Atenas Real Estate Market
[Andrew Partain]
How are you, Richard? Good.
It’s been a while, sir.
[Andrew Partain]
It has. It has.
[Richard Bexon]
I’m sure you guys are keeping probably pretty busy up there in Athens.
[Andrew Partain]
We are. We are. This year hasn’t really had a low season, so I can’t complain.
[Richard Bexon]
Awesome. Awesome. Well, Andrew, the first question I’d love to ask is just to get an idea.
I mean, we’ve seen some government shutdowns, but maybe that’s coming to an end, a lot of volatility in the markets. That doesn’t see that it’s going to change either. But I mean, what are you seeing happening in your market at the moment?
[Andrew Partain]
Well, like I just mentioned, I haven’t really seen any slowdown this year. I think with what’s going on in the global investor’s mind, they can see themselves wanting or having to be in either a part-time or full-time home. So they’re thinking of a traditional home, not so much a two-week Airbnb.
They see themselves interacting into the community and having to be part of what’s going on, at least as far as the tennis goes in this little town.
[Richard Bexon]
Yeah. I mean, it’s interesting that you mentioned that just because, again, reports from all of the coastal areas in Costa Rica, things are very quiet at the moment. We’re seeing price reductions.
The demand is just not as heavy.
[Andrew Partain]
You know, I’ve been graced. I’ve been lucky this year. I think the trends, you know, I don’t want to bore you, but let’s go back to the crash of 2008 to the extremes.
I started real estate in 2009. I always start a career right after a crash in that industry. So I started IT recruiting right after the IT crash in the 90s.
And of course, I started real estate right after the real estate crash of 2008. So I started in 2009. And I’ll put it to you this way.
A tennis didn’t crash. We had a correction. When the US, for example, was roaring hot, maybe other areas of Costa Rica paralleled that.
We kind of tick up when things are going downwards. We kind of tick down, but we don’t have those extremes, those extreme high and lows, by the way.
[Richard Bexon]
Do you think that’s the type of buyer that’s investing in tennis, which typically is kind of, you know, and again, maybe I’m stereotyping here, and you can tell me wrong, which is typically an older retired individual rather than like, I’m going to have a vacation home in a tennis.
[Andrew Partain]
No, you’re totally right. What’s nice is the demographics, at least post COVID have changed. Younger couples, more working professionals that can work from home.
Younger families, I think COVID really pushed people to reassess where they want to live in the world, where they want to get stuck in the world. But traditionally, when I first started working here, it was strictly senior citizen. That has really changed.
But I think that’s influenced definitely a cash only market. Primary home market, sophisticated buyers that are not over leveraged. So I think that was the case back during the crash.
And I think with the headwinds that we’re talking about now, we haven’t had a slowdown to be quite frank with you.
[Richard Bexon]
Yeah, well, I mean, that’s great to hear. I mean, I did a podcast last week on the Central Valley, like Santa Anesca Zoo, and they are seeing a little bit of a slowdown. But I think you have a very unique buyer in your area.
And I mean, yeah, it’s just, as you said, cash, usually a little bit more mature, and that individual is looking for a lifestyle.
Atenas Climate and Appeal
[Andrew Partain]
That’s correct. And please stop me if you’ve already heard this stat, but there is the Henley and Partners. I’m sure you’ve seen the million dollar plus attraction to Costa Rica.
It’s still honestly floors me. Costa Rica has 0.8% of the Latin American population, yet we’re seeing the largest amount of million dollar plus attraction and investment coming to Costa Rica, not per capita, but across the board. I had to actually fact check that.
That is the case. So it’s just maybe because I started here, it was just more of a off the beaten path situation. But I can see why Costa Rica is attracting people internationally.
[Richard Bexon]
I mean, I don’t know what Atenas did, but like being known as like one of the best climates in the world, you know, I think it was the number one climate in the world was the tagline and it just stuck, man, but it went everywhere. So when anyone else is like, hey, I’m looking to relocate or live in Costa Rica, Atenas just pops up.
[Andrew Partain]
It, I think it did stick. And, you know, I’m not saying that, I’m not saying it’s not an exaggeration. It can get, it can get hot here in downtown.
We’re kind of in a hole, more building around us, less, less airflow. But honestly, if you leave town and you head in any direction where there’s just hills, maybe two, three minutes into the hills, you start getting the breeze, you head up 10, 15 minutes, you get a whole different micro climate. So there’s something to be said for that.
Atenas and Surrounding Towns
[Richard Bexon]
I mean, how, like, what is your, you know, your area of, of work? I mean, how far does it, does it head over to San Ramon and Gracia? Are you just in Atenas?
I mean, what is your, yeah, your stomping grounds?
[Andrew Partain]
Our, our pond per se is really the Atenas territory. I mean, I will dip out and head into Desmonte, which belongs to Orotina and San Mateo, which San Mateo is very, it’s a very hot spot. That is probably the Atenas of the future, the way it’s growing and designed.
Our sister city, Gracia, I, I work hand in hand with our agents out there and I’ll leave that area to them because it’s a whole different ball game. But, you know, it almost takes an hour to go from one end of Atenas to the far extreme of the other. And people don’t realize it.
They think of Atenas, the little town, but more people live outside of town than right in town.
[Richard Bexon]
It’s weird that we say Atenas, but it’s, it would be Athens if it was in English, of course. That’s correct.
[Andrew Partain]
Exactly, exactly.
Atenas Market Dynamics and Pricing
[Richard Bexon]
I mean, what is, I mean, what is developing the most in the Atenas area? I mean, it’s probably seen a lot of change over the past couple of years, you know, post pandemic, but like, what is, what is selling well? What’s a little bit slower?
Give us an idea of kind of just generally what’s happening in the market.
[Andrew Partain]
Sure. If you were to look at anywhere from a hundred thousand dollar home, which, you know, you don’t get much for a hundred thousand dollars to anywhere from a million plus, I found my stats maybe about four or five years ago, the average price to asking was 400,000 for a nice, you know, US Canadian, your standard three bedroom two bath was 400,000. And the sell price ended up being around 350.
Granted that was three or four years ago. I think the prices have picked up a little bit. So it’s spent a little bit more, but, you know, on the other side of things, it’s still somewhat reasonable, I feel compared to your average market in Florida per se.
[Richard Bexon]
Yeah. A lot of people are looking to make investments and potentially have like an Airbnb and rent it. Is that, is Atenas a good place for it?
What’s your advice for clients if they were just looking for returns?
[Andrew Partain]
You know, I don’t, I don’t want to sugar coat it. Apples for apples, you are going to get more ROI at a Airbnb condo by the beach, just whether you’re talking Guanacaste, Central Pacific, that’s just honestly the case. Not that you can’t aim for at least double digit, 10% ROI.
Can you get 20%? I mean, on the far positive side of things, yes. But that is very rare.
I think what might be more interesting is maybe a long-term rental and using the rule of thumb of halves. And what do I mean by halves? If it’s a $300,000 home, then it’s probably going to generate a rental income of $1,500 a month.
If it’s a $400,000 home, you know, it’s not an exact science, maybe $2,000 a month.
Housing Types and Condos in Atenas
[Richard Bexon]
Yeah. I mean, look, I mean, it’s still not terrible returns.
[Andrew Partain]
No, no. I, you know, look at the stock market. It’s a steady, it’s a steady, it’s a steady income you can count on.
[Richard Bexon]
Yeah. I mean, what is it that you think Atenas is missing? Like what’s the, is there a gap in kind of the market there from something you wish that you had that you knew that would do very well that you don’t have?
[Andrew Partain]
You know, I’ve been asked before, I would say maybe 80, 90% of the people that move here, whether it’s nationals or people that have emigrated to Costa Rica from, from the city, perhaps, or if it’s, if it’s expats, they don’t necessarily want to move to Atenas to be in like a condo shared wall apartment situation. That’s, but there is an exception to the rule. I do have maybe every one, two out of every 10 people, they do want that.
Now we haven’t had that with the exception of literally this week, I took a new condo community listings of an 80 lot condo community that has not existed in Atenas. You still have freestanding single family homes, but we don’t, we haven’t had a true condominium in Atenas. We’ve had what they call residential, which is really just people coming together for the shared infrastructure, shared security, but we haven’t had it.
Now it’s online. Maybe that’ll influence others to develop and head in that direction.
Opportunities for Boutique and 55+ Living
[Richard Bexon]
Do you think that there is an opportunity in the market for a apartment tower? And I’m not talking anything obnoxious. I’m talking, you know, I look at it like this and go, okay, Atenas has great climate, beautiful views.
I mean, a three story, four story double apartment building with shared, you know, pool, et cetera, but also is somewhat kind of, and I’m not saying retirement homie, but like the ability to have lifts and like that you can, there’s not many stairs and maybe there’s a, there’s some like small clinical thing there with like doctors. It’s like light, if that makes sense.
[Andrew Partain]
You know, you did a nice segue into my next idea. I think that is missing. Not only do I feel that’s missing, perhaps it doesn’t have to be too high end, but perhaps the new trend word boutique that is missing.
And I think there is a true market for that. I think because of the nature of being a small country town, the culture hasn’t gone in that direction. However, if we go back to demographics, my market is not getting any younger from a perspective of people that have already been here for 20, 30 years and they don’t, they don’t want to leave Atenas.
So the segue would probably be not only is that missing, but I, I feel that maybe not only 55 plus communities are missing, but, but assisted living, I think could really, could really be a unique business opportunity in our area. Adjacent La Garita, they have these assisted living communities, but I think, I think the idea you’re coming up with is probably headed in a different direction or it’s more place you want to, a place you want to live in. Let’s just put it that way.
[Richard Bexon]
Yeah. I mean, rather than it being kind of like, I don’t know, assisted, it’s kind of service departments, if that makes sense. That makes total sense.
Beautiful views. There are common areas if you want to do it. I mean, I don’t know.
The masseuse comes in once or twice a week. There’s water aerobics if you want it. It’s just, it’s a community.
It’s a small boutique community where it’s not that like, Hey, you know, I mean, if you wanted to have a living nurse, you could do, but like, that’s not really the idea. It’s kind of 65 to 75 of like, I’m not in that. Yeah.
Probably something around there.
[Andrew Partain]
I think you’re giving somebody a unique business opportunity.
[Richard Bexon]
I think there’s a huge opportunity here in Costa Rica for that Andrew. Because again, by Escazú, by the toll there, there’s one and that’s slammed like, and healthcare is so expensive in the Western world, you know, assisted living. So here in Costa Rica, as we know that it can be a lot more affordable and in areas like Atenas where like literally you could bus people into the town.
They can go for coffee still. And like this, this there’s that community vibe of expats, etc.
[Andrew Partain]
That sense of community. Exactly. Right.
I think that’s, that, that would make it a, that would make it a, an attractive, an idea. And, and it tends to be with a lot of, a lot of the residents here in Atenas, at some point, they’re going to get older. They don’t want to leave.
We all get there. Some of them may unfortunately lose their partners, but they don’t want to give up their friends. They don’t want to give up their social life and they don’t want to move back to anywhere else.
Lifestyle, Pace, and Services
[Richard Bexon]
Well, it’s expensive as well. I mean, exactly.
[Andrew Partain]
To add to the pain.
[Richard Bexon]
Yeah. I mean, yeah, it’s, it’s difficult to go back once you’ve come here and you’ve become accustomed to all the services and everything that you have and the freedom to go back. You know, I mean, there is a, you know, I mean, I think what people sometimes miss is like the Amazon, I click a button and something turns up, but there’s something beautiful about not having that as well.
[Andrew Partain]
I totally agree. There is something to be said about, and it’s funny to say, there’s something to be said about waiting. Yes.
There’s something to be said about not getting things. Yeah, exactly. Exactly.
That’s the best part.
Current Listings and Investment Ideas
[Richard Bexon]
Well, Andrew, I mean, what listings do you have that excite you and why?
[Andrew Partain]
So to be quite frank, we don’t get quote unquote fire sales all the time.
[Richard Bexon]
Yep.
[Andrew Partain]
But they do, they do come out periodically. What I have on the market at this time is a 275,000 large two bedroom, two bath home on a pretty sizable 13,000 meters, if I’m not mistaken, which is a little bit over four acres. Not all usable because we live like billy goats here in the hills.
Granted, it is a fixer upper, but I do have a valuation of when things were in a very good running condition of 425. So that is a prime example of something that you don’t see all the time, but it is on the market at this time.
[Richard Bexon]
Well, please send me that link and I’ll include it in the description down here just in case anybody’s interested. Because again, I mean, 275,000 doesn’t typically get you much in Costa Rica, as you know. So this sounds like it could be a good deal, especially as a fixer upper.
[Andrew Partain]
Much appreciated. I’ll get that out to you.
Investing $500K in Costa Rica
[Richard Bexon]
Not at all. Well, my last question for you, Andrew, is I’ve kept you kind of long enough, which I love to ask everyone. If you inherited $500,000 and you had to invest it into a business or real estate in Costa Rica, what would you invest it in and why?
[Andrew Partain]
Directly related, and I’ve been asked many times, and it’s just funny, right in this little town, it does not exist. But I think an irrigation and sprinkler system supply company would actually take off. It would serve the needs of a lot of communities here.
I just showed what we call a spec home a couple of days ago. Beautiful, latest finishes, very quality done product. But the client from the States said, you guys don’t do any ground sprinklers here.
And I said, I said, no, we don’t. Usually, if somebody wants it, they’ll buy the home, pay somebody, dig the ditches and set up the system. But I think somebody would have our best run pool supply and service company was put together by somebody who moved here from Canada.
So somebody that needs a niche business idea, I think that’s one of them. Not to take up too much of your time, I think the other idea, I hate to have to lean back on it. I think I would probably lean on this 55 plus community idea, whether it’s a small boutique, rental community, but common van, a caretaker with experience and assisting, bilingual.
I truly think there’s a little niche there for it.
[Richard Bexon]
Yeah, I agree. I was chatting with a friend of mine, he’s a very good friend. We’re looking to buy a big piece of land at the moment, because we’re like, okay, let’s plan for our retirement in 25 years.
But it’s like, let’s start now and go little by little. What do we see retirement looking like and then building the community to be that, so that we actually get to end up living in it, if that makes sense? That makes total sense.
And that’s through those different phases of like, okay, having some condos style there, some townhomes, also having their own lots, more estate size lots, maybe not that big, but 1.2 acres, it’s not too much, where you can transition through the community, if that makes sense, as you get a little bit older.
[Andrew Partain]
That makes total sense. I think you do find yourselves in certain communities where there’s such a hodgepodge that for lack of, for better or worse, some people do not want to live right next to children, per se. And I hate to say that, but that is the true reality of the situation.
So I think if you could have that bit of control, I think that somebody could capitalize on that. And I think in my market specifically, not in, let’s say, Grecia market, where you have a beautiful common area with the pool and the clubhouse, but I think there is something to say for a community to just have that would probably have some back wind and getting it off the ground.
[Richard Bexon]
Yeah. Well, Andrew, this has been an absolute pleasure to have you on the podcast, kind of sharing your knowledge and also kind of giving us an update of what’s happening in the market. I’ll include all of your contact details in the description, just in case anyone wants to chat with you, but very much appreciate you taking the time to join us.
[Andrew Partain]
I appreciate all your time. I really am grateful for this. No worries.
Have a good day. Very good to talk to you. Bye.
