Looking for a Long Term Rental in Nosara? How about a private estate, with 100 acres, just a 2km drive to the Nosara Airport, 10 minute drive to the Del Mar Academy, and 20 minutes to Playa Guiones? Villa San Juan is available for long term rent for $5,000 per month plus utilities. See the full listing here.

This property is located in San Juan mountain, about 20 minutes from Playa Guiones, and just 2 km from the Nosara Airport. It boasts 100 acres of property, private entrance, guard house, caretakers house, 5 car garage with mechanics pit, main residence that is over 10,000 sq feet, and has every bell and whistle imaginable for a residence of this type. Property has manicured courtyard with hedgerows, walkways, two pools, resort type amenities, pizza oven, 2,000 square foot guest house, helipad, fruit orchards.. the list goes on and on. It has been recently renovated. Kitchen suitable for hosting events of up to 500 people – All Viking appliances, dual dishwashers. Floors are inch thick cut stone throughout. Master Suite is over 2500 square feet that includes both men’s and women’s separate master bathrooms with multiple walk in closets, soaking tubs, and views of Playa Guiones. Incredible architectural details, privacy, and luxury.

Amazing Ocean View Home For Sale in Nosara, Costa Rica. Click here for the full listing!

One of the finest views of Playa Guiones – this home is a cozy 2 Bedroom 2 Bath, with tones of storage and outdoor space to boot. Located in a peaceful and quiet part of “the hill” – Casa Miel is a perfect match for those looking for simplicity and comfort. The views are of the main surfing break of Playa Guiones – watch the surfers playing in the waves each morning. Spend the afternoons lounging in the infinity edge pool, waiting for your own private viewing of the sun setting behind the Pacific Ocean each day. With 1600 m2 – this is a very large property – making the combination of location, size, and views very rare.

See the listing here..

We are already a couple weeks into 2014. What do I think of the Nosara real estate markets this year? Well – the fact that it has taken me this long to update the blog stems from one reason and one reason only – I have been busy with clients all day, every day. The market is extremely active and buyers are out in force. The landscape is changing with new construction, and more on the way.

The current trends and future predictions for the rest of the 2014 year are:

1) Tourism is off the charts – The article in CNN referencing Nosara as a Top 11 Worldwide Destination to Visit absolutely super-charged the numbers of visitors to start the season. Sunsets are no longer just a couple dozen people, by any means – Nosara is a changing place and a major tourism center.  In 2012 it was NY Times – This year, CNN hit the “turbo” button. Real Estate, in general, tends to follow the trends in tourism. 2014 could prove to be one of the busiest seasons and compare to 2004-2006 growth levels.

2) Buyers are aware that they have less options and that all of the “good deals” are gone. They rarely come up, and due to the lack of these “good deals” buyers are more open to paying the asking price if a property is priced correctly. In some cases, properties are selling for higher than original asking prices. This is not quite a trend, but by the end of the year, I have a feeling this will be the norm. Especially on the choice lots or homes that enter the market – when priced correctly, they will seller at ask or higher..

3) Sellers are less willing to negotiate. When sellers get realistic about selling a property – they are still hesitant to negotiate due to the public awareness of market activity. Property owners, many of whom did not have a property on the market, may decide to enter the market and test out the waters, but not have much flexibility in prices as well, with no real motivation to sell.

4) Continued improvement in construction techniques and building materials.

5) As construction prices rise – lots may become less popular as buyers find value in renovation projects, especially those with exceptional locations. Combine this fact with the recent surge in prices of lots – it makes many “project” properties more palatable to buy and renovate, instead starting from scratch. Concrete and Rebar has become much much more expensive.

On our post that can be found here:

https://www.nosararealestatereport.com/2012-trends-in-real-estate-in-usa-and-2013-predictions-a-trickle-down-effect-to-the-nosara-real-estate-market/

We had made some predictions about the market in 2013. Lets review:

1) Change in demographic of buyers in Nosara. With all of the recent press the area has received, the demographic of buyers in the area has evolved – where as in prior years or eras in Nosara, location and access to the beach was the most important factor, buyers are now looking for high quality, luxury finished homes for sale. The market will shift more towards “quality of construction” and “turn key” product rather than a thatched roof shack on the maritime zone. This phenomenon can be seen in other markets in Costa Rica that are a bit more advanced than here in Nosara, including places like Papagayo, Playa Coco, and Playa Flamingo.

 

Take a drive around town these days – the homes that have been built here, and some of the new resorts, and yoga centers are just stunning. The quality of new construction and the budget of 2013 buyers all demonstrate the trend in this direction.

2) Property prices will trend upwards, but appreciate in the single digit percentage range. In years past, Nosara had at times experienced rapid appreciate of raw land prices, especially in Playa Guiones. The years of 10-30% price appreciation is over, and now we can expect something a little more inline with inflation and GDP numbers.

Well – I was way off the mark on this one. Land prices, are up 50%. Yes – 50%. I know this might sound crazy, but yes – I can give you details if you would like the info, please contact me. Lots that were $90 per m2 last year are trading at $140 this year. Lots that were $250 m2 are trading at $375 m2. I guess when put in perspective, it is more like, prices are up 50% over the last 4 years… even though prices were flat for 3 years – it makes the leap look a little more in perspective. Considering the S&P and stock market were up about 30% this year and the fact that it is up over 100% from 2009 – it isn’t quite such an unexpected event.

3) Construction, construction, and more construction. Its almost impossible to find a home for each buyer we have in our office. Buyers are more sophisticated and know exactly what they want, but are smart enough to see the benefit in buying a lot and going through the construction process instead of purchasing something they don’t particularly love, even though it may have great potential.

No need to even go over this one – there is more construction in 2013 and into 2014 than probably ever before in Nosara. Driving around, you can’t escape a construction site within walking distance.

4) The market will expand outwards and upwards. As the subdivisions in the beach areas get smaller and smaller, those who are coming to Costa Rica to live in harmony with nature, will be turned off by the 200-300 square meter lots being carved out in the areas closest to the beach. Buyers will find that the risk reward for searching for properties just outside the main beach areas will give them flexibility in saving the majority of their budget for construction, and not just on the land price. Additionally, sophisticated buyers looking for a “second home” will want more property for the same price, and will look elsewhere besides the beach lots, for privacy and tranquillity. Additionally, I anticipate that new markets will open in the mountain areas surrounding Nosara because of the cooler, much more comfortable climate, and the amazing views.

The markets outside of Nosara were pretty cold for most of 2013 but there was a flurry of activity in the 4Q and going into 2014. These are once again, viable, active markets.

5) The rental market will go from “red hot” to “inferno-surface of the sun-nuclear fusion”. You can’t stop the best press – word of mouth – and events have been set in motion that only bode well for the real estate market here. Although many clients are here looking for a property “to call their own”, we will see more investors and financially savvy buyers entering a market where the requirements for a property is different than those looking for a vacation home for themselves.

Also no need to review this one – The rental market cannot keep up with Supply. Christmas and New Years, are standard to be booked over a year in advance. Most rental homes and hotels were operating at 100% capacity during the high season and were not dramatically affected by the slower tourism seasons from May-August, since the numbers were still high when compared to prior years. In Fact,  2013 marks the first “rainy season” of September and October that nearly every business, restaurant, and shop in Nosara remained OPEN FOR BUSINESS. That is an indication of the transition year 2013 has proven to be.

6) Large scale developers will enter the market in force. Real estate investors have had enough time “sitting on the sidelines” They are ready to act, and act in force. As returns for traditional investments such as stocks, bonds, and commodities dry up and can only offer rates in the 1%-3% range, large scale real estate developers will be looking for the next “big” thing, and its just a matter of time before we see some very special projects going forward here. I do believe that any developer that is willing to put money to work in Nosara will also try to stay true to the ideals and philosophies laid down the by forefathers (and mothers) of the area, and develop properties in line with expectations for the area. Responsible development is the key, as Nosara is a very unique and special area. But, it is ready for a large scale, sustainable development that will provide high quality accommodations to the area, as well as amenities, in a uniform and productive manner.

To this date, no large scape developers are moving forward – maybe this prediction was a bit premature, only time will tell in 2014!

Can you say “Wow!!” – This homes is the quintessential Costa Rica tropical escape – with every bell and whistle you can imagine. Large, lofted Rancho bedroom, MAstuer Suite, Two Outdoor Showers – The list goes on and on. and SO close to the beach. Listen to the waves day and night. This property also has potential to convert to a botique B&B or Cabina Surf Camp.

See the Listing Here

Nosara, Garza, Ostional, and San Juanillo all are located within the Blue Zone comprised in the Nicoya Peninsula. But what exactly is a Blue Zone?

A Blue Zone is a popular term that refers to locations in the world where people live longer, healthier and more active lives than anywhere else on earth. Five small Blue Zones have been identified on this planet where people living active lives to a 100 years is common.

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Nosara Real Estate – Available for sale at prices that will make you pack up your other life and move here.

One of our most visited pages is a post regarding technology and internet in Nosara, Costa Rica. As many of our readers are interested in the possibilities of living and working full time in the area, they want to know what kind of technology services are available. Right now, the only game in town for high speed internet hardline, is ICE -which is the government owned and operated telecommunications company.  It’s no surprise, that the service in general provided by ICE for internet and telephone leaves much to be desired. Yes, we are in the jungle, in the middle of nowhere! But that is no excuse! ICE is a government monopoly, and usually, government monopolies are not very well know for their great service, or for having punctual  customer service or repairs.

Well – we have some great news..

Cable Tica – www.cabletica.com – has been installing lines and preparing for the launch of their new services, available to those who live in Nosara and the surrounding areas. Cable Tica kills two birds with one stone; reliable, affordable internet service, and a fully programmed cable TV provider – the first in Nosara…EVER…

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An Explanation of the 13% Sales Tax in Costa Rica – And its application and requirements for real estate commissions.

RE/MAX First Choice Realty in Nosara, Costa Rica has always operated on the philosophy of an unwavering commitment to honesty and  integrity in its quest to best serve all its clients. On occasion, an office policy has come into question by a small number of sellers. The following is our attempt to set the record straight and put this matter to rest.

The matter is this: Ley de Impuesto General sobre las Ventas : 6826 Articles: 1.n – 2.d – 3.c

This law states that:

 “The real estate broker is responsible for collecting the sales tax by law and must charge the owner 13% on the commission for the sale of the property.”

Most people in Costa Rica are only aware of this tax on other goods, and not usually on services. As an example, lets say you go into a Costa Rican restaurant and order a $10 Burger. You will be charged an additional 13% bringing the cost of the Burger to $11.30. (There is also a 10% service fee, or mandatory “tip”, but that is outside the scope of this conversation, and not applicable to real estate commissions). The client pays for the burger, the client pays the tax, the seller collects the tax, and then pays it to the government every month. As with the purchase of anything in Costa Rica there is a 13% tax, and when you hire a realtor to sell your property the same rule applies.

Costa Rican law clearly stipulates that 13% must be charged in accordance with any realtor commission. If a property is sold for 100k with an agreed realtor commission of 5% commision, the commision is 5k, and the tax is $650. Both the commission and the tax being paid are the responsibility of the seller. The responsibility of the broker / vendor is to collect the tax and pay it to the government every month. Despite the Costa Rican landscape unfortunately being rife with realtors who are happy to incorporate this tax into their commission (which in some cases never goes to the government) this practice, although part of some murky legal terrain is essentially against the law. The law clearly states that the commission and the 13% tax have to be separate. Despite a sellers commission being negotiable, any realtor who tells a client that this tax will be subtracted from the commission is operating outside the law. In fairness this policy is common practice among otherwise ethical realtors, so why is it that these agencies who often genuinely wish to operate within the confines of the law end up paying the tax themselves?

Imagine the following scenario:

A homeowner wishes to sell their property and goes about listing it with a variety of realtors. During a visit to realtor A the price is set, the listing agreement signed and the seller agrees to the established realtor commission. The seller then visits realtor B. Whilst reading the listing agreement the seller notices a clause that requires them to pay a 13% commission. This clause was not mentioned by realtor A and the seller senses something is afoot and retracts their listing with realtor B. The problem is that the sellers listing is essential to the prosperity of the business of both realtors. However realtor B has decided that instead of taking the chance of losing the listing they will either absorb the losses incurred by paying the 13% from their own commission, or, (and this may unfortunately be the case in the overwhelming majority of these situations) not pay the tax to the government at all. One often used loop-hole has been for people to represent themselves as mere “ex-pat” advisors and thereby try to circumvent a job title which would force them to adhere to the rules that apply to that profession, since the tax specifically applies to “services rendered for acting as real estate broker“.

However in the eyes of the law, receiving money to execute any real estate transaction incurs the same 13% sales tax.

There is little gone unwritten regarding the wealth of  unique attributes that Nosara and Guiones boasts. Playa Guiones is one of longest established ex-pat communities in Costa Rica and the fact that the Nosara pioneers were an eclectic mix of yogis, surfers and eco-warriors has been fundamental in its pattern of development. They have worked relentlessly to try  to ensure that the unparalleled beauty that attracted people in the first place has remained unchanged.

After circling the globe many a seasoned perma-traveller has landed in Nosara and immediately become aware that unlike so many other utopias that have fallen victim to corporate encroachment Nosara has somehow evaded the pitfalls of “progress” and that the philosophy on which it was founded still rings true. The old adage “paradise lost” doesn’t apply here. Nosara is paradise found, and in spite of relentless opportunities to sell out, it is paradise retained, due in large part to the fact that it has managed to remain off the radar. Whilst this has been a huge draw for those wishing to visit and in many cases call it home, it has also proven a double edged sword, the flip side being that it has also remained “off the radar” to the authorities. Those days are coming to a close and the business people who have long enjoyed operating in an entrepeneurial Wild West know it is time to clean up their act and start playing by the rules.

The implementation of swimming pool codes at hotels, increasingly regular visits by caja to ensure social security payments and the implementation of wheelchair access provisions in hotels all serve to highlight the plain fact that the spotlight has been shone on Nosara by the authorities. It is increasingly being held to the same standards of law as the rest of the country. VAT tax enforcement for all businesses is rapidly approaching. It has already happened in other parts of the country a little further ahead on the development scale, especially in the areas closest to the Liberia Airport. The future is up on us and RE/MAX First Choice feels that we should be leading the way in making sure our business is following the correct codes. We also feel that in an area as complex as the buying and selling of real estate we do our best to keep it simple and we can’t state it more simply than this: None of our agreed commissions include the 13% sales tax that all realtors, agents, intermediaries and brokers are legally required to pay to the government. RE/MAX First Choice Realty places itself in a situation where we risk losing listings and thereby making less money BECAUSE IT IS THE LAW. We will never apologize for following the law; these words may sound overly straightforward but we feel it is high time to set the record straight on this matter, and know there are others in Nosara who also agree. We thank you for your understanding and hope that these words help people to understand that RE/MAX First Choice will always go above and beyond to instill confidence in those with which it has business dealings.  Honesty, fairness and transparency are traits that we know to be essential in maintaining the reputation that we have established as ethical practitioners in an often unethical industry.

Read the Nosara Real Estate Report latest update!  October 2013 – Click Here!

We are proud to announce an ongoing Newsletter to keep our readers informed of  everything related to Nosara Real Estate. In the latest newsletter, we offer some insights on current events and new additions to Nosara, special listings, and mortgage financing offers for Nosara Real Estate.

Please sign up to receive our newsletter please use the form in the right hand column or click here.

Here at Nosara Real Estate Report, we understand the needs of the financially savvy real estate investor who is interested in earning returns on a property in Nosara, Costa Rica. There are different options for investments, with ROI rates that can run anywhere from 5% up to 15% per year, depending on how much you want to hustle or how professional your marketing and management efforts may be.  We have many fully functional income producing properties, complete with full financial statements and records, as well as rental bookings going forward for guaranteed income! Disclaimer – All investments carry risk and returns can vary from year to year; However, we can help to put you as an investor in the driver seat, as we guide you through the different types of investments and income producing properties in Nosara. To start, here is a quick synopsis of types of income producing property in Nosara, Costa Rica:

1) Single Family Rental House – Plain and simple, the easiest and most commonly sought after investment in Nosara, is the single family rental house. The smart investors are looking almost elusively in the Playa Guiones area, as that is the most requested area for vacationers, but there are a couple of other areas that are up and coming and may provide better value in the long run. A rental house can range in price from $250k up to $1,000,000. If you are interested in buying a rental house as an income producting property, we suggest one that is 2-3 years old, since that means the current owner has had time to build a rental role and you are not starting from scratch. Also, it gives you a chance to request expenses on a property, which will help to gauge your own operating costs going forward. This is the most hassle free, easiest option for an investor – you rent the property out to vacationers, on a short term basis (usually by the week). In general, your operating expenses can be covered with just two weeks of rent, Christmas and New Years week, which command a rental premium that can be up to double the normal rental rates. From there, you can expect between 15-25 weeks per year in vacation rentals – although we do have properties that rent in excess of 30 weeks, with some other tricks and tools to maximize the value of your investment property.

2) Multi Family Rental House – Similar to the single family, but with the added vale of compartmentalizing your rental role. A rental property with 2, 3 or even 4 units, can be rented individually, but also, are great for accomodating large groups of multi families that want the “separation” effect of sleeping quarters, but also want to be all in the same area and spend time as a group. This is a very common request for renters, especially during the holiday weeks. Our single best investment property is a 3 family home, as close to the beach as possible with private access path, that is practically booked full for the next high season! Click here for more info.

3) Long Term Rental – Each day, week, month – it seems like there are more and more full timers coming to Nosara to live and work here. This bodes very well for an investor who is looking to have an investment property with the lowest amount of owner involvement and effort, as well as overhead. With weekly and short term rentals, the owners/investors are paying for the majority of overhead, which includes utilities, management, rental commissions, property management, advertising, marketing, etc. Depending on the property, it may be possible to achieve your highest rental returns by putting the property up for rent on a longer term basis. For long term rentals, the tennants typically pay utilities, electric, since it is up to them what they prefer and how much they use. In a long term rental scenario, owners/investors need not worry about marketing, regular maid service, property management, online advertising costs, etc – The overhead and operating costs will simply be general maintenance on the property. For some investors, long term rental properties may be the right fit for your investment profile, depending on the level of operating capital you are willing to commit, as well as the time and effort factors. We have a handful of high end homes that would make excellent choices as long term rental investments.

4) B&B or Hotel Investments – These are once again becoming one of the hottest sectors of the real estate market in Nosara, Costa Rica. Any B&B that is priced right and is ready to go, is selling fast. Rent your rooms by the night, by the week, or by the year, the sky is the limit when it comes to owning a B&B as an investment property. With the huge demand for long term rentals in Nosara, its possible to find a B&B or Hotel that can be converted into suites or apartments perfect for a long term rental complex.

For more information on investment properties – please feel free to contact us for our complimentary “Investors Guide to Income Producing Properties” with all the information you are looking for when it comes to buying an investment property in Nosara, Costa Rica.