Archive for January, 2010
Costa Rica Investment
Costa Rica is one of the most attractive countries in Latin America for foreign investment. There are very few restrictions regarding who can purchase Costa Rica investment properties. There are also tax breaks and cuts offered by the government for those who are willing to invest in Costa Rica whether the investment is in real estate or beyond. As a potential Costa Rica investor you should first and foremost make a trip to the beautiful country and see first hand what Costa Rica has to offer.
What are the makings of a good investment property? A property of value at a reasonably low price in a good environment. Costa Rica offers this and more. With more than 800 miles of Caribbean and Pacific beaches an average temperature of 72 degrees and all the amenities of home Im sure youll agree that Costa Rica sounds like heaven on earth. Isnt heaven on earth a good investment? Yes especially in the booming real estate market of Costa Rica.
There are many different types of properties to look at for investment in Costa Rica. You could begin with luxury beachside bungalows such as can be found at www.cerrafresco.com with their amazing resortlike accommodations. Other Costa Rica investment properties to look at would include condominiums or detached homes whether they are on the coast or inland in the rugged highlands.
Costa Rica is known as the safest country in Central America. So much so that they have done away with their army and now only have a small police force to keep the people of Costa Rica safe. It is also one of the most beautiful countries in Latin America. Whether you are looking to purchase rental property for investment or a home of your own to retire in Costa Rica has everything you are looking for; safety affordability beautiful scenery diverse culture and modern conveniences.
About the writer: An alluring quality of life experience awaits you at Cerro Fresco an unparalleled Costa Rica Real Estate development located in Jaco Costa Rica.
Costa Del Sol Property: Scoring High On The Real Estate Scale
Spain has always been a country where people go to relax and unwind. Full of sunny and beautiful beaches and an abundance of natural beauty it is a tourist’s delight. All the cities of Spain are beautiful and a tourist destination in their own right but Costa del Sol is the one that is most popular. The increasing number of tourists in Costa del Sol all the year round has not only placed it at the top of global tourist destinations but has also boosted the real estate scenario. It is most certainly the best time to invest in Costa del Sol property.
What makes Costa del Sol such a sought after place? The main reason is that the climate there is extremely pleasant for a major part of the year. It settles around 18 degrees Celsius on an average annually. It is a perfect weather for holidaying and spending a relaxed and leisurely vacation. In fact it is mainly the affable weather that draws tourists to the city and is the main reason why more and more people wish to invest in Costa del Sol property.
The other main reason behind the rise in the Costa del Sol property rates is that it is Spain’s most well connected city. The Malaga International Airport is extremely close by. It is also close to neighbouring towns and villages. Not only Spanish people but even people from other countries are buying Costa del Sol property. They may invest in the land either for commercial purposes like building resorts hotels villas etc. or even for settling down in a quiet place in the city.
Costa del Sol still has the old world charm of a slow and relaxed pace of life but it has moved with the times and has equipped itself with supermarkets restaurants bars theatres night clubs tennis courts beauty spas etc. to cater to the basic amenities of people who live and visit the place. All these factors have further increased the demand and the rates of Costa del Sol property.
About the writer: Brittney Jackeline is a well known professional writer. She has won appreciation especially for good writing about the Real Estates topic like properties in Spain.
Contrarian Logical Commercial Real Estate Investing Not For The Timid
Like any business real estate is subject to certain market forces that affect values. The lifeblood of commercial real estate is affordable financing for the acquisition development redevelopment and refinancing of improved properties. The availability of financing is determined by the overall economy overbuilding interest rates market perception right or wrong unemployment and of course local product supply and demand. Real estate prices can fluctuate wildly as these factors exert their influence.
Historically real estate cycles typically have an average duration of six to nine years. There are four distinct phases to a commercial real estate cycle including Recession Recovery Expansion and Contraction.
Recession. The Recession Phase follows a market contraction when the availability of financing has dried up and property values fall precipitously. Properties experience vacancies and owners cannot sell because financing has become unavailable to prospective buyers. Prices fall far below the cost to construct the same facility new resulting in many good buying opportunities for those with the liquidity to take advantage of market weakness. Foreclosures increase and property owners become even more motivated to sell as investors sit on the sidelines. The longer the Recession Phase drags on the lower prices usually go. This is the time to buy.
Recovery. In this phase excesses have been wrung from the market and prices begin to recover although most investors are still afraid to make a move. New tenants enter the market and property owners refinance as affordable institutional money becomes available. Prices begin to move up. This is the time for owners to improve their property maximize rental rates and wait for the next phase.
Expansion. The real estate market is humming along and equity investors are plentiful. Institutional financing is readily available and the price of improved real estate moves up well over the cost to construct the same facility new. Vacancies are at their lowest prices are at their peak and there is a general feeling of wellbeing prosperity and abundance. This is the time to sell.
Contraction. It is in the Contraction Phase that reality sets in. The market has become overbuilt and vacancies begin to rise. Financing and equity investment withdraw from the marketplace as delinquency rates rise. Prices begin to fall from the peaks of the expansion phase. Investors rush to exit the market causing prices to fall with increasing speed.
The phases of a real estate cycle are always in the same order the only differences being the duration of a phase and longevity of a cycle. By determining our current phase we can logically anticipate where we’re heading taking a great deal of the guesswork out of the equation. Recognizing and timing market trends need not be as formidable as it may seem at first glance since we know that the typical investment cycle timeline is six to nine years.
To the real estate investor the most important question is “When do I buy and when do I sell?” This is the point where we find out if we are contrarian investors or just one of the herd. While the market is still in the Recession Phase the stage is set to reap the biggest profits later on at or near the top of the Expansion Phase.
To make money the old saw “Buy Low and Sell High” universally applies. The best time to buy is when the cycle is in the Recession Phase when the best deals become available due to pervasive investor fear. In this phase the best prices and terms can be negotiated well below the replacement cost to build the property new. The time to sell is during the peak of the Expansion Phase when buyers can easily obtain financing and the market is on a high note. Another old saw applies here: “Buy when everyone is selling and sell when everyone is buying.” This is contrarian investing at its best.
The problem with contrarian investing even though logic may dictate otherwise is that it goes against our survival instinct and plays into our herd instinct both paths being governed by emotions. Illogically most investors decide to enter or leave the market at the wrong time by following their emotions. Contrarians tell us to do the opposite of the herd but the fact is when logic and emotion are in conflict emotion will usually rule the day. This is the point where confidence and nerves of steel are useful.
One thing is certain cycles will repeatthat’s why they’re called cycles. Those with the discipline to understand cycles and invest contrarian will reap the big rewards.
About the writer:nbsp;nbsp;Doug Mitchell is the CEO and President of Grace Realty Group Inc. a Florida investor in valueadded commercial real estate projects located in the Southeast United States. Grace offers individual investors debt and equity positions in the projects it redevelops
Phone: 954 2527595
Email: gracerealtygroupearthlink.net
Grace Realty Group Inc.
