You’ve read about the ‘litigation explosion’ in the US… Modern legal precedents encourage frivolous lawsuits that often result in outrageous settlements.

When there’s a possibility that you might lose everything you’ve worked for because of some ‘frivolous’ lawsuit, does it matter whether we call them ‘creditors’ or ‘predators’ or who is ‘right’ or ‘wrong?’

By having assets out of your home country, you can achieve substantial asset protection from illegitimate creditors and predators. You can make your wealth invisible to others and one of the best ways to do that gradually is by investing in pre-construction real estate.

• Investing In Pre-Construction Project With A New or Un-Proven Builder.

  Like any professional service you often get exactly what you pay for and if you are investing your hard-earned money in pre-construction real estate with a new builder with no track record then your risks are high.

  The opposite also applies, when you are investing in Costa Rica pre-construction real estate with an experienced builder with a proven track record of building quality homes in Costa Rica, you are minimizing – but not eliminating – your risk.



• Perception and Reality Can Be Two Very Different Things.

  Looking at a fancy website, complex architectural drawings and fancy 3D renderings is one thing but your finished home and the materials used may look very different when it’s completed so be prepared.

• The Illiquidity Of Homes in Pre-Construction.

  Once you have signed the agreement with your builder there’s really no turning back and it’s almost impossible to sell your home while it’s under construction unless for some reason, values have really skyrocketed. In most cases your money is tied up and you simply cannot get at it…

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  This is probably the biggest negative because when you buy a property in pre-construction, you are tying up your money for 12 – 18 months or more.

  Should you have some kind of ‘urgent’ family situation where you really need cash fast, selling a pre-construction home might be impossible. Having said that, we all know that even a finished home can take time to sell so please always bear in mind that investing in real estate is most definitely a long-term investment strategy ‘if’ you want it to be profitable.

• Mortgage rates Will Change

  If you are hoping to finance the purchase of your pre-construction home, it’s important that you take into account possible changes in the mortgage rates.

  While your maths might make sense right now based on your own unique financial situation, what would happen if mortgage rates are substantially higher by the time the building is completed?

  What would happen if you lost your job and your bank threw out your mortgage application?



• Buying Real Estate At Below Market Prices.

  One of the big benefits in buying in pre-construction is locking in a low price.

  Sure you are taking a risk in tying up your money for a year or so but that’s part of the attraction.

  If the project was already completed, odds are you’d be paying substantially more for those bricks and mortar!

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• Location, Location, Location!

  Most real estate experts will tell you that the location of the real estate you are buying is crucially important and the same applies to pre-construction homes.

  While these new homes are being built, there could be thousands of potential buyers driving past the project each day ‘wondering’ what it’s going to look like when it’s finished and perhaps ‘dreaming’ of a new home for themselves.

  Then when the homes are finally finished, people don’t need to ‘imagine’ anymore, they can see the finished home with their own eyes (now priced substantially higher from where you purchased it) and will hopefully be buying the homes that our pre-construction buyers want to sell.



• Taking Your Time To Invest in Costa Rica Real Estate.

  Instead of having to find 100% of the money you need to buy an existing home, when you buy in pre-construction you tend to have a long period where you can pay for your new home.

  By paying the real estate developer over a period of a year or more, it’s kind of like a forced savings plan, it’s easier on your pocket and on your emotions.

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• You Get To Move Into A Brand New Home.

  New homes will be more modern, offer more state-of-the-art technology and improved environmental standards.

• New Properties Require Less Maintenance.

  New buildings anywhere require less maintenance, which means less money out of your pocket over the long-term for your own home and no major renovations required for at least ten years.

  Compared to an older project, it will often also mean a lower monthly maintenance payment to your Homeowners’ Association to maintain the entire project.

My wife Mayra know this real estate developer very well. We live in on of the homes built by this developer in their NaturaPark project (you can see our home here) and as real estate investors, we have invested our own hard-earned money in a single storey home in Dendera Lindora as well as a home in Bosques de la Caraña project.

1. New Homes For Sale in Rio Oro, Santa Ana With Special $1,200m2 Pre-Construction Pricing For First Ten Sales Only! Proven developer continues to build attractive, great value homes that people are fighting for….
2. Costa Rica’s Best Real Estate Developers – Dendera in Escazu
3. Costa Rica’s Best Real Estate Developers – Bosque de la Caraña in Santa Ana
4. Costa Rica’s Best Real Estate Developers – Dendera in Lindora, Santa Ana
5. Costa Rica’s Best Real Estate Developers. SolPark in Pozos, Santa Ana

Written by Scott Oliver, author of 1: How To Buy Costa Rica Real Estate Without Losing Your Camisa, 2: Costa Rica’s Guide To Making Money Offshore and 3. ¿Cómo Comprar Bienes Raíces en Costa Rica, Sin Perder Su Camisa?

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.