Squatters

I was faxed an article from one of my clients about squatters in Costa Rica.  As usual it was designed to instill fear and devastation in the hearts of its readers…because that’s what sells.  So I thought I would clear the air about what squatters are and that squatting isn’t as easy to do as people make it out to be.

First of all, in order for a squatter to claim any kind of right to a person’s property they have to be “squatting” for a minimum of two years.  By “squatting” I mean they have to live on the property in some capacity for two consecutive years.  Secondly, in the foresaid two years, they have to have built a structure and lived there “without being noticed”.  Now if a person owns a piece of property and does not look in on it, or have someone look in on it for them, for two whole years….well maybe someone else should own it. 

The deal here is this; don’t make an investment in another country, or for that matter anywhere, unless you have a plan in place to cover these small, yet consequently huge details.

Another interesting tidbit is that people tend to get a lot of the laws confused and kinda lump all of the squatter problems, titling issues and zoning laws into one heap of  the “That must about squatters” file.  Much of this needs to be separated out and treated for what it is and not bunched together.  The thing to remember is that parts of the United States has old squatters laws and all parts have titling issues and zoning problems, so let’s put all this in perspective and not think that these problems are confined to Costa Rica or any other foreign country, it’s just not the case.

International Living wrote

“Some of the most amazing scenery in Costa Rica is in the southern zone, in an area that runs south of Quepos to the border with Panama. Landscapes here are dramatic–panoramic ocean views…lush   tropical rainforest…and sheer jungle-clad slopes, rising sharply away from pristine stretches of sandy beaches.”

This article which was published in International Living and is absolutely the true essence of what Costa Rica is.

“In a country with an established real estate market like Costa Rica, this sounds like just the type of place that would attract a lot of fervent investors. But it remains under the radar in terms of property development because it’s hard to get to.”

The Costanera Highway is unpaved between Quepos and Dominical and the airports are small, local affairs. The airport in Palmar Sur is a one-woman show–she issues tickets, checks baggage, and answers queries, all while you sit on a wooden bench overlooking the small strip, alongside your other co-passengers…all 11 of them. No duty-free or airport food here.

But these are exactly the kind conditions I look for when scouting for a good real estate opportunity as the property prices are low at the moment and infrastructure is set to improve.  Road improvements on the Costanera Highway are already underway and scheduled for   completion in two to three years. This should cut the 90-minute trip from Quepos to Dominical to 25 minutes. Combined with plans to construct an international airport in Palmar Norte, due to begin this year and to be completed in 2010 (funds have been allocated by the government), it all adds up to one thing: Property prices are almost certain to climb.

For now, pricing here is among the lowest in Costa Rica. A 1.25-acre-lot close to Ojochal is available for as little as $55,000. Construction costs are roughly $85 a square foot. So for $225,000 you can own your own piece of this tranquil setting in a custom-built, 2,000-square-foot house on a large lot.

That really is a good-value buy considering a 2,200-square-foot condo in Manuel Antonio (nearer Quepos) averages $595,000; and a 1.25 acre lot is listed for $325,000. Compare this to a quarter-acre lot in a development in Tamarindo for $400,000 with valley and lake views.

The climate in the southern zone is tropical, with a dry season from December to April, and rainy season, typically bringing heavy downpours in mid afternoon. The temperature does not vary much and averages 79 degrees Fahrenheit year round. Elevated properties in the area normally have refreshing sea breezes. This is the perfect spot for outdoor activities, from  surfing to diving, hiking to bird-watching, and whale-spotting to sport-fishing. The feeling is tropical, fresh, close to nature.

The reason I wanted to share this with you is because it flat out confirms my bias for the southern area of the country.  A true ground floor opportunity awaits any investor and home buyer alike.  In my opinion it doesn’t make sense to invest your hard earned dollars in areas where the growth and appreciation has already, or is near topping out.

Although most of my clients are looking to get the most value for their dollar, it’s important not to let them get too wrapped up in the emotion of the region.  The alluring beauty of the rainforests and the lovable cuteness of the monkeys and wildlife can be hard to resist.  So I try and find a compromise between the two and generally it works to everyones advantage.