So how do you go about it? Reliance on a real estate agent’s home inspector is not necessarily a right or wrong decision. Many agents endorse only the best inspectors, while others recommend those with lesser qualifications. Your job is to do your due diligence to guard your own financial interests.

Rather than reject an inspector outright, simply because the referral was made by an agent, you should review the credentials of several home inspectors, including the one suggested by your agent. Then hire the person you feel would represent your interest, with the most experience and the best reputation for thoroughness. Remember no house is totally free of defects. Even the most well-constructed, brand-new home has conditions that warrant correction. In an old home, the suggestion that there is “nothing wrong” is a challenge to ones common sense.

Home inspectors, unless they are also licensed structural engineers, are not qualified to assess structural integrity. Without an engineering degree, an inspector may say that no evidence of foundation damage or building settlement was observed, but definite statements regarding structural soundness are out of bounds for most home inspectors.

As for the two-prong electrical outlets, suicide showers, improperly installed roofs, no grease traps in their kitchens, mold and other pest infestation that are typical in most homes here, they can identify these items for you with sound recommendations to correct them in terms of time and cost. Ungrounded outlets are potentially unsafe. Home inspectors should point these out as items that warrant future upgrade. They know the standards and also know the way the locals build. They also know the building materials the locals use, good and bad.

So what is it you can expect from a home inspector? When considering the purchase of a new house, apartment or condominium in Costa Rica you want to make sure that all building materials and installation procedures have been 100% completed, and all mechanical and electrical installations are functioning correctly, and in accordance with local building codes, prior to closing.

Over the years I have been able to develop a strategy to help get me out of the low periods quicker.

I first try to determine why am I feeling this way and I then try to embrace this low period knowing that this too will pass. After the evaluation, I spring into action. I get doing something – knowing the longer I stay in the present the worst I will be. Bad vibes have a strong tendency of feeding on itself.

Being a realtor, I simply get out and connect with people, nose to nose, toes to toes. I also get on the phone make some calls and drive around the neighborhood. These actions are an incredible booster for building up my confidence and self worth.

Therefore the next time, instead of feeling down for long periods of time, get out and do something. Your spirit will immediately pick up.

Fractional Ownership real estate continues its relentless expansion around the world’s most desirable property markets. It has been around a long time, especially in the USA and Canada where it is a multi-billion dollar industry, but most people in Costa Rica are just becoming familiar with this approach to buying and owning property. It is a very simple and cost effective way of owning a second home without all the hassle and cost of running and maintaining it.

Now you can realize your dreams of owning a pied-a-terre in Costa Rica, your condo on the Pacific Beach or your fabulous view property in the Valley.  Buying a fantastic, renovated, fully furnished beach house with a swimming pool and steps to the Beach is out of most people’s reach but buying just a few weeks in that property suddenly makes it much more accessible!

Fractional Ownership makes intelligent investment sense since it matches usage with cost and provides a smart option for second home ownership.   It is the difference between whole ownership, with its sole responsibility and full exclusive use, and the commonly thought of time-share, where most often, you purchase “vacation time” in a resort, (usually about two-weeks) not in the real-estate itself. And just as savvy investors continue to buy stocks in the global market to balance and strengthen their portfolios, Buyers can now invest in properties that are a strong value in the global real estate world.

Image of a Fractional Ownership Condo in Jaco

How does fractional ownership differ from time shares?

Both the arrangements are known historically as timeshares, and the arrangements now referred to as fractional ownership, fall within the legal definition of a “timeshare” in most U.S. States and Canada. From a strictly legal standpoint, the term “timeshare” refers to any arrangement under which a group of people share use of a property based on time, regardless of whether they own the property and regardless of whether a management company or developer is involved in organizing or operating the property. But from a practical standpoint, there are significant differences between most of the arrangements historically referred to as “timeshares”, and most modern vacation property referred to as “fractional ownership arrangements”.

Put simply, the meaningful difference is the extent of ownership and control given the users of the Property. Modern fractional ownership almost always involves direct ownership, meaning that each user has a deeded interest, and this usually means greater owner control. Some often used phrases to describe fractional ownership are ‘multiple parties owning an asset’ or ‘shared ownership of an asset in perpetuity’. This differs from ‘time share’ in that the asset is actually owned by you, rather than having just a right to use time in a development for a limited period. You have the right to sell or gift your share in a fractional ownership development and it could appreciate over time. You are free to set a sales price based on market conditions. The management and maintenance are provided for you.

Not only is fractional ownership an idea whose time has come; because of its economic value, but also very importantly it is for the EXPERIENCE it allows an owner to have by living and connecting more deeply with the lifestyle and culture of Costa Rica.

Image of a Fractional Ownership Project in Tamarindo

A Lifestyle Asset You Can Buy and Sell:

Industry experts’ opinion that Fractional Ownership “satisfies a market niche at a lower price point than whole ownership, within the real estate market.” You own a share of the property not just usage rights of properties. And just as savvy investors are buying stocks in the global market to balance and strengthen their portfolios, Buyers can now invest in properties that are a strong value in the global real estate world. There are a number of ways of structuring a fractional ownership development; one method is to have a Costa Rica based company own the property. There are 52 shares corresponding to the number of weeks available. Clients can buy as many shares as they wish and time will then be allocated in the property to correspond to the shares purchased.  In simple terms ‘the company owns the property, the shareholders own the company’. By structuring it this way you are able to avoid the normal legal and tax issues associated with purchasing a property in Costa Rica.

To ensure that all owners get equal access and use of the properties throughout the years of ownership there is a Rotating Calendar (RC). This calendar will set your fixed weeks and move your floating weeks each year so that you will enjoy the seasons or it will provide you with rental income which gives you an ROI.  This is the fairest way of assigning weeks and the starting point will be allocated on a first come first served basis. Two weeks of the year will be held in ownership by the developing company for maintenance purposes and where possible to assist owners to swap weeks.

With fractional ownership you have the usage rights for 30 days or more each year, pay for only your share of the operating costs, own the real estate and stand to gain from the appreciation. You can sell, will, or gift your share of the property when you want. You are free to set a sales price based on market conditions. The management and maintenance are provided for you.

The Palms Fractional Ownership in Flamingo

Fractional Real Estate Glossary

Many vacation fractional ownership properties will offer a variety of usage calendars and models. The Fixed usage is defined as time that is purchased and permanently assigned to you. Other terms you will encounter Floating Weeks, Reservation Agreement, Private Co-ownership, One-off Developer, Condo-Hotel, Management/Maintenance Company, On site Owners Storage Units, Departure Fees, Maids Fees, Mixed-use development, Occupancy rate, Space Available to name a few.

The properties are usually fully furnished to a very high standard, as you would your own home, they will not look like holiday rentals. The aim is to attract an affluent customer, people who are seeking a lifestyle for a vacation home and with the fractional means to make the purchase or aspirational customers who want to share in something they cannot buy outright. They can afford a fractional but now really do have to evaluate it financially. These are the ones sitting on the sidelines today watching and waiting for the economy to change.

Costa Rica along with this form of ownership is set to explode, however not all developers understand and can provide for this niche market, but they are aware of the need to appeal to customers. As property values plummet, fractional ownership offers developers and consumers a breath of fresh air. Consumers get real value, and developers are able to appeal to a wider audience, making the whole package affordable and profitable for all parties. Our clients come to us for the same reason, they need more buyers. The old adage of ‘build it and they will come’ does not happen in fractional ownership, it revolves around a more complex marketing environment. However, from an Owners perspective, all you have to do is:
Arrive, Indulge and Relax – Brilliant.
WELCOME HOME!

International Living Postcards—your daily escape
Saturday, Aug. 7, 2010

Dear International Living Reader,

Janet is one of our favorite readers. Ever since her son moved to Costa Rica, she’s been visiting him for longer and longer…making plans for her own Costa Rica adventure…and keeping us updated on her progress.

When we read a story like the one she sent in below, it’s obvious how much she loves the country.

Eoin Bassett
Managing Editor, IL Magazine

Costa Rica: The People Make the Place

By Janet Grosshandler

“Nemo,” the bright orange 1978 Land Rover my son Jeff purchased for his months in Costa Rica, had broken down again. The rutted, dirt roads here take their toll on cars and trucks, and Nemo was having a very bad week. It was also the time I had just arrived from the States.

–Recommended By IL–

Costa Ballena: Costa Rica’s Affordable Frontier

Right now, while this place is still under the radar, you can buy a gorgeous two-bedroom home on a large and perfectly landscaped riverfront lot for $99,000… or a three-quarter-acre lot for just $23,000. You can have a magnificent view and build your dream home of your own design for less than the cost of a starter house back home.

This was our first trip out after Nemo came back from Carlos the mechanic’s “shop”—a tin-roofed fenced-in overhang in his backyard. Jeff’s fluency in “mechanic Spanish” reassured him that it now had new shocks, new tires, and all fluids checked, and was ready to go.

Five minutes along the winding mountain road, Nemo began belching black smoke and the temperature gauge shot to super hot. We pulled over on the tiny shoulder of the dusty two-lane road across from a grocery store. Since it was Sunday, a non-working day for Costa Ricans, several came out from the small store and offered to help.

We were given a ride home and Jeff was left on the side of the road, baking in the hot sun, borrowing someone’s cell phone to call Carlos.

An hour later, Jeff found us at the beach and he was in Carlos’ old SUV. Carlos, whose wife was at English school for the whole day, had his two-year-old son Leonardo in his care, but loaned Jeff the SUV car to come get us. Carlos then offered drive us around for the day because he wanted us to be happy.

And what a beautiful day! Leonardo was shy and sweet. He wasn’t very interested in us, but would glance out the side of his eyes, checking us over. Carlos took us to a Tico section of Conchal beach area, a turquoise, warm bay where we snorkeled and saw many species of tropical fish while he and Leonardo waited patiently at the beach bar/restaurant.

Costa Rican mountains and lush green vegetation surrounded the horseshoe shaped bay. The Tico music wafted from the open dining room, as Sunday was the day to relax and drink beer.

After we emerged from the fabulous snorkeling adventure, I looked around, amazed to see we were the only non-Costa Rican people there. Carlos had taken us to the Bar y Restaurante El Encanto, a local place, giving us a unique, non-tourist experience.

He spoke Spanish to Jeff all day, helping him practice his language skills, while pointing out multitudes of native trees, flowers, and animals. Carlos took us to “off the beaten track” local beaches. We drove the rural dirt roads to and from the beach, pulling over to watch some howler monkeys in the trees. Beautiful birds, armadillos, horses, and cattle lined the roads along the farms. It showed me the “real life” of these friendly, laid back natives of Costa Rica and their lifestyle. Carlos was patient and so helpful in explaining everything to me.

And when Carlos dropped us off at home much later that day, promising he would get the part needed for Nemo mañana, Leonardo waved a shy goodbye.

Costa Rican living has its small challenges, but its people are national treasures who, like Carlos, will stop his day to make yours better.