“Help!” Said one of our VIP Members in his email. He and his wife had fallen in love with a US$500K Costa Rica condo in of the hottest real estate markets – Jaco beach.
Do you think we are crazy?
We were interested in spending $300K (more affordable for us), but fell in love with this unit and the economics.”
This man is not “crazy,” he just got emotionally attached to a home and in living in the USA and not in Costa Rica, he is understandably unaware of what’s going on in the local real estate market.
Purchase Real Estate In Jaco, Costa Rica
Jaco, Costa Rica is a paradise for expats who want to be on the ocean and spend time with like-minded people. Since most people go to Costa Rica in order to enjoy the beachfront, many visitors stop in and in some cases, spend their entire vacation in Jaco Beach. Those who come to Jaco are immediately impressed with the number of restaurants, friendly people, and availability of basic necessities.
Since Jaco is a tourist destination, the cost of basic necessities are high and real estate is pricey. Since so many people want to live in Jaco Beach, the amount of competition for real estate has forced property values up and those who are looking to live here on a budget are in for a challenge. However, there are still some affordable properties in Jaco for those who are willing to search around.
Those who are just visiting Costa Rica for the first time should place Jaco on their list of destinations and if possible, rent property for a couple of months in order to get to know the area. Those who like the area of Jaco can then look to purchase real estate here, as there are condos, homes for sale, and land ready for development in the area surrounding the city. Jaco Beach especially caters to those who are looking to live a life of luxury. There are mansions for sale, plenty of nice houses in gated communities, and beachfront property available.
Those who want to live in Jaco should realize that this city is all about spending time on the beach, dinning at one of the 200 restaurants in the city, and enjoying the fun that life has to offer during the day. However, this city doesn’t go to sleep when the sun goes down, as Jaco has plenty of nightclubs and places to socialize. Since the party goes on, in some cases until the next morning, Jaco has one of the best nightlife experiences in the entire country of Costa Rica.
The City Of Jaco
The city of Jaco, Costa Rica is located in the Puntarenas Province of the country and is right on the Pacific Ocean, one of the most desirable places in the entire country. Since a large portion of the population are expats, those who visit here or live here don’t necessarily have to know Spanish, but it does help. When walking down the street, visitors will constantly hear English spoken, as this is a popular tourist destination.
Jaco was originally designed as a resort community by Charles Elwood Jaco, an oil tycoon who wanted to provide a beach community that everyone could enjoy. Today, Jaco is just that, a beautiful place to visit or call home. Jaco has a population of about 10,000 people in the immediate city limits and is home to 30,000 people in the surrounding areas.
The weather in Jaco is consistently beautiful, with a year-long average temperature of about 85° F in the day and about 77° F at night. Jaco has a dry and a wet season, with an average of about 13 hours of sunlight every single day.
Since Jaco is right on the Pacific ocean, the weather is hot and the action is on the beach. Jaco is one of the most developed beach communities in all of Costa Rica, making it the spot to be for those who enjoy the waves and the luxurious real estate that lines the beachfront.
Play Golf In Jaco
Those who visit or live in Jaco can play golf at La Iguana Golf Course, located just north of the city. This is the only golf course that is located near Jaco, but fortunately, is one of the best courses in all of Costa Rica. La Iguana Golf Course offers a 72 par, 18-hole course that is an incredible experience for those who want to go golfing in Costa Rica. The regular non-residential rates for 18 holes is right around $150, however, members can take advantage of a discounted rate. Since there aren’t many golf courses throughout Costa Rica, many people choose to live in Jaco so they can go golfing anytime they want.
Real Estate In Jaco
The real estate in Jaco is desirable and therefore, relatively expensive. Since Jaco has doubled in size over the last five years, the overall demand for real estate just continues to increase. From surfers to sun seekers, everyone wants to live in Jaco Beach.
Even though property values in Jaco are elevated, they are expected to continue to go up throughout the next couple of years and beyond. As more and more people are discovering Jaco Beach, expect the population to increase significantly throughout the near future. Those who purchase real estate now will likely find that they are able to capitalize on property appreciation, if they eventually decide to sell their investment, as demand in this beach city is soaring.
Rental Property In Jaco
Those who want to rent property in Jaco should expect to pay somewhere between $1,000 and $5,000 a month. Since all of these rental properties are extremely close to the beach, location is everything. Those who are looking for a simple two bedroom, two bathroom rental property on the beach will likely have to pay around $2,000 a month. While there are rental properties for less than $1,000 a month, they won’t likely have all the amenities that most expats are used to.
The Cost Of Housing In Jaco
The cost of housing in Jaco is relatively high when compared to the rest of Costa Rica. Those who want to move to Jaco Beach and purchase housing here can expect to pay somewhere between $150,000 and $5 million. There is so much variability in housing values in Jaco because this market caters heavily to those who want luxury property. Those who want a nice two bedroom, two bathroom house should expect to pay around $250,000.
Beachfront Property In Jaco
The beachfront property in Jaco is some of the finest in all of Costa Rica. For a beachfront home that has three bedrooms and two bathrooms, expect to pay right around $800,000. Those who want to purchase a mansion located on beachfront property in Jaco should be willing to pay somewhere between $1 million and $3.5 million.
Condos In Jaco
Those who are looking for a condo in Jaco can expect to pay somewhere between $150,000 and $350,000. Since most of these condos are located directly on the beach, such a desirable location makes them a good choice for those who want to enjoy beachfront living at a fraction of the cost.
Land Values In Jaco
Those who are looking for land near Jaco can expect to pay somewhere between $100,000 and $200,000 for about 2 acres that has an oceanview. In order to purchase beachfront property, expect to pay prices between $150,000 and $3.5 million. Those who want to be near Jaco, but don’t want to pay beachfront property prices on this 2.5 mile stretch of land can consider property that is located on Hermosa Beach, only a short distance from Jaco.
Gated Communities In Jaco
There are a number of gated communities in Jaco that offer plenty of amenities with 24 hour security. Since those who live in gated communities often find that they have plenty in common with their neighbors, this can be a great way to interact with others. In most cases, gated communities will have plenty of amenities, offering a pool, a clubhouse, and one of the best locations in all of Costa Rica.
Expats who want to purchase a house in a gated community can expect to pay somewhere between $250,000 and $750,000. There are also plenty of gated communities that are home to luxury mansions that fetch well over $1 million.
Expats In Jaco
Jaco has one of the highest expat population densities in all of Costa Rica. Since almost everything can be found in Jaco, those who live here don’t have to go far in order to find supplies and enjoy the lifestyle here. With sunny days, beautiful ocean water, and a nightlife that makes Jaco the spot to be, it is no wonder why so many expats from all of the world are moving directly to Jaco Beach.
How To Get To Jaco
The easiest way to get to Jaco is to fly into the San Juan Santamaria International Airport in Alajuela, and drive west for about two hours on route 34. Those who want to take a taxi from the airport to Jaco are likely going to have to pay at least $100, and in many cases, more than that.
Moving To Jaco, Costa Rica
Expats who are interested in moving to Jaco, Costa Rica should consider renting property for a couple of months first in order to get an idea of the lifestyle in this city. Since Jaco has beachfront properties, condos, mansions, and luxury homes throughout the area, those who want to enjoy the good life have likely found what they are looking for here.
- Try not to get emotionally attached to a home especially if you are thinking of buying it as an investment. Mixing emotions and investing together is a recipe for disaster and is definitely not a money making formula.
- Try not to get emotionally attached to a home that is priced above the market because the “love” that you have right now for that home will not last as a long as the regret that you will have when you can’t sell the darned thing except at a loss.
- Think very, very carefully before you and your partner agree to buy a $500K apartment when you had budgeted $300K. US$200,000 is a big difference and one of you will probably blame the other for going over your previously agreed upon budget!
- Do not fall in love with unfounded “projections.” That is NOT “economics” – that’s guessing! Had this apartment been rented for a few years and management could prove that it has enjoyed an occupancy rate of 50% – fine! But they cannot! There were a lot of “projections” with DotCom stocks that didn’t work our quite as well as they had “projected.”
- Times change! Just a short time ago, the real estate market was smoking hot in many areas of Costa Rica but nothing lasts forever. With all feedback I get from hundreds of buyers, sellers and dozens of developers each week, I can tell you that there are a large number of our American friends who are having problems selling their properties back home in the USA.Because of this, some of them do not have the monies to close on the Costa Rica real estate they wanted to buy and this certainly helped to slow down the coastal real estate market.
- 50% occupancy in the Jaco beach area seems high according to the real estate agents we spoke with and, more importantly, there are quite a few new luxury apartments being built in Jaco.
So I would suggest that the real world occupancy rate for that $500K Costa Rica condo would be A: Lower than 50% and B: At a dollar level far lower than what is being promised.
Affordable Oceanfront Condos For Sale in Jaco A fun beach town for all the family.
For more information about condos, homes and land for sale in the beach town of Jaco and surrounding areas please contact our Recommended Realtors in Jaco Shawn Fletcher and his wife Hannah Fletcher
using the simple form below:
[form realtor=”Shawn & Hannah”]
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