Wealthy Investors Betting on Property, Stocks, Barclays Says

June 2 (Bloomberg) — Wealthy investors globally are avoiding derivatives and hedge funds and turning to property and stocks following the global financial crisis and economic downturn, Barclays Wealth said, citing a survey.

More than half of the investors surveyed said they are more cautious than they were before the crisis, Barclays said in a statement in Hong Kong today. About 2,000 wealthy investors who have more than 1 million pounds ($1.47 million) in investments from 20 countries participated in the survey in February and March, it said.

“The uncertainty around the prospects and timing of the global economic recovery is causing investors to favor” equities and real estate, Joanna Chu, managing director and head of North Asia at Barclays, said in the statement.

Almost 90 percent of the surveyed investors in Singapore said the property market is likely to perform well in the next 12 months, while 68 percent of the Australian respondents said they are positive on equities, according to the survey.

To contact the reporter on this story: Sophie Leung in Hong Kong at sleung59@bloomberg.net

by Michael Anthony

FR-5271-P-01 SAFE Mortgage Licensing Act: HUD Responsibilities Under the SAFE Act is just one more nail in the coffin of American independence: A government-issued license to sell your own property.

The proposal could become law as of May 31st and directly violates the 14th Amendment to the Constitution by depriving the right of the homeowner to dispose of their property as they see fit, free of state interference without due process of law.

Now that Americans have nearly zero access to credit through banks, and hardly anyone can qualify for traditional financing, this proposal aims to slam the door on any alternative route. As stated by Roman Mosqueda, S. J.D. in his article, “Proposed HUD Rule Prohibits Seller Financing Without License Except for Family or Own Residence,” the proposed rule impairs obligations of existing contracts protected by the Constitution in the following ways:

• The contract is the law among the parties. A property owner has the right to sell his or her property, including seller financing to enable a buyer short on cash to consummate the sale.
• Seller financing likewise enables a seller to sell his or her properties faster, and earn income during the duration of the promissory note being financed.
• The proposed rule would impair obligations of existing contracts in cases involving contracts to sell with seller-financing, lease with option to buy with seller financing, and other similar contracts.

This overreach of the SAFE Act has exactly the opposite effect as what the Act was intended to cover. HUD’s own Web site, states that the SAFE act was a major component of HERA (The Housing and Economic Recovery Act of 2008), which “constitutes a major new housing law that is designed to assist with the recovery and the revitalization of America’s residential housing market.”

This new rule actually hinders individual homeowners from aiding in their own recovery and gives more power and money to the very same industry that secretly bet on the U.S. housing crash. By requiring mortgage broker licensing, the individual’s right to the use of his own property is now strictly limited.

Furthermore, it limits any type of real recovery as bank financing simply is not possible in many cases, even beyond the “bad credit” equation, or tight lending policies — homes in flood areas, investment homes, or multiple homes owned but not occupied by the owner or the owner’s family, for example. Under the new HUD rules, even when these homes are owned free and clear, the property will no longer be yours to do with as you wish.

The following statistics posted on ActiveRain by a specialist in owner financing and lease options illustrate the vast limitation that the new rule puts on the real estate landscape across America:

• These rules would prohibit even partial seller financing – i.e. a “seller second.”
• According to HUD’s “Residential Finance Survey” in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear.
• An estimated 6 million Americans own a property other than their own primary residence.
• An estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties.
• 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing.
• Approximately 5% of homes in US are for sale or for lease… seller financing may be key to liquidating this inventory.

As with all government legislation designed to intimidate those considering non-compliance, here are some of the more tyrannical points sourced from The RescueUS Project:

1. You cannot receive a license if you’ve committed any felonies – ever – meaning you’ll never be permitted to self-finance your property under any conditions if you’re a felon of any kind.
2. Mandates fingerprinting to finance your own property.
3. Threatens a $25,000 penalty for owners who fail to obey HUD’s rules.
4. Forces owners to complete 3 hours of Federal Law training.
5. Mandates owners complete 2 hours of federally approved “ethics” training.
6. Requires that owners complete 2 hours of lending standards training.
7. Puts upon all self-financing owners and their prospective buyers dramatically higher costs and decreased opportunities to engage private property transactions.
8. Stops you from exercising your own constitutionally protected private property rights until the government approves your conduct – and charges you for it.
9. HUD grants itself authority to summon you any time it chooses for a host of reasons.

The above scenario, if it does pass in the United States, is extremely unlikely in Costa Rica. Firstly, banks have no history of the type of predatory lending practices seen in the States. Additionally, seller financing and developer financing is seen as a legitimate parallel system that safeguards the Costa Rican economy during times of global stress.

To a certain extent, it is seller financing that has kept the housing market stable while banks correctly tightened their lending practices, which has allowed excess inventory to be depleted. As the well known US real estate investor Henry Kaufman said in his interview with Scott Oliver, “Costa Rica has made no mistakes during the crisis.”

And, now, as other nations — including the U.S. — are in mass crisis mode, or trying desperately to stave off implosion, Costa Rica has declared their economic recovery to be fully underway. In fact, home and development financing has returned with incentives as all of the major banks are now offering more attractive loan options.

While it is quite disturbing for many of us U.S. expats to see a decline in the most basic forms of independence upon which our country was built, we are doubly thankful to have found Costa Rica.

A new ecological community, Rancho San Roque, is being developed in the foothills of the Rincon de la Vieja volcano in Costa Rica.  The developer has engaged the services of The Project Office (TPO) to manage the project; Deppat to create the master plan; and Zurcher Architects to create the architectural detail for a private residential community in harmony with nature.  Each of the 37 fully-titled lots available for purchase has at least 1.25-acres (5000M2) and incorporates sweeping views of the Guanacaste countryside, enjoying cool mountain air and rich volcanic soil.

Residents will enjoy the tranquility of country living with the convenience of modern services.  Located in Cañas Dulces – only 30 minutes from Liberia – where modern shopping, fine dining, and premium services are abundant.  The international airport in Liberia is just 40 minutes away, and some of Costa Rica’s best white-sand beaches and fishing are also an easy drive from the community.

Rancho San Roque is situated at a comfortable 1500 feet above sea level, offering fresh cool mountain breezes.  The area is host to a growing number of ecotourism facilities such as Buena Vista Adventure Center and Spa, which offers adventure sports such as canopy tours, rappelling, waterslides, horseback riding, hiking, thermal spa baths, and much more.  A high-end eco-resort, Borinquen Mountain Spa, showcases hot springs, a luxury hotel, restaurants, nature trails, and many more attractions within just minutes of the community.  The community is also located within minutes from the planned Guanacaste Country Club designed by Jack Nicklaus and being developed by a U.S. group that includes Frank Biden (Joe Biden’s brother).

“Most of the development in Guanacaste has happened at the beaches, but an increasing number of full-time expats find it to be too hot and too touristy,” said Dan Harris the CEO of The Project Office. “That is why we chose a tranquil country setting with a cooler climate for our community.  We’re in a laid-back rural area, yet still close to all modern services and amenities in Liberia.”

The city of Liberia is continually expanding with modern services.  Several banks, shopping centers and restaurants make up the town center along with the Home Depot-style hardware store called the Do It Center.  Large commercial developers are betting that Liberia becomes the business capital of northern Costa Rica, similar to the Central Valley, as evidenced by the million square-meter Solarium office industrial complex.  Furthermore, the best hospital in Central America, CIMA Hospital San Jose, has plans to build a new full-scale private hospital in Liberia.

Rancho San Roque will engage in a permaculture project to restore the pastureland, and will feature a community center with a pool and fitness center, walking trails through orchards, a greenhouse, organic gardens and aquaculture ponds.  The rich volcanic soil is perfect for gardening where the project aims to produce fresh organic vegetables, many fruit and nuts, fresh-water fish, chickens and eggs for the residents.

“Our goal is to restore the land with an edible forest and permaculture gardens producing healthy food security for residents” Harris added. “The intention of permaculture is not only to produce food, but also give immeasurable benefits to the environment while creating a beautiful and diverse landscape to enjoy.”

All environmental permitting is in place and all lots are ready to sell with clear title.  The developers are encouraging alternative energy such as wind and solar power, but are providing electric grid service in the community.  Satellite TV is readily available and high-speed Internet will be on site creating a fully connected community.

Each lot comes with a Costa Rica corporation allowing for clean transfers with low fees, and gives buyers a vehicle to obtain cell phones and other utilities.  The community is currently one of the best values in Costa Rica starting at $50,000 during the development phase. Financing is available with 40% down at 8% interest for 5 years ($20K down, $608/mth).

CONTACT US HERE FOR MORE INFORMATION

Contributed by Andrew Mastrandonas and Preston Gitlin from CRCommunities

Buying a home site and building your own home can be a daunting task anywhere in the world; it is no different in Costa Rica. However, with proper due diligence, and a realistic evaluation of budgetary concerns, the process can be the most rewarding way to express your dream of living in Costa Rica.

Tips For Finding Your Home Site

• Find your climate. Costa Rica is subtropical, so it seems like a no-brainer to those arriving from the North. However, Costa Rica’s mountainous terrain creates an incredible diversity of micro-climates. A few hundred feet in elevation can be significant. Rainfall amounts can vary, too. For those who can afford to, it is invaluable to see the country in both the dry season and the rainy season.
• Find your town. First, read any one of the fine books published about Costa Rica. You will learn about the town history, the people, what modern conveniences are available, etc. Once you have found a town (or towns) that seems to suit you, plan your trip to Costa Rica to see for yourself. Ultimately, no amount of research is sufficient without experiencing a place firsthand.
• Find your lot. Our communities are in San Ramon and have ocean views. We believe that the location is ideal, and offers a tremendous value. There are some fundamentals for lot buying that should be considered, regardless of location: title, infrastructure availability, and engineering. First, a lot should be researched by a lawyer who can obtain information from the National Registry to be sure that the property is clean, and has no issues outstanding. If the property is in a gated community, very often the developer will purchase a clean corporation for the property in order to make for an easy, less expensive transfer than a person-to-person sale, as well as to make it easy for the buyer to obtain their utilities. We have done this for all of our lots. The second consideration is the ease of installing infrastructure (if it does not already exist). Very often a lot that seems far cheaper than other similarly-sized lots will be raw land. The cost of infrastructure, viability, and placement can be very complicated. Be sure that you know the real state of the lot before purchase, taking into account the cost and time for development. Lastly is the engineering that a lot might require. Some of these “hidden” costs can include driveway engineering and installation, need for retaining walls (VERY costly), resolving drainage issues, creating a plantel (flat, buildable space), and being aware of home placement based on underground springs, nearby rivers, or road frontage.

Tips for Making Your Home Construction Easier

• Have patience. Like anywhere, building a home is not a perfect process. Building a home in a developing country can be an even greater challenge. By selecting a builder with strong references, integrity, and a dedication to quality, you will find the process easier than you might expect.
• Understand your financial situation prior to signing a contract. Obviously, building a home requires a significant outlay of money. Before deciding to start construction, assess your financial situation and determine both how much you can afford and when those funds will be available (if not immediately). Also, don’t only think about the cost of building your home, but what it will cost to live in your home.
• Know what you want. It’s important to have a good idea of what you want in a home prior to signing a contract. This will make the process go more smoothly and avoid costly changes once the process has started. However, this doesn’t mean you have to go it alone. If you are at a loss for ideas, talk to friends and family. Also, and probably most important, describe your needs to your trusted builder so he or she can come up with some ideas that may work for you.
• Communicate. Reputable builders want to build you the home you’ve always dreamed of and will work hard to meet, and oftentimes, exceed your expectations. However, we find that the vast majority of issues arise due to lack of communication or miscommunication. Follow up in writing on all major decisions and don’t assume items mentioned in person or on the phone will always be remembered. Your builder will likely be working on several homes at once, so it’s important you confirm all details.
• Be reasonable in your expectations. We realize that building a home is one of the most important decisions you will ever make, and it will involve a significant monetary investment. Your builder should realize this too. However, just because this is Costa Rica, it doesn’t mean it will be cheap, or it will be similar to building in North America or Europe. Things are different here (to some extent) and oftentimes things move more slowly than in your home country. However, a reputable builder is very experienced at operating in this environment and you should trust their judgment on what’s possible or not possible as you design and build your home.
• Consider micro-climates. Costa Rica has many micro-climates. It might be sunny and 80 degrees in one spot, but windy, cooler and rainy just a few miles away. As you design your home, work with your builder to better understand the micro-climate of the area you’ve selected and how to build a home suitable for that environment.

What Does it Cost to Build a Home in Costa Rica?

The final cost of your home will depend on two factors: how large your home is, and what type of finishes you select. A “cost-plus” basis is usually the best way to ensure that the construction process will be efficient, transparent, and timely. Typically, you can expect to pay roughly between $75 per square foot and $95 per square foot which will include permitting, architect’s work, construction, and the purchase and installation of most finishes such as kitchen cabinets, countertops, and appliances, flooring, kitchen/bathroom fixtures and associated plumbing, and lighting fixtures. Your builder will advise you on the type of finishes possible based on your budget. If you are unwilling to work on a cost-plus basis, a bid will be provided. However, in our experience, a guaranteed cost usually means a significantly higher profit margin for the builder. We’ve also found that sometimes contractors (the dishonest ones) will provide a low bid in order to get the job, but then surprise you later with “that wasn’t included,” etc.

In addition, it is important to do as much thinking and research about the type of home you want, the layout, size and of number of rooms, whether you want a guest house, garage/car port, pool, or other structures, prior to signing a contract. Re-work during the construction process not only can lengthen the time to complete your home but also will likely increase the cost as more material may be needed, walls torn down, etc.

How Do I Pay For My Home?

Generally, construction services are paid for in cash, including an initial deposit and then periodic payments as your home construction progresses. The schedule for payments will be determined between you and your builder. Payment is usually made by wire transfer. It is important to allocate funds ahead of time so construction of your home is not delayed.

How Long Will it Take to Build My Home?

It normally takes between six and nine months to build your home. A number of factors could lengthen the time to build your home including the extent to which pre-work is necessary (such as lot preparation), the size of your home, weather, and the availability of the materials you select. After discussing your specifications with your builder, they will give you a more specific time estimate.

What If I Am Not Living In Costa Rica During The Construction of My Home?

It is preferable to be in the country during the construction process in order to inspect the work on a regular basis. However, this is often not possible for many people. Therefore, your builder should provide frequent updates on the progress of your construction and send you photographs as certain milestones during construction are met (i.e., foundation is laid, roof is put on). If at all possible, it is helpful for you to visit at least a few times during the home construction process, particularly to pick out tiles, cabinets, appliances, and other fixtures.

We hope that this short guide gets you started toward realizing your dream of building a home in Costa Rica. We have years of experience finding land and creating communities. Please CONTACT US as you begin your search — we will be happy to assist you!

Private Gated Mountain Community in Atenas

Retirement or Vacation Homes in Atenas

Each of the finished homes, starting at $173K, is below $200K. They are cozy but classy affordable retirement or vacation homes with nice finishing details including granite countertops, custom wood cabinets, and quality fixtures and faucets.  Beautiful vaulted wood ceilings keep them cool all day and each room has a ceiling fan.

Community Infinity Pool and Pavilion

The homes are wired for a dishwasher, alarm, phone, SAT TV and high-speed internet is readily available, and house 1 has GE stainless steel appliances.  They’re all built to North American standards with modern plumbing and electricity, electric on-demand hot water throughout, screened windows, and much more.

Quality Homes Under $200K

The community is in a private mountain setting with an electric gated entry and amazing views of mountains, volcano peaks, and the Central Valley.  There is a communal infinity pool and picnic pavilion, along with many fruit trees and coffee plantings in the common area.  Each owner will have equal shares of the common area. The community is at nearly 4000 feet above sea level offering the most perfect year-round temperature of 70s during the day and 60s during the evening.

Big Mountain Views

For more information view property listing.

Click on photo to see listing for $850K

The recent world economic downturn – acutely felt in the U.S. – has made valuing real estate in Costa Rica more complex for American buyers.  Recently, there has been increased skepticism from both buyers and sellers at the negotiating table due to vastly different market perceptions. Foreign buyers are seeking rock-bottom prices that they’re accustomed to in their deflated local markets, while most Costa Rica sellers perceive their market to be relatively solid and remain fairly firm in their asking prices.  Consequently, reaching win-win agreements has been increasingly difficult.

Plainly stated, Costa Rica is not without challenges, but remains a far healthier market than the U.S.  According to Wall Street legend Henry Kaufman, “Costa Rica made no mistakes in the recent economic downturn.”  Mr. Kaufman, who recently bought a project in Santa Ana, strongly encouraged others to invest here “immediately.”   Costa Rica’s lifestyle benefits attract droves of newcomers from all over the world, which continues to fuel the market.

Click on photo to see listing for $195K

Certainly there are some bubble areas with highly motivated sellers in Costa Rica who need to sell for one reason or another, but there are also many mortgage-free sellers who are content to wait for a reasonable price. The more common position is somewhere in the middle: a seller has their home listed for a reason – to sell it – and they are willing to be negotiable within reason, even offering seller financing if need be.  However, sellers as a whole are not accepting dramatic discounts, for the very reason that they own property in a healthier market.

Below are some recent observations of buyer’s and seller’s perceptions in the current market. Perhaps it can be helpful to close the gap ever so slightly.

For Buyers:

• Yes, there has been some price softening in Costa Rica and more motivated sellers.  So, you can negotiate with most sellers.
• However, Costa Rica and the United States is not an “apples to apples” comparison.  A $100K home in Florida might seem like a great deal, but it has a much higher cost of living associated with it:  higher healthcare costs, taxes, need for A/C in a difficult climate, etc.
• Supply and Demand: Abandoned homes in Florida are a dime a dozen, while Costa Rica’s inventory of quality homes is almost a just-in-time pace (albeit a slower pace) in most areas.
• Costa Rica has never had an economy based on credit; so people have generally bought their homes with cash — both Ticos and foreigners.  As such, there was no mortgage “bubble.” Most sellers are in a cash position and can and will wait for a reasonable price.
• Costa Rica’s expat community is fundamentally populated by retirees, not speculation homebuyers (as some believe).  Although, there still is some measured speculation, which should be seen as a good sign for potential buyers.
• Many foreign buyers are not from the U.S.  In fact, the ratio of expats in Atenas is at least 50% Canadians and Europeans. Their currencies are strong, and they have not experienced the same dramatic collapse as the U.S. real estate market either.

For Sellers:

• This is not the time to expect to get your top asking price. Most buyers expect a discount given the global economic climate: your price should be fair if you really want to sell.
• If possible, it is helpful to be open to financing part of the sale. Lending has become nearly impossible on U.S. homes and more difficult in Costa Rica.  You can negotiate terms that work for you. However, customers from the “developed” world are witnessing record low interest rates will baulk at double-digit rates commonly seen in Costa Rica in the past.
• Your first offer may be your best offer. If you really want to sell your home, you are most likely going to wait longer than you previously thought, all reasonable offers should be considered.
• It is a buyer’s market.  Since Costa Rica is currently a land of cash (for those that have it) and not fictional inflated credit, the buyer feels powerful right now.

Click on link to see this listing for $295K

Property in cheap saturated markets in the U.S. has little “real” value besides the lifestyle one can lead having that property.  In a market critically dependent on gun-shy lenders and unlikely job growth, reselling cookie-cutter U.S. homes at any price in the foreseeable future is suspect at best – unless the lifestyle is attractive.  Costa Rica, a primarily cash-driven market, attracts people because they reason it’s a “better” place to live and own property.

There is no hard and fast rule for negotiating in Costa Rica as every seller and situation is different, but our general observation is that it’s safe to make an offer that is 15-20% below asking price with a goal of achieving 10% cash discount.  This seems to be a fair and realistic scenario given the current market conditions and perceptions of participants.

Best wishes to both buyers and sellers.

Sunsets in Paradise

Rarely do we think about how currency exchange rates affect our daily purchases. Even though the USD has lost around 11% globally over the past six months, it remains at near record strength (580CRC – 1$) in Costa Rica. The fluctuation of the US Dollar has a real impact for buyers of big-ticket investments like Costa Rica real estate. The largest beneficiaries of the recent currency moves are Canadians and Europeans whose currencies have recently experienced dramatic gains against the USD.

The broad appeal of Costa Rica continues to keep the real estate market stable, which is confusing for most Americans because they reside in a plunging market with tiny interest rates. In other words, we have witnessed more “price shock” as of late from American buyers. However, the continued strength of the dollar and the lower cost of living generally still allows Americans to live more comfortably on less income in Costa Rica.

The increased strength over the last 6 months of the Canadian dollar ($1.03) and the Euro ($1.49) against the USD is creating a prime window of opportunity for Canadians and Europeans to snatch up Costa Rica property at good values.

USD-CAD 6-month Chart

Since most properties in Costa Rica are listed in USD or CRC (colones), it is easy to see the current savings. In March 2009, $1.29 Canadian dollars equaled $1US. This means a Costa Rica home priced at $300,000 US cost a Canadian buyer $387,000 in Canadian dollars. That same home can now be purchased for $309,000 CAD, a real savings of $78,000 CAD.

Euro - USD 6-month Chart

Europeans seeking a home in paradise will also be smart to purchase now while their currency is strong. Had a Euro-buyer bought a $300,000 home in March, they would have paid around €236,000. Today Europeans will pay only around €202,000 for the same home – saving €34,000 (or $50,660).

Views from Atenas home for sale

Although real estate prices have remained stable in Costa Rica, some sellers are more motivated than they were a year ago. Incidentally, this heightened seller motivation coupled with the strength of foreign currencies has made this autumn and excellent time to acquire Costa Rica real estate assets.

Whether you are involved in a traditional urbanization, or are planning a sustainable community, finding water before spending money on other infrastructure is essential. Lately, we have heard of too many developments that either have left this important detail for last, or have hired local hydro geologists who may not have the best equipment for guaranteeing proper water source location. The following is from Ferdiand Metz whose company, The Water Prospector, represents the best to be found in Costa Rica. Not only will his company find the water source, they will pinpoint the exact depth, saving time and money spent on errant drilling. Remember, many drilling companies will not encourage such accuracy, as it behooves them to say, “Let’s try another 25 meters,” padding their bill.

By Ferdinand Metz

Water is a critical necessity for any development project anywhere in the world. Whether you are supporting one house or one thousand homes, you still need to have a source of fresh potable water that will meet the projects needs. Many projects in Costa Rica are in areas not supported by AYA (the Costa Rican Municipal Water Agency). Even if you are in an area that AYA covers, your project may not be supported by AYA. They are already running at maximum capacity in much of the country. Therefore, you have to find your own supply of fresh water, which will have to be a water well.

Even with Costa Rica’s abundant rainfall, ground water is difficult to find. Costa Rica is mostly a hard rock volcanic region. Therefore, the only place to find sufficient ground water is in aquifers also known as water bearing fracture zones. These zones are impossible to site from the surface. Many drillers and local geologists will try to access the surface topography and make an educated guess of were to drill. This method requires a lot of luck. The other option is a well witcher also known as a dowser or diviner. This is also a very risky method and statistically proven to be less than 15% accurate. The Water Prospector (WP) conducts geophysical surveys using state-of-the-art technology. We have been refining our methods for years in the toughest regions of the world. We are based in southern California and have been conducting successful surveys in the deserts of California for many years. Ron Barto, a WP partner, has been a licensed geologist for over 30 years, working primarily in the western United States. Prior to becoming a geologist, 10 years ago I was an electronics engineer; this has been a very useful tool in working with and refining our technology.

Our primary service is referred to as a Low Frequency Fracture Survey. We conduct a survey across a property in several different locations. By taking progressive readings on each scan line, our system creates a visual image of the sub-surface conditions. Our readings are based on identifying the density of the sub-surface materials. This allows us to see the rock formations, soils and, most importantly, the water-bearing fracture zones. We have the ability to not only detect the location of these fractures, but also to pinpoint the best target area for the driller, resulting in the maximum yield for our clients. Many fractures will have a deep end and a shallow end. However, finding the fracture zone is not enough. We pinpoint the deep end of the fracture or the area that has the most porosity. Either way these points will have the greatest volume of water flowing through them. At times, even a few feet can make the difference between a successful well and a low-producing well. We have found that on any given property in Costa Rica, less than 8% of the property can produce water. That means you have a 92% chance of drilling a dry hole. Property location also requires a bit of luck. If you have a smaller lot (1 hectare, for example), you may have water-bearing fractures in your area, but you have to be sure that one of them travels through your property. Since fracture zones are often sporadic, your property could be a victim of bad luck, which is another critical reason to conduct a survey during your due diligence period if possible. When we conduct a survey, our clients receive a detailed report. This report shows all of the targets that were identified during the survey. We rate them from the strongest to the weakest in order to give the clients as much information about each target’s potential. All of the targets that are in the report have the potential to become a successful water well. We also take the client’s needs into consideration during our evaluation process. We will focus on the targets with the greatest potential if we know the client is building 200+ homes, for example.

Our system is susceptible to interference. Electrical interference is the biggest problem. The best time to survey a property is when there is the least amount of interference present. If the land is undeveloped, and there are no electrical power lines present, that is the best time to survey. We can still perform our surveys when there are electrical lines in the area, but it may affect how much of the property can be surveyed. We also ask our clients to remove any old barbed wire cattle fences if possible, as these can also cause unnecessary problems. The best time to conduct our survey is when you are in the buying process. We can survey the land before you buy it. This will give you vital information of the property’s water potential before you commit to purchasing the property. If the survey results are not what you are looking for, then you should keep shopping. If you already own land, then the survey should be done before you start development. Many people make the mistake of developing roads, adding utilities, and grading—then they start to look for water. One problem is the interference that is created; the other is that we may find the best targets in areas that are already designated for other purposes due to their plans. Find the water first, and then design your development. If you have already started development we can still help, but it will be more difficult and we may be more limited on what we can provide.

We cannot guarantee the amount of water in our targeted results. Anyone who claims they can is not being honest. The technology used to detect the amount of water present in a target does not exist yet. We have an 80% success rate in the deserts of California, and an even higher rate in areas with greater rainfall such as Costa Rica. Our reports are designed to inform both the property owner and the driller. They can be reviewed by a Costa Rican geologist to help inform him or her of what conditions are present. We are the only company in Costa Rica which offers and specializes in geophysical ground water surveys. We are also the only company that offers this type of service and technology on an affordable, cost-effective level. In the United States, our main focus is on individual homebuilders. There are plenty of large geological firms that only offer this type of technology to big developers, or municipal jobs. Although we are well equipped to handle large development jobs as well, we have always targeted our services to individuals, as the prices these larger firms charge are cost prohibitive to them; and they still need to find the best water possible.

Above all: avoid a dry hole. Dry holes are very expensive—usually half the cost of a successful hole. Our survey rates start at $800.00, which is based on a 1-hectare survey in the central valley. We cover the entire country and any surveys that are outside the central valley we charge an additional fee for necessary travel and lodging. Currently, well drilling is $150 dollars per meter; and wells can easily reach depths of 100 meters or more. Our surveys are a fraction of that. If you are going to invest into a well, or a development that depends on water, you should do everything in your power to increase your odds of success.