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Country review
Costa Rica, which stands for Rich Coast, borders both the Caribbean Sea and the Pacific Ocean between Panama and Nicaragua. Costa Rica is a tropical country which contains several distinct climate zones. It's also mostly coastline, which means great surfing, beaches galore and a climate that built for relaxation. Costa Rica is the most biodiverse country in the world, which welcomes over one million tourists each year to experience its impressive scenic beauty.
Costa Rica is truly one of the world's most naturally stunning countries. The incredible bio-diversity that this country possesses is on of the reasons Costa Rica has become the top eco-tourism destination in the world. The second reason is a combination of the well-developed infrastructure, the inherent friendliness of the Cost Rican people and the inevitable positive influences of the country's lengthy history and political, social and economic stability.
The Gaunacaste area, located in the northwest region of the country, boasts exotic beaches, world class fishing and championship golf. This region is experiencing tremendous growth. The Peninsula Papagayo Project is a neighboring resort destination community of over 3,600 acres that is anchored by a Four Seasons resort, which is ranked the #1 resort in the world for the 2nd consecutive year. The project includes an new Arnold Palmer golf course and a future Jack Nicklaus golf course. Over $150 million has been invested into this first of a three phase build out. Included is a 300 slip marina that will house waterfront condos, restaurants and shops. A total investment of over $400 million will be spent on this project once complete.
In early 2005, Steve Case (CEO of AOL) purchased 13 homes in the area. After witnessing the growth in the area, Mr. Case recently acquired the point that separates Playa Hermosa and Paya de Coco at a price of over $40 million. This purchase combined with the Peninsula Papagayo Project will dramatically increase property values in this area.
Few people realize that Costa Rica:
1) Is the oldest democracy in the Western Hemishphere
2) Abolished their armed forces is 1949
3) Has the second highest literacy rate per capita in the world
4) Has only .001% of the land mass in the world, yet it has 5% of the bio-diversity
5) Has the highest percentage of land mass in protected parks or reserves than any other country in the world
Nor are they aware that:
1) The constitution guarantees the rights of foreigners to own land in Costa Rica
2) Properties are titled and registered in the National registry
3) US title companies will offer title guarantee
4) Properties can be owned in a Costa Rican corporation
5) Land transactions are in US dollars
6) There are no taxes on capitol gains in Costa Rica
7) Ownership of land can be structured as an offshore investment
Economy
Historically, Costa Rica's economy has been based on agriculture, including the production of coffee, bananas, pineapples, and ornamentals, but in recent times ecotourism, electronics, pharmaceuticals, financial outsourcing and software development have become the prime industries. Costa Rica's location in the Central American isthmus provides easy access to American markets as it has the same time zone as the central part of the United States and direct ocean access to Europe and Asia.
The economy has been expanding for Costa Rica in part because the Government had implemented a seven year plan of expansion in the high tech industry. The central government offers tax exemptions for those who are willing to invest in the country. High levels of education among its residents make the country an attractive investing location. Several global high tech corporations have already started developing in the area exporting goods including chip manufacturer Intel and pharmaceutical companies such as Procter & Gamble and Glaxo Smith Kline. Trade with South East Asia and Russia has boomed during 2004 and 2005, and the country is expected to obtain full Asia-Pacific Economic Cooperation Forum (APEC) membership by 2007 (the country became an observer in 2004).
For the fiscal year 2005 the country showed a government deficit of 2.1%, internal revenue increased an 18%, exports increased a 12.8% and the number of visiting tourists increased a 19%, reaching 1.5 million people. Economic growth stood at 4.2%, nevertheless the country faced high inflation (14%) and a trade deficit of 5.2%.
The unit of currency is the colón (CRC), which trades around 500 to the U.S. dollar; currently about 600 to the euro.
Demographics
In 2005, Costa Rica had an estimated population of 4,016,173 persons. The majority of people in Costa Rica are descended from Spanish settlers. In contrast to its neighboring populations, little mixing of the Spanish settlers and the indigenous populations occurred. Therefore, a vast majority of Costa Ricans are either of Spanish or to a lesser extent of mixed meztizo heritage. In addition, there are significant numbers of Costa Ricans of Italian, German, Jewish, and Polish descent. Together, European and Meztizos descendants make up a full 94% of the population. 3% of the population is of black African descent also known as Afro-Latin Americans, and a few are of English- speaking descendants of 19th-century black Jamaican immigrant workers. Another 1% is composed of ethnic Chinese.
As of today, the indigenous population numbers less than 1%, or around 29,000 individuals. In Guanacaste Province, a significant portion of the population descends from a mix of local Amerindians, Africans and Spaniards. There is also a small expatriate community of American and Canadian retirees.
Market highlights
Why Costa Rica - Why Now?? The Guanacaste region is experiencing tremendous growth and will continue for years to come. It is often compared to Maui 50 years ago. The culmination of current and future projects and events is creating a heavy demand for real estate resulting in lucrative opportunities for those who are able to take advantage.
1) The Liberia Airport
Delta Airlines became the first commercial airline to offer direct flights into the Liberia International Airport, and in Dec 2002, started bringing in three flights a week direct from Atlanta. As a result, of the success of this route, Delta now flies daily into Liberia
American Airlines, not wanting to be left out, started a route from Miami direct to Liberia three times a week.
Continental Airlines, realizing their competitors happened upon a good thing, now operates daily services from Houston.
DIRECT COMMERCIAL AIRLINE TRAFFIC INCREASED BY OVER 600% IN THIRTEEN MONTHS. SIGNIFICANT INCREASES ARE EXPECTED FOR THE NEXT YEAR.
As has occurred in other vacation destinations around the world, when international access becomes readily available, property values increase simply from the increase in people visiting the area, thereby increasing demand. This is what is taking place right now. We are the closest beach area to the Liberia Airport. Great opportunities are available for those that can take advantage of them. You are in a positions to benefit from the demand.
2) Baby Boomers
Yes, the ol' Baby Boomers are a major contributing factor to the reason the Liberia Airport went from no direct commercial airline flights to as many as they can handle in less than 2 years. Additionally, the "Boomers" are the actual reason for the need of the noted large scale resort destination communities currently being built, as well as others being planned.
Over 75 million Americans will retire over the next 15 years. The influence of this market is staggering and has begun to effect the real estate market in Costa Rica and will continue to explode for several years.
Now is an excellent time to consider investing in property in Costa Rica and specifically in the Guanacaste region. The opportunity to not only own a great vacation property, but to make a super investment is available and is based on some very significant events. The perfect investment opportunity is waiting for you.
3) President Arias
President, and Nobel Prize Laureate, Oscar Arias Sanchez has called enlarging and remodeling the Daniel Oduber Quiros airport in Liberia and urgent need. He said the airport attracts 130 executive jets a month but due to lack of space the plane have to go elsewhere.
The president was speaking at the Hotel Real Intercontinental in Escazu where plans for the Complejo Turistico Azulera in Bahia Brasilito, Guanacaste, were presented. Part of the project will be the Hyatt Regency Azulera Resort & Spa, which will begin to be constructed in July with the first phase projected to be completed in 2008. The entire project is estimated at $200 milliion.
Is my investment safe?
Thousands of U.S. Companies have seen fit to invest hundreds of millions of dollars in Costa Rica. Costa Rica is non-political and has no armed forces and Costa Rica provides complete anonymity for foreign investors. The influx of U.S. business has caused real estate values to appreciate rapidly. Costa Rica has set aside for ecological purposes 1/3 of all of its land - never to be developed. As always, coastal property , both Atlantic & Pacific have become home for hotels, restaurants and casinos, thus reducing available property. The obvious conclusion is higher prices based on supply and demand
List of U.S. Companies
- Abbott Labs
- Equifax Credit Information
- Oracle Corporation
- American Airlines
- Exxon Chemical Company
- Pfizer
- Amway Corporation
- Federal Express
- Phillip Morris International
- Baxter Healthcare
- General Electric Company
- Phelps Dodge Corporation
- Bridgestone Firestone Tire
- Gillette Company
- Proctor & Gamble Company
- Bristol Meyers Squibb
- GlaxoSmithKline
- Riviana Foods Inc.
- Cisco Systems
- Hilton Hotels Corp.
- Sara Lee Products Corporation
- Citibank N.A.
- H.J. Heinz Co.
- Sony Music Entertainment
- Coca-Cola Company
- IBM Corporation
- Texaco Inc.
- Colgate-Palmolive Company
- Intel Corporation
- Tommy Hilfiger, USA
- Conair Corporation
- Johnson & Johnson
- 3 Com
- Continental Airlines
- Lucent Technologies
- 3M Company
- Century 21 Real Estate
- Merck Company
- United Parcel Service
- Del Monte Corporation
- Microsoft Caribbean and Wal-Mart Stores, Inc
- Delta Airlines
- central American Op
- Warner's Company
- Dole Foods
- Motorola
- Xerox
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