As realty cycle renews itself, buyers must be wary

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

There is a much quoted phrase in Costa Rica between lawyers.  Everything legal is not always right, and everything right is not always legal.

Many of the development projects of the last decade were put together by individuals with high hopes of raking in the dough, selling to unsuspecting buyers.  They skipped doing the correct due diligence on the properties they bought to sell.  They bought only to flip.  

Even well-known Costa Rican developers built without all the paperwork and permissions required by law.  They built fast to sell fast to the flocks of people coming to Costa Rica to buy property.  There is one developer in so much trouble now in Guanacaste, he is telling his buyers to move into the condominiums they bought and demand squatters rights because he cannot give them clear title.

Other developers promised everything and anything to prospective buyers.  There is a well-known adage when it comes to sales.  A good salesperson needs a little larceny in their blood.  Well, it appears that some sellers of real estate to foreigners in Costa Rica had a lot of larceny in their blood.

Chat sites and text messages A dangerous combo

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

The internet is as wonderful as it is evil.  The dark side is where predators lurk, waiting for the unsuspecting innocent to fall into their traps.  These creeps lie in wait to menace adults and children alike.  The internet, cellular telephones and text messaging can work together to steal, maim and even kill.

Many expats have come to Costa Rica with families, including their children. Others have started families here.  In a modern family, having several computers in the household is not uncommon.  Giving children cell phones at a very early age is also normal practice.  They are great little devices to keep tabs on kids.

The Internet extended the dating services of the past century into a whole new world, social networking.  These networks have grown geometrically on the web.  Adults and kids use them to find new friends and relationships.  Some adults find their mates nowadays using the tools of cyberspace.

Most people hide behind avatars —  an icon or figure used as a personification of the computer operator — and use false information when using social networks.  This is good practice but does not curb the danger and can even exacerbate it.  

Here is a wake-up call to expats with children in Costa Rica.  Internet predators are out to get them.  They know all the tricks.  Expats here are usually of retirement age because they came to retire in this country.  Many of them did not count on having a new family in this country, but it happened.  Because they are of retirement age, many are not familiar with the Internet or text messaging on cell phones, so they do not understand how much danger their kids are facing every day.

This is the scenario.  It usually — but not always — starts with a social network on the Internet. 

Real estate slowly becoming a great investment here

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

Plenty of people came to Costa Rica during the feeding frenzy in the past decade to invest in property.  Today, many of those that invested are licking their wounds because they jumped into the shark-infested waters unprepared.  Most of them looked at investing here through kaleidoscope eyes.

Projects are not the only thing on hold in Costa Rica.  Many expats lives are on hold too.  They bit off more than they could chew when they invested in this country.   During the days of skyrocketing prices, they did not save their pennies for a rainy day, but chased prices up into the stratosphere and paid ridiculous prices for land and buildings.  Some expats bought homes, but many others bought one or more parcels to speculate the market would go up even higher.