November 28th, 2011 marks the start of the high season, speaking from the perspective of the Guys In The Zone here. However, in the few inquiries that I have made, it is apparent that there was a definite up-tick in sheer numbers of people in The Zone starting on that day, just a little over a week ago. Here’s what we’re seeing around the Guys office.
Lots of Sellers
We were focused on getting our property data based fleshed out over the last couple months of the rainy season. Rod & I thought we were doing pretty well, taking advantage of the rains, and the quiet time in Uvita and Dominical to get all of our properties in order. We have come to discover that there is no room for being smug on this front. We are nowhere near caught up with our sellers. We have quite a number of sellers that come down to Costa Rica every six months or so to visit, play, unwind and take care of property matters. This influx of sellers coming by our office, and working with them in various matters pertaining to selling their property has clearly indicated to us that we are in a Buyer’s Market here in Costa Rica. We have LOTS of excellent properties for sale at great prices.
Lots of buyers
The problem with all of these sellers coming in, is that we also are experiencing lots of buying activity. This is great for the coffers of the Guys In The Zone, but it makes for the need for Rod & I to get ourselves cloned, which we are not inclined to do, so we are simply running as fast as we can to be able to accommodate.
Profile 1The global economic crisis seems to have inured to our benefit. People are saying “I’ve had it” with wherever they may live (lots of Europeans in the mix, as well as Canadians and US’ians) and making the move to Costa Rica. A rather new buyer’s profile for us are the younger families that are not in the financial condition to move to Costa Rica, at least in the old “retiree” manner. These younger folks are coming here as a direct result of unpleasant conditions “back home”. So, they are looking for income generating properties. Over the last month or so, Rod & I have dealt with about 3 of the following type requests. These buyers are looking for:
- An income generating property
- Room to build several cabinas
- Room for a small restaurant
- Room for a main living abode for the buyers
- Budget of $200,000
The Esquinas property sold, removing from the front window what was clearly the most talked about property in our office. We now have another couple of options for these requests, but this is a VERY tall order. We are expecting what properties there are that can satisfy these criteria to be gone by season’s end. Here is the new HOT relocators, income generating property: Pequena Luna
Profile 2 End of The Worlders Last week I worked with prospects that want 100 hecs, lots of water, land to farm, and big view. Their budget is 1,000,000 Euros ($1,350,000 USD). They are looking to being self-sufficient, to the point of providing their own food, water and electricity. We may have hit pay dirt with some amazing ocean view property up in the mountains around Uvita.
Profile 2b This next one doesn’t fit in the End of The Worlder’s category, but they are certainly an interesting indication of market conditions. There aren’t enough of them to credit them with their own profile, so they are abbreviated. An investor’s group from Europe, looking towards doing an interesting, very green hotel with some activity attached to the hotel, like a golf course, or some other. The budget on this one is multi-millions.
Old Standard Property Buyer Profile In addition to these rather impressive profiles, the old standard is still there – the retirees looking to move to Costa Rica and enjoy a lifestyle with less of the frenetic pace and media saturation of the “developed world”. It seems that the economic downturn has had an effect on this seemingly bullet-proof group of prospects. Whatever plans they made in their lives for retiring: 401K, IRA, market portfolios etc… things have simply changed, and now the thought of generating a bit of income with what they do here in Costa Rica is of interest.
Rod is currently working a deal in progress on an amazing listing that we just got here in Uvita that is just a short ways up the hill behind Uvita. The property measures just under an acre and has a gorgeous and expansive ocean view. $90,000 on this one. Even if this first round of negotiations doesn’t go through to close, I have little doubt that it will go quickly.
Rod is also working a gorgeous ocean view lot down in La Perla Ballena, which is south of Uvita about 5 – 10 minutes. The asking price on this one is $165,000 (back to business as usual). The buyers offered $115,000, the sellers have countered at $150,000. The buyers are cogitating on this.
We’ll see where it all goes. I include these rather mundane details of our lives here because I think that these points help you, dear reader, to know how it is here now. What the feel is here in U-town and in the southern zone. There is more, and it would seem, serious, talk about the international airport having its funding. This may actually be a reality about to happen. Heaven knows why people need to fly into the southern zone of Costa Rica, but it would seem that this is what “they” want to do. The implications of this to land values is interesting.
I’m getting close to my self-imposed blog-limit of 1,000 words so I’ll leave you with this. I went out to the San Buenas Golf Resort today, and I’m blown away. More to come on that front.