Finca di Pacifico Dos
The sales price was increased at the end of last year from €5.20 to €5.80 per m2, a price increase of nearly 12% within 6 months. Voorboom Vastgoed, Jos Van Veen the developer's own company will retain a part of the property for project development. A topographer is busy surveying the road scheme and on the 14 January 2008, the widening and improvement of the existing roads began. The pre-sale prices shall finished on that date and as of the 1st of April 2008, the price will rise to €6.45 per m/2. There is currently approximately 40% of this property still for sale.
The sales price was increased at the end of last year from €5.20 to €5.80 per m2, a price increase of nearly 12% within 6 months. Voorboom Vastgoed, Jos Van Veen the developer's own company will retain a part of the property for project development. A topographer is busy surveying the road scheme and on the 14 January 2008, the widening and improvement of the existing roads began. The pre-sale prices shall finished on that date and as of the 1st of April 2008, the price will rise to €6.45 per m/2. There is currently approximately 40% of this property still for sale.
Maintenance and thinning
In recent months a team of 46 employees carried out maintenance work on this plantation. From the point of view of forestry, the plantation is in an excellent state. The maintenance costs in 2007 are calculated into your purchase price, but you will have to bear these costs yourself in 2008. We selected a professional forestry company, Mantenimiento Forestales s.a. (translated: Forest Maintenance s.a.), managed by Humberto Camareno. Mantenimiento Forestales s.a. shall shortly send you an invoice for maintenance. Maintenance costs are around 61.00 USD per 1,000 m/2. You are obliged to maintain your parcel, but you are free to choose your maintenance company. However, if a company is hired for one or several parcels, your maintenance costs will ultimately be greater.
In recent months a team of 46 employees carried out maintenance work on this plantation. From the point of view of forestry, the plantation is in an excellent state. The maintenance costs in 2007 are calculated into your purchase price, but you will have to bear these costs yourself in 2008. We selected a professional forestry company, Mantenimiento Forestales s.a. (translated: Forest Maintenance s.a.), managed by Humberto Camareno. Mantenimiento Forestales s.a. shall shortly send you an invoice for maintenance. Maintenance costs are around 61.00 USD per 1,000 m/2. You are obliged to maintain your parcel, but you are free to choose your maintenance company. However, if a company is hired for one or several parcels, your maintenance costs will ultimately be greater.
Forest thinning
Just before we bought this property, the Melina parcels were already thinned. Currently, thinning is taking place on the teak parcels of Finca di Pacifico Dos. The Pochote parcels are subjected only to trimming maintenance. The amount of thinning applied is always determined by measuring the trees on the site. On the better grounds, however, thinning could run up to 66% of the original forest of 1,100 trees per hectare. Therefore, on these spots 365 trees per hectare will remain and these are allowed to grow until they are economically ripe for felling.
Just before we bought this property, the Melina parcels were already thinned. Currently, thinning is taking place on the teak parcels of Finca di Pacifico Dos. The Pochote parcels are subjected only to trimming maintenance. The amount of thinning applied is always determined by measuring the trees on the site. On the better grounds, however, thinning could run up to 66% of the original forest of 1,100 trees per hectare. Therefore, on these spots 365 trees per hectare will remain and these are allowed to grow until they are economically ripe for felling.
The trees selected for the thinning process are always the worst - the most crooked or thin trees, or affected by termites (holes in the trunk) or have wind-broken branches. The selection is made by an expert who marks the trees designated for felling with red paint. The number of trees cleared per area is counted, as well as the number of trees that remain. Trimming is also carried out (up to a height of 6 metre).
This week the first 2 containers were loaded with teak trunks, each container with around 217 trunk sections. Each trunk section is measured according to length and the mid-circumference.
These thin trunks (diameter 40-60 cm) do not have a high monetary value yet: around 2,800 USD per container. There are also a few containers with larger cross-section and these generate approx. 3,800 USD. From this amount it is necessary to deduct the costs of monitoring, selection, felling, trimming, lugging to the loading area and loading to containers. This is 900 – 1,100 USD per container.
These thin trunks (diameter 40-60 cm) do not have a high monetary value yet: around 2,800 USD per container. There are also a few containers with larger cross-section and these generate approx. 3,800 USD. From this amount it is necessary to deduct the costs of monitoring, selection, felling, trimming, lugging to the loading area and loading to containers. This is 900 – 1,100 USD per container.
A very rough estimate is that we will obtain around 20 containers with a profit of around 38,000 USD. Part of this revenue, the thinning of parcels that are already sold, will be deposited in a bank account that will be opened in the name of an Association of Owners, an entity that we plan to establish. This association shall take care of a division of the surplus revenue among the legal owners.
Notarial transfer and land registration
We regularly receive questions as to why these often take more than a year. As soon as we buy property (Finca), a process of development starts. Often the property already has existing roads, but new ones have to be constructed to provide access to the plots. The first step is clearing the grounds of overgrowth so that topographers can survey the area. A team of two topographers and their assistants are busy for approximately two months properly surveying an area of approximately 400 hectares. The precise surface area of each plot is measured and provided with boundary poles. The scheme for roadwork is also mapped out and altitude measurements are made. Using these altitude measurements, a road construction engineer begins to calculate how many cubic metres of earth moving will be necessary. This has to be reported to the authorities.
Usually three to four months following the submission of data (master plan and earth moving) the green light is given for starting the work activities. Realising a roads scheme for approx. 400 hectares (4 Km x 1 Km) takes about three months. Once this is done, the topographer can take the drawings to the Land Registry office and submit an official request. It takes 2 additional months until each plot is recorded individually in the registry. Afterwards the notary public comes to the Netherlands for the official transfer. Upon returning to Costa Rica, the notary public reports who the new owner of the parcel is. After approx. two months you can log into the Costa Rica Land Registry and see your name at the registration number of your plot. Your waiting period has its financial rewards. By the time all these handling procedures are settled, you are past the parceling-out phase of the development area, including construction and accessibility of roads. By then the value of your parcel has risen by around 40%, disregarding the usual value increase that differs from region to region. A waiting period for the land registration is not intentional, but is due to all the procedures required.
We regularly receive questions as to why these often take more than a year. As soon as we buy property (Finca), a process of development starts. Often the property already has existing roads, but new ones have to be constructed to provide access to the plots. The first step is clearing the grounds of overgrowth so that topographers can survey the area. A team of two topographers and their assistants are busy for approximately two months properly surveying an area of approximately 400 hectares. The precise surface area of each plot is measured and provided with boundary poles. The scheme for roadwork is also mapped out and altitude measurements are made. Using these altitude measurements, a road construction engineer begins to calculate how many cubic metres of earth moving will be necessary. This has to be reported to the authorities.
Usually three to four months following the submission of data (master plan and earth moving) the green light is given for starting the work activities. Realising a roads scheme for approx. 400 hectares (4 Km x 1 Km) takes about three months. Once this is done, the topographer can take the drawings to the Land Registry office and submit an official request. It takes 2 additional months until each plot is recorded individually in the registry. Afterwards the notary public comes to the Netherlands for the official transfer. Upon returning to Costa Rica, the notary public reports who the new owner of the parcel is. After approx. two months you can log into the Costa Rica Land Registry and see your name at the registration number of your plot. Your waiting period has its financial rewards. By the time all these handling procedures are settled, you are past the parceling-out phase of the development area, including construction and accessibility of roads. By then the value of your parcel has risen by around 40%, disregarding the usual value increase that differs from region to region. A waiting period for the land registration is not intentional, but is due to all the procedures required.
No comments:
Post a Comment