Real estate investors have a saying,The only three things that matter in real estate are location, location and location. We all understand that a ten bedroom, eight bath home with cathedral ceilings and a swimming pool that is sitting next to a garbage dump has no value.
On the other hand a little one bedroom, one bath shack sitting in the middle of downtown Boston might be worth a small fortune. So you can see that the location is of the utmost importance when you are considering a piece of real estate to invest in.
The same thought process holds true when you are considering investing in Costa Rica. Costa Rica property has been returning at very high levels, since investment first began there.
Like in any other situation, you should ask yourself, “what makes the location of a piece of real estate a must have? The answer is fairly simply really. The value is based on nothing more than the desirability factor. Desirability is individual and is really hard to nail down.
Property that is totally undesirable to one person might be just the next person’s dream-come-true. And this phenomenon is true for real estate investors and for home buyers and for renters. It is true for all aspects of the real estate market.
The main point for any real estate investor to consider first is what their strategy will be for making money from the investment. The profit strategy determines whether the location of the property is good or bad and buying is only half the equation.
For example, prime real estate is the best choice if you are planning to purchase a property with the intention of just waiting for the market to rise. Locations that are near entertainment centers or newly developing areas would be best because the likelihood is pretty good that that the property will increase in value with little other effort.
On the other hand, if you are planning to invest in a property with the intention of renting it and making a monthly income from it, you might be better off to look into urban properties. Urban properties wouldn’t always be considered prime real estate but they are prime rental properties. What these properties may lack in space or amenities, they make up for by being very close to the action.
And we can’t forget the real estate investors who are handy with their hands. These kinds of investors enjoy renovating, and will buy properties below market value. They can make repairs and renovations to rundown properties themselves, sell it for a great deal more than their purchase price and make a very nice profit. Working neighborhoods with mid-priced homes make up the best location for these kinds of investors.
There are many factors that real estate investors consider when they are deciding which property to invest in. Knowing what kind of investor you are, and what your profit strategy is for the investment will help you decide where and how to find the perfect property in the perfect Costa Rican location.