Welcome back to our blog! This week’s post is going to be all about pre-construction, and I know that if you’ve been on our mailing list for a while now, you may be sick of hearing about it.

BUT, the majority of our prospective clients are looking for housing under $300,000 US, and in a town the size of Jaco, the options can be limited, which makes pre construction a really appealing alternative to purchasing a turnkey property.

To start off, let’s talk about the benefits of buying this type of property… so if it’s not for you, you know right away and you don’t have to read the whole post. (I promise, my feelings won’t be hurt.)

Why Buy Pre Construction?

The idea of buying something that you can’t see (because it doesn’t exist yet) can be a little scary. In essence you are taking a leap of faith and trusting that the development company will do what they say they will, and at a standard of quality that you feel merits the price you paid. 

Believe me, we understand why people have reservations about it, and yes, there are companies that are a little shady in every country, so it's important to find a realtor you can trust. When you do, you will have an inside track on the market, and someone who can verify that the company is legit, has purchased the property, and applied for the permits… before you commit to a purchase.

[** NOTE: If your real estate agent doesn’t want to discuss purchasing a pre construction, it could be a red flag. In order to legally receive their commission payment from an escrow company, a realtor MUST be registered with Hacienda ( The Costa Rica tax agency). Ask them if they are registered before you continue, they may be working ‘under the table’ and that can severely limit YOUR options]

Okay… moving right along…

There are a few very appealing things that can only happen when you purchase a property that is not yet built.

• The price of the property will never be lower than it is when you buy pre construction. Why? Builders offer a lower price as a sort of incentive to get the ball rolling. They typically will not break ground until they have sold enough units to bankroll the materials and labour for the infrastructure which must be completed first.
• So many options! The sooner you get involved with the development, the more available units you will be able to choose from. This can help if you have your heart set on a sunset view, need a certain size, or if you prefer a 3 bedroom unit (the most popular size).
• Customize your unit! If you have ever built a home, you know how much fun it can be to choose cabinets and finishes and flooring. Most pre construction units will offer a limited number of design options, whereas turnkey homes can require a remodel in order to make it your own.
• Shiny and New! Buying new construction ensures that everything is fresh, and clean as well as lacking in wear and tear. It also ensures that the builder used the newest and most up-to-date building codes. 
• State of the Art Technology! Another great feature in new construction is that many builders, especially in Costa Rica, are using sustainable and eco-friendly practices. This can mean installing technology to maximize energy efficiency and reduce waste. Check for energy efficient appliances, and smart home options.
• Payment Options! Depending on what stage the development is in when you sign up, you can have up a zero interest period until closing to pay for your new home or condo. Many developers offer more than one payment option, although most don’t expect you to make the last payment until closing- which is when the home is finished. Some offer discounts for early payment.
• Many developers will offer incentives such as appliance packages, or upgrades early in the selling process to get the ball rolling. Sales prices rise as inventory decreases.

As you can see, there are lots of great reasons to take the leap and buy pre construction, so what is the downside you might ask?

And the answer to that depends on you. If you can’t or prefer not to wait, then pre construction may not be for you. Obviously, if the home or condo isn’t built yet, you won’t be able to take possession right away, and this can be frustrating for people who really want to kick up their heels and drink mojitos by the pool. 

Depending on what stage the development is in when you sign up, construction can take a year or more.

How to Buy Pre Construction

Now that you know a bit more about the benefits, let's talk about the process. Every development will be slightly different in how they approach the process, and what kind of pay schedule they have set up, so if you decide to buy, let us know which one you are interested in and we can be more specific. For now, here is a general explanation of what to expect.

1.     If construction is underway, the developer may have an office or even model homes on site that you can visit to supplement the website. 

If construction has not advanced to that level, information will be provided via a website, and the website will have artist renderings of the proposed layout of the property, the style and locations of the buildings, and the individual layout of the condos or homes so you can get a good idea of what to expect. (Isn’t technology amazing?!) 

This allows you to browse through and get a feel for each development but may not answer all of your questions.

2.     Before you narrow down your choices, it’s a good idea, as I mentioned before, to contact a realtor. We hope you will choose us, but even if you don’t- talking to a realtor who has experience with the developments will give you an unbiased opinion of the developer’s reputation, the location of the project, and the value in comparison to its competition. They should also be able to tell you what you can expect in rental fees if you are planning to use the unit to generate income. If the development does have a sales office or model home, the realtor will be able to set up an appointment to meet the developer and tour the lot (assuming you are in Jaco at the time).

3.     Once you have chosen a favourite, it is time to reserve your unit. Your realtor will have access to an up-to-date list of the available units and the prices of each (prices tend to increase as you reach higher floors due to the popularity of pretty views). In some cases, they will be able to reserve your chosen spot for you. In some, the developer has digitized the entire process and you will need to log in to the website and follow their directions.

** Reserving your unit does not commit you to purchase. In most cases, you can reserve your space for $1,000-$10,000 and you have a set period of time to do your due diligence before you must make your final decision.   These deposits are refundable during this period only.  

As part of the due diligence, you will be given a copy of the contract which you can take to your lawyer and have them look through. 

4.     If you decide to go ahead with the purchase, you will be expected to sign a contract at the end of the set due diligence period. At this time you will be expected to make your first payment. Once that is done you are committed to your purchase, and the deposit will not be refunded.

*Most developers have several payment schedule options. If you are able to pay more upfront, then you will normally get a discounted price overall. One of the options generally includes a few equal payments to be collected when certain construction goals have been reached. In all cases, the final payment is due at closing.

*This money will be placed into an escrow account and released to the builder as the set construction goals are met, a procedure that has been put into place to protect the buyers.

5.     You will need to work with the developer, your lawyer and the escrow company to set up the payments, which will require providing banking information, and proof of the origin of the money that you will use, (this is due to the Money Laundering Laws that are in place).

6.     During the contract phase, you may be asked to choose finishes. Most of the developers have onsite designers to help with your choice.

7.     When your unit is complete and ready for occupation, a closing date will be set. At this time you will be asked to accept your unit. 

We highly recommend coming down in person so that you can do a walk through. This allows you to inform the builder of any issues that you see before signing off on the purchase. Once the walkthrough is complete and you have signed off, the final payment will be due and the ownership of the property- known as title- will be transferred into your name. 

8.     This is when the fun begins and you can start buying furnishings and enjoying mojitos on the deck while the sun goes down… but I should also mention that many developers also offer a furnishing package to make your life easier. If you have chosen to purchase a package, this part of the process can be really quick, you just set up a time (to let the delivery men in) and then watch as they bring in all of your items, unpack them, and set them up. Easy Peasy!

Pre Construction Developments Currently Available

New developments pop up occasionally, and when they do, I will look into them to make sure they are legitimate and then add them to the list, but for now here are the main developments that we have been working with.

Selva Coral

Selva Coral is the development that is furthest along in the building process, so we have already mentioned it in several emails. At the current time, there are only a few condo units left, and the standalone homes have all been sold. Phase 2 is set to begin sometime next year however, so this is still a great option for anyone looking to buy.

The developer is EPA, which is the Costa Rican equivalent to Home Depot, which means they are rock solid in terms of reliability and quality of construction. It is located near the south end of Jaco on Avenida Pastor Diaz not far from the South Beach Resort, less than a block from the beach. They offer quite a bit of flexibility in both payment schedules, finished, and even floor plans, as well as a wide range of amenities.

(This image is property of Selva Coral)

They are also planning a retail area with a small EPA store located at the back of the property (on highway 34) and will offer owners a discount on their purchases.

Amenities will include covered parking, fitness center, clubhouse, co-working area, kids indoor and outdoor play areas, dog park, walking trails, bicycle parking, BBQ area and pool- all of which will have wifi access.

Pacific Point

This is the only development located within steps of Jaco Beach, which explains why there are only a handful of units left. They will offer the best return on investment for people looking for an income property because they are the only new construction units on the beach (at least since we’ve been here).

(This image is property of pacific Point)

The condos at Pacific Point are located in a 12 floor tower with 7 units per floor with the exception of the first floor which will have 3 condos and 4 commercial units. Amenities will include beach access, covered parking, a fitness center and multiple pools.(This image is property of Pacific Point)

Mar A Mar

Mar A Mar stands out amongst the other developments that I have mentioned because of its location. In most cases, the higher floor units are more desirable, and therefore more expensive because they provide a better view. At Mar A Mar, you  can still choose a higher floor if you wish- but the fact that it is being built atop the highest hill in the area means that every unit will have a million dollar view regardless.

This development is not located in Jaco, it is 10-15 minutes north of Jaco beside the Villa Caletas Resort, and will offer beach access via a pathway for those who prefer sand. The units are designed to include 4 corner units per floor to make the most of the views, for a total of 64 2 or 3 bedroom units. There will be 4 2-story penthouses that include a rooftop terrace, jacuzzi, and a flex-room that can be used as a third bedroom.

(this image is property of Mar A Mar)

Amenities will include a hammock rancho, yoga area, playground, pool, suntanning area, BBQ area, co-work space, parking, 2 jacuzzis, and a fitness center. Mar A Mar is set up so that you can make your entire purchase online.

Torres Del Mar

Located in front of the Ciudad Del Mar Development and designed by the same developer, Torres Del Mar will include 2 towers with 8 floors each, and will have 64 2 bedroom units, and 8 1 bedroom units with lofts.

(This image is property of Torres Del Mar)

Amenities will include a playground, resort-style pool with rancho, rooftop lounge, fitness center, and nature trails, all within a block of Jaco Beach. It is located on Avenida Pastor Diaz just down the road from Selva Coral.(This image is property of Torres Del Mar)

Altos de Bejuco

Located about 45 minutes south of Jaco Beach in Esterillos, Altos de Bejuco is a unique development made up of individual Costa Rican style homes nestled in a jungle setting with walking trails and access to the upcoming Bejuco Beach Club located on Bejuco Beach less than 5 minutes from the development.

These homes range in size from studio to 3 bedrooms, have modern styling with large windows, high ceilings and are designed to provide comfortable indoor/outdoor living in a beautiful setting surrounded by nature.

To learn more about Altos de Bejuco, just drop us a line anytime.

Getting in on the Ground Floor

The bottom line here is that buying a pre construction home is kind of like buying shares in an up and coming business before they are well known. It’s a way of ‘getting in on the ground floor”, and it allows you to buy your home or condo with the lowest possible investment. That makes it a great option for people with a limited budget and a flexible time frame. I know it can be scary to put money down on something you can’t see or touch, but the trade-off is well worth it, as long as you work with a developer who is reputable and experienced, and that’s where we come in. 

We have plenty of experience dealing with these developers, we know the ins and outs of each, and we can help you navigate the process, act as a go-between where necessary, and answer any questions you have along the way. That’s what we do.

So feel free to ask us about any of these amazing properties, but don’t take too long because it is standard procedure for the prices to go up as the construction progresses through certain stages. The sooner you get your unit reserved, the more inherent profit you will make.

I hope this has been helpful!

Until next time, pura vida!