From the sound of the title you would think this article is about World War 2. If you have ever spent a New Years Eve in Costa Rica or experienced the Tet offensive from the Vietnam War days, you can probably relate to what goes on here. I guess the closest thing is our annual Fourth of July celebration. However, foreign retirees and tourists are often shocked by the amount of noise associated Costa Rica New Years festivities.

Last night was New years eve in Costa Rica and the New Year literally started out with a BANG. When the clock struck twelve signaling the beginning of 2011 it sounded like all hell broke lose in Heredia where I live and in many other parts of the country. It seemed like it was a signal for every Costa Rican to start setting of fireworks. This is an annual tradition and a lot of people really take it seriously.

I happened to be at home with my girlfriend so I could keep an eye on my two dogs. They detest the sound of fireworks going off and get very nervous. Actually I don’t really mind staying at home because I don’t like to drive with so many inebriated people on the streets.

Despite the fact that raucous New Year celebrations are plentiful here, most Costa Ricans gather with their family and close friends for food and in a more sedate fashion. If you choose to retire here no doubt you will learn to celebrate this day Costa Rican style and experience another facet of this wonderful Latin culture.

Foreign retirees and Costa Ricans will tell you that it is “pain in the you know what” to try and commute to San José during either the morning or afternoon rush hour. The Costa Rican government has been trying for years to reduce traffic by taking such measures as limiting circulation of vehicles on certain dates according to the last digit of their license plates. Another step in the right direction has been opening several commuter train lines.

Presently there are trains operating from the city of Heredia to San José and another that runs from the western suburb of Pavas to San Pedro in the east. Starting in mid-January a new commuter rail line will go into service from the town of San Antonio de Belén, near the airport, to San José. The rail cars have been purchased from Spain and are similar to the ones now used on the Heredia to San José route. The new Belén service will be from 6 a.m. and 8:30 a.m. in the morning and 3:30 p.m. and 8 p.m. in the afternoon to coincide with rush hour. The government has spent about $3 million refurbishing the rail line and purchasing the new passenger cars.

The good news is that the cost of a one-way ticket will be under a dollar making it as affordable as traveling by bus. I have mentioned repeatedly in previous articles that retirees don’t really need a car in Costa Rica with the affordable public transportation we have. This is another savings for anyone who is thinking of moving here to reduce their living expenses.

Here is how one expat reduced his monthly expenses from $3,000 monthly to just over $1,000 per month

1. Shop at Pali, the local markets and buy in bulk at Pricemart (if you can avoid the temptation to stray). And grow what you can.
2. Install a ceiling fan, and don’t use the A/C. Leave your windows open
3. Eating out at small Tico owned restaurants is much cheaper. Avoid U.S. Fast-food chains.
4. Take the bus, and a taxi occasionally.
5. Get “smart” power strips that turn off the electric completely to your TV and other electronics.
6. Get basic cable, and basic internet. Life’s pace is slow here, so should your internet
7. Don’t install a hot water heater, use the instant kind because they consume way less energy.
8. Get the T-13 Residential electric service. Use your washer, dryer or oven at night.
9. Don’t overpay for materials, or labor. Have a Costa Rican friend get pricing for you, or at least get several quotes.
10. Don’t buy expensive imported products

Apart from I, I’ve done all the above. My monthly costs dropped from an average of $3,500/month to just under $1,000/month

Renting is the less risky than buying in Costa. It can, however, be costly in the long term, and depending on where you want to live, there may not be much rental product available on the market. Neither do renters have the chance to see a return on their investment. On the other hand, if a retiree has limited resources and is not planning on staying in Costa Rica for the long term, renting is by far the best option. Even if you do plan to live in Costa Rica for a long time, it’s highly recommended that you rent before you buy. Neighborhoods and cultures reveal their secrets, and six months of renting in an area will teach you things about your new home that a simple visit would never expose. If you discover something you don’t like, you can move and try out another region of Costa Rica. In the event that you decide to move here permanently, you will still have to consider whether to continue renting, or to buy.

Where retirees are looking to live will make a great deal of difference in their rental options, both in terms of cost and availability. The rental market, like the real estate market in general, can be uneven, nontransparent, and prone to exaggerations of price. Beach communities can occupy the extremes of both cost and availability. Well-developed beach communities usually have a lot of rental properties available, but they’re targeted toward vacationers and go for hundreds or thousands of dollars a week. The average retiree trying to save money could never afford those prices.

Retirees might have a different experience with small rural communities inland, like Atenas or Ciudad Colón. These communities are more mature – and therefore have more buildings on the market – and less popular with transient tourists, so their prices remain reasonable. Small, tico-style houses in these communities can often be had for as little as $300 a month.

Urban areas also typically have quite a bit of product on the market for retired folks. Upper-class San José neighborhoods like Barrio Escalante, Barrio Amon, and Barrio Dent have very active rental markets. The increasingly-urban Escazú area also has a lot of product, mostly in the form of gated communities and condos. Certain parts of Heredia – San Francisco, San Joaquín, Belén, Santa Barbara Santo Domingo, San Rafael, San Pablo – are more popular more housing options can be found than was previously available.

If you’re looking for a rural rental, they’re a little more difficult to find, but these days the market for renting rural houses to foreigners has grown substantially. Mountainous areas like parts of Alajuela, Puriscal, San Isidro de Heredia, Cartago and the outer fringes of Atenas and Grecia offer quite a few houses for rent in a rural setting, many of homes have great views. Rates vary according to the size and quality of house.

Parts of this blog are from the 16th edition of my bestselling guidebook “New Golden Door to Retirement and Living in Costa Rica” and “Christopher Howard’s Guide to Real Estate in Costa Rica.” Both of these books as well as my monthly retirement/relocation tours are essential if you plan to move here successfully.

San Jose’s mayor Johnny Araya was reelected a few weeks ago. One of his campaign promises was to try and build a trolley (TREM Tren Eléctrico Metropolitano) to help alleviate San Jose’s traffic problem. The estimated cost to build the trolley line will be about $10 million per kilometer with a total cost of $440 million. Not only will this project reduce traffic but also provide another form of affordable transportation for cost-conscious retirees and Costa Ricans.

At present the project is still on the drawing board, however a new feasibility study needs to be done before things can move forward.

In case you don’t know, San José did have a trolley for 51 years which operated form 1899 until 1950. Some of the old tracks used to be visible on Central Avenue before the present pavers were laid. There were three trolley lines in the old days. One from San Pedro to the statue of León Cortés in the Sabana; from Chelles along el Paseo de los Estudiantes to plaza González Víquez; and a line to Guadalupe.

If you decide to retire or relocate to Costa Rica you’ll be pleased to know that you can reduce your living expenses significantly by not owning an automobile. You’ll save the initial expense of purchasing a car, insurance, repairs, maintenance and yearly license fees (marchamo). Traveling by bus is dirt cheap here. You can go to the farthest part of the country by bus for under $10. I take a local bus to San José from my hometown of Heredia several times a week and the cost is under a dollar. I also have the option of taking the commuter train for around the same price. Taxi travel is also another option instead of owning a car.