Jaco Beach Condo for $162,800 with Financing Available I receive a lot of interest from people looking for a beach property in Jaco, unfortunately many of them need some sort of financing. While financing for foreigners in Costa Rica is virtually non-existent, I’m very excited with a new project which has began construction that IS offering financing, with condos as low as $162,800......
This new project will be Jaco’s very first condo-hotel community, while full-time residences are available, the majority of the condos will be managed as vacation rentals, which is very attractive for investors and those seeking rental income while not using their property. When looking at the projections you’ll see that this property is set up so with just 38% occupancy at a rate of just $115 per night all of your expenses AND mortgage are paid for! With high-end luxury finishes and amenities it will have clear advantages over all other hotels in the area. Let’s dive into some common questions that you might have.
What is the difference between this project and other condos at the beach?
Unlike any condo community this is a luxury hotel with 5 star amenities such as a restaurant with room service, spa, fitness center, tour desk, conference room, 24 hour reception, art gallery, jewelry shop and services people are looking for while on vacation. These services are pivotal and offer a huge advantage in attracting rentals. The only similar hotel in the area is the Marriott which sees nearly 80% occupancy.
Is this a time share?
No, not at all. This is a condo hotel, which really just means that instead of one person or group owning a large hotel, it allows individuals to own a part of a luxury hotel with the benefit of their own title for each unit. The owners profit from passive rental income which is obtained by managing the units on daily based rentals, providing higher returns for the owners and the benefit of using the unit when they please.
Do all the units need to participate in the rental program?
No, only some of the units are required to be rented and have usage restrictions between 90 to 180 days per year. There are one and two bedroom units that have no restrictions at all including 4 three bedroom penthouse units.
How can I be sure this project will not get stuck?
This project is fully financed by Banco Nacional, has 21 out of 46 units already sold and is a very small project in comparison to the huge over ambitious projects that got stuck in Jaco. This is also a single building and has no additional construction phases, so once the building is completed there is no more construction.
What kind of payment structures is available?
Clients can purchase a unit with a $3,000 reservation deposit and a 15% down payment and then pay the rest as the building progresses.
How do you know this will rent out?
Rental projections are based on $75 ADR for a lock-off unit and $115 ADR for a full one bedroom that can sleep up to 4 people. Currently there is not a single condo or hotel that can offer the same amenities or prices that compete with this. Being newly built will also provide an advantage from an operations standpoint, with it’s advanced water collection systems, LED lighting and dedicated electrical transformers, the building will be cheaper to operate than any of the hotels and condos in the area.
When do you expect to be open?
Expect to be operational by December of 2013 and are currently moving right on schedule.
Is there developer financing?
Yes, we do and it is backed by Banco Nacional. This is one of the first major projects to be fully funded by national banking in quite some time. The project just recently began construction and expects to finish the foundation and the first floor of the building by mid September. From there construction progress should accelerate significantly, with completion set for early-mid 2013. 21 of the 46 condos available have already been sold pre-construction. If you are looking at affordable beach condos I encourage you to consider this great new project in Jaco
Providing you with real estate tips, deal alerts and news for the Jaco area.