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Ive wanted to own a manufactured housing park for years. Costa Rica seems to have an absence of them. If I could get the huge sum of money needed to build one, would it succeed? Would the government allow such housing? In the US theyve really restricted MH parks and have rezoned many.I just think, with new luxury condos going up, there ought to be an affordable alternative.
Im talking about a nice, modern community-winding roads, pool, clubhouse, good upkeep, off-street parking. Not 2 acres with run-down 1980s single-wides thrown together. Newer single-wide and double-wide models.
Does this have a chance of getting anywhere, or am I better off looking elsewhere?Land is land and whether you are buying the land to build luxury apartments or to to sell manufactured homes, the price you pay for that land will not vary…
So before I offer any suggestions and show my ignorance about this area of real estate which is very unfamiliar to me, how do you anticipate this making money for you?
Do you plan on remaining as the legal owner of the land and simply allowing people to rent the land for their manufactured homes? Are you planning on selling the manufactured homes yourself? Building them yourself? Importing them?
Scott Oliver – Founder
WeLoveCostaRica.comI would own the property, and rent out the lots. Ive done research and the most expensive aspect is the development-Paving the roads and cement pads,and hooking up electricity. They can be profitable as long as you dont charge so much in site rent that people will move out or not move in at all. If I can develop 150 lots, and get the majority rented at one time, then there should be some kind of positive cash flow.
What sized lots are you talking about and where – geographically – exactly would you feel comfortable developing these lots?
There are hardly any ‘mobile homes’ here. Probably not 150! They are not manufactured here, so would have to be imported,and if new the duty would be very high, so cost may be prohibitive.
Water/sewage would be a major issue. Phone service would be a problem as well.
You rarely see a travel trailer here.
Have you been to Costa Rica?Manufactured homes made primarily of wood and other products containing cellulose in a tropical location with higher humidity, insects and hurricane force winds? Remeniscent of Homestead, Florida after Andrew. There would be a major cultural barrier with respect to any Tico renters or buyers.
There has been an excellent RV park in Belen, Heredia since 1973. The owners live on site and rent out various different sizes of spaces short and long-term.
Common facilities including baths and laundry are included and the park is conveniently located, just a short walk to the retail stores in the center of San Antonio de Belen, where guests can purchase everything they need.I’ve passed that place a 100 times Tom …
But for the purpose of this question/thread, I doubt if that park could house 150 homes and in an area like that, let’s assume that one would have a generous 250M2 per home which would be 250 x 150 = 37,500M2
In Belen how much would we be talking about for raw land? At least $100M2 no? Abd that’s ‘if’ you could find suitable land which is unlikely and as we both know, getting permits/water in that area is NOT at all easy …
37,500M2 x $100 = US$3,750,000 for the land only??? Then you have to think about how much land would be required for roads, chidren’s area, BBQ area, etc., security and the cost of that infrastructure…
There are of course many areas of the country where land could be purchased for much, much less but making this profitable looks difficult.
Scott Oliver – Founder
WeLoveCostaRica.comI would think that the park that ColinMIUS is contemplating developing is similar to the large parks in Arizona or California. Many millions of $$$$ would be required, on the chance that this could be successful.
The one in Belen has a good name, but ColinMIUS didn’t mention the area he is thinking of.I don’t know anything about the place in Belen, but in general I would think that the governmental obstacles to such a project would be insurmountable. First, you’re talking about a totally different type of construction than what is normal here. So what about high winds and earthquakes? Then you’re talking about the importation process with all its pitfalls and costs.
Then, unless this facility is built right on a main arterial road, can you imagine delivering a sixty-foot long mobile home here, hauling it up and down hill and around all the curves on our narrow roads. And who would do that hauling? In the U.S., it’s kind of a specialty.
And when all those obstacles are surmounted, the question remains . . . what would be the point to begin with? Land upon which to build modest homes is not in short supply. Sturdy Costa Rican-type homes can be built relatively inexpensively and placed where the owners want them, rather than in a park wherever the developer decides to put it. And those homes meet Costa Ricans’ expectations. Could a mobile home park compete on price? On location? On facilities?
As you can tell, I’m skeptical.
You’re talking about a country where they build simple little 2 br-1 bath HOUSES, as in concrete/steel/hardwoods for 30 grand. What in the world would they want with some glorified sardine can made of termite food for 2-3 times that ?
Fortunately, the minimum for an expat to live here is above………ummm….that.
Maybe an RV park ! Lots of big RV’s on the road here ! LOLTry Mexico.
Hello, The park in Belen that is mentioned is for RV’s. I stopped there one day on my last trip there. They at the time were charging $350.00 per month plus electric. RV parks are totally different then the Mobil Home parks. RV parks are usually for more of a transient type living. I planned to bring my RV down there to live. But, with the Import Duty Tax made me think twice and will sell it here. Then drive down with a small truck and a small trailer for some of my things. Mobil homes in CR probably would not go very well. Ron USCG Ret
Heres a park in SE Michigan along the lines of what I am talking about:
http://www.move.com/apartments/listing/C494643My concern about an RV park is that it would be primarily seasonal housing for expats, and when the economy goes south, like it is right now, people will be forced to get rid of luxury items, like RVs. Manufactured home parks are mostly year-round residents, so theres better chances of stability.
Location? Dont know. I have to extensively reasearch the demographics and determine where demand would be highest.
I appreciate the input, though.
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