Ben's Comments

Guys In The Zone: Costa Rica Real Estate : Get Notified of News:

Wed, 11 Aug 2010 13:09:52 +0000

Hello Mark, I'm sorry about the delay in getting back to your post. I enjoyed our visit there in Borders. My sister was amazed that I was able to have such a spontaneous experience. I am standing by and ready to work with you on investigating whether Costa Rica's southern pacific zone is right for you. I look forward to working with you, Ben

Guys In The Zone: Costa Rica Real Estate : Costa Rica Real Estate Chit Chat

Thu, 22 Apr 2010 13:15:51 +0000

Hello RCH, The advent of licensing and an MLS all at the same time bodes very well for the real estate industry. We have made some serious strides towards cooperation between the agencies that has resulted in a number of shared commission deals. Seller's are getting representation, and buyers are seeing all that is appropriate for them in the zone. All good. Now we could just use a healthy economy. Can you help with that?

Guys In The Zone: Costa Rica Real Estate : New Theory Explains Why We Find Costa Rica So Darn Pleasant

Fri, 9 Apr 2010 17:25:20 +0000

It truly is one of the great Costa Rican mysteries.

Guys In The Zone: Costa Rica Real Estate : 2009: In The Rearview Mirror

Wed, 13 Jan 2010 12:10:33 +0000

Richard, this is the first time that I've seen the phenomenon of replacement cost being higher than purchase price here on a house in Costa Rica. We just had a price reduction on a house that is the first I've seen of its kind in the zone: http://tinyurl.com/ybuqzsk

Guys In The Zone: Costa Rica Real Estate : 2009: In The Rearview Mirror

Wed, 13 Jan 2010 12:04:48 +0000

Hey CJ, thanks for the comment. Rod & I are getting together today to shoot our first video talk show, you know, the kind where we sit there with the camera on us and talk like a couple of anchormen. Should be a hoot, at the very least. Ben

Guys In The Zone: Costa Rica Real Estate : Contact Ben Vaughn

Mon, 14 Dec 2009 12:21:04 +0000

Hey Glenn,

Thanks for the bump.

Things are finally moving again here in The Zone. �I don't know if we've dodged the bullet, but things are active at the moment.

For anyone wondering where this motivated seller's property can be viewed, click here. �This is a brand new, small business property that consists of a space for a restaurant and some rental cabins, right in the heart of Uvita. Great for re-locators that are looking for an income generating property. �

Ben

Guys In The Zone: Costa Rica Real Estate : Guys In The Zone Talk Show - Episode 5

Mon, 9 Nov 2009 13:02:19 +0000

Maybe it's like when Jerry Seinfeld said the the words "head" and "cheese" should never be seen in the same sentence. Actually, Rod & I feel that if we're going to discuss such stimulating things as taxes, we'd best do a little jig at the same time or no one will ever read, listen, and then post comments.

Guys In The Zone: Costa Rica Real Estate : Costa Rica's New Luxury Tax

Fri, 23 Oct 2009 15:30:11 +0000

I'm a little new to the whole Facebook thing, but let's try this. http://www.facebook.com/topic.php?uid=26241655564... I've started a "Discussion" on our page there. I'll put up the pending questions, and will post answers as I find them. I will appreciate any help with this. The various Costa Rica real estate blogs are all lit up with this. We wouldn't be having nearly as much fun if they had written the law clearly.

Guys In The Zone: Costa Rica Real Estate : Costa Rica's New Luxury Tax

Fri, 23 Oct 2009 15:27:03 +0000

Hi Cassidy, 1) This is the big question. Apparently some law maker slipped the "includes the land" feature into the law late in the game, actually doing so unbeknown to some of the other law authors. However, in delving into it some more here is how I currently understand it. (Disclaimer: I reserve the right to make an about face reversal on this understanding). We pay tax on our property now at some assessed value that includes the value of the house if their is one. Now, add to that the material construction value of the house and pay a second tax if that evaluation exceeds 100,000,000 colones (roughly $175,000 USD at this moment). So I'm not sure how this new law includes the land as they say it does but I 'spect that clairification will come along at some point - or not. 2) There is a schedule of evaluation that I am deciphering now. It reads something like this: Tile Floor - X amount per meter. Tile Roof - X amount per meter etc... There is an annual depreciation there as well. 3) I don't know how they are going to enforce it, but there reportedly are some stiff fines for not filing. I think that you are spot on with your description of the method behind this law passing. There is some question about the constitutionality (Costa Rican) of taxing twice on the same property, so we may yet see some changes.

Guys In The Zone: Costa Rica Real Estate : Confusion Around Costa Rica's Luxury Tax

Fri, 23 Oct 2009 15:03:51 +0000

Actually, I appreciate your question. I 'spect you were not alone and this helps to clarify things. :o)

Guys In The Zone: Costa Rica Real Estate : Confusion Around Costa Rica's Luxury Tax

Fri, 23 Oct 2009 14:02:39 +0000

Hi Debbie, Put a dot in front of that 25% so that it reads .25% and now you've got a tax bill of $435.00 for a $174,000 house. The little dot makes a huge difference. Thanks for posting. Ben

Guys In The Zone: Costa Rica Real Estate : Costa Rica's New Luxury Tax

Thu, 15 Oct 2009 23:29:41 +0000

Hello RCH99 - I was kinda hoping you wouldn't ask that question :o) For us expats and migrators to Costa Rica, this law is just starting to cause some disturbances in our otherwise undisturbed lives here (smile). Here's the guts of the law in question: "Every U.S. person must furnish information annually with respect to any foreign corporation which that person controls. Additionally, every U.S. citizen or resident must file an information return if he or she becomes a 10 percent shareholder in a foreign corporation during the year, and/or if he or she becomes an officer or director of a foreign corporation in which a U.S. person is a 10 percent shareholder. The form the IRS has prescribed for such returns is Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign " I think that many have decided that the law is just too unruly to pay any attention to. I suspect that this isn't the best conclusion, but we're in the process of looking into it. The fact is that the law could very likely impact every expat living in Costa Rica. I'd venture to say that nearly all expats living here in Costa Rica have at least one corporation or S. A. which is the acronym for Sociedad Anonima. If this law is taken at face value, there needs to be a form 5471 filled out for each corporation owned. Many expats that I know own several S. A.s. There is good reason to take this question seriously as there appear to be some rather dire penalties: "Every U.S. person must furnish information annually with respect to any foreign corporation which that person controls. Additionally, every U.S. citizen or resident must file an information return if he or she becomes a 10 percent shareholder in a foreign corporation during the year, and/or if he or she becomes an officer or director of a foreign corporation in which a U.S. person is a 10 percent shareholder. The form the IRS has prescribed for such returns is Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign " We are working on getting a good understanding of this RCH99. I'll post what I find here. Please let me know what you find as well. Pretty interesting stuff about Panama. I think that we may need to find a new planet.

Guys In The Zone: Costa Rica Real Estate : Seller Options: Exclusive Listings

Tue, 4 Aug 2009 18:09:28 +0000

Daniel, thanks for your insight. I’ve heard good things about GAR, but it is sobering to hear that you’re no nearer the goal (an MLS) than when you started, and in fact, perhaps further. I’d like to hear more about that. We are currently romanced by the possibilities of an organized, professional real estate force here in the zone. We believe that the ultimate solution is an official MLS, but that is currently beyond our grasp. The increased cooperation that has resulted from our efforts so far has been a definite improvement in the quality of service that our buyers and sellers are receiving. You bring up an interesting point - that of “whats the point?” if there isn’t a licensing authority in Costa Rica. Is GAR working towards making this happen? Maybe GAR & SPAR should get together and discuss how we might work together to address this fundamental necessity for Costa Rica real estate. I've advised my SPAR associates to see this thread. We’ll see what other ideas come up.

Guys In The Zone: Costa Rica Real Estate : State of the Market June 09

Tue, 16 Jun 2009 21:44:35 +0000

I understand that 150 hotels have closed in Costa Rica in the last 6 months.

Guys In The Zone: Costa Rica Real Estate : State of the Market June 09

Tue, 16 Jun 2009 21:43:35 +0000

Hi Mike, thanks for jumping in. Construction is the hot topic around here these days. Please let me know when you get your program together and I'll post it here. I've got quite a number of folks looking to build now and knowing what options are available is helpful. Solar is good, but I understand that the Costa Rica government is a little behind on making the incentives for using solar compelling. Is it really cost effective to use battery storage? Isn't the best way to use solar to tie into the grid and get a credit off of your electric bill? ICE (the Costa Rican utilities company) doesn't have it together yet with this sort of program, but I understand that they are working on it. Ben

Guys In The Zone: Costa Rica Real Estate : How to sell a property in Costa Rica

Mon, 11 May 2009 00:28:53 +0000

Hello Yesi, Thats right, no license required. What real estate association are you asking about? The local one here in the southern zone? Or an national Costa Rica one? Ben

Guys In The Zone: Costa Rica Real Estate : In Memory of Sean McGraw

Sun, 29 Mar 2009 12:18:57 +0000

Natalie and I attended Sean's memorial yesterday at Roca Verde. Evidently a large segment of this expat community was affected by his passing, the place was packed - lots of tears. There was a lovely slide show presentation of Sean's life. It is amazing how death erases so much of the trivial. Old offenses are forgotten, conversations are centered around spiritual things. We are all thinking with a bit more introspection these days. "What kind of effect would my passing have on my community"? Thanks for your comment Alex... Ben

Guys In The Zone: Costa Rica Real Estate : Yodeling Naked & Firesales

Thu, 5 Mar 2009 12:18:27 +0000

Hi John, Just curious - do you really think that you bought 2 years too early? If you track where you had the funds about the time that you bought land in Costa Rica, and what would have happened to those funds had they stayed where they were, do you think that you would be in better shape right now? I've got some clients who have felt that, even though the value of their Costa Rica property has dropped, they have been protected by owning some dirt here that will likely be more of a haven for their funds than whatever financial vehicle they were in before. I'd love to hear your financial mind's viewpoint on this topic. Ben

Guys In The Zone: Costa Rica Real Estate : Uvita Costa Rica Photos

Mon, 9 Feb 2009 21:13:07 +0000

Hello David,
I wish it were as easy as me knowing the lot from your description, and telling you for how much and when it would sell by.
Please send me a project map, and a survey of your property. Also, any information on the project, such as who the developer was, (sounds like the Sibajas) and if there is an active Home Owner's Association there and any CC & Rs that will affect the buyer of your lot. We'll need information on water & electric as well. Are the lot lines clearly marked? If not, and you are not here in the country, do you have a contact here who can show me the lot? If you are in Costa Rica, let's set up a time when we can visit the site to consider its value together. At that time we would set the price. As for how soon it will sell, that will depend on when the buyer for that property shows up.

Guys In The Zone: Costa Rica Real Estate : Do You Have to be Rich to Buy Land In Costa Rica?

Fri, 23 Jan 2009 00:18:11 +0000

Hi Troy, You don't have to have a corporation to buy a property in Costa Rica, but most do. Some opt to put the property in the personal name and the law allows for that. It is probably one of the reasons that Costa Rica is so appealing to foreign investors. It's easy to own property here. Putting the property in a corporation will add a level of insulation between you and your asset, so it is the path that most land buyers take in Costa Rica. The cost of a Costa Rica corporation ranges from $200 - $600, the higher end being for shelf corporations that the lawyer has ready to use, sitting on the "shelf" in his office. The shelf corporation will have no history at all and will likely have a strange name. You pay the higher price for the convenience of having it available now, instead of the three weeks or so that it takes to have one made for you.