Posts Tagged ‘Costa Rican real estate’

Once upon a time there was a farmer that sold milk to his neighbors. He lived in a shack on his land where his cattle grazed, close by to a volcano. The area the farmer lived was beautiful, with lush rainforest, a lake and of course the scenic volcano which provided a show of red lava every night.

Arenal Volcano

Over time more and more people came to visit the area but there wasn’t much in the way of accomodations.

One day the milk man decided that his land, with the scenic views of the volcano, would be the perfect place for a hotel. He sold a small section of his land to some gringos for $8 a meter and then went to the bank. The bank was happy to lend him some money for the hotel construction project. And so a millionaire was born.

Today that small section of land he sold is now worth $100 a meter. And the milkman? He is building his third hotel project. Some say La Fortuna is now overbuilt, there is too much inventory of hotel rooms for the demand. The banks, especially with the global credit crunch, are not lending as easily on construction projects.

But the milkman doesn’t care, even a downturn in the economy won’t bother him much at all.

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