locations’ before foreign buyers arrive in numbers. The investor will sell the property when the objective of capital growth has been achieved. The purchase may be in a remote area, but only if there are clear indications that infrastructure improvements will follow. If buying within a development, they tend to purchase early in the roll-out of the master-plan, and look to secure ‘founder’ or ‘charter membership’ deals as a result.
2. Buying for personal use
Investors in this category are looking for a vacation home they can escape to for a break. They tend to choose locations with a good climate, access to amenities and where the lifestyle contrasts with their primary residence. The property can be let out to cover costs for part of the year, but a rental income is not the top priority. This investor type tends to be already affluent and own more than one home, often in different parts of the world. The property may be passed down to children or sold prior to retirement.
3. Buying for rental income
Although in some markets in Central America it is possible to target the the local rental market, most foreign investors focus on attracting the foreign vacationer or retiree and choose properties to suit this market segment. They tend to seek out key tourism centers and look at rate of sale of surrounding properties, access to amenities for potential renters as well as security and safety aspects.
4. Buying for retirement overseas
Investors in this category are typically 5-6 years from retirement and want to find a property that will provide them with a high quality of life, will appreciate in value and provide some holiday rental income before they move full-time. Retirement investors place considerable emphasis on the issues of security, availability of health facilities, access and proximity to shopping centers.
5. Buying to re-invent your life abroad
Some investors are motivated by starting a new life abroad, perhaps to escape the effects of the downturn or to opt out of a 9-5 lifestyle. Some may be downshifting while others will be embarking on new businesses abroad. Many will be motivated by a lower cost of living and the experience of a new culture and lifestyle offered in developing countries. Some may actively seek out properties that offer a contributory income, such as a B&B.
Defining your strategy, and then sticking to it, has never been more important than now. The markets are shifting, priorities are changing and there are some great deals to be negotiated.
Without a clear understanding of the kind of property that could best meet your investment goals, you could be in danger of mistaking the wrong property for the right one.
What type of property investor are you?
Posted in Investment Strategies | 2 Comments »
Carnival of Real Estate #127 visits Central America
February 2nd, 2009
Welcome to the 127th edition of Carnival of Real Estate, coming to you from Central America. We are thrilled to be hosting the Carnival and enjoyed reading all the submissions.
We found 5 winners and allocated each an award named after a tourist attraction in Central America. (We hope no one was expecting a Super Bowl theme.) The awards were given for posts on real estate that demonstrated clarity of style, mastery of the subject and power to influence.
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In first place, receiving the The Barrier Reef Award (Belize) is Mike Price with Gary Vaynerchuck - “It’s Over….” posted at Mike’s Corner - Web 2.0 For Real Estate Pros. This is a lively edition of Mike’s Mic with Gary Vaynerchuck expanding on some of the themes he covered at his recent Inman keynote. Some great probing from Mike to reveal Gary’s insight into what it will take for real estate professionals to succeed in the future. |
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Coming in second, receiving the Panama Canal Award (Panama) is Ken Brand’s Arousal ~ Foreplay ~ Fun posted at Real Estate Magazine - Real Estate Opinion Column - AgentGenius. Yes, this post is about real estate and leaves you with the notion that “You can if you think you can. Be ready.” |
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Third place, receiving the Arenal Volcano Award (Costa Rica) is Rod Herman asking Did Benicia Act Too Soon When It Closed Mills Elementary School? posted at HomeSection.com. An engaging analysis of the changing demographics in the Benicia real estate market and the impact this has on school enrollment patterns. The post weaves in some personal reflections on the changing market. |
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Fourth place with the Tikal Award (Guatemala) is Dan Melson presenting Jumbo Loans and The Current Market (January 2009) posted at Searchlight Crusade. A technical post reflecting on the fact that in the current loan market few are offering “jumbo” loans at anything like a “par” rate. The post looks at the broader mortgage market and points to likely future trends. |
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And, finishing fifth with the San Francisco Church Award (Nicaragua) is Bruce Lemieux presenting The Grand Canyon can separate buyer and seller expectations posted at MoCo Real Estate. The post calls for the need to help both buyers and sellers set realistic expectations. Bruce makes some good suggestions on how to work with both sides to bridge the expectation gap and find the middle ground. |
We’d also like to mention some of the other posts that we enjoyed reading. Some almost made it into the top 5 and each will give you something to mull over.
Dave Peniuk presents 8 Ways to Know if You Should Hire a Property Manager posted at Rev N You with Real Estate. Readers will find some practical lessons learned from a personal property management experience.
Patrick Duffy presents Builders increasingly taking on remodeling work posted at Housing Chronicles. The size of the market may surprise you.
Doug Willis presents Are Banks Negotiable? Buying Short Sales and Foreclosed Real Estate posted at Up2Date and covers some things you should know if you are to negotiate effectively with lenders.
Joshua Dorkin presents How High Is Up? A Look at Real Numbers Defined by the Real Estate Collapse posted at Real Estate Investing For Real. A demonstration that real estate math is a two way street and opportunity is in the eye of the beholder.
Diane Tuman presents Diary of a Refi: Things You Need for an FHA Refinance - Part I posted at Zillow Blog. A practical post - the first in a series of planned posts on refinancing.
Bob Schwartz presents U.S. Economy ? Case for Optimism posted at San Diego real estate. A short, punchy post reminding us that America is still standing.
Riley Smith | Coconut Grove Realtor presents No wonder Lehman Brothers failed…. posted at The Real Estate Coconut A good example of the carelessness of Lehman Brothers.
Raymond presents Bearish Stock Market Net Worth Update posted at Money Blue Book. A personal analysis of the current economic news and financial markets with some real estate thoughts mixed in.
C Richey presents Las Vegas remains Attractive for Foreign Investors posted at Las Vegas Homes - Henderson Real Estate.
Joe Spake presents Memphis Real Estate Sales Report for December, 2008 posted at JoeSpakeBlog.com.
Karen Goodman presents PMI Report - St. Louis Market Update posted at Arch City Homes
That concludes this edition. Thank you to everyone who participated, congratulations to the winners and best wishes from Central America
If you are interested in being considered for the next Carnival of Real Estate, please submit your blog article using the carnival submission form. Past posts and future hosts can be found at The Carnival of Real Estate.
What do you think of this week’s Carnival? Please feel free to comment below.
Posted in Carnival of real estate, Property news | 5 Comments »
7 real estate developments with beachfront lots below $15.85 per sq/ft
January 27th, 2009
Why $15.85 per sq/ft?
Well, the revealrealestate median price per sq/ft for a beach front lot is $15.85. Our analysis looks at real estate developments, resort communities and condo projects in Panama, Costa Rica, Nicaragua and Belize (July to October 2008). Most of the real estate developments target the international property investor.
The 7 real estate developments with beachfront lots below $15.85 per sq/ft are listed below. Remember, some of these will be early in the roll-out of their master-plan while others will be more advanced. Click though to each development to see the price data, location information (via Google maps), accessibility information (including distance from the international airport and whether roads are paved) and lifestyle information such as proximity to a golf course, a dive site, equestrian facilitites or a surf break. We’ve also collected information on the amenities offered and whether these are completed or planned.
- Rincon Beach Estates, Panama
- Cerros Sands, Belize - Property hotspot: Corozal
- Lobster Cove, Panama
- Cocoplum Belize, Belize - Property hotspot: Placencia
- Costa Paraiso, Nicaragua
- Los Suenos Island Resort, Nicaragua - Property hotspot: Central Pacific Coast
- Montecristo Beach and Golf Resort, Nicaragua - Property hotspot: Central Pacific Coast
Property hotspots and reviews direct from investors
If the real estate development falls within one of our property hotspot areas, we’ve included a link to the property hotspot page. Here you’ll find charts that compare median prices for the hotpot compared against the country.
And if you have visited the region or have a story to tell about investing in Central America, please leave a review. We think reviews direct from real estate investors add an important layer of information for others who may be thinking of investing.
Posted in Regional statistics and data | No Comments »
Carnival of Real Estate #126 is live at Exit Real Estate 540
January 26th, 2009
Great round up of CORE entries at Exit Real Estate 540. The theme was ‘change’ In honor of last week’s 56th Presidential Inauguration.
We’re especially excited about this edition of CORE because our post One thing is clear, change is coming which looks at developments in the International RE.net in Central America was awarded First Runner up…the PUPA AWARD.
Posted in Carnival of real estate | No Comments »
One thing is clear, change is coming
January 25th, 2009
In these difficult financial times we know a lot of people are re-thinking their investment and retirement future. Some are concerned about losing their jobs, others have been hit by severe stock market losses, and many are anticipating receiving retirement checks that will be far smaller than they had planned.
One thing is clear, change is coming.
But at the same time we’re remembering that with change often comes opportunity.
We’re seeing this in our users - people interested in researching real estate in Central America. There’s a renewed willingness to explore new options and an increased openness to reinvention and change. Some are actively seeking destinations that offer a lower cost of living and more affordable healthcare, while others simply wish to move a percentage of their assets outside the US.
In these turbulent times it’s more important than ever to access reliable information for decision making. Yet people often don’t get the information they need.
The basic problem in Central American is the lack of consistent and objective data on property prices. Market comps are hard to come by and there’s not much in the way of data available from property institutes, registries or central bank database. You won’t find the equivalent of zillow, redfin, or trulia serving up market comparatives, neighborhood statistics and price trends. This means that investors often have to rely on information supplied by self-interested, and sometimes ill-informed, vendors and real estate agents.
Filling the data gap in international real estate
It’s into this information gap that investor guide sites like Global Property Guide and expert weblogs such as the Panama Investor Blog and Overseas Property Blog have launched. And it’s in response to the lack of reliable market data in Central America that we built our database of real estate developments in Panama, Costa Rica, Nicaragua and Belize with standardized price comparisons; collated market data and reviews of overseas property hotspots (see for example for San Juan del Sur, Nicaragua and collected country indicators relevant to real estate investing (see for example for Costa Rica real estate.)
The International RE.net has still got a long way to go, but the good news is that the improvements are coming at the right time – just when finding good value, in the right location and within budget is more important than ever. Armed with better information than before, international real estate investors can make decisions with more confidence.
Increased transparency is coming to real estate in Central America and that kind of change can only be a good thing.
What do Corozal, Jaco, Coronado and San Carlos have in common?
January 22nd, 2009
The median property price/sqft for ocean view condos in real estate developments located in Corozal, Jaco, Coronado and San Carlos are lower than the country median. Clicking on the links reveals the charts.
So the median price for an ocean view condo in real estate developments located in Corozal is lower than in developments in other parts of Belize.
Your dollar stretches further when buying an ocean view condo in a real estate development in Jaco, on average, than it does in developments located elsewhere in Costa Rica.
And the median price for Coronado & San Carlos condos is less than the median price for ocean view condos in developments in Panama overall.