Investing Real Estate FAQs – Flipping Properties in Costa Rica Successfully- NOV 29, 2018
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Investing Real Estate FAQs – Flipping Properties in Costa Rica Successfully:
Do I have to pay any taxes when I do property flipping?
Proposed Costa Rican tax reforms, currently at voting stage, include a new requirement for any person or company selling houses, lots, commercial buildings or software to pay a 15 percent capital gains tax. For example, if you buy a house for $100,000 and sell it within a year for $150,000 the tax will be 15 percent of $50,000, or $7,500.
According to this proposed plan, the tax does not apply to people who sell the house where they live, an inheritance or lottery profits.
What would be an average timeline for a flipping process on a house in Guanacaste in current market situations?
Market analysis: One month Depending how well you know the area. Take at least a month to explore the province. Learn where all services are and what the nicest towns are. In general, get to know how things work!
Picking and buying the right property: One to two months Negotiations, due diligence research and closings could make this stage longer. If this happens stay ahead of the game and start building your A team for remodeling or construction.
Remodeling and selling: Eight to 14 months in current market situations. This timeline definitely depends on your team as well as the upgrades you choose for the home. If you can complete this process in 12 months and cash out a 30 percent profit, then you have got it down!
Which houses are easier to flip?
Flipping is like any other business in the world. If you know who your audience and target customer is, the flip turnaround time will be shorter. For example, if your target customer is a family of four from California, then this should pretty much do the trick: fix up a three-bedroom home with a large master bath and bedroom, plus two smaller rooms with individual private baths, a large living area with a spacious kitchen and a beautiful pool with open spaces near a good surf break. But don’t stop there! Going further with smart lighting, hydroponic gardens on the property and other cool amenities will set you apart from the rest.
How can NATIVU and Howler Magazine help me get started flipping properties in Costa Rica?
We provide a 360-degree service. Our investment team will help you find good flipping opportunities in the area, advising you and creating the financial scenarios in order to pick the right property according to your plan and needs. We will help you budget and start the remodeling process through our trusted partners. After construction is finished we will market your property digitally, looking for a quick turnaround during negotiations and closings with clients. Howler exposure can be invaluable at any stage.
Want more information about Real Estate Investing in Costa Rica?
contact Fabricio Riggioni, Telephone: +1 506 8301-0663 or email: firstname.lastname@example.org
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