costa rica jaco real estate
Is it a good idea to buy real estate in Jaco, costa rica ?
How’s the real estate market out there ? is it a good time to buy out there right now ?
Jaco definitely has some depressed prices right now. With the over building done by Daystar and Sonesta, there is a lot of inventory that is sitting empty but these developers have not done much in the way of reducing prices yet. Rental rates at Daystar are $180 to $380 per night but you can bet that if you were an owner, you might see a fraction of that. Until the project is sold out the management company will see that their unit rents while yours sits empty. Also keep in mind that if you buy in one of these new high rises, the monthly maintenance fees are hefty and make trying to produce an income from rentals more challenging. Also keep in mind that this inventory will not go away soon. Check out this link http://www.PacificLots.com/slide-show/ There is an expression in real estate when prices are falling, “don’t try to catch a falling knife”. It makes more sense to wait a while longer and see what continues to happen to prices in Jaco. My guess is that prices in Jaco will soon start to fall quickly. There are a number of large condo projects there, partially done that have just stopped. These half finished towers represent a significant amount of investment sitting there that somebody owns.
Why not look further south, down past Domiical where the new Costanera highway has opened up a whole new territory. You can buy a great single family home for the cost of a condo in Jaco and you’ll own the home and not continue to pay monthly maintenance and management fees. A new international airport is coming to the southern region in the future and property values will rise considerably once completed. We sell property down in the Ojochal area, hard to get to now at 3.5 hour drive from San Jose but a much nicer part of the country, limited crime and great upside potential. Just look at the difference in the cost of room rental rates between Jaco and Manuel Antonio and you will see that Jaco will always rent for less than many other areas. My wife and I continue to buy raw land in the southern region where the prices are lower and the pace of life is slower. Jaco may be a buy but you will have to wait a good while for the market to catch up to the available inventory so the correct answer to the question is “it depends on how long your investment horizon is and what you plan on using it for.”
Real Estate Opportunities, Jaco Beach, Costa Rica, DayStar Properties www.daystar-properties.com