Recently, a 1.8 million square foot building in New York City was purchased for $600 million. That may not seem newsworthy except that the asking price prior to the sale was $1.74 billion. The drop in price could be attributed to a variety of factors, one of which may be that of the 1.6 million square feet available for rent, only half was actually occupied.

A sale price of 65% of the original cost is enough to draw the attention of even the most cautious of investors, but those who are both careful and keen know that there is more to a good investment than a low price. A decrease of this magnitude in the span of two and a half years is an indication that something is amiss.

The New York City rental market is no different than other real estate market sectors. Vacancies are high and rents are declining. The subject property is 50% vacant. Given that fact, it is reasonable to presume that the property is generating an operating negative cash flow. Even if the property were bought for all cash, when you add back concessions, the property would be generating an operating negative cash flow. By any logical standard, any operating business with a negative cash flow is a failing business. In other words, the buyer spent $600 million for a failing office building business.

The overarching question is: What do the new owners need to do to convert their failing office building business into a successful one? The obvious goal is to increase the percentage of leased space from 50% to 95%. Not impossible, but very difficult. Following are some realistic scenarios. Increasing occupancy in 10% increments per annum means it will take five years to get there. To accomplish this, the buyer needs to be prepared to spend a significant amount of capital. These costs will include tenant improvements (TIs), leasing commission, and negative cash flow.

New lessees never say the space is perfect. In weaker markets, lessees are more demanding and the lessor pays. To get to 95% physical occupancy, 360,000 square feet need to be leased. The going rate for TIs is in the area of $125 per square foot. That comes to approximately $45 million.

Not only do costs attributed to remodels and maintenance take a financial toll, but there are also certain fees and commissions associated with rental space. Agents charge fees of 5% to 6% of the lease amount to locate renters for the property. This fee must be paid up front. So at a 5% commission rate, the investor will pay about $3 million on a three-year lease at $50 per square foot.

With expenses reaching into the millions, it is unlikely that this property will turn a profit if the buyer has not set aside enough to cover these costs. But planning and persistence could pay off if the economic climate stabilizes. In a span of five years, with a capitalization rate of six percent, the investment could increase to $750 million. Of course, this transaction is not a loss for all involved. For the recipient of fees, commissions, and oversight, the investment may be a profitable. The point is an investor must always be wise about a great deal that is presented. It is important to investigate all the facts before making such a large investment.

Costa Rica is one of the best place where people can find lot of local attractions, which attracts large number of tourists every year. With the increase in the demand for rising tourists, there are many people who are keen to explore business opportunities on this land for the purpose of investment. As real estate prices are quite low here, lot of investors find Costa Rican real estate at a fair price and make huge profits with a low initial investment. There are plenty of affordable properties, which are available here for sale that includes condominiums, single-family homes, villas along with beachfront properties across this region.

Lot of retired people looking out for buying second homes prefer investing in Costa Rican real estate at a fair price. There are plenty of attractions found in this place ranging from lovely beaches, scenic mountains with a rich and well-preserved ecological environment that lures outsiders towards this exotic region. There are excellent healthcare facilities, which are provided by the government with low cost medical care that helps retired people who wish to settle down in this region. In addition, the crime rate is comparatively less here than other places, which makes it the ideal choice for people who wish to settle down amidst peaceful surroundings.

Besides, the pleasant climate and the natural scenic beauty of this region with rich foliage are some of the best features of this region. The country’s politically safe and peaceful environment attracts lot of foreigners for making investment in properties across Costa Rica. Those who are looking forward to spending some quiet moments on their vacation find Costa Rica to be the best holiday destination. If you are looking for buying Costa Rican real estate at a fair price, then you can find a range of attractive homes in this region.

There are plenty of business opportunities, which can be found in Costa Rica with the growth of hotels, B&B inns, restaurants and resorts that cater to the tourists coming on a vacation. Those planning to start commercial ventures in this region can find suitable opportunities across this region. Besides, many people find Costa Rican real estate at a fair price with affordable and low priced lands, which are offered on sale here.

The improved growth and development of this region can be attributed to the rise of skilled workforce, which has resulted due to excellent opportunities available for higher education and training. There are many people who have taken up jobs across modern sectors like software, finance and healthcare, which has increased the earning capacities of individuals. Besides, companies are also able to find suitable people who can take up jobs in various allied fields which has made them set up industries across this region. Lot of investors find the economic environment to be conducive to the growth of business in Costa Rica. Many investors find Costa Rican real estate at a fair price for getting high returns on their investment.

The presence of good quality transportation systems and well developed infrastructure in Costa Rica has made commuting easier from across different countries. There are plenty of local and international flights operating from this region, which has led to better connectivity to other countries. The number of business travelers to this region has grown considerably over the past few years who are keen on making the best use of Costa Rican land development. People looking for making commercial investment are buying Costa Rican real estate at a fair price to get maximum returns.

This land of Costa Rica has good growth and business potential due to which increasing number of people are investing in different kinds of properties here. If you want to find Costa Rica real estate at a fair price, then you can contact some of the best realtors here.

New House construction is Costa Rica is a very daunting task in Costa Rica. Generally, constructing houses is a Herculean task; however, in Costa Rica it can be even more challenging. This is because the natives in Costa Rica (you definitely need their help!) are not as efficient as we would like them to be. This article outlines certain points to keep in mind while constructing a house in Costa Rica.

The first step to constructing a house in Costa Rica is finding the right place to buy. If you would like to be in a place where everything, ranging from a toothbrush to quality health care, is accessible in just 15-20 minutes, then, you need to consider buying a plot in one of the populous places in Costa Rica. If you are fine with staying in isolation, away from the hustle-bustle of the city, then you can consider the some area on the beach which is a good 2-3 hours drive from the city center.

Once you decide on the plot on which you plan to set up construction, the next step is to draw up a plan for construction. You need to find a good, reputed architect who can draw up plans in sync with the Costa Rican standards which are much different from the American standards. The plans that you design has to be signed off by the architect. The architect needs to obtain building permit and all the other necessary permits to start construction.

The next step is to find a reliable builder who can help you through the process of construction. There are many points to bear in mind while selecting a builder. First of all ensure that the builder is capable of constructing good houses. You can have this verified by having a look at the houses which he/she has helped construct. You can talk to the owners and find out about how easy it was to interact with the builder. Both these are very important in order to ensure a stress-free construction of your house.

The other aspect to be borne in mind while selecting a builder is to ensure that he/she is multilingual. The builder should be very good in English language so that he/she can understand your instructions to the “t”. The builder should also be conversant in Spanish so that he/she can effectively communicate with the laborers to get the job done right.

There are many aspects of construction in Costa Rica which are very different from that of America. The electrical connections in Costa Rica are left unearthed in most cases. This is extremely risky and potentially hazardous. This has to be kept in mind while constructing a new house in Costa Rica.

Another important point to keep in mind while selecting a builder, to help you with constructing your dream house in Costa Rica is to ensure that the builder can communicate and converse really well in English and Spanish. The builder needs to be fluent in English because he/she needs to understand the instructions that you give him/her. The builder needs to understand Spanish because he/she needs to be able to converse with the laborers who are mostly ticos.

One of the most important facts during the construction of a new house in Costa Rica is to ensure uninterrupted communication between you and the builder. It is a very bad option to stay in the USA when your house is being constructed in Costa Rica. You will be in for a surprise, rather shock, when you come to Costa Rica to see the way your house has turned out to be!

With lots of ocean front properties in US expensive, more and more Americans are now turning their attention on the overseas and having properties 70% cheaper than US as well as better capital growth. Not just this, but making Costa Rica is your second home in 3-hours from US and offers fantastic lifestyle.

Cost as we see is 70% less than in US, and making Costa Rica your second home is more affordable to huge large number of the people, however buying second home at Costa Rica gives something more happy .

Average prices also have risen to 300% in last ten to fifteen years and lots of investors in right locations have tripled money in few years. Future potential for making Costa Rica your second home market also looks so good while going forward as the foreign investment soars as well as economy boom.

Prices are on increase and so are rentals, since more tourists now visit here ever before. Property is very cheap and so the living costs. Making Costa Rica your second home well on $2,000 every month and want to dine-out? $12, fancy full time maid and $150 per month

When making Costa Rica your second home it is nice to know that you are investing in stable country, and where you will enjoy same rights as the residents as well as it has powerful ties with US. This is not a case with lots of other American countries, thus Costa Rica gives peace of mind while investing.

Voted the top adventure spots in world, Costa Rica gives some stunning beaches, pacific Caribbean, stunning rainforest, majestic mountains, hills, awesome volcanoes as well as large amount of wildlife. Making Costa Rica your second home is three-hour flight form southern US and time difference is only of 2 hours. Proximity & ease-of-access from US is major reason for influx of the people who are buying second homes. Unlike other American countries crime & drug wars that are non-existent and low crime-rate is one major factor for the people coming to Costa Rica

With more Americans making Costa Rica your second there is a large variety community and friendly locals. Pace of life is relaxed and for people who want more peaceful environment Costa Rica will offer this and lots more. Economy is growing very strongly since 1997 that is seeing dramatic change in infrastructure as more and more people purchase property it means: More growth on the second home at Costa Rica, good rental income as well as more amenities to take pleasure!

Have you ever dream of living in a beach home? Are you looking for the right type of property to invest in Costa Rica? Are you interested in buying beach homes in Costa Rica? If your answer is “yes” to even one of these questions, then, this article will be beneficial to you. In this article we talk about beach homes in Costa Rica, their benefits and drawbacks. This will help you decide on if this is the right kind of property for you to invest in.

Costa Rica is one of the many countries in the Central American region. This country comprises of a group of charming and enchanting islands nestled in the Pacific Ocean and Caribbean Sea. Beach homes in Costa Rica are worth investing in because Costa Rica has a vast coastline and the beaches are intoxicating and splendid.

The Costa Ricans do not prefer to buy beach homes in Costa Rica because they cannot pay the exorbitant prices quoted to own them. The beach homes are preferred mostly by “gringos” (foreigners) who intend to purchase real estate in Costa Rica. It is mostly Americans who like buy beach homes in Costa Rica because of the luxury and comfort they can offer.

Beach homes in Costa Rica encompassing a large land area contain indescribably beautiful flora and fauna. The beach homes are well equipped with all amenities that give a totally different meaning to the words “comfort” and “luxury”. The houses are sprawling with many bedrooms, bathrooms, living area, a large kitchen and also swimming pools.

A lot of people from the “gringo” community have already set up their living in the beach houses in Costa Rica. Hence, even the Americans who come to invest in property here look for good deals available to purchase beach houses.

For Americans who are surfing lovers, investing in beach homes in Costa Rica will prove to be beneficial in multiple ways. Costa Rica is considered as a surfer’s paradise. The waves of the sea in Costa Rica are strong and large which are most suitable for surfing. The joy of taming the waves in this country with its nature relatively untouched is indescribable.

Buying beach homes in Costa Rica can have multiple benefits for outdoor enthusiasts because there are opportunities to engage in outdoor activities along the beaches. People can play football, beach volleyball; create sand sculptures, and go fishing and also swimming in certain designated areas of the beach.

Though beach homes provide the investor with sheer pleasure of owning a piece of paradise on earth, there are also a couple of drawbacks that come with the territory. One main drawback is that the “ticos” are aware of the weakness of the “gringos” to buy beach houses. Hence, the natives quote very high prices for the breach front properties. You need to be a good negotiator and work out on getting the best price.

The other drawback is the security in these places. Though the beach houses are great attractions for the foreign investor, he/she needs to ensure that all measures to ensure safety and protection for the house are in place. Some of the beach front areas are know for their nefarious activities and hence protection against them is a must to ensure that your valuable investment is safe and secure.

People move houses 5 to 7 times, on average, during their lifetimes according to National Statistics. This translates to you moving houses at least once in a span of 5 to 10 years. You might want to move to a different home because of your changing needs or you are entering a new phase in your life.

Fortunately, there are a number of different types of homes that can meet your needs at any stage of life; from the simple condominium for newlyweds to the spacious townhouse fit for a family, you have a variety of styles and floorplans to choose from. However, the first step towards finding the best match for you is to understand what each different type of home offers.

Condominiums: Condos grew popular because of people’s desire to live in cities without spending a lot for a home back in the 70’s. Ilyce Glink, author of the book ‘100 Questions Every Home Buyer Should Ask’ states that buying a condo does not necessarily mean you own the unit. Buying a unit in a condominium is actually investing in the condominium itself and the amenities you and your neighbors share.

Town Homes: Town homes are very similar to single-family detached homes but they are clustered together in rows and this is the reason they are sometimes referred to as ‘row homes’. Most town homes give the owner full ownership of their houses but some are part of homeowner’s associations. Homeowner’s associations oblige its members to pay monthly fees for the expenses of common amenities such as parking lots, laundry room and playgrounds.

Single-Family Houses: Single-family houses are very popular for first time homebuyers. There are a lot of styles and variations that you can choose from if you are considering to buy a single-family house. These houses can be built on one’s own lot or built within a small community. Owners of single-family houses have the sole responsibility for all expenses concerning maintenance and ownership of their house.

Mobile Homes: These homes are really portable or moveable houses. You do not need to buy land but most mobile parks charge for rent. Mobile homes have simple home amenities and are relatively more affordable than other types of homes.

Pre-fabricated Houses: Pre-fabricated houses are of higher quality and are made of more durable materials than mobile homes. Like mobile houses, pre-fabricated houses rent the land below it and can be moved from one site to another.

Knowing the pros and cons of each type of houses will help you in searching for a home and arrive at an informed decision.

Forecasting your future for the next three to five years can also help you narrow down your choices; if you have a large family and want to stay in a particular neighborhood, a single family home or townhouse may be the best fit for you. If you’re young and single and not sure where you want to live in the next 5-10 years, a condominium may be a better investment as a first time home buyer.