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Most visitors and potential buyers looking for property in Costa Rica will say they prefer to buy an already existing structure (Home or Condo). Until they learn that the few homes available command premiums of between 25 and 100% and are often not designed to please North American tastes.
THEN the questions become..."how risky is it?" and "how long does it take?"
The answers: It is a simple procedure here to protect yourself legally from a bad builder and dishonesty or fraud. The reality in Costa Rica for a Tico (Costa Rican) is: when a different home, a bigger home, or a newer home is needed it is built. And you don't really think that all of the Ticos in the country would build if it really were that risky, do you?
The reality is - yes, some newcomers get taken advantage of Our clients DO NOT they have legal protection. Deadlines are met, or penalized and there are virtually no cost overage clauses.
You can build a quality custom built home in Costa Rica for between $40 and $65 per square foot. It is something that most newcomers would be very comfortable in and almost definitely better than purchasing an existing structure. Areas closer in to the cities and beaches will have significantly higher land costs, (as in any Country)and building further out in the Central Valley may cost more because of the higher operating costs due to transportation and logistical increases.Beach constuction is certianly going to be higher because the demand for quality builders is very high due to the fast growth being experienced in almost all beach areaS.
I should also mention that many new construction projects sell at significantly lower prices as construction begins. You can often gain equity of 6%-20% buy buying at preconstruction prices. You must keep in mind that it will usually be from 3-6 months for condo type developments to 18 months for high-rise condos before they are available for occupancy. So if you are planning your move in this type of time frame or looking for a rental property this may be a good way to buy. Usually a small down payment will hold your property until completion.
Is this instant Equity enough incentive to explore building your own custom home or buying at preconstruction prices in Costa Rica? Give it thought. Costa Rica is a lot more affordable than you thought, or most of the internet sites will tell you! Ask us we will be happy to share experiences with you.
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