Steps in Jaco Beach Real Estate Investing
For the increase of Real Estate in Jaco beach we like to make some simple steps to purchase beachfront properties in this beautiful place Jaco Beach.
One of the challenges many real estate investors in Jaco Beach who are just starting are faced with is putting up the money to acquire a piece of beachfront property. Although in reality, this is usually not the biggest obstacle. Read More about Costa Rica Real Estate Investment Here
The point is that hardly any Real Estate in Jaco Beach investor who buys a piece of real estate has enough money in their account to pay for it!
That´s where educating yourself in creative financing techniques comes in. The key in the Real Estate in Jaco Beach is that you really don´t want to “own” or “buy” the beachfront property — what an experienced real estate investor does is simply “control” the beachfront property until he/she exercises an “exit strategy”… in other words, decides what to do with the property. The following are just a few of the ways you can control a piece of real estate without actually buying it, and with little to no cash out of your pocket:
- Control property by “Subject To” financing – this strategy is the best because the seller actually deeds the beachfront property over to you! What better way to control real estate!
- Control property through a straight option – this strategy is good if you can´t get the seller to agree to a “subject to” deal. The option gives you the exclusive right, as well as the flexibility, to either buy the beachfront property, sell it, or sell your option to another investor!
- Control property through a lease option – essentially the same as the straight option except that you also control the beachfront property by leasing it from the seller, but still have the exclusive right to either buy the beachfront property, sell it or sell your option to another investor at the end of the lease term.
Ok, apparently this little step is overlooked by a lot of people. Just take a look at how many people are still renting a beachfront property instead of buying one. Now of course the relation between rent and housing prices varies from country to country and even from area to area. But wherever you go you will still find people renting, because in their mind “they don´t have enough money to buy a house.” In reality, it would be much cheaper for them to buy!
When you rent, you are pretty much flushing your money down the toilet. Of course, you are getting the pleasure of living, but the point is you´re not building anything long term. Every dollar you spend on rent is a dollar you will never see again. Whereas if you own your own home, instead of paying rent you would be paying for your mortgage. Even though there is a lot of variety in mortgages these days, the basics of practically all mortgages are more or less the same.
Every month you make a payment which consists of two parts: interest and principal. The interesting part can be compared to rent. Those dollars are gone with the wind and you will never hear from them again. However, the part of the payment that goes to the principle is money you keep. Every dollar that is used to pay off the principal is a dollar you put in your own pocket!
This helps you build your net worth. Compare this to people that are paying rent… Their net worth does nothing. However, their landlord´s net worth is doing very nicely in this scenario and he or she will probably love you for it. So if you get a warm fuzzy feeling about making somebody else rich at your own expense… Keep renting. If you would rather build your own capital instead… Buy your own house!
Many homeowners have accumulated more money through appreciation of their beachfront property than by working a full-time job for many years. Now before you go out and buy the first beachfront property you lay eyes on, don´t forget that some security measures are in order here. As you may or may not know, real estate prices do not always go up, and certainly not in a straight line. Yep, this can be a shocker to some people, as well as an ugly reminder for those who overlooked this minor detail in the past. If for some reason you would have to sell your home in a down market, it can be a costly adventure. You wouldn´t be the first to end up with a house worth considerably less than the mortgage resting on it. So make sure to keep some slack.
In the long run, Jaco Beach Real Estate prices have always been on the rise, but in any cycle, there are down periods. By keeping some slack and being patient you will be able to sit through these times and profit from the long-term up-trend.