Land Banking 101: Profiting In Costa Rica

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There is no doubt about it: buying property in Costa Rica can give you plenty of perks.


Costa Rican residential real estate can be a fun vacation home or a solid investment strategy. Costa Rican commercial real estate can offer you a unique opportunity for financial gain. And Costa Rican land can offer endless profit possibilities.


For those interested in purchasing land, you may have heard about or thought about land banking in this Central American country. Here is a simple guide to understand land banking; it can help you decide whether or not this is the right choice for you in Costa Rica.

What Is Land Banking?

Land banking is the practice of making an investment by buying land you do not necessarily have any current plans for.


Many people may want to invest in property with plans to build, develop, or re-sell within a specific period of time. Land banking, on the other hand, is buying property and holding on to it for the future.


Many times this happens in foreign countries as they are in the process of developing and booming with tourism, or perhaps show signs of having the potential to develop or boom in the future.


People buy the land on the outskirts when it is inexpensive with the concept that the land will give high profits in the future.


Sometimes, land banking companies will reach out to other investors to buy off parts of their original purchase.

Is Land Banking A Scam?

Land banking has the potential to become a scam – especially when land banking companies are making big promises to other investors that they may not ever actually come to fruition.

And even in the scenarios that aren’t necessarily a “scam,” you still run the risk of a bad buy. But with a little patience as infrastructure continues to grow, land banking can be a legitimate tool for profit.

Why You Should Consider Land Banking In Costa Rica

Costa Rica has continued to grow in popularity of the years. It is a waves-haven for surfers, a relaxing oasis for retirees, a peace retreat for yogis, and a fun vacation for the whole family.

As that growth continues, the outskirts of popular cities will need to keep making way for the tourist boom. In no way is Costa Rica done growing. This means that expansion could potentially reach your land-banked property in the future and bring you profit.


When you speak to a local professional who knows about the areas that could be the next Costa Rican hot spot a few years down the road, you can feel more confident in your investment.


If you are interested in land banking or buying property in Costa Rica, contact Richard at Richard@cbtamarindo.com.


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