Thursday, September 25, 2008

Tamarindo Heights entrance in daytime

This is just part of the masonry and statuary at the entrance to the Tamarindo Heights development. There is a large water feature as well.

I think that real estate developers like to put in elaborate entrances to their developments to create an impressive first impression of beauty and stability. That is particularly important for new developments because customers are often buying their property before the community amenities have been built. Customers may have more trust that the roads, recreational facilities, and other amenities will be built if they see that the developer had the assets to build a grand entrance.

In the Pacific coast area of Costa Rica, it is especially important for condo and home buyers to be assured of the completion of the projects under development because most developments sell many of their units in the pre-construction phase, and most buyers are foreign and the terms usually require much more of the sales price to be paid before completion of the projects.

Unlike the USA, where the earnest money deposit will be relatively small and the bulk of the purchase price is paid at closing, in Costa Rica a purchaser of a new condo may pay 1/3 when the contract is signed, 1/3 when the roof is installed, and 1/3 at closing. Buyers share the risk that the developers will finish the project, which is why pre-construction prices are usually less than when the project is finished. In essence, the buyers are also providing some of the financing to the developers, so it is important for buyers to know that they are dealing with reputable developers.

Title insurance from US title companies is available, and realtors affiliated with US real estate companies are common. There has been an explosion of real estate development along the northwest Pacific coast area, due in large part to the expansion of international flights direct to Liberia starting at the beginning of this decade.

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