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I am guilty of being an impulse buyer. On my second visit to Costa Rica I put down a 10% deposit on a ocean view lot with a stream and good size waterfall running alongside…beautiful and unique with just an 8 minute drive to the bottom of the mountain where the picturesque village of Samara and Carillo are located. It is an amazing piece of property but it is also one that I will never end up building on or living in or near. It also has no water and I got an estimated price for drilling and installation of a water pump of $35K. I am hoping that time will allow me to sell it and turn a small profit. I just returned from a visit to the property and visited my neighbor and ended up leaving in the dark and as we were making our way down the mountain we had to drive around a Boa Constrictor snake. For me Costa Rica would be somewhere I could live for 2-3 months out of the year not somewhehre I could live full time; no way I would get bored and would need to be engaged in something. I have thought what it would be like to own a business there but to keep me interested. Hopefully time covers up my impulse buy.:?
I don’t really know what your dilemma is, and whether you are hoping to sell it now or just want a shoulder to cry on, but am sorry to hear that you are indeed in a predicament.
If, you have [i]only put down the 10%[/i] possibly you should [i]’quit while you are ahead'[/i]. Especially, with the estimated cost of getting water to this property, you would also have to [i]apply for permission to do the drilling[/i], and that seems to be getting harder to obtain, depending on where it is located. So, since a potential buyer would also incur these costs it will make it harder to sell.
Were you aware there was no water when you purchased the property? Or did you [i]assume there was[/i] due to the waterfall and stream nearby?
You may also have to pay the [i]’big bucks'[/i] to install power..Of course, I’m not privy to what this buyer was told by the seller or agent, but this is a perfect example of why people must ([b]MUST[/b]) do the due diligence before making a commitment unless they have the money to waste.
Checking each and every contingency is absolutely critical. Most of us just cannot afford a $35,000(!) [b]D’oh![/b]
I think I would get a second estimate on that well… How far down did they estimate to get water? If you have a stream on your property maybe you have water close? Does the stream originate on your property? 35k seems a about double what it should be… most places you can hit water from 50 meters to 75. Price should be about $125- $150 a meter if you negotiate well. Then extra for the casing. If they added a 220v pump and cistern/pressure tank… you would still be hard pressed to hit 20k at 75 meters…
Lack of due dilligence always bites you in the rear at some point, but at least you did not purchase site unseen. What I am surprised by is that the owner settled for only 10% down.
I put 10% down ($20,000) as a deposit but then paid the balance at closing. I did get title insurance through Steward title and closed with a reputable attorney. I know the estimated cost of getting water because my neighbor which is just up the hill from me drilled a few years ago with Pura Vida Drilling and the issue is not depth but the density of the rock underneath; it was eating up the drill bits on the smaller rigs so they had to bring in the heavy. I already have power and telephone to the property so just need water. I have been thinking that it might be a good investment to clean up the site, add water and clear a trail of steps that lead down to the stream and the waterfalls; its actually beautiful down there and you can even swim if you like. There are some expensive homes on the road that leads to my property but a few for sale signs. I am up the road from the “Samara Reef” development. If I make these improvements when the market comes back the property will show very well and I can maybe make some money. I am hoping it will be an impulse buy that came good.
And why isn’t “sharing” your (uphill) neighbor’s existing well an option? Face it… some pipe, a cistern, and a boost pump are a MUCH better option than parting with $35,000! Talk to your neighbor… make him and offer he can’t refuse! I’m sure he’d love to recover some of the expense he had drilling his well. Even a low flow rate line will be enough to fill a cistern at your house (or property) and meet all your water needs! You’ll increase the value of your property and make it marketable!
We share a spring system (back up to AYA) with 4 neighbors that has worked out very well. The cost per house for all the lines and the large distribution cistern was less than $150 per house. And even with a low flow rate our home’s cistern never runs dry when we have to switch to the back up system!
I think what imx says makes a great deal of sense.
In the development of our property, I considered one of the plastic water storage tanks you can buy in most ferreterias(sp?) for well under $1,000US, even the big ones. And you could run half-inch PVC pipe (which would be plenty adequate) from the Nicoya Peninsula to Panama for less than $35K. Since there is no frost issue, the pipe need not be buried very deeply, if at all.
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