The “gold” rush in Guanacaste is starting to ease a bit, and with it, comes a time to step back, take a breather and reflect on the changes that this area has experienced in the last couple of years. This article wants to point out the most effective ways to enter the real estate market this coming year.
These are 3 valuable tips for the next real estate season, with the help of our specialized advisor in the area Fabricio Riggioni.
Time for some healthy leverage
One of the biggest changes at the Gold Coast is property appreciation. The never seen demand of real estate in Guanacaste, along with a limited offer have made prices skyrocket in a really short amount of time, in some cases even 2X or 3X YoY.
On the upside, if you already had a healthy portfolio it means your equity grew exponentially as well, however for a new investor means your cash will not get you the same assets as two years back. Leveraging (taking on a loan to finance your purchase) your investment will allow you to enter the market and still get healthy returns on your investment.
Healthy leverage allows you to increase your wealth faster than using your cash. The Guanacaste real estate market in 2023 is a window of opportunity for new investors if done the right way.
The long term rental game
Tons of families and digital nomads are making the leap to living in Costa Rica which has made long term rental prices sore thru the roof. There are hardly any available long term options at the Gold Coast which makes a huge opportunity for investors to develop in this area.
20% yearly returns would be easy to obtain in the next couple of years
TIP: Build long term rental units, sit down and enjoy the cash flow
Eyes wide open for those fire sales
Fire sales are harder to find in bull real estate markets, however when you find them, it’s like striking gold. A good fire sale in this market could mean huge returns on a fast flip, Don’t buy into the “it’s not the right time to get into the market” feeling, in our experience it’s probably the best time to jump on those rare fire sales and don’t miss on a deal that may increase your wealth like never before
TIP: Jump on the rare fire sales quickly on a bull market