Land Banking 101: Profiting In Costa Rica

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.

Get in touch with us today

While my computer is still running here, I'd like to take the opportunity to thank you for your help during our stay.
When we first came to your office, we were in dire straights and in desperate need of assistance. Andrea was extremely compassionate, spoke with candor, and had a "can do attitude" that was of immense help.
In addition, Andrea has put us in contact with Steve, with whom we are working, preparing to view a little property that might be just what we are looking for at this particular time.
In addition, having gotten to know Andrea personally as well as professionally has been our great pleasure. I wanted to let you know what a tremendous asset she is to your company. She is a great treasure -- a one in a million.

Tina Parker, Costa Rica

We had so much fun at Buena Vista. Thanks for arranging that with Memo.
I also want to say many thanks for all that you have done. We have enjoyed Costa Rica and I have found you so helpful with everything and a pleasure to deal with that it was a very stress free vacation. When I do come back here hopefully you will still be doing what what you do.
Our last couple of days will be spent enjoying the sunshine and eating at great restaurants. Sincerely,

Tara, Kevin and Roy., Costa Rica

Laurel and Tony,
The both of you were fantastic with us throughout the property search and purchase process. As we had mentioned, two other attempts to find thorough, attentive, responsive agents to work with in Tamarindo were failures. I expect that we are more work to deal with than many others as we asked a lot of thorough and analytical questions and expected responses to all of them. You two never failed to deliver. The organization and execution of our condo shopping trip in January was excellent and the fact that you two devoted 2 full days to us, around our schedule, to get this deal done was key to our success. The selection of properties that Laurel planned out, including a few places above and below our target zone helped us to refine our interests. We truly appreciated your interest in our success. This could easily have been very stressful for us, and yet, it wasn’t. Thank you very much.
As a side note, when we walked into the Coldwell Banker office randomly with no appointment in November had we not found your office staff patient and accommodating from the start we would have simply walked on to the next agency. Your staff deserves special mention for getting us interested in the agency to begin with.
We will give you some advance notice before we make our first trip down so that we can plan to get together for lunch or dinner. We are tentatively planning on somewhere in the last 2 weeks of May, as soon as our son gets out of school for the summer.

Dan Batliner, Costa Rica

We are- UNHAPPILY- home safe. Would much rather be back in Tamarindo. THANK YOU FOR EVERYTHING you did to make our stay a joy ! We look very much forward to seeing you on our next trip to Costa Rica. PURA VIDA !

Steve Perry, Costa Rica

Land Banking 101: Profiting In Costa Rica