Costa Rica’s Next Two Up-and-Coming Hot Spots

Written on November 9, 2009 – 9:25 am by International Living

By Ronan McMahon

As an investor, you may think of Costa Rica as “old news,” but two areas of that country deserve a look today as they’re well-positioned for a boom. I’ll explain why in a moment. But first, a little background.

In the early 1980s, International Living recommended buying real estate in northern Costa Rica. This part of the country became the No. 1 destination among foreign retirees and investors. Through the 1990s, the market boomed. Prices for beachfront property along the Pacific coast increased 10-fold. Today, you could pay $600,000 for a half-acre ocean-view lot.

But there are nicer parts of Costa Rica that haven’t yet been discovered—where you can buy a three-quarter-acre lot in a high-end gated community for $39,000, and build a 1,400-square-foot house on it for $100,000.

There are two areas that should be on your radar. The first is Costa Rica’s southern zone.

I believe southern Costa Rica (the area that runs south of Quepos to the border with Panama) is more beautiful than its northern counterpart. There is more land preserved in national parks and reserves in this region than in any other region in the country. Ballena National Marine Park is a hotspot for humpback whales. Corcovado National Park has one of the largest areas of primary rainforest left in the Americas and is home to a number of endangered plant and animal species. The beaches are mostly deserted.

In a country with an established property and tourism market like Costa Rica, this sounds like just the type of place that would attract a lot of fervent investors. You would expect to pay a premium to have a home here.

However, prices have stayed low here for one reason: This area has been difficult to get to. The Costanera highway is unpaved between Quepos and Dominical, and the airports are small, local affairs. For 30 years, Costa Rica’s presidents have been promising to rectify this infrastructure deficit. This time it’s really happening.

A new paved road will be in place by next year. It’s almost complete. President Oscar Arias Sanchez has personally visited the project. The new highway means that the 90-minute (or longer) trip from Quepos to Dominical will be cut to 25 minutes.

But there’s more. Costa Rica’s government has settled on Palmar Norte as the site of a new international airport, and has allocated funds for construction. The airport is planned to open in stages; the first stage, in 2011, will allow international flights with a maximum capacity of 50 passengers. The plan is to eventually have a runway capable of accommodating even the world’s largest passenger plane, the Airbus A380.

The second area that should be on your radar is Limon. The drive east from San Jose to Costa Rica’s Caribbean coast is through some of the most inspiring scenery you’ll ever see. The sand is white, the water turquoise. Back from the coast are the Talamanca mountains. The breeze is fresh and the wildlife abundant—70% of the coast is protected. Yet you are only two hours from San Jose’s international airport…with direct connections to the U.S.

A planned billion-dollar gentrification project is going to transform the forgotten port town of Limon into a major Caribbean hotspot. The president was also recently in Limon to announce an $80 million investment that will kick-start the upgrades. The cruise ship port in neighboring Moin is set for a major upgrade.

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My Favorite Resort Deal in Mexico

Written on October 19, 2009 – 2:44 am by International Living

By Ronan McMahon

Construction at Sian Ka’an Mexican beach resort is progressing at pace—260 workers are onsite full time and construction of Phase 1 units is well on track. The developer’s team just showed me the photos below. Impressive progress in less than two months! I met them in Las Vegas for IL’s Live and Invest Overseas Conference. Phase 1 will be ready for occupancy in June. Prices here will continue to rise as these units near completion.

To remind you, these are the factors that separate this deal from anything else like it:

  • A new airport is planned; 10 years from now, it is expected to carry as many passengers as Cancun airport.
  • Appreciation potential: Prices here are at a 36% discount to what you would pay in Playa del Carmen, just 35 minutes down the road.
  • Guaranteed fixed rental income: Your unit is leased to a 5-star hotelier, which pays you a fixed amount irrespective of whether it rents or not.

Occupancy rates at this resort have fully recovered to pre-flu scare levels. You see, this resort has a very important advantage. The company that owns it also own Europe’s second biggest travel agency. They sell and run 2.5 million vacations every year. They can channel their customers into their own hotels when things get tight.

The resort boasts all the amenities you would expect from a major high-end resort. The water here is turquoise blue…the beaches are white-sand. This is picture perfect Caribbean. The Robert Trent Jones II golf course opens for play this December.

The developer’s (Benjamin Beja’s) invitation to visit the project is still open. Benjamin believes in his project. He’s willing to put his money where his mouth is—all expenses paid. This is the same invitation I personally received when Benjamin first offered to show me the development. In other words, most visitors won’t receive this level of attention.

This is a RETA Members-only VIP Chill Weekend.

You can read my full report on this opportunity here. I strongly urge you to take Benjamin up on this offer. Many of your fellow members have. Many members have visited the site. Many have purchased here. All the reports I’ve heard have been enthusiastic.

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Nicaragua—The Inside Track on the #1 Beach Project

Written on September 25, 2009 – 2:31 am by International Living

By Ronan McMahon
For International Living

Eight months ago I recommended a pre-construction opportunity on Nicaragua’s south Pacific coast to members of Real Estate Trend Alert. To some, this may have seemed like a brave move. I was sticking my neck out on a deal in Nicaragua. The world was gripped by recession. Surely real estate in Nicaragua was the last thing on anyone’s mind!

I had my reasons…the fact that Nicaragua has drifted off the radar was one of them. Mostly I was attracted by incredible values in the #1 project on one of the world’s most beautiful coasts. Today, as the units I recommended near completion, I believe that buyers did well. Really well, in fact.

Today, you can still buy half-acre ocean view lots for less than $50,000 and condos for less than $300,000.

You cannot ignore the intrinsic value of Nicaragua’s south Pacific coast. It is special. Unique. Here, you’ll find rocky outcrops, world-class surf, and some of the most jaw-dropping views in the world. The coast is more awesome than Northern Costa Rica directly to the south…or southern California, a four-hour flight to the north. Yet prices are a fraction of what they are in Northern Costa Rica…let alone California.

This was a market that rightly had my attention. Caution however was required. Recession in the U.S. has caused the real estate markets in Nicaragua to stall. This means that there are deals to be done. It also means however that we need to be extra wary when considering pre-construction or buying in a project. If a developer doesn’t sell as much as he expected will he run out of money…and take your investment with it? Buying in the right project is key.

Following this analysis, the recommendation became easy. Rancho Santana is a “stunning” (to quote Forbes magazine) 3,000-acre Pacific seaside ranch: five distinct beaches…amenities…security…title insurance. It’s a 10-year-old project. Set in its ways. And financially solid. The investors themselves have built their own homes there. I know because I’ve stayed in them. Investors and homeowners here include International Living’s Founding Publisher Bill Bonner and most of Agora’s (International Living’s parent company) Executive Committee.

I had the inside track on their commitment to Rancho Santana and the construction of these condos. Irrespective of the market they would move forward. They would use their own funds, not borrowed money. Every detail and touch would be to the highest standard. This came straight from the top. No one was going to cut corners.

There is no project along this coast that can compare with Rancho Santana. It’s there, it’s real and it’s buzzing. When you drive around this property it’s hard to believe you can buy anything here for less than $1 million. The homes here are awesome. Yet you can buy stunning half-acre ocean view lots for less than $50,000…and condos for less than $300,000. A mere eight months since I wrote to members of Real Estate Trend Alert about this opportunity the folks at Rancho Santana are preparing for the grand opening of the first two condo buildings. This is the view owners will have:

View at Rancho Santana, Nicaragua

View at Rancho Santana, Nicaragua

Construction has been ahead of schedule. The first units will complete in November. Twelve of the 24 units were sold pre-completion. The remaining 12 will be sold as fully finished units. Construction quality is top class. See for yourself.

Construction at Rancho Santana, Nicaragua

Construction at Rancho Santana, Nicaragua

Only the mega wealthy have a retirement or second home like this in Northern Costa Rica or California. With half-acre ocean view lots for less than $50,000 and condos for less than $300,000 this lifestyle is within your grasp.

Only this coast is nicer.

This is my favorite place in Central America to spend time. It’s special…you should see for yourself.

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