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.

Lately, a lot of space has been devoted in the  media to the economic melt down in the U.S. People there do have reason to be alarmed. The situation is downright scary.

I don’t know what it is but I really feel removed form the whole thing living in Costa Rica. All of the events seem to be a world away. People say eventually there may be a “trickle down effect” here, but I don’t see it yet. Remember the old  saying “The bigger they are, the harder they fall”? I say the bigger the economy the harder it is hit in an economic crisis. Large economics like  U.S., Mexico, Venezuela and Brazil in this part of the world have traditionally been more adversely affected by economic downturns. It’s like a small business versus a big business. A smaller business can adapt, change and roll with the punches a lot easier than a large corporation with a lot of employees and offices.

Fortunately, Costa Rica only has just over  four million people. Puebla, Mexico alone has that number of people. People are accustomed to living with a lot less here than in the U.S. Furthermore, Costa Rica can grow 90% of everything its fruits, vegetables and grains. So the country is self sufficient to some extent. We also have abundant water for our crops, personal consumption and energy.

Costa Rica is the solution to a lot of what is happening up north in that “smaller is better” in most cases. People from the U.S. can come here to live or retire and simplify their lifestyles without sacrificing their quality of life.

People ask how Costa Rica’s hot real estate market will be affected by the events up north. Noted Costa Rica Economist Gilbert E. Arce  recently stated in La Nación Newspaper. “In the real estate sector the effects will be mixed. On one hand there will be less resources for acquiring property on the local level.  However, on the other hand, investors, especially foreigners, will try to limit the exposure to risk by means of safe real estate investments in Costa Rica.”  Costa Rica Rica’s real estate market may be the solution to its devastated U.S. counterpart.

When people hear the term “water world” they think of the science fiction movie with the same name. Costa Rica is not under water as I the movie but the stuff is plentiful here. I recently read an excellent article in an economics magazine which pointed out that water may become a more valuable resource than oil. Yes, you heard right!

There are already areas in the world that are suffering from serious water shortages including some parts of the United States. This is not the case in Costa Rica. Because the country is situated in the tropics we get plenty of rain except for some parts of the north. The wet season lasts about eight months and a copious amount of the stuff saturates the soil and feeds the rivers. Because of this Costa Rica is basically self sufficient because fruits and vegetable can be grown year round. This cornucopia provides the country with more than enough products to preclude any type of food crisis.

Just go to one of the weekend farmers markets. They all jam packed with the locals purchasing large amounts of affordable fruits and vegetables. On my relocation/retirment tours I a make it a point of showing the participants  several of theses outdoor markets. The low prices of the products also make it cheap to eat here for you cost conscious people of retirement age. I repeatedly point this out on my retirement tours. Do like most of the Costa Ricans do — shop intelligently.

Water is the building block of life and we have a lot of it in Costa Rica.

Whether we refer to hotels, lawyers services, all types of tours, some homes, movers or language schools this saying is usually true.

People come here erroneously believing what the read on the Internet and ads in different publications. Many balk if they can’t get something dirt cheap. Granted there are many things that are affordable like medical care and hired help to name a few. But in general you really get what you pay for or end up paying too much for it. I really go into this subject on my highly successful relocation/retirement tours and in my perennial bestselling retirement guidebook, “The New Golden Door to Retirement and Living in Costa Rica.”

Let’s look at an example. I know people who tried to obtain their residency status as cheaply as possible. Then they come to me and say they gave money to a lawyer someone recommended and they don’t have anything to show for it after a year has gone by. If they had done their homework paid a little bit more money to a reputable  attorney, they would not be in this position. Chances are the person they gave their money to wasn’t a lawyer.

The same is true with relocation and shipping companies. There is one outfit here recommended by a tour guide that has really left some people high and dry. I am told the North American who runs the company doesn’t speak fluent Spanish, has serious immigration problems and caused one person to have their vehicle confiscated because of a gross error. I cannot substantiate this info. but given the person’s dubious reputation the aforementioned could very well be true.

On the other side of the coin I heard about another relocation service that charged thousands of dollars to ship a pet to Costa Rica. The cost should have been a few thousand dollars less. The person who shipped their animal did not shop around. You have to compare the cost of service and find out what things really cost here. Naïve foreigners are easy prey for some of  their own countrymen.

Real estate is another area where there are problems. I know a lot of people who have been ripped off by gringo realtors who aren’t even legal Costa Rican residents. Check to see if your realtor has Costa Rican residency. Google the person, too. NEVER let a tour guide sell you real estate. On my monthly retirement tours I only connect my clients with honest real estate people, if they are interested in property. NOBODY is pressured into buying anything. I sell the country and NOT real estate. It is in my best interest to ensure my clients are successful. My reputation is at stake.

I recently read some erroneous and unsubstantiated information about the local real estate market which was published on one of the local Internet news groups. It really hit a nerve because I am in the process of writing a 400-page comprehensive guide about the Costa Rican real estate scene. A few of these news groups do have value and occasionally provide objective  information from reliable sources about Costa Rica’s economy (see my description at the bottom of this article extracted from my bestselling retirement guidebook, “The New Golden Door to Retirement and Living in Costa Rica”).

Unfortunately, about 70% of the material published by these groups is mindless banter and completely subjective. The inherent danger is that a lot of incorrect information is disseminated by people with zero expertise in any field related to Costa Rica other than their own short-sighted opinions and shallow understanding of the Latin American culture and economics. Just by making the move  many think they are qualified to dole out what they believe is correct advice. Unfortunately people seeking information before coming here look at these groups a prime source of data when doing their research.  Incorrect information about real estate and economic trends can lead to panic selling and buying, false rumors, wrong decisions by investors and future retirees, adversely affect people’s lives and ultimately have repercussions on the local market. Sadly, it can even dissuade people from buying their dream home out of false fear.

Granted some of the fallout from the slow market in the States has trickled down here but this certainly doesn’t justify the vast amounts of inaccurate information being put out by unqualified people on the web. Let us not overlook that there are still 70 million Baby Boomers in the U.S. alone many of whom will fuel the Costa Rican real estate market in coming years as they seek to retire abroad.

It is of paramount importance to not pay attention to the dilettantes who express their unfounded opinions on the Internet news groups just to  act like “big shots.” For the most reliable information seek out good lawyers, financial experts, experienced real estate professionals (with residency) and others who offer well-researched accurate information like I provide in my guidebooks and on my retirement tours.

Don’t get me wrong there is a positive side to these news groups which I talk about in the last chapter of my retirement guidebook, “The New Golden Door to retirement and Living in Costa Rica”. Here is what I say, “Over the last few years, online Costa Rican discussion groups have begun to flourish.  Joining one or more of these forums is way to see what issues residents of Costa Rica face on a daily basis and to keep up with a lot of what is happening in the local expatriate community.  Members can express their problems or concerns and  at times receive helpful feedback. However, be sure to check from a good source  to see if the information you are receiving is correct. Many residents contribute daily while others add something occasionally or just simply read what their fellow members have to say. Probably the main reason to follow these groups is that many friendships have been made online. Not a week goes by without numerous social activities being mentioned for the group’s members.”