By: Garland M. Baker B.
Exclusive to A.M. Costa Rica
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There are international developers currently searching for deals in Costa Rica. The past boom in the country created some opportunities because many projects were left unfinished when the market fizzled in late 2008. They are looking for the money trees of the next boom.
However, some opportunities that look good are not what they appear after some digging into their fundaments. The most common problems are that the original founders borrowed too much money to get the projects moving because they believed they would sell fast to pay off the debts.
There are other concerns too. Many of the original promoters did not do their due diligence and bought land that in some cases cannot be developed at all. In other cases, only a small portion of the land is dividable and buildable. Other difficulties range from water issues, slope of the land, offsets from springs and rivers, and forestry restrictions, to name a few.
Real estate agents tend to emphasize the good and paint a pretty picture to prospective buyers. Often, they do not disclose the bad — and to be fair — many of them do not know the true state of the property they are trying to sell.