The Costa Rica News (TCRN) – Can you get both capital growth and lifestyle with your Costa Rica real estate investment? Most people looking in Costa Rica fall into one of a couple categories, investing in real estate for profit and capital growth or investing in lifestyle and experience. But some are looking for both, they want to invest in real estate for a second home or to retire abroad, and they want solid capital growth.
To be able have the best of both worlds – capital growth and lifestyle, it really all about timing; we all know there are peaks and troughs in the real estate market, but in general there is a incline in prices. Troughs are a buyer’s market and these low points are where you will be able to find great deals in the real estate lifestyle market that will also see good capital growth.
The recent economic downturn was more than a dip on the growth curve chart; it was more like a sheer cliff. Not so good news for current property owners, but it opened a world of opportunity for the buyers looking for great “bottom of the barrel” deals for either capital growth or lifestyle properties.
Real Estate for capital growth requires information future demand expectation, such as finding locations with low demand and a good price point but where it is expected that demand for property in the area will go up. For example, new highway or a major hotel is to be constructed at a currently rather remote or not well trafficked beach area so one would expect surrounding property demand to go up.
With Real Estate for Lifestyle, the lifestyle amenities, such as good infrastructure and diverse reliable services are already calculated into the price, so capital growth can be minimal or slow, unless you are lucky or skilled at spotting real estate that fits both categories.
At first look this property is clearly a lifestyle listing, located in a high end residential area, a stunning luxury home with a golf course at your back door, and metropolitan amenities and lifestyle at your fingertips. But right now, with bottom of the barrel prices still in effect after the economic slowdown there is significant opportunity for this property’s value to grow. So property value on this listing, at its current price, will see growth over time and you are buying the whole lifestyle package as well.
On the other hand this residential lot opportunity is located close to a developing tourism town attracting more visitors each year and is attractively priced for lots this close to the ocean, so buying a lot and building a home holds the potential for good investment returns and rental income, as well as giving you lifestyle whenever you decide to use it.
With a little research and help from a Real Estate Consultant you can choose between an area that will deliver capital growth and one that can also deliver lifestyle.
Central America is actually ripe with some of the best “profit + lifestyle” opportunities that can be found. Look for prime tourism areas that are highly desirable but still not fully on the map or developed as primary vacation destinations or even better with key infrastructure project going in like the new international airport going into Palma Sur in Costa Rica’s southern zone. Look for locations that are on a development path, and where it’s still possible to benefit from early prices.
Real estate investment for profit and lifestyle in Central America, which is a growing and emerging market in general, has become a hotbed for investors seeking opportunity. Central American real estate is projected to boom in the next 10 years, so if you are looking for your next investment opportunity, take a look at what Central America has to offer.
Contact us for more information on Costa Rica Real Estate and one of our Experts will be glad to assist you.
The Costa Rica News (TCRN)
San Jose Costa Rica