FILL´ER UP COSTA RICA
July 20, 2008 by theoaksI just filled up my car today in San Jose, Costa Rica. Cost for a liter of diesel was 710 colones, equal to $1.26 Canadian. Looks pretty cheap, eh, compared to a liter of diesel in Calgary, from $1.294 up to $1.469.
http://www.calgarygasprices.com/index.aspx?
fuel=D Whoaaa! Time to fill her up in Costa Rica!
A Slice of Life
May 11, 2008 by theoaksWhere is this maneuver being practiced?
Unless prohibited, a three-point turn may be used to turn around on a narrow, two-way street. You may be required to make one of these turns on your road test.
To make a three-point turn:

1. Signal with your right directional, then pull over to the right and stop. Signal with your left directional, then check carefully for approaching traffic.
2. Turn left, cross the road so you come to a stop while facing the left curb or edge of the road.
3. Check again for traffic. Turn your steering wheel as far to the right as possible, then back up to the right curb or edge of the road.
4. Stop, check again for other traffic, then pull away from the curb.
TIPS ON LEASING YOUR COSTA RICA CONDO
April 1, 2008 by theoaks
We finished construction on our first 30 condominium units at The Oaks Tamarindo before Easter, and some of our owners already have begun renting out their units. Out of 30 units completed, 5 units are being rented out on either a short term or a long term basis. We are using the 3 units that we are not selling as model units, a home for our manager of guest services, Ana Lorena, and as VIP units for local dignitaries. One of our owners even has set up his own web site.
First, let’s start by stating the obvious. (It makes blogging so much easier.) Renting is extremely attractive from an economic point of view. Prices are going up while phase two is under construction, making renting an attractive option to cover one’s costs while enjoying the benefits of price appreciation.
We recommend that owners enter into short term rentals whenever possible. Rates are attractive, at $900 per week during the low season, pretty much the same as renting two rooms at the new Best Western Motel one mile down the road. Additionally, an owner can schedule personal and family use during the year, and we can keep a close eye on the unit’s use when it is rented out.
Still, some owners have told us that they believe that long term rentals are more attractive to them, because their income is more stable, and because there is less wear and tear on their units. In our opinion, both beliefs are questionable.
From the point of view of stability of income, the law limits a landlord to only one month’s rent in advance and one additional month’s deposit for damages. As a nice trap for the unwary landlord or lawyer, a tenant can cancel his lease with three months’ advance notice unless the lease explicitly provides otherwise. Moreover, a long term lease really is long term. Under Costa Rica law, every residential lease has a term of 3 years (even if the lease itself says otherwise). So, if you enter into a lease for any term (other than a short term tourist lease), you have entered into a three year lease. Combined with the discussion in the following paragraph, think of this as a form of rent control.
If rent payments are stipulated in a foreign currency, such as U.S. or Canadian dollars, the rent cannot be increased for three years (even if the lease says otherwise). Only if rent payments are stipulated in Costa Rica colones can the rent be increased, once a year, by an amount equal to the annual rate of inflation, up to 15%.
This actually is a pretty good deal for the landlord, since the colon is going up against the U.S. dollar, and inflation is running around 10% per year. So, your lease payable in colones will have two nice annual increases in rent, while your lease payable in dollars is fixed for three years.
What can go wrong? You negotiate a three month lease in October, during the rainy season, for a low rent, payable in dollars. You neglect to register yourself or your company as a tourist establishment, thereby attempting to avoid charging your tenant Costa Rica’s 16.39% sales and tourist tax. You figure, no worries, I am covering my costs, the lease is only until December, and I’ll raise the rent during the high season. WHAMMO. An unscrupulous tenant will stick you with the low fixed rent for three full years, during low season and high. Never mind that the lease says it is for three months. Costa Rican rent control.
What about wear and tear? Isn’t it easier on your unit to have a nice, stable, long term tenant? Well, you own a vacation home, within minutes of the best beaches in the country. So, even though your tenant is a professional architect, engineer or lawyer who lives and works in the area full time,with a wife and no children, he has two parents, six brothers and sisters, and20 cousins, and their families, all of whom want to come visit him at the beach. And there is nothing you can do about that. Do you think one month’s security deposit will cover three years of wear and tear?
KEY POINTS
· You are better off as a short term landlord to foreign tourists, by and large.
· If you decide on short term rentals, you should register as a tourist establishment, publish notice of your registration and collect and pay your 16.39% sales and tourist taxes.
Want to learn more, click here!
SNOWBIRDS IN COSTA RICA
March 3, 2008 by theoaksKen, a 50-something oilman from British Columbia, suns himself in his pool above Tamarindo, Costa Rica, enjoying sunny 34 degree days. Ken just bought four two bedroom, two bath condominium units at The Oaks, 10 minutes outside Tamarindo and Playa Grande. He plans to rent them out to friends and oil business associates as Tranquilo Village.
Prices at The Oaks already have gone up over 11% in the last three months, and so far Ken has only put 40% down toward his purchase, making a 25% cash on cash return in just three months. Ken also put down a $9,500 deposit on a million dollar, 5,000 square foot villa overlooking the lake and nature preserve at The Oaks. Prices are not even established, but as a preconstruction buyer, Ken has assured himself best price and selection, at a price well under $300 a square foot. According to Ken, buying now, while Marriott and Hyatt resorts are under construction less than 5 miles away, ready for occupancy later in 2008 and 2009, is “a total no-brainer”.
While Ken is thinking in terms of investments, John and Raylene, from Calgary, are looking for warmer weather. John and Raylene own a home in Phoenix, but 15 degree Celsius weather over Christmas convinced them to look further south. They chose The Oaks for its construction quality. Having spent holidays in Cancun, Mazatlan and Puerto Vallarta, they opted for Costa Rica because they feel safer, the ocean temperature is warmer, they are safe drinking the water, and they like their ability to own fully titled property, with no discrimination against foreigners. Their teen-aged son, a champion skateboarder, enjoys the local skateboard park.
Ed and Chris, from Toronto, bought into The Oaks for lifestyle reasons. In his mid-50’s, Ed retired from the construction business and was looking for a winter destination where his family feels safe and warm, both in the water and out.
Meantime, we caught up with Robert Irvin, developer of The Oaks, to find out why two thirds of his clients are coming from western Canada. Almost sold out, The Oaks has 96 condos starting from $168,000, less than 10 minutes from five of Costa Rica’s best surf beaches. Based on chats with his clients, and market research, Robert offered us the following thoughts.
“The main thing is that Costa Rica looks good to snowbirds right now. It has a hot, sunny, dry winter climate, like Arizona only warmer, and with the Pacific ocean. Plus, a hot real estate market that makes investing a lot better bet than in the U.S. right now. Culturally, you are a long way from the U.S., while for convenience, nonstop flights are available direct from Calgary to Costa Rica’s Gold Coast.
The local property market is fueled by a local inflation rate of 11% per year, high levels of airline traffic, and a hotel boom. Add to this a declining U.S. dollar, which is used for real estate sales, and it is no wonder that an average investment goes up 20% a year. Mix in a Loonie that went up 20% last year against the dollar, and Canadians can take advantage of a fire sale on the U.S. dollar, while buying property in a hot market. You need to pay attention to location, ideally one hour drive or less from a major airport, local climate and beach conditions, which vary, and most of all, quality construction. Pay attention to these factors, and you should do better than the averages.”
On December 14, The Wall Street Journal reported:
“The housing slump has sent many Americans shopping south of the border. Existing-home prices… are still climbing in much of Latin America and the Caribbean. In San Pedro, Belize, the average price of a 2,200-square-foot home was $697,500 in September, up 18.6% from a year ago, according to a study by Coldwell Banker; the price of a similar property in San Jose, Costa Rica, was up 20.7%, to $389,900, the study said.” That is less than $200 a square foot, higher at the beaches.
From a January 23 article in CNNMoney –
“The worst housing financial crisis [in the United States] in decades is only going to get worse, a Merrill Lynch report said Wednesday. The investment bank forecasted a 15 percent drop in housing prices in 2008 and a further 10 percent drop in 2009, with even more depreciation likely in 2010.”The contrast today is sharp, at least for the sharp Canadian investor. Invest in property using the strong Canadian dollar, but in a local housing market that is in an up cycle, not a down cycle. For more information on The Oaks specifically, or for general information on the contact info@theoakstamarindo.com.
FEARLESS FORECAST REVISITED
February 5, 2008 by theoaks“It’s tough to make predictions, especially about the future.” Yogi Berra
On October 18, 2007, on our sister web site, www.greensealrealty.com, in Birth of a Blog, I made some fearless forecasts. Worse, I promised to revisit them once every three months. On this web site, on November 25, 2007, I made the following forecast.
November 25: Construction is proceeding rapidly atThe Oaks, as our workers try to make a December 15 deadline that I have set for delivery of the first five buildings in the complex, along with the first swimming pool, ranch and barbecue area. About that deadline. Even though I have learned not to promise anything in Costa Rica with a definite date, it looks like three of the five buildings will be ready.
Now: Wrong…. Wrong…. Wrong. After the torturous process of trying to shepherd Costa Rican workers through the holiday months of December and January, I am wondering whether waterboarding would be all that bad.
Future: Construction appears to be proceeding rapidly at The Oaks (see Nov. 25), but I am exiting the predicting business on this one. I am hoping that the holiday months of February and March will result in more than progress.
October 18: The United States is in the beginning stages of a recession. Yes, that means that real estate prices are going to
continue to go down. In most of the United States, the best time to buy real estate is not now. Ouch.
Now: I’m a genius, with a firm grasp of the obvious.
Future: More of the same. Real estate moves in long cycles, and this one isn’t long yet.
October 18: As the recession gets more obvious, the Fed is going to keep cutting interest rates.
Now: Genius again, not so obvious three months ago.
Future: More of the same.
October 18: Oil, in dollars, is going to keep going up. ($80 per barrel). Taxes are going up, because the “temporary” tax cuts set to expire in 2010 are going to do just that, expire. So we will have a continuing recession (tax hikes), falling interest rates, falling dollar, rising oil. Yuck. Until the recession reduces the demand for oil enough and sends the price down again. The price of oil truly is cyclical, although in a long term up trend. And don’t tell me about the Chinese demand for oil. They sell their stuff to the U.S., so as the U.S. gets recession, so do the Chinese. There.![]()
Now: $90 per barrel, down from its highs. Good call.
Future: Stay tuned. Probably in a range, fear of recession will bring the price down, political risks keep it up. No clear trend short term.
October 18: The dollar is going to keep going down.
Now: The Loonie is now $0.99, vs $1.02 in October. After being right for a month, I was wrong. Hold the line. The people from Mensa want to speak with me, they want to what….? No clear trend. The dollar did keep going down against the Euro. Up a little against the Pound.
Future: Probably more or less stable. The big move happened last year. Note the probably. Humble now.
October 18: Buy Costa Rica real estate. In October, the lowest priced two bedroom, two bath condominium unit available at The Oaks was $142,500.
Now: The lowest priced unit available is now $159,000, up over 11%.
Future: Prices will rise again by March, and then again in April or May when phase two is sold out. Probably by another 11% or more, which is still below appraised value. Just down the street, billboard raised prices on a competing development from $178,000 to $225,000. Appraised values are rising because of demand (26% more airline seats, new hotels) and construction price inflation, plus a weaker dollar against the Costa Rican colon (see below).
NEW PREDICTION: The U.S. dollar will fall in value against the Costa Rica colon by at least 5% within the next three months, and by 10% or more within 12 months. This means that it is going to cost that much more to build, or buy, in future. You knew it was coming. The time to buy Costa Rica real estate is now. For quality construction and sound environmental design, check out The Oaks.
See you in three months.
THREE QUESTIONS THAT EVERY VISITOR ASKS #2 MEDICAL CARE
January 28, 2008 by theoaksPeople who have never visited Costa Rica always ask me the same three questions. Is it safe? How is the medical care? Is the real estate market going up?
Having lived here now for nearly three years, and in two different areas, one being the beach areas surrounding Tamarindo, the other being the mountains outside San Jose, I have accumulated some sense of life here and a feeling for some of the ins and outs of medical care. I am a healthy 50 something (ah, vanity) male. I have found the medical care here first rate, and far less costly than in Miami, where I formerly lived. I go to the best dentist in Escazu, and to doctors who practice out of CIMA, one of the two best hospitals in San Jose.
I travel between my project, The Oaks condominiums near Tamarindo, and Green Seal Realty, and my weekend home in the mountains near San Jose. Those of you who are Californians and go from the beach to spend weekends at Lake Arrowhead or Big Bear get it. Except here, the mountains also are the city.
My dermatologist, Dr. Rodolfo Nunez, is a New Yorker who practices at CIMA Hospital in Escazu. I have as much confidence in him as I have in any doctor I had in the U.S. I see him every six months for routine checkups. Last year, he found a mole on my chest, near the collar bone. As a routine precaution, he took a biopsy and sent it to the lab.
Three days later the results came back: basal cell carcinoma. One day after that, it had been removed in an office operating procedure. It was kind of cool to be able to see the hole as he cut through the muscle. Cost about $400. In the States? I don’t even want to guess.
In December I went to my dentist for a checkup. After a routine cleaning and inspection ($50), he discovered a cracked filling in a molar, but more important, a need for some periodontal surgery. Ouch. We scheduled it Friday morning. After a little over an hour and a few stitches in the gum, I was as good as new. Cost? $200. In the States?
What about Tamarindo? Luckily, I haven’t gotten sick there, but Melanie’s father-in-law and best friend both had medical emergencies last Wednesday. (Melanie is a 20 something German native and legal resident of Costa Rica, who is director of international sales at The Oaks.)
Her father-in-law, about my age, began vomiting and otherwise felt miserable around 11:00 o’clock Wednesday night. Melanie and her husband took him to the emergency room at Coastal Emergency Medical Service, about 5 minutes from The Oaks.
There, he was rehydrated with a drip, given an antiviral injection, and sent home after a little over an hour. (He’s fine, by the way, thanks for asking.) Cost $40. The treating physician worked at CIMA before deciding to live at the beaches.
Same day, mal suerte, Melanie’s friend, a 20 something female, hurt her toe at the tennis club in Tamarindo. By midnight, the pain had become unbearable. She, too, went to the emergency room at Coastal Emergency Medical Service. There, they sedated her toe with a local anesthetic, injected it with something to stop the inflammation, and put it in a splint. Cost $50.
As luck would have it, my 20 something daughter also hurt her toe partying New Year’s Eve, while I was visiting her in Los Angeles. I took her to the Cedars Sinai emergency room New Year’s Day. It turned out to be an ugly blood blister, caused by excessive dancing in high heels. Diagnosed. No treatment. Cost $300.
I prefer paying cash, especially in Costa Rica, since I feel I can afford it and I don’t like paying overhead costs and profits to insurance companies. However, insurance is readily available. Not surprisingly considering the low cash cost of care, the insurance is quite reasonable. At Coastal Emergency Medical Service, about $40 a month gets you free medical consultations, a 50% discount on ambulance services, free consultations at home, and a discount on lab and dental services. Available equally to residents and visitors.
Private hospital insurance also is available. The Association of Residents in Costa Rica, run by Canadians, offers two different group health plans. One private plan with which I am familiar, Global Care Latin America, offers $100,000 family coverage with an annual $1,000 deductible, costing under $1,500 for folks between the ages of 50 and 54 and under $1,800 between 55 and 59.
The bottom line – in Costa Rica I feel that I have world class medical care for a tiny fraction of what I would pay “back home.”
Statistics back up that judgment. Costa Ricans enjoy the third highest life expectancy in the Western hemisphere, 77.2 years of age, compared with the United States at 78 and Canada at 80.3. Source: U.S. Census Bureau Data Base, Life Expectancy at Birth 2007. Costa Rica’s strong tradition of medical care is backed by free universal health care for citizens and legal residents, which many legal residents use in combination with private care.
If you are visiting Costa Rica, or living here part time, world class medical care is at hand.
The article below is from the October 5, 2007 edition of The Tico Times, and is reprinted with courtesy of The Tico Times. If it’s too long, the take away is first class knee replacement surgery that would cost $45,000 in the U.S. was done for $12,000 in Costa Rica.
Anyway, here’s the article. The Tico Times is free on the internet, and I highly recommend it as a weekly read!
He looked nervous, this rangy, six-foot-one Gringo with the towhead and pencil mustache.
His Army fatigue shorts revealed an 8-inch U-shaped scar just under his left knee - the result of a failed operation and the reason why Vince Dugdale, 47, was standing in the waiting room of the Hospital in San José.
After two injuries and 11 surgeries, Dugdale needed a new knee. But as one of the nearly 50 million U.S. citizens with no health insurance, he’d been out of luck for seven years.
“You get to a point where you can’t afford medical costs and they just exclude you,” he said.
So Dugdale came here, a developing country far from his home in Sioux City, Iowa, to get what he couldn’t find in the United States: Major surgery he could afford out of pocket.
“It’s been a long road for me,” Dugdale told The Tico Times just before a technician led him into the X-ray room. The next day, Dugdale would go under the knife for what he hoped would be the last time.
A New Kind of Medical Tourism
An Affordable Knee: A surgical team at the private Clínica Bíblica Hospital in San José works to replace a patient’s knee in one of the various types of surgeries becoming more popular among a growing number of tourists attracted to Costa Rica for its quality affordable health care.
Medical tourism is nothing new to Costa Rica. Since at least the 1970s, this country has been a hotspot for cheap, high-quality dental work and cosmetic surgery.
But increasingly, say the representatives of Costa Rica’s two biggest private hospitals, medical tourism is taking on a more serious character.
Foreigners aren’t just popping down for whiter teeth or larger breasts - they come seeking major surgeries such as knee replacements, hip replacements and angioplasties that Costa Rican hospitals offer at steep savings over U.S. prices.
Lower costs for drugs, hospital stays and doctor fees mean that many surgeries cost half what they would in the United States, and some even less than that, said Jonathan Edelheit, vice-president of OptiMed Health, a U.S. health-care company.
Edelheit said he was so impressed by the Clínica Bíblica and CIMA Hospital (a hospital that is part of the International Hospital Corporation) that the first issue of a medical tourism magazine the company is launching this month will focus exclusively on Costa Rica.
“I’m hoping to create this huge boom for medical tourism, because I think it’s about to explode,” Edelheit said. Customers like Dugdale are where Edelheit and others think the greatest opportunity is to be found.
A former truck driver, carpenter and jack of all blue-collar trades, Dugdale is probably as close as one could get to the “American everyman.” He first hurt his knee on the job in 1996, when his foot slipped through a grate and twisted, tearing his meniscus, part of the knee cartilage.
After several surgeries covered by his health insurance, Dugdale injured himself again in 2000 at an Allman Brothers Band concert, where he slipped on a plastic bottle and wrenched his knee around again.
“I just had people pick me up and hold me and grabbed a beer and watched the whole performance,” he said. But a few operations later, Dugdale’s knee still wasn’t up to snuff; even worse he’d lost his health insurance after losing his job at Wilson Trailer. Dugdale had one last operation on the IowaCare public health plan, where the doctors tried to sever a nerve to stop his constant pain.
It failed.
“And that’s when they told me to have a nice day,” Dugdale said.
It was after he saw a feature about Clínica Bíblica on the TV show 20/20 and called to see what it could offer that Dugdale became part of the growing number of “baby boomers” and uninsured U.S. citizens showing interest in Costa Rican medical services, said Bill Cook, the hospital’s medical tourism coordinator.
Even without much publicity, the hospital gets half a dozen foreign patients a month seeking major surgery. Carole Veloso, the CEO of CIMA Hospital, west of San José, said her hospital is seeing something similar.
“We’ve seen a huge shift,” she said, noting that CIMA gets a lot of small-business owners from the United States who pay for their own health care.
The most popular operations in both hospitals are orthopedic surgery, some heart surgery and weight-loss surgeries, all of which are offered at steep savings.
For example, Dugdale’s knee replacement surgery, which in the States generally costs near $45,000, in Costa Rica ran Dugdale around $12,000.
“We expect this to be like a snowball,” said Brad Cook, Bill’s brother and the general manager of Clínica Bíblica’s International Department.
“It will just keep growing and growing.”
Both hospitals are taking action to help the snowball along. For one thing, they have opened up new floors and facilities designed exclusively for this new wave of medical tourism (TT, April 13).
More importantly, by the end of the year both hospitals are on track to be certified by the Joint Commission International, the standards organization that certifies U.S. hospitals.
“That will open the door for a lot of Americans coming over to Costa Rica,” Edelheit said.
Under the Knife
The day after his X-ray a different door opened, this one into the operating room where Dugdale would have his knee replaced. Dugdale lay on the operating table slowly passing out at the hands of an anesthesiologist while a team prepped him for surgery.
Dr. Oscar Oeding, the orthopedic surgeon who would be doing the operation, pointed to an X-ray of Dugdale’s knee.
“It’s bone against bone here,” he said. With no cartilage left to cushion the joint, the knee would be replaced by unfeeling titanium.
With the knee bent at a 45-degree angle, Dr. Oeding made a vertical incision and pulled aside the skin and the kneecap, exposing the white bulges that made up the bottom of Dugdale’s left femur.
After sawing off the bulges, Oeding replaced them with a titanium implant. He did the same on the bottom, then straightened the leg, and flexed it up and down - a perfect fit. He sewed up the knee, and then closed the incision with several dozen staples.
The whole thing took less than two hours.
Oeding, who studied medicine at the University of Costa Rica (UCR) and is a member of the American Orthopedic Academy, said he’s done more than 500 knee replacements, and does an average of a dozen orthopedic operations a month - increasingly on medical tourists.
“I feel like it’s going to increase a lot,” he said.
While this type of medical tourism may be growing in Costa Rica, medical tourists have been traveling to India, Thailand and Singapore for many years for these kinds of operations, Edelheit said.
Costs in those countries remain lower than in Costa Rica, a country with a relatively high standard of living.
Veloso said that is something private Costa Rican hospitals will have to deal with as the market matures, although the five-hour flights to Costa Rica from the United States will remain a distinct advantage over the sometimes 24-hour flight to East Asia.
Meanwhile, a publicity campaign is about to kick off, with both the OptiMed Health magazine featuring Costa Rica and a CNN feature on Clínca Bíblica set to run in the U.S. market, according to Bill Cook.
As for Dugdale, he has already started his own publicity campaign. Propped up in bed in his hotel room with an ice pack on his knee a few days after the operation, Dugdale was practically giddy.
“You ain’t gonna get this s*** in the United States, I’ll tell you that much,” he said, adding that he is going to recommend Costa Rican hospitals to a relative, who needs his own knee replacement.
The only drawback, Dugdale said, is the food, which he declared “unedible.”
“I’m going back to America,” he said. “I’m gonna get me a T-bone, throw it on the grill, and get me a baked potato.”
THREE QUESTIONS THAT EVERY VISITOR ASKS #1 Safety
January 7, 2008 by theoaksPeople who have never visited Costa Rica always ask me the same three questions. Is it safe? How is the medical care? Is the real estate market going up?
Let’s start with safety. Having lived here now for nearly three years, and in two different areas, one being the beach areas surrounding Tamarindo, the other being the mountains outside San Jose, I have accumulated some sense of life here and a feeling for the question of safety.
Personally, I feel much safer, physically, living in Costa Rica than I did living in either Miami or L.A. The stories that I hear from friends and acquaintances confirm this feeling. For the Canadian, American or European, violent crime resulting in personal harm is very rare. Extremely rare. As anywhere, you need to use common sense, but your chances of being assaulted or hurt are much lower here than in the United States or Canada.
This personal experience is backed up by statistics. I found a fascinating web site, www.nationmaster.com, that collects country statistics from official sources, then compares them. In assaults, the United States leads the way, but is nudged out of first place in assaults per capita by smaller places. In both absolute and per capita terms Costa Rica does surprisingly well, far better than the U.S., Mexico and even Canada. Out of 57 countries listed, the United States comes in at number 6 for assaults per capita, Canada number 9, Mexico number 20, and Costa Rica brings up the rear at number 50. Not bad, eh? Especially considering that Costa Rica has a small population, just over 4 million people, which would inflate its per capita numbers if tourist crime were high. http://www.nationmaster.com/graph/cri_ass-crime-assaults and http://www.nationmaster.com/graph/cri_ass_percap-crime-assaults-per-capita and http://www.nationmaster.com/graph/cri_ass_percap-crime-assaults-per-capita
On the other hand, petty theft is common. The Costa Rican character is non-confrontational, almost to a fault. Get pushy and you commit a social mistake. Your Tico counterparty probably will not argue back, but will be resentful and will figure out a passive-aggressive way to get even, usually by telling you what he or she thinks you want to hear, then doing nothing. This character trait also shows up in non-confrontational crime patterns.
Leave anything in your car unwatched, and you run a good chance of losing it. A local institution is the “watching man”, to whom you pay from $0.20 to $2.00 to watch your car. The amount depends on the time of day or night and length of time away from the car. Leave anything lying around, your wallet, purse, IPod or camera, it could disappear. To avoid aggravation, make a copy of your passport and visa stamp and leave your passport in a safe. Never leave stuff unwatched on the beach.
More problematic, theft extends to cars and houses. Therefore, as a part-time resident, your property is much more secure if you live in a gated community. This also is true, by the way, in Miami and L.A. Since I live a lifestyle not that different from a snowbird’s, frequently away a week at a time, I live in gated communities. I also incorporated extensive security into the design of my gated condominium project outside Tamarindo, www.theoakstamarindo.com.
Apart from anecdotal evidence and statistics, you also can gain insights from indirect evidence, along the lines of the famous Sherlock Holmes clue, the dog that didn’t bark. If you’re in a building and you want to know if it’s raining outside, you can look out the window to find out. Maybe you can see the rain. Maybe you can’t. If you’re like me, you look at the cars. Are their windshield wipers on? If they are not, then it’s not raining.
In Costa Rica, indirect evidence comes from tourism and investment, both of which are booming. Passengers travelling through the international airport in Liberia, which serves Costa Rica’s Gold Coast, are soaring. Far from being scared away, tourists are coming in greater and greater numbers, fueling a real estate boom. Ditto with San Jose and the Central Pacific coast. It’s not raining.
In conclusion, at this writing, is Costa Rica safe? By many measures, yes, surprisingly, safer than Canada and the United States. Take normal precautions and you should be fine.
Next time. How is the medical care?
The Rest of the Story (A Cautionary Tale)
December 29, 2007 by theoaksFrom L.A., your Genial Host today learned “the rest of the story”.
By email at 4:30 on Friday, from my bank, “me indica que el dia de hoy se le esta haciendo el deposito, de la operacion de xxxxx xxxxxxxxx xxxxxx, por un monto de $48, 678.42 en la cuenta xxxxx”.
In plain English (or Spanish), faced with the imminent prospect of having his loan sold to me in another week and then foreclosed within two weeks more, our client completed the paper work necessary to comply with his purchase option agreement. Yes, gentle readers, the clausula especial does work.
Case closed.
FOLLOW UP
December 28, 2007 by theoaksMy last commentary, A Cautionary Tale, left us all, even your Genial Host, hanging in suspense. How would it all end? Would HSBC accept my friend, the clausula especial? Recall that the wording was approved only last Friday. Would my old client come through with the required paperwork and permit advances to be made on his loan, or would I buy back his loan and become his lender myself, if only temporarily? One question has been answered.
Kudos to HSBC. After approving the wording of my clausula especial last Friday, they scheduled the loan closing for Tuesday. This being Costa Rica, that meant that the loan closing with the borrower actually occurred this Wednesday afternoon, in Tamarindo. I, meanwhile, had gone on to San Jose, where I was packing for my direct flight to Los Angeles at 8:15 a.m. Thursday. To their credit, HSBC’s lawyer, Ricardo Canas, closed the loan in Tamarindo at 1:00 p.m., flew to San Jose where I met him and signed the papers at the airport at 3:00 p.m., and then flew back to Tamarindo. The loan then was disbursed yesterday. My buyer was happy, receiving a loan for slightly over 90% of the purchase price, I was happy to have my first closing with HSBC, and I am very happy with HSBC’s customer service.
Wait a minute. A loan for over 90% of the purchase price? What’s up with that? Two things. HSBC has appraised the condominium units at The Oaks for substantially more than their current sales prices, so a loan at 90% of the purchase price is indeed possible. Second, the buyer has excellent credit. As sales and construction continue, prices continue to go up, so 90% loans will become less likely. But yes, I just closed one this week.


