Purchasing in a development

Buy an existing home period. There are a jillion and though I agree with the codes and skimping etc, one thing is for sure, you can have an existing home Inspected, you have an agent and attorney helping you-you know the end result, you can begin your Costa Rica dream, and, you won't be 3/4 the way in and get hit with this and that and these and those. I've bought and sold many homes over the years, there is always risk but in the states, could get a home built in 90 days, Costa Rica more like years and a lot can happen in years. However, if you insist on building one thing I can say over all my research and experience is when it looks feels and seems too good to be true it most definitely is.  After going all over Guanacaste and seeing different developments, talking to people and reading about “failures” if one fails to launch and they advertise years of success instead of just being genuine and transparent, you can pretty much assume you're not the exception customer and are heading into dicey territory.  The company we dealt with advertised world class homes, luxuries, hundreds of homes sold, nine “phases”, world renowned architect, number one development in Costa Rica and on and on and one tour could tell you that 14 years only brought lots of sales and few homes, which are occupied by staff, investors and friends. They are now building in the “backs” of lost dreams; sound like a community you'd want to live in?  You won't even know what it will be like for many years- not worth the risk unless you just want to rent your place to them for discovery tours. Good luck!

Justagirl8870 wrote:

Buy an existing home period. There are a jillion and though I agree with the codes and skimping etc, one thing is for sure, you can have an existing home Inspected, you have an agent and attorney helping you-you know the end result, you can begin your Costa Rica dream, and, you won't be 3/4 the way in and get hit with this and that and these and those. I've bought and sold many homes over the years, there is always risk but in the states, could get a home built in 90 days, Costa Rica more like years and a lot can happen in years. However, if you insist on building one thing I can say over all my research and experience is when it looks feels and seems too good to be true it most definitely is.  After going all over Guanacaste and seeing different developments, talking to people and reading about “failures” if one fails to launch and they advertise years of success instead of just being genuine and transparent, you can pretty much assume you're not the exception customer and are heading into dicey territory.  The company we dealt with advertised world class homes, luxuries, hundreds of homes sold, nine “phases”, world renowned architect, number one development in Costa Rica and on and on and one tour could tell you that 14 years only brought lots of sales and few homes, which are occupied by staff, investors and friends. They are now building in the “backs” of lost dreams; sound like a community you'd want to live in?  You won't even know what it will be like for many years- not worth the risk unless you just want to rent your place to them for discovery tours. Good luck!

For the most part I do agree with you; however, a serious problem lies with "...you can have an existing home inspected...."  Well, yes and no.  There are NO licensed home inspectors in Costa Rica.  There are a few individuals that have some construction experience that will "call" themselves inspectors, but they are NOT.  And they will charge $300-$500 for their service.

I worked in construction to pay off my college debts, remodeled and sold a number of homes and have built from the ground up two homes.  I can install plumbing and electrical, weld, etc.  I am NOT qualified to inspect a home just because I have some experiences in construction.  It takes "a lot" more knowledge and expertise in other areas, i.e., how the soil was prepped, if at all, was is the saturation rate of the soil, ability to test all electrical runs, understand retaining walls, (common here), see cracks in a wall and know what they mean, are they structural issues or simple cracks.

I had a friend down the road from me sell their home to a lady who also became a friend.  She asked me to help with some home repairs which I did.  The so called inspection report that she paid $400 for stated that she would need a new retaining wall, (estimated cost on the report $30,000).  The retaining wall the report referenced was in reality a wall that was built so that the garden area would be level.  It had not relevance to the structural integrity of the home.   There were cracks in the wall that the report stated needed minor repairs.  Yeah, minor.  The sheet rock did not align with the studs.  To fix this issue we had to remove all of the sheet rock, install additional studs to bring it up to code and then replace the sheetrock, mud, sand and paint.  The bathroom had a electrical outlet that was too low to the sink, was not grounded and was not a GCFI plug.  Someone could have easily been electrocuted.  No mention of this in the so-called inspection report.  This type of thing went on and on in the report.

Unfortunately, I do not have a simple answer to this issue either.  It would be nice if a licensed home inspector moved to CR and offered their services.  Be a great way to earn and income here.

So, bottom line, home inspections are another matter to be wary of in Costa Rica.  Yep, I'm just full of great news today.  Sorry.   

- Expat Dave

***

Justagirl,

I agree with your statements and the legal options have definitely improved over the years; however, the court system here is another issue all together. 

I initiated a civil action three and a half years ago.  Yes 3.5 years.  A simple case of someone borrowing money from me and a very good contract in place.  I have an excellent attorney, a retired judge, and other than filing pleadings, absolutely nothing has transpired as of yet.  It's suppose to be moving forward in the next few months, but, I've heard this before.  The courts are simply overwhelmed and from what little I've seen, I would say extremely disorganized as well.

No such thing as small claims courts that you can get in and out of within a month.

- Expat Dave

***

Yes, there are many homes in the development. I am one of the lot owners. Have been there now for the 4th time, and every time we have gone, there has been more homes completed and new ones underway.  There are always horror stories when buying in a foreign country. I had an issue with property I bought from an American Developer...long story, but got my property sold at a loss and since bought in CR.  Another thing to keep in mind is the weather, and that causes building to not goes as fast as compared to the USA. If anyone knows anything about construction, it nevers goes as planned!
I agree you need to be cautious, but you have to also keep in mind when someone had a bad experience, they may have just had a bad draw of the straw, and not everyone owner feels the same way. I am still waiting to hear other owners tell their story besides the same person over and over. If I heard more stories like the one on this site from others, I may pay a little closer attention. Just some food for thought!

Been there. Bought every “excuse”. Prayed my guts were wrong and in between the grief it caused in the relationship, hoped and wished I was wrong. There were others too, by the way- they just maybe DID do something wrong- we never did. You saw the paperwork. We have an unfinished home in an unfinished development that is of medium quality and has serious concerns that need immediate attention. But, here is the main point. We cared enough to let you go forth informed. I do, honestly, wish you the very best. No one deserves to be taken advantage of. Remember what you said about meeting with Ami after he was let go????  Red, glaring red, flag.

scubaterrik wrote:

Yes, there are many homes in the development. I am one of the lot owners. Have been there now for the 4th time, and every time we have gone, there has been more homes completed and new ones underway.  There are always horror stories when buying in a foreign country. I had an issue with property I bought from an American Developer...long story, but got my property sold at a loss and since bought in CR.  Another thing to keep in mind is the weather, and that causes building to not goes as fast as compared to the USA. If anyone knows anything about construction, it nevers goes as planned!
I agree you need to be cautious, but you have to also keep in mind when someone had a bad experience, they may have just had a bad draw of the straw, and not everyone owner feels the same way. I am still waiting to hear other owners tell their story besides the same person over and over. If I heard more stories like the one on this site from others, I may pay a little closer attention. Just some food for thought!

My advice is, as I believe I posted above, or maybe in another thread about this, RESEARCH the names of the people and corporation involved.  IF you find people who are being sued, not honest, not reliable, not truthful, etc etc then think twice before getting involved...

Bonjour,

Je des amis qui vendent leur maison avec piscine à débordement et 14 hectares au Costa Rica. Une maison dont ils ont surveillés la construction et fait des travaux eux même avec des choses qui m'ont rendu fière de se qu'il ont fait de leurs mains, lui menuisier, charpentier.
Les photos de leur chantier permette de voir que le travail a été bien fait et le changement depuis la verdure est là.
Dommage que cela soit loin cette propriété ici en Espagne là je signe de suite.
Et quand ils en parlent où nous montrent leurs photos ont voient bien que cela leurs à coûtés de revenir près de leur famille.
Comme dit une humoriste de France ils ont des paillettes pleine les yeux.
Alors moi je dit qu'il peut y avoir de belles choses faites là bas mais surtout parlé la langue du lieu où vous devez vous installer et faire construire c'est déjà un gros plus.
Et il faut croire en ses rêves.


Isabelle.

Sorry we don't speak French on this forum. Hay que escribir en ingles. You need to write English here.

Hi,

I have to jump in here. I am also an owner in the Bellazo community.  I have read a lot of the posts in the various forums, and if you happen to notice all the complaints are by the same person.  We bought our lot almost 2 years ago and have just recently returned from a trip to CR to meet with the CEO and Yanin.  First off, let em tell you, but they have been nothing but transparent with us. We have been flying back to CR every 6 months just because we love it there as well as check on the progress of the community. On every trip, we have seen more and and more completion of homes. The things that you read are from one very disgruntled home owner.  She states that they are only building homes for the shareholders, but if that was the case, they how did her home get built?  We saw her home and it is complete.  And yes, it takes a couple years to build in CR due to weather and other items. It is not the same building in a foreign country like it is in the USA. My husband and I both work in the construction industry, so we know all too first hand some of the issues that can arise. Delays, bad crew, material delays, etc.  I do not know of any house or commercial project that gets built that does not have some type of a punch list. All I know is the staff from Bellazo has been very great to us, and we are now starting on our house design and permits along with our 2 adjoining neighbors. If anyone has any further questions, please PM me.

You're just starting. And they NEED sometime to come to their camp, if muddy waters are transparent then yes, but you saw the house and the paperwork. Is it done?  Are their serious issues?  You haven't even broke ground. Your unfairness to me will not serve you. Good luck!

With all due respect, you are a lot owner. Not a homeowner (yet). Quite different and frankly easy to sing the praises of a company that is not building for you yet. Please come back and tell us how wonderful your experience has been after you have paid for construction and have your completed home. I'm sure thus far everything has been wonderful and that's great, and I truly hope for your sake that it continues that way. Until then, good luck. I hope you don't need the luck we are wishing you, but the history of the principals of this company suggests (read: screams) that you might. Have you looked into the principals, by the way? Have you researched their history? Their reputations? Lastly, in suggesting that there is only one person complaining who is disgruntled with a completed home, you are misinformed.

I have never, over the many years of living in Costa Rica, provided a recommendation for any business, until the job was totally complete or that I didn't personally use. That includes finishing the gutters, the 'tidying up' aspect, removing rubbish if that was part of the deal and would advise not to 'pay in full' else the workers will likely 'never return'.
So, until one has gone through the whole process of building, I suggest that you really do 'wait and see' how your project turns out. Then, post your recommendations and I sincerely hope that everything has turned out well.\

BTW, I found this article the other day, and just decided to post it here...however will it be 'enforceable? I don't know, but it may help someone in the future.

And some things you only find out when you actually live in Costa Rica. Like for example that The Costa Rica Star is a real estate advertising type paper supported by real estate investors. They did a fabulous article on the imaginary perceived finished kalia project. I wrote a letter to the editor which was never acknowledged because they are not news. But the article here is real information. Just FYI.

scubaterrik wrote:

[edited to focus on only this statement by scubaterrik:] And yes, it takes a couple years to build in CR due to weather and other items. It is not the same building in a foreign country like it is in the USA. [edited]

I just wanted to point out that this is not at all normal here in the area I live in Costa Rica. My house was built in a few months, and I've seen many others go up in a few months. MAYBE if you're building a 4-5 bedroom custom-built mansion, it could take 9 months or so...? But if you think it is normal to take a house 2 years to get built here, you have drank the wrong kool-aid!
In reality a Development run by professionals  should probably be able to build faster, so it should take less time than others, not more...

Sorry to tell you that, and I wish you the best of luck.

Again, to anyone planning on buying a lot and building in any development:
Be very very careful in dealing with developers. Yes there are some good ones but also there are some very very bad ones.  Remember that sales people are all about making sales and are often prone to exaggerate or worse.

So good luck and just because people talk nice and have a professional appearance, doesn't always mean they are professional or telling the truth or not cheating you. In fact the best scam artists are very personable and very good at making a positive impression - that's one of their "abilities".

Do your due diligence or you could be sorry!
And lastly "if it sounds too good to be true, it probably is".

The comments above do not necessarily apply to any particular developer, they are general comments re "purchasing in a development" as the subject of this thread says.

I was recently told by Bellazo that they have sold 153 lots, but only ten have been built.  I believe they started selling the lots at least four years ago, so I'm shocked only ten have been built.  They said that 12 more are currently being built and their goal is to produce 350 homes.  They told me there is a 15-18 months waiting period to get a house built IF you don't ask for any changes.

How was your tour of Bellazo?

All I can say is we fell into the "Discovery Tour" trap last year.  They wine and dine you, make  promises, and once they take the money for your lot, the pain begins.  It starts with the land title nightmare, design delays, excuses and their staff begging for more money.  I have been trying to sit down with them and agree on a home design for months now.  We are thinking to bring in another developer.

so sorry for your situation. I for one decided to go it alone. buy my own property and get a architect and a builder.  No regrets. timing may be a little off as we started to build about 6 weeks ago.  however with that said the pool is roughed in and the structure and roof are up as well as the pad. That in 6 weeks is excellent.  Developers have always scared me even back home.  Usually pay a premium that I am unwilling to do Best of luck sir