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Costa Rica Slide Show

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An overview of Costa Rica, its people and travel and real estate.

An overview of Costa Rica, its people and travel and real estate.

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Costa Rica Slide Show Costa Rica Slide Show Presentation Transcript

    • Ocean and mountain properties, luxury condominium sales and rentals — all major developers and properties:
    • Jaco Beach
    • Hermosa
    • Herradura
    • Central Pacific region of Costa Rica
    real estate brokerage full service
  • about costa rica
    • Peaceful, beautiful and accessible…
    • Known as the Switzerland of Central America
    • President Oscar Arias received the Nobel Peace Prize
    • Costa Rica has approximately 762 miles of coastline
    • Flight time examples: Miami – 2 hours Houston – 3 hours Washington DC – 5 hours
    costa rica the gem of central america
    • Latin culture as warm as the tropical climate…
    • Spanish / Indigenous people
    • Friendly culture — “Pura Vida”
    • Welcoming to Americans
    • 98% Catholic / 2% Miscellaneous
    • Literacy rate is highest in Central America at 96%
    • Refer to themselves as “Ticos”
    people of costa rica
    • Four million people
    • North Americans estimated at 1% of population and growing
    • One million in greater San Jose
    • 30,000 on Central Pacific Coast
    • Greater Jaco predicted to grow from 10,000 people in 2005 to 100,000 by 2012
    population of costa rica
    • Healthcare
    • Clean water
    • Literacy rate
    • Trained workforce
    • Stable democratic government
    second world country
    • Excellent care
    • Inexpensive
    • Cosmetic surgery
    • Knee / hip replacements
    • Dentistry
    healthcare
    • The Switzerland of Central America…
    • 100 year old democratic republic
    • New constitution / abolition of army in 1949
    • President elected every four years
    • Congress elected every four years
    • Mayors elected every four years
    government
    • Costa Rica is located in the tropics…
    • Lows in the 70’s
    • Highs in the 90’s
    • There are two seasons…
    • Dry — December through April
    • Green — May through November May, June, August: Typically dry with afternoon showers July: Dry September, October: More clouds, may rain during day
    weather
  •  
    • Leading eco tourism destination
    • 1.7 million tourists in 2006
    • Costa Rican Tourist Board (ICT) projects tourists to exceed 4 million by 2012
    popular destination
  • biodiversity
    • Monkeys
    • Toucans
    • Parrots
    Covering only .03% of the earth, Costa Rica has approximately 6% of the world’s biodiversity
    • Ant eaters and sloths
    • Birds and butterflies
    • Exotic plants
  • attractions
    • Natural beauty
    • Ocean, mountains and wildlife
    • Relaxing setting
    • Friendly and welcoming culture
    • Adventure tours
    • Eco tourism
    • Tropical setting
  • tourism activities
    • Surfing
    • White water rafting
    • Hiking
    • Mountain biking
    • Horseback riding
    • Para sailing
    • Nature tours
    • Snorkeling and scuba diving
    • Sport fishing
    • ATV tours
  • why & how
    • Closest beach town to San Jose
    • New highway under construction
    • Clean, abundance of water
    • Good infrastructure base
    • English spoken
    • Density concentration allows for luxuries
    • Variety of restaurants from chains to four star
    • Comfortable for tourist and retirees
    • Great value
    • Fee simple oceanfront properties
    why the central pacific coast?
  •  
    • Working with the community
    • Roads
    • Security
    • Infrastructure
    • Schools
    • Beaches
    • Many experts compare Costa Rica’s growth to that experienced in the last 30 years of:
    • Hawaii
    • Florida
    • California
    comparative growth
    • 25% of “declared” value
    • Paid annually
    • $1,000 per year based on $400,000 of declared value
    low property taxes
  • real estate
  • costa rica real estate overview
    • Select areas have appreciated at 25% per year
    • Growth is fueled mostly by North Americans (estimated 95%)
    • Europeans are just starting to discover Costa Rica
    • Baby boomers are purchasing now to retire later
    • Government similar to U.S. structure
    • Safe place to live
    • Violent crime is low
    • Language barrier is minimal (many English speakers)
    • Accessible by most major airlines with multiple flights each day
  • term: maritime zone
    • Created in 1970’s to control shoreline development
    • Runs along all coastal property
    • First 50 meters (median high tide) are public property
    • Next 150 meters (from public zone) are concession
    • Government is enforcing zones
    • Fee simple grandfathered titles
  • property type: titled fee simple
    • Titled fee simple
    • Most land more than 200 meters from coast is fee simple
    • No restrictions for foreigners
    • Title insurance available (.8% to 1%) - Stewart Title - Chicago Title
  • property type: concession
    • Concession, also known as Lease Hold
    • Government grants rights to use land
    • 20 year renewal (from the last time it was renewed)
    • Foreigners can legally own only 49% of shares
  • risk of concession
    • If lease is not renewed, government must pay fair market value for properly permitted improvements
    • You lose value of land
    • Investment value is in the appreciation of the land or improved land – not the cost of construction
    • Minority shareholder rights
    • All properties registered in National Registry
    • Folio real number
    • Registry is online
    term: national registry
  • proceeding with purchase
    • Similar to buying real estate in The US…
    • Make offer / write purchase agreement
    • Earnest deposit
    • Contact Costa Rican Lawyer for due diligence
    • Title search (lawyer or title company)
    • Schedule closing (don’t need to be present)
    • Transfer funds
    • Sign documents
    • Corporation owns real estate
    • Buyer purchases shares of corporation
    • Real estate stays in corporation avoiding transfer tax
    purchase corporation to avoid paying transfer tax
    • SRL — Sociedad de Responsabilidad Limitada (similar to USA LLC)
    • SA — Sociedad Anonima (similar to USA C-Corp)
    two types of corporations
  • corporate income taxes (*) Apply net income // exchange rate is approximately ¢ 515 to $1 Gross income range Rate (*) Up to ¢31.043.000 10% Up to ¢62.444.000 20% Over ¢62.444.000 30%
  • corporate income taxes example Calculation: (+) Revenue (-) Expenses (=) Net Income (x) % Tax (=) Tax to pay Example: Gross Income of $44,000 = 10% tax bracket Total expenses of $20,000 Net Income of $24,000 X 10% $2,400 tax
    • Insurance
    • Salaries and payroll fees
    • Employee Income tax
    • Depreciation
    • Interest and fees paid
    • Advertising
    • Technical and professional services
    • Business taxes
    • Other business expenses
    • Sales expenses (can’t exceed 15% of gross income)
    deductible expenses
  • term: closing / settlement
    • Title company / attorney
    • Stewart Title / Chicago Title
    • Typical closing cost is 3% – 4% - Legal: .5% – 1.5% - Title: 1.0% - Transfer tax: 1.5%
    • Typical finance costs are 2% to 4%
    • **developer financing may include closing costs
  • listings
    • Hermosa Hills Residential Development & Biological Reserve — miles of ocean views and refreshing mountain breezes…
    • 20 luxury home sites (+ $1.5 million)
    • Phase I — 20 luxury condos (+$400,000)
    • Phase II — 20 luxury condos (not yet determined)
    • Phase I — Luxury Condos
    • 2,800 sf total (2,000 under roof, 800 terrace)
    • 3 bedroom, 3.5 bathrooms
    • Teak wood doors, cabinets and finishes
    • Granite countertops
    • Imported tile flooring
    • Jacuzzi on balcony
    • Infinity pool
    • Outdoor barbecue area
    • Million dollar views
    • Stainless steel appliances
    • Tropical plantings and landscaping
    • San Francisco Architect
    • Location, location, location…
    • 5 minutes (2 miles) from the beach
    • 10 minutes to the center of Jaco for restaurants, shopping, entertainment and nightlife
    • 20 minutes to Cararra National Park
    • 1 hour to Manuel Antonio National Park
    • 1 hour 45 minutes to Juan Santa Maria Int’l Airport
    • 2 hours to San Jose Note – travel times to San Jose will be 1 hour and airport will be 45 min. at completion of new highway in 2010
    • Minimal environmental impact…
    • Build to topography
    • No primary or secondary forest cut — building areas were farm land
    • 60% of project is dedicated to protected area and nature reserve
    • No forested wood (teak is renewable)
    • Recycled steel (in beams) and concrete
    • Experience stunning mountaintop panoramic views…
    • Pacific Ocean coastline — see from Jaco to Quepos
    • Mountains & valleys — dramatic heights and wildlife
    • Cool mountain breezes — refreshing, averaging 10º cooler than sea level
    • Tranquil, relaxing setting
    • Enjoy nature…
    • Entire project consists of 220 acres
    • Biological reserve with hiking trails and cart paths
    • Natural tropical vegetation with wildlife neighbors
  •  
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  •  
  •  
  • rental projections Two bedroom / Two bath ocean view ($399,000) Loan Amount: $279,300.00 Total Loan (Mortgage) Amount: $279,300.00 Principal & Interest: $2,247.31 Property Taxes: $83.08 Condo Fees: $300.00 Total Monthly Payment: $2,630.39 Rental Rates: approx. $255 per night Occupancy at 40% - $3,572 (projected annual revenue) Occupancy at 50% + $3,339 (projected annual revenue) Occupancy at 60% + $10,319 (projected annual revenue) Rental projections are based upon rates provided by the developer and subject to change. Return on investment is not guaranteed, given or implied.
  • rental projections Two bedroom / Two bath ocean view ($475,000 with rooftop terrace ) Loan Amount: $308,750.00 Total Loan (Mortgage) Amount: $308,750.00 Principal & Interest: $2,484.27 Property Taxes: $98.91 Condo Fees: $300.00 Total Monthly Payment: $2,883.19 Rental Rates: approx. $315 per night Occupancy at 40% - $106 (projected annual revenue) Occupancy at 50% + $8,517 (projected annual revenue) Occupancy at 60% + $17,140 (projected annual revenue) Rental projections are based upon rates provided by the developer and subject to change. Return on investment is not guaranteed, given or implied.
  • rental projections Three bedroom / Three bath ocean view ($375,000) Loan Amount: $262,500.00 Total Loan (Mortgage) Amount: $262,500.00 Principal & Interest: $2,112.13 Property Taxes: $78.08 Condo Fees: $350.00 Total Monthly Payment: $2,540.22 Rental Rates: approx. $325 per night Occupancy at 40% + $5,105 (projected annual revenue) Occupancy at 50% + $14,002 (projected annual revenue) Occupancy at 60% + $22,899 (projected annual revenue) Rental projections are based upon rates provided by the developer and subject to change. Return on investment is not guaranteed, given or implied.
  • rental projections Two bedroom / Two bath ocean view ($350,000) Loan Amount: $245,000.00 Total Loan (Mortgage) Amount: $245,000.00 Principal & Interest: $1,971.33 Property Taxes: $72.91 Condo Fees: $300.00 Total Monthly Payment: $2,344.24 Rental Rates: approx. $255 per night Occupancy at 40% - $208 (projected annual revenue) Occupancy at 50% + $6,773 (projected annual revenue) Occupancy at 60% + $13,753 (projected annual revenue) Rental projections are based upon rates provided by the developer and subject to change. Return on investment is not guaranteed, given or implied.
  • testimonials “ We came home and can’t stop thinking about Costa Rica. Three days later we are already working on our return trip” “ Costa Rica is a magical place. We have traveled all over the world and it is the one place we want to return to time and time again.” “ My kids were given several choices of new vacation destinations – including Disney. They want every vacation to be in Costa Rica” “ I have traveled throughout Mexico and the Carribean and many tropical locations. I have never experienced such a friendly and welcoming people as the Costa Rican’s were to us. We can’t wait to return.” We came to vacation. We are planning to relocate. Costa Rica has us under its spell! “ Shortly after I met my wife, Michele, she told me about her dream of being married on a beach in the tropics. We chose Costa Rica and that choice (Costa Rica) has changed our lives forever!”
  • Toll-Free North America: 1.866.847.9526 ・ Costa Rica Office: 011.506.2643.2545 / 2546 www.OceansideRealty-cr.com