Foreclosures in Costa Rica

Foreclosure properties in Costa Rica might just be the lucrative investment deal you’ve been waiting for in today’s waning real estate market. Property foreclosures are just as common in Costa Rica as are anywhere else, and as always, they are an excellent option for a serious investor.

The depressed real estate market which is currently taking its toll on the USA and UK is also finding its way to Costa Rica, increasing the number and variety of foreclosures on the market. This ideal buyers market creates the perfect opportunity to find excellent deals on foreclosed properties in Costa Rica. Why pay normal market value when there is such a great selection of foreclosures to choose from?

For both national and international investors Costa Rica has always been a strong market, with a good ROI on development and rental businesses related to upscale and luxury housing, second homes, and large infrastructure in the city centers. A recession may slow down the boom, but its growth has a momentum which will continue to fuel development for years to come, hopefully long enough to leave little trace of any recession before the market turns up again quickly.

Once the market stabilizes, Costa Rica’s popularity will return to its normal attractive state, and the resilient development drive will continue to spread throughout Costa Rica’s rich green land. This is the time to invest in Costa Rica foreclosures, right now and for the next 6 months, and receive the highest potential ROI in the natural cycle of any economy.

It is easy and legal for foreigners to buy property in Costa Rica, weather they are foreclosures or not, foreigners have the same legal rights as a Costa Rican national. Foreigners can own property outright under your own name, or you can make the purchase through a Costa Rican corporation. Anyone can set up a corporation in Costa Rica and this is a common strategy for buying property in order so that any profits from rentals or capital gain are taxed as a Costa Rican company rather than as personal income, and allow for expenses including travel expenses to be deducted before net profit is calculated, although this may depend on where you are from.

When buying foreclosures in Costa Rica, as everywhere, it is important to remember to be open to the best investment opportunity, and not enter into your search with something too particular in mind. Time spent browsing through the announcements will serve you well while you look for a property in a suitable area, within your planned budget. It may take some patience and commitment to checking the ads on a regular basis, but buying foreclosures in a depressed real estate market is one of the best investment opportunities available, and property investment in Costa Rica is certain to maintain strength and value for years to come.

** Use your 401k to purchase your retirement/vacation home**

Mutual Fund Alternatives;
With Lower Risk and Higher Returns

Mutual funds as a group perform badly over the longer term. Most cannot out perform the share index furthermore, a mutual fund is considered good if it reaches double digit gains.

If you take into account the effect of inflation on growth, mutual funds don’t look so attractive and the risk is high, with 30% or more in terms of drawdown and years to recovery in many instances. So what are the alternatives?
There are plenty of mutual fund alternatives that not only offer higher returns, but lower risk and here we will look at one. We all know that property is a good solid long term investment and it gets even better if it’s overseas investment property.

Overseas investment property is: Cheap

Has high growth potential and low risk in many locations can be very tax efficient

The country we will look at here is Costa Rica.

An example of the high growth potential can be made is illustrated by the following example.
A property purchased for just $30,000 near the popular holiday resort of Jaco 15 years ago, is worth $800,000 today.
The above gets even better when you consider these gains were steady and drawdowns were small and short lived.

But it gets better.

Overseas investment property can not only yield capital gains, it can also provide valuable extra rental income and act as a free holiday home – so you get to enjoy it to!

Will Costa Rica continue to provide great investment returns?

The answer is yes. As more Americans want beach front property at affordable prices and in Costa Rica properties can cost up to 70% less than in the USA and Costa Rica is only a 2 hour flight away.

There are many expanding resorts where property can be bought cheaply with solid long term capital growth potential.

The buying process is easy.

Costa Rica encourages foreign investment and overseas buyers get the same rights as residents.

Investing in overseas property is also much easier than many people think.

You don’t need any specialist knowledge and there are many Realtors who specialize in helping foreign buyers acquire the right property in terms of:

Their budget and their expectations in terms of growth.

Many investors simply hope their mutual funds will deliver above average capital gains, but the odds are against them, despite what the sales literature says.

Of course, the risk is also high when investing in mutual funds and losing periods can and do, last years.

Costa Rica offers a great alternative to mutual funds and offers high returns, coupled with low risk.

If you are looking for solid longer term gains then an overseas property investment in a country such as Costa Rica is ideal.

Add in the potential for good rental income and a free holiday home and you have an investment you can actually enjoy as well, in one of the most beautiful countries on earth.

Consider the facts

Add all the above up and you have an investment that is well worth considering, from both a financial and a lifestyle point of view.

Over 100,000 Americans and other foreign investors have bought property in Costa Rica and maybe you should consider it to.

Recommended read:

Scott Oliver, the author of How To Buy Costa Rica Real Estate Without Losing Your Camisa and his extensive research and countrywide connections will help inform and protect you by giving you the facts about Costa Rica condos, trustworthy Realtors, mortgages, real estate developments and expert and objective information about living and retiring in Costa Rica.