Costa Rica luxury real estate investment is all about the four must-haves. One of them: a modern home, like Island House (pictured).
If you’ve already visited Costa Rica, then chances are good you’ve fallen in love – enamored of the setting, the views, the nature, and the… investment potential? That’s right! And, you’re not alone: Many travelers find that a week (or a hundred) aren’t enough, and soon begin perusing Costa Rica luxury real estate for investment.
Here’s the great news: this dream is not a pipe dream. If you’re interested in purchasing a second home or condominium, you’ll also be interested to know that your investment can generate rental income. And not just any income, but more than 10% of your home’s value or purchase price.
Investing in a Tamarindo Second Home: The 4 Must-Haves
Tamarindo-area guests seek well-appointed, uniquely featured homes, such as Conchal Penthouse (pictured)
At LVCR, we’re dedicated to understanding Costa Rica’s vacation rental market, from an investment perspective.
But first, a (super) brief history: Our company is born in real estate development – we built Pangas Beach Club and Las Mareas Villas – and is committed to commercial investment opportunities. Over the years, we’ve honed our expertise. Today, we’re the Tamarindo specialists in creating income opportunities from second homes and vacation rentals.
Our highly talented staff navigates proprietary knowledge. For example, in order for a vacation home to create income in the competitive Tamarindo area market, it must be well appointed, beautiful and, above all, modern. Ensure it’s also well maintained, and your second home becomes a cash flow-positive investment.
Costa Rica Luxury Real Estate: Choosing the Right Investment Property
Amenities matter to guests. There’s something truly special about lounging in your own, private pool or hot tub, with just the view as company. (Pictured: Casa Leo Loco)
Okay, so: Well appointed, check. Modern, absolutely. Beautiful, of course. Well maintained, that’s a yes. You’re on board with all that. The problem is, many homes seem to meet these criteria. How can you choose?
What you need is an investment property specialist. That’s where we come in. At LVCR, we’re not real estate agents: We’re experts in analyzing and identifying the best investment opportunities in the Tamarindo area.
We are happy to suggest a real estate agent. But, at the end of the day, our goal is to help you identify the property that will perform the best for you. This distills down to understanding which properties balance affordability with rental attractiveness. And we have years of experience, with thousands of successful rentals, to validate these criteria.
Here’s how we can help:
Step 1: We’ll recommend an experienced, investment-focused real estate agent.
We have excellent professional relationships with several local real estate agents who specialize in residential property for investment purposes.
This is very important, given that most residential real estate agents are not typically well versed in identifying a property’s business value, while most commercial real estate agents do not specialize in residential property (even if purchased for investment).
Step 2: We’ll consult with you on investment potential.
Based on our extensive experience in Tamarindo, the local vacation rental market, and Costa Rica luxury real estate as income property, we’ll help you identify a property that blends affordability and “rentability.”
If you need some proof of our expertise, know that several of our best homes are 10 Cap properties. In other words, they generate, net-to-owner, more than 10% of the home’s value or purchase price. A Cap Rate of 10% is the gold standard in investments, especially in real estate. And, our top rental homes exceed this benchmark.
So, how do we achieve this? Well, we consider many factors to extrapolate a home’s probable performance:
- Market competition: How many homes are similar to the home you’re considering? That determined, what is the demand for this category of rental home?
- Operating costs: How affordable is your home to maintain? How does this number compare against your projected income?
- Projected repairs and maintenance: Is your home an “easy keeper” or “attention wanting”?
- Location: Based on its category and probable rental price point, how marketable/competitive is the home’s view, distance to the beach, and distance to downtown dining, nightlight, and shopping?
- Décor: Tamarindo-area renters prefer modern, crisp and clean décor. Does the home come furnished, as such, or is it affordable enough to upgrade the décor?
- Amenities: Does the home’s amenities meet market demands?
- Presentation: A well-appointed home cannot simply have great décor and the desired amenities; it must also present well (and demonstrate those amenities) in your vacation rental listing and photos.
- Property use: Can your investment be marketed as an event venue, combination rental, or division rental?
Of course, these are only some of the criteria we help you evaluate, before you make an investment property purchase.
Step 3: We provide income-focused property management.
Once you’ve identified and purchased Costa Rica luxury real estate investment, we hope to help you manage your property.
At LVCR, we manage properties with the goal of creating income. That begins with superb property management: A well-maintained, turnkey home is absolutely essential to happy guests, who in turn leave glowing reviews, which in turn fuel further bookings. Vacation rentals are cyclical like that.
Another key to a successful investment home is frequent turnover. Keeping your investment property rented, helps keep home maintenance and inventory at its original level. And that’s because the most underappreciated, oft-overlooked criterion on our list is an easy keeper– a home that requires only occasional attention during and between guest visits.
The difference between the easy-keeper and the attention-craver is pure profit. As an example, a well-positioned home with lots of amenities but high maintenance needs, often performs poorly on the rental market. Conversely, Costa Rica luxury real estate with in a less competitive location, with fewer amenities, can be very profitable if they run smoothly ( = guest satisfaction) and keep maintenance costs low.
Take the First Step Toward an Income-Producing Costa Rica Investment Property
Take the first step toward your dream: get in touch! No strings, zero pressure.
One of our local experts will be happy to discuss Costa Rica luxury real estate of any size and price point – from very affordable 2-bedroom condominiums, to lavish beachfront mansions. We can discuss real estate agents, property priorities, current market conditions, and even our property management services – whatever you need, to get you started on your investment journey.
