To buy or rent, that is the question?
P
eople thinking of moving to Costa Rica find themselves caught between two schools of thought. The forces urging them to buy property and those telling them not to buy. Usually the former are realtors or developers and the latter are expats and others advising newcomers to be cautious. There is nothing wrong with being careful.
On my relocation/retirement tours I always address this subject by telling my clients that they have to do what’s best for them. They are the only ones who know what is the best path to take. Interestingly I get a mixture of people with different needs on my tours. Some specifically come here to buy property to live in or for investment purposes. Others have NO intention of ever buying. And then there are those who don’t know if they will rent or buy. I never pressure people to do anything but try to provide them with all of the pros and cons of each scenario.
I show sampling of property in different areas and price ranges to give my clients an overall view of what is available to rent and to buy in different locations. However, what I really emphasize on my tours is Costa Rica’s great lifestyle and the amenities the country offers Americans. That is what sells people on the country. While I recognize Costa Rica isn’t for everyone, if you get bitten by the “lifestyle bug” you will probably never get it out of your system.
I might ad that there are some advantages to buying property in Costa Rica. If you buy in the path of progress where it is easy to bail out if you have to return to the States, then it is OK to buy. If you have done your due diligence with your lawyer you can also purchase safely. Buying at the right price in the right area will insure profit if you have to sell. The other factor is plusvalía or increase in value on your investment. If you find a value property and hang onto it for the long term you will make out well. Costa Rica is a popular warm-weather destination for tourists like Hawaii, a baby boomer retirement haven and there will always be a market here because of the affordability and other intangebles.
Bottom line: due what is best for your particular situation but use your head. Don’t leave your brain on the plane.
Before I forget, read my book (Christopher Howard’s Guide to Real Estate in Costa Rica) to understand the real estate scene here. It also contains a lot of good information about different parts of the country and what they have to offer potential residents.
April 22nd, 2010 at 2:24 am
That is great advice! Doing your due diligence. During my visit the past February I heard stories both good and bad about different experiences with real estate. While touring various developements I realized that it is very important for a buyer to have their own agent with them, just as you would in the states. Most people are not transacting real estate deals regularly, so they really are not certain what they should be asking and looking for when considering a property. I strongly urge people to use not only a buyers agent in Costa Rica, but ask your local Realtor if they are members of the International Consortium of Real Estate Assoications. If they are this is the SMARTEST thing one can use. This will allow your agent stateside to be involved in your transaction, to help you ask the questions that matter, and to ensure that the person you are dealing with in Costa Rica is affiliated with ICREA and thus working with the same Standards of Practice set out by the National Assoiciation of Realtors. This may prove to be one of the best “moves” an individual can make when investing in Costa Rica real estate.