Source: www.journalcr.com
By Nicholas P. VIALE
It’s a fact that baby boomers in their early 40s continue to spend more money than any other generation. This is particularly interesting as it pertains to the Gold Coast, where many North Americans nearing their prime years, end up vacationing around here as a way to enjoy eco-travel, sports, relaxation and the exploration of the Latin culture.
After a few days of enjoyment, many tinker with the idea of investing in a second home to use for future vacations and as an income producer between personal trips.
The temptation to invest in a rental producer in a tourism destination is hard to resist, especially when the facts of the benefits are explained by qualified professionals.
There are many varieties of purchases available, but the most common, and the one that would generate the best return on your investment are condominiums. There are many reasons for that:
1) Condos have become popular as the perfect alternative to a classic hotel room and offers more intimacy, liberty, as well as the sensation of “being in a home away from home.”
2) On internet search engines, “Condos For Rent” is the most-sought-after entry, simply because the prices are very affordable (especially when the rental price for a 2- or 3-bedroom unit can be shared between two or three couples).
3) Condominium communities generally offer good security, with spacious common areas and several amenities including, but limited to, property management, pools, tropical gardens, kids’ playgrounds, tennis, trails, laundry facilities, tourism or concierge services, etc. etc. but also security guards, laundry, tours,
4) Lastly, condos are easier to resell than a home, and typically are sold at a much higher value than the original purchase price. Remember that when you sell a rental condo, not only are you selling a piece of real estate, but also an income producer.
Furthermore, there are many ways to plan your investment in a rental income producer in the Gold Coast area. The simplest way is to get your feet wet by investing in a nice, comfortable unit located in a project offering spacious common areas. Or, you might consider investing in pre-sales stage in order to minimize your initial investment and maximize your potential profit in the future. Ordinarily, the price at pre-sales is lower than when construction begins, and at that point the value of the property increases.
You can also create a Real Estate Investment Trust (REIT) along with some friends or family. This permits you to invest in several rental income producers at once, allowing maximum rental income while creating a solid, dynamic portfolio.
The more conservative approach in investing would be to buy a unit, then immediately put it on the market as a long-term rental. This results in lower income for your pocket, but is a more secure, long-term strategy oriented toward profit that will eventually be generated on resale. This path is excellent, if you are a young couple with children, with plans to create a college fund for their future, for example.
To accomplish any of the aforementioned goals, you might decide to use a local source of financing in order to secure your investment in one of the various rental income producers in our area. This is a viable option, with many local alternatives and in the United States as well, including utilizing an Individual Retirement Account (IRA). An IRA is one of several specific retirement accounts allowed by the IRS to provide tax-deferral or other tax advantages, in order to purchase real estate in Costa Rica.
If you are interested in getting started with your investment and would like to get more information and documentation about the best rental producers available in Guanacaste and the Gold Coast, as well as property management companies, and the financing available to make a purchase, please contact our office today. Our agents will give you a general overview of the local market, help you define your strategy, and plan your custom designed investment exactly to your needs and resources.
Posted by Roger Vlasos
Broker/Owner
Century21 At the Beach
Playas del Coco, Guanacaste
Website: www.century21incostarica.com
Website: www.northpacificproperties.com
Email: roger@century21incostarica.com
