Lately much has been written and said about Nicaragua and Panama as places for retirement versus Costa Rica. People argue that the latter is too expensive. One of the reasons Costa Rica is seemingly more expensive is demand. It is tops on the list of retirement havens with more Americans per capita living outside of the U.S. than any other country in world. They can’t all be wrong can they?

Regarding the affordability of the country, one you move here and get settled you will be able to find the real bargains. You will also learn how to recognize a value property when you see one if you do your homework.

Costa Rica offer a lifestyle and more choices of places where to live.

The advantages that Costa Rica really has over Nicaragua and Panama are lifestyle and more choices of places where to live. It’s all about lifestyle anyplace you reside. Costa Rica has more options in this area. Just pick up a copy of the Tico Times, the local  English newspaper,  and you’ll see what’s available to keep you busy and happy. Whether its an indoor our outdoor activity, we have it all here. Costa Rica also offer a variety of places to live. You can live at the beach, the Central Valley with its perfect climate, in an alpine like setting on the slope of a mountain or in any of the areas in between.  Costa Rica’s unique geography and many microclimates make this all possible.

Another added plus to Costa Rica is its time-tested affordable healthcare system. Costa Rica has one of the highest longevity rates in the world!

On the other hand, Panama is very hot and air conditioning bills can run a couple of hundred dollars per month. There are some cooler mountain areas like Altos de María and Boquete but they are isolated and down right boring for most folks and getting more expensive all of the time.

Here is what one expatriate who moved from Panama to Costa Rica said about both countries and visited Panama recently. This sums up most of the differences between both places.

“In Cerro Punta and Volcán, which are really the breadbasket of Panama, I could not believe the few vegetables and poor quality of them that I found. They don’t have weekly ferias, and most good quality fruits and vegetables are shipped to Panama City. I went to five supermarkets in Volcán, and three vegetable sellers, and only found a small portion of what I have come to expect in vegetables here in Costa Rica. And in such poor condition that I ended up without tomatoes and lettuce. I couldn’t even find cauliflower, broccoli and leeks. Things were much better there 25 years ago!”
“I would agree that compared to Escazú, prices are lower in most all of Panama except Boquete which has become the playground of a lot of Hollywood stars. But compared to where I live , housing is really on a par with Panama.”
“There may be less problems with thievery in Panama, though having had my house broken into twice in Panama, I wouldn’t say it was that much better. You simply need to protect yourself as with anywhere in the world these days. Counting with thousands of members, 209 gangs nationwide (130 in the capital) are now bigger and deadlier.  One hundred forty-three juveniles were killed in 2006.  The rising murder rate can be directly linked to the soaring drug abuse.  Panamanian juveniles have the highest narcotics consumption rate in Central America.  The average age in which children are introduced to drugs is 12 to 14 years old, but some risk groups are exposed earlier in life.”
“I was amazed to see the changes in Panama City. They have constructed or have in construction over 120 skyscrapers over 40 floors high. 17 are over 50 floors and several will be over 100 stories tall. A large number of these are being constructed on Punta Pacifica which was a landfill when I lived in Panama 25 years ago.  Panama City’s new condos are getting closer or matching the average price of similar dwellings in the Greater Miami, South Florida’s international banking, fashion and film center and the thriving hub for Latin American’s finances and commerce. But what’s more, the worst Miami’s neighborhoods could be considered as peaceful and prosperous towns when compared to El Chorillo, Curundú, Santa Ana, Panama Viejo, Boca la Caja, Mano de Piedra and many other dangerous areas of the Panamanian capital!  Security is one main issue when relocating abroad since well-off foreigners living in poor countries are often preferred targets for criminals.”
“I have friends in both countries, but to me, the Costa Ricans win hands down. I have never seen such open friendliness as here. Perhaps it is because I don’t live in the city, but for whatever reason, I am constantly amazed by them. My daughter and granddaughter have come down and are renting here, also. While I was in Panama, her Costa Rican neighbors got together and brought over a Christmas tree and decorations knowing that she didn’t have a car to go find one. They shared the lights and decorations that they had and helped her set up the tree and decorate it. They have all made them feel welcome and have set up a date to make tamales and gingerbread cookies.
In the 15 years I lived in Panama, I never saw a neighborhood pull together to make virtual strangers feel welcome as I have in Costa Rica.”

Nicaragua is another story. First, the weather and geography can’t match Costa Rica’s for beauty. The largest section of the country on the east is basically uninhabitable.

Unfortunately the country has been really unlucky.  Mother Nature even conspires against the poor country in the form of natural disasters like the devastating earthquake in the 1970s and Hurricane Mitch more recently. The country has also been victimized by a whole string of leaders  from the Samoza family dynasty to the country’s current leader the infamous Daniel Ortega. You should remember him from the past century and his failed socialist revolution. All of this has combines to make Nicaragua the second poorest country in the Western hemisphere after Haiti.  The average monthly salary if you can find work is less than $100 dollars. It is not surprising therefore that over 500 thousand Nicaraguans have fled to a more prosperous Costa Rica to find work and better their lives.

There you have it. Make your choice. You can live in Nicaragua more affordably than Costa Rica or live I Panama which has more advantages than Nicaragua. When you weigh the advantages and disadvantages of living or retiring in all three of these countries, Costa Rica comes out the clear winner.

Real estate investors can still find value properties and bargains.

A lot has been written recently in Internet forums  and in local publications about how Costa Rica will be affected by the world economic crisis which began in the States. Most of what you read is pure speculation by unqualified people. To get the best possible investment advice listed to the real experts here in Costa Rica.

Felix Delgado a Costa Rican economist recently stated, “There have always been losses, but not this large. Some get scared while others take advantage and buy cheaply.” Costa Rica has a surplus of money at this time which makes the economy stable.

Furthermore, the country did not have investments in any of the large firms which went down in the United States. Also high risk sub-prime mortgages do not exist here.  So there is no speculation in that risky market. Felix Castro of the Economic and Financial Advisors (Cefsa) says, “People complain that the banks are not lending like before, well this is because they are protecting their liquidity by limiting their loans to only profitable borrowers and projects.”

Oxford Anallytica, an independent strategic-consulting firm drawing on a network of more than 1,000 scholar experts at Oxford and other leading universities and research institutions around the world, said in Forbes.com, “Latin America’s banking systems appear to be on a relatively strong footing to resist the crisis. As far as is known, they have not invested significantly in U.S. mortgage-backed securities, nor do domestic financial markets have the complex instruments that were at the root of crisis. Overseas credit represents a relatively low percentage of bank funding, and the main international banks operating in the region, such as Santander and HSBC, are generally considered sound.”

Finally, it seems as the economy in industrialized countries becomes unbearable, people with money realize that the stock market and certainly the real estate market in their own countries no longer are safe investments. Smart investors look for new emerging markets to invest their money.

What does all of this mean? Anyone thinking of living or retirement in Costa Rica can still do so. Also, knowledgeable real estate investors can still find value properties and bargains if they buy in right areas and at the right price.

This is third or fourth article I have written about Costa Rica’s on-line forums. I usually write in response to something that really angers me like false information. There are a lot of so-called experts out there. This is especially true when it comes to giving advice about investing.

Currently there is a financial crisis in the U.S. which is bound to affect the rest of the world including Costa Rica. However, nobody I repeat nobody has the answers nor can predict exactly what will happen in the future – not even the real experts.  It really irks me when people dole out completely subjective advice about the economy or paint a gloomy picture about investing here.

What these people do is cause panic and investor confidence here. I strongly believe we will be affected the to some extent by what’s going on up north, but we will come out of it stronger than ever.  Costa Rica is one of the magical places on earth. Because of the country’s beauty it will continue to attract Baby Boomers, retirees and savvy investors who are looking for safer and alternative markets to place their money.

Furthermore, as I have stated before “The bigger are, the harder they fall.” Costa Rica is a small country with only a little over 4  million people. Smaller countries are not affected to the same extent larger countries are with bigger economies. We are also more self reliant in that we can live off what we grow here and the people are used to living with a lot less.

In addition, big players like Citibank, Intel, Proctor and Gamble and Hilton Hotels, to name a few,  continue to invest in our country which will help the local economy immensely.

When I read erroneous and subjective crap like the paragraph below from one of the forums, it really sickens me.

With regard to the real estate market and mortgages (of which I am an expert from previous life in USA with 200 employees under me), CR is about 12 months behind USA.  Everything in CR is way overpriced now.  Supply will exceed demand shortly and the market here in CR will crash within 1 year (just my opinion).  Remember buy low, sell high.   Right now things in CR are HIGH.

Working with a broker in Costa Rica is similar to working with a broker back home.

When you move to Costa Rica to retire you will have to have a place to live. Some choose to rent while many choose to buy as an investment. The Costa Rica real estate market has been one of the best over the last few years.

After you decide where you want to live and what you want to buy, you have to then select a broker. This can pose a problem because you don’t need a license to sell real real estate in Costa Rica. Since selling real estate is in vogue and there are a lot of gringo opportunists looking to make a quick buck it is hard to find an agent who looks out for your interests more than just making a sale.

On top that many foreigners who sell property here aren’t even legal residents of Costa Rica and don’t have permission to work. Would you buy real estate from a tourist in the U.S. Or Canada? Some of these characters just come down for the high season to sell properties and then disappear into the wood work. If you need to find them for anything, you can’t. Also many of these people have never had any experience working I real estate in their home country.

It seems that everyone is selling property in Costa Rica: cab drivers, waiters in restaurants, your friendly gringo neighbor, hotel employees and a lot of people without papers as I just mentioned. Even fugitives have gotten into act. AM Costa Rica on-line newspaper reported on September 3, 2008 than another U.S. citizen on the lam was arrested while working as real estate broker in an office on the Pacific Coast. In December 2005 and in December 2007 two other gringos wanted in the U.S. were arrested here. Both had been working as real estate salesmen. Many U.S. Citizens are hired illegally in the real estate business because of their English-language abilities.

I have dealt with almost every realtor in Costa Rica and only recommend Costa Rica Retirement Vacation Properties because they are 100% client oriented and honest. I send all of the clients on my monthly relocation/retirement tours to them and the level of customer satisfaction has been 100%.

Here is some advice from my best seller “The New Golden Door to Retirement and Living in Costa Rica” about  why it is important to work with a good broker and how to find one.

1. A good broker can help you find a fair-priced property.
2. Only a small percentage of properties for sale are in the newspaper.  A lot of brokers have their own listings, which they don’t share with other brokers.
3. A broker can save you time and aggravation by showing you just what you want. He will do this by pre-qualifying you.
4. Good brokers have excellent contacts and will help you with every ?step  of the process.
5. A good broker will know all of the good areas and will not waste your time showing you undesirable neighborhoods. A broker who knows you are working faithfully with him will go all out to help you find what you want. Be sure and to tell your broker from the beginning if you are working with other agents.
6. A good broker can form a relationship with you and truly understand your specific needs.
7. Working with a broker in Costa Rica is similar to working with a broker back home. If you are patient, loyal and have confidence in your broker, you will find what you want.
8. Brokers offer a wide range of properties. They sell a little bit of everything.: houses, lots, commercial property, condos, and even fincas (farms). Therefore, it is best to find a broker who specializes inexactly what you are looking for.  A person who sells at the beach cannot possibly be an expert in properties in the Central Valley.

Here are STEPS TO FINDING THE RIGHT AGENT:

1. Unless you have a specific recommendation like the one I provide above, Call four or five real estate agents in the area and ask them to name the best two real estate agents they know OUTSIDE their own offices. Whatever name pops up most often is likely to be your best candidate.
2. Go Google the agent’s name and see what comes up.
3. Ask that agent to show you their Costa Rica cédula (ID for legal residents) or work permit.
4. Ask how long the agent has lived in CR (5-7 years minimum).
5. Ask for a few happy customers to contact.
6. Ask your friends or other foreigners in Costa Rica if they have their knowledge of said agent.
7. Just as in a marriage, communication is a key component of the relationship between a homeowner and an agent. If the communication isn’t there, the relationship won’t work. So if your agent doesn’t return your phone calls in a timely fashion or disappears without warning for weeks at a time, you should probably find someone else.
8. Let’s face it, even homeowners who have been through several real estate transactions can benefit from a little advice from their agent. But if an agent doesn’t offer any advice, it could be an indication that he or she is not fully engaged in the process.
9. If your real estate agent is actually a waiter, waitress, musician or has another job, then you are probably not going to be happy with where their priorities are.
10. Keeps it in the family A real estate agent who shows buyers only properties that are listed with his or her brokerage could be subordinating the client’s best interests. Since selling agents earn a separate commission off a real estate transaction, agents who make listings just from their company available may be trying to steer that commission to the brokerage as well.

This should eliminate 95%+ of the bad/poor agents….

In my past columns I have talk about Costa Rica’s excellent health care system. As you probably Costa Rica has both its “cradle-to-grave” public  health care system and private system available for foreign residents. The country boasts one of the highest longevity rates in the world and many of its doctors have been trained abroad. Best of all medical care is very affordable. Many people retire here for that very reason.

People on my monthly retirement/relocation tours often ask about alternative medicine and  therapies. We have acupuncture, different types of massage therapy, health spas and other alternative treatments.

One of the most recent additions to Costa Rica’s alternative health care field will be the Reserve at Portalon’s partnership with the Chopra Center for Wellbeing. The Chopra Center was recently ranked the #1 Wellness center in the world. Their center will take a holistic approach to health that treats the root issue versus the symptoms. The Chopra Center for Well being brings together the talents of a number of professionals in the conventional, complementary, and alternative medicine fields. They provide  alternative medicine consultations, therapeutic body treatments, health workshops, meditation instruction, hospital program development, and corporate training courses. The emphasis at the Center is on providing guidance to help individuals promote their own longevity, human potential and success, while increasing personal balance, happiness, and fulfillment.

Costa Rica have acupuncture, different types of massage therapy, health spas and other alternative treatments.

The center is based on providing alternative healthcare using the ancient practice of Ayurveda. Ayurveda is a natural and holistic healing system from India , dating back to 5000 BC. Ayurveda attempts to deal with the root cause of the imbalance using several therapies. By using specific herbal supplements, special diet, detoxification therapies, specific yoga exercises and therapies, the body’s imbalances will be treated in multiple ways that help the clients.

The Chopra Center for Wellbeing will be the crown jewel of The Reserve at Portalon. Our center will serve as a platform for world leaders in their respective fields to lead transformative health seminars and workshops. Services for the betterment of the mind and body will be offered and the programs will be changed frequently so as to offer residents the most up-to-date treatments and services.

The Chopra Center for Wellbeing borders a lush primary rain forest reserve. Guest can meditate, stretch, and get massages above flowing water, and in the canopy of a living rain forest. Every facet and aspect of the wellness center will promote the healing process. The wellness center will be located within a 900 acre nature preserve. Chopra Center for Wellbeing is a gateway to enjoy numerous activities, adventures, eco-tours, and extreme sports found uniquely within our development.

The center will also include: Hiking and walking trails,  bird watching trails, mountain Biking trails, meditation Lodges and  English speaking nature guides will be available to help guests explore all the treasures of the rainforest for an educational, thrilling, and unforgettable experience.