Costa Rica Real Estate: What To Expect When Buying A Home or Investing In Property
Costa Rica is a great place for an ex-patriot. The cost of living is still low. It is a great place to buy real estate to retire. Your money goes a lot farther than it does in the United States. Costa Rica has beautiful weather and beaches. Costa Rica real estate has gone up in value since so many wealthy Americans are moving there and buying homes and investment properties.
Costa Rica Real Estate and Investment
Costa Rica Real Estate has seen a steep climb since the so-called “Bermuda Triangle” (Costa Rica, Panama and Nicaragua) flooded the Costa Rica real estate market with foreign investment in 2012. However, the years have shown that the real estate market is strong and continues to increase. A Resale Home for Sale According to a recent study conducted by Penso Empresarial, the increase in the total cost of construction between 2006 and 2015 was 10.1 percent. The purchase cost of construction increased by 8.8 percent. The increase in construction costs were 9.5 percent in the period 2014-2016. Costa Rica Real Estate – Buying Costa Rica Real Estate – Selling Buying a Costa Rican home can be complicated, but it doesn’t have to be costly.
The Cost of Living in Costa Rica
There are two ways to become wealthy in Costa Rica. You either work as a nurse in a Costa Rican hospital or you own a business in Costa Rica. You can also get rich by buying real estate. You can buy a home in the coastal town of Nosara for as little as $1,300. In comparison, the same home in the same location in the United States would cost $400,000 to $500,000. There are endless employment opportunities in Costa Rica. You can find work in a hospital, a private practice, a school, or as a security guard at night. I know of a young couple who both work as nurses in a Costa Rican hospital. The husband makes about $8,000 per month. He and his wife live with their son in a two bedroom home that costs them about $850 per month. The housing unit they live in has no water or electricity.
Where to buy Costa Rica real estate
Prices on Costa Rica real estate go up when interest rates go down. As interest rates go down, prices go up and up, and you can sell your Costa Rica real estate for much more than what you paid. Right now, Costa Rica real estate has hit a huge top, so selling your property at a huge profit would be great. I suggest buying real estate in areas where the cost of living is low. When you live in a tourist area, such as La Cruz, there are other things you can do to save money. Costa Rica real estate investing: Costa Rica real estate is great because of the tax laws. If you buy a property in Costa Rica, you can claim the tax deduction as you are going through the legal process of buying it. Also, you pay a very low real estate commission.
Costa Rica home loans
If you do decide to buy a property in Costa Rica, there are several ways you can do it. You can: Take out a mortgage from a bank in the United States. Take out a mortgage with the Costa Rican bank where you are living. Buying a house in Costa Rica you don’t speak the language is hard and stressful, so you may want to take out a loan for the home from someone with a solid command of English, like a friend or family member, or someone fluent in Spanish. Pay cash for the home and come up with the downpayment. There is no need to go through the tedious, time-consuming, paperwork of a bank, when it is a lot easier and faster to buy a home here in Costa Rica.
Buying a second home in Costa Rica
While you cannot buy a second home in Costa Rica, you can buy property to use as a second home. Your second home in Costa Rica will have a lot of amenities like a pool, a movie room, a guest house, a garage, and other amenities. The Costa Rica real estate market will stay hot this year because of ex-patriot demand for property. You can get a great price for the land you buy if you can get a developer to build on the property. One of the big reasons to buy property is that Costa Rica real estate is growing in value at a rapid rate. The Costa Rica real estate market is also in a great place because people are staying longer and investing in real estate. As an investor, you can buy property in Costa Rica to be able to rent it out for income and investment returns.
Foreign nationals and foreigners buying property in Costa Rica
As of January 2017, foreign nationals and foreigners living abroad can now own land and have a home in Costa Rica, or one can purchase a security interest in real property. While this is great news for American citizens who want to retire in Costa Rica, this is not so good for Costa Rica as there is a great deal of opportunity for money laundering for foreign nationals and foreigners buying property. You are not allowed to buy anything more than a security interest for yourself. You are not allowed to make a cash purchase of real property. A security interest does not require any money, and you can legally transfer it to someone else. This is the option you are most likely to have, but do not expect to be able to legally buy a home or property outright.
Acquiring a mortgage with a foreign company (CDI, FMO)
Get an understanding of how CDI works before deciding which mortgage to use. Your lender is your agent in terms of your investment. If you know the value of your home or land, you can get a loan at what is called the fair market value of the property (FMV) in Costa Rica. If you need a loan for something else, you can get an over-the-counter loan at market rate with a CDI lender. These are short term loans that you will need to renew every year, or every quarter, and you can be locked into a mortgage for up to 15 years. The good thing is that most Costa Ricans pay their mortgages on time and for the amount that they owe, so you can be sure that the loan will be paid.
What is the investment rate in Costa Rica?
Paying for real estate in Costa Rica is a good investment. There is no risk because the property is vacant. Buying real estate in Costa Rica can be a great investment for anyone. When you buy in Costa Rica you can purchase one of the most expensive homes in Costa Rica for less than $100,000. Homes are very inexpensive and you have the ability to make a lot of money if you purchase real estate in Costa Rica. There are several real estate agencies in Costa Rica and each one is special in their own way. Many Costa Ricans don’t own real estate agencies and they make deals with multiple real estate agencies for a big commission for each property they sell. The agent will find the buyer, negotiate the price and set up the property for sale.
Living in Costa Rica year round and making it your home..
Costa Rica Real Estate has been hot as of late because so many of the rich and famous are coming to Costa Rica to retire. If you plan to live in Costa Rica and become a local, you will have the opportunity to make a great deal of money and become part of the Costa Rican culture. Everyone has heard of the villas on the beach, the real estate market has gone up in value immensely in Costa Rica since many wealthy foreigners and Americans are buying property and retiring to Costa Rica to enjoy life there. Property Investment in Costa Rica If you want to make a great deal of money in Costa Rica, you will have to invest in real estate. Costa Rica real estate is fairly expensive because of the high cost of living there.