Living in Costa Rica retirement relocation tours.

Experience With Health Care Costs in Costa Rica

If air quality is an issue for you, you will need to look in the areas surrounding San Jose and not too close to the city. It is common to see buses and cars blowing out black smoke…And since I walk almost everywhere I go, I am aware that air quality is probably pretty bad in the heavily traveled areas of the city.

As far as heath care, I recently had a surgery that cost 3700 dollars which included everything. I was investigating in the internet and the same surgery in the US would likely have been around 16,000 dollars not counting hospital care, etc, the surgery that I had was in CIMA which is considered the best ( and most expensive) hospital in the country.

A few years back I was in a hospital for a couple of days, saw two specialists,was treated in the emergency room, took a myriad of tests and a lot of meds…That cost 428 dollars, all of it, and was in Clinica Catholica, which does NOT specialize in English speaking care as do CIMA and Clinica Biblica.

I could not be insured in the US as I have a condition that can affect any part of my body so nothing would ever be covered. It would all conveniently fall under “pre-existing condition”. And the coverage would be too expensive anyway.

Health Care costs a fraction here of what it costs in the US. Meds cost a fraction here as well. And I believe that as long as there is a public health care system that things will stay that way. I personally don’t even have insurance as there is no reason to. I pay as I go for all health care and thus far , after 8 years here, I would say that all my health care costs have not added up to what my friends pay in the US for their co-pay on their insurance paid costs.

Also very few meds are controlled substances here so if you take a medication regularly you seldom need to pay a doctor visit to get a prescription renewed. I have been taking arthritis meds for about 15 years and just not having to pay a doctor visit everytime I bought the meds has saved me a fortune in health care.

I think that rough estimates suggest that health care costs between 25 and 35 per cent here of what the same would cost in the US.

ALthough I think it is really important to note that moving to a new country and a new culture can be VERY stressful. SO you must add that stress into the equation and see how you come out. People don’t always realize what a challenge it is to live in a country where everything is different than what you have known all your life. It takes most people several years to actually adjust to such a change and the “tropical dream” thing is generally not very realistic. There is no utopia, here or there….

Although for me, I really like Costa Rica and I like living here, but the adjustment was NOT easy at all. It took several years for me to get used to things being so different from everything I knew.

A Good Experience with a Private Mail Service in Costa Rica

1. The magazine subscriptions come directly from the publisher of whichever magazine you receive a subscription from, e.g. The Atlantic Monthly. The reason I say this is because I received a letter directly from The Atlantic thanking me for my subscription and it has an identical coding as the magazine mailing label.
2. I have been receiving two magazine subscriptions on a monthly basis for a year and have not received any junk mail as a result of these two subscriptions. If I did receive any I would just return it to Aerocasillas for a credit (see below).
3. I do receive some junk mail as a result of other shopping I have done using my Aero mailing address, e.g. Lands End; also from some of the financial institutions I have accounts with in the U.S. However, one of the things that I like about Aerocasillas is that if you do receive any “correo basura (junk mail)” all you have to do is to return it to Aerocasillas and you immediately receive a full credit for the weight/cost of the junk mail in your account.
4. In my case I use the “Dorada” plan which has a minimum charge of $12 per month; so I would be charged this amount even if I did not receive any mail. However, I also sign up for the annual pre-pay of $120 which brings it down to $10 per month. Between my magazines, my Netflix and all of my other mail I receive a fairly significant amount of mail. My monthly bill is usually within $1 - $2 more of the $10 pre-paid minimum. I would estimate that the two magazine subscriptions I receive generally account for about $5 of my monthly bill.
5. For me, my mail is delivered to the development I live in and then a guard brings the mail directly to my door so it could not be more convenient.

A Summary of Real Estate in Costa Rica

Hello,
My name is Christopher Howard and I am an author of several bestselling books about Costa Rica and have lived in the country for almost 30 years.

This is a general discuss about real estate in Costa Rica to try and give you an overall perspective. If you want more detailed information I suggest you obtain the guidebooks I am going to mention shortly.

(1) History of Real Estate in Costa Rica

Probably the first interest in Costa Rican real estate was by the Spanish when they were in search of riches. When Columbus set foot on the Atlantic coast at a place called Cariari (Puerto Limón) on September 18, 1502, he anticipated finding vast amounts of gold, so he named this area Costa Rica “rich coast” in Spanish. However, unlike Mexico and Peru, Costa Rica had neither advanced indigenous civilizations nor large deposits of gold. Faced with no source of cheap labor, the Spanish colonists were forced to supply the labor themselves. Consequently, they became quite independent and self-sufficient, and were basically very poor. Thus, a sort of democratic, equalitarian society developed with everyone doing their share of the work.

During the 1880s coffee became the leading export and the wealth it brought for the coffee growers was used to purchase a lot of land in the Central Valley for coffee plantations.

Until the 1980s there wasn’t much interest in Costa Most Americans didn’t even know where it was and often confused it with Puerto Rico. Then retirees and other exats began to discover the country. Prices were really affordabe through the 90s.
The new millenium brought better roads with more accessibility to the country’s remote areas including its spectacular beaches. The new airport in Guanacaste really opened up the Northern Pacific area. The planned airport in the southern zone is expected to do the same.

There has been a virtual real estate boom in last few years for the reasons above, the coming of age of the Baby Boomers and an increased interest by big developers and players. Steve Case of AOL.com announced he will invest 900 milion in Costa Rica. Mel Gibson just spent over $25 million on a huge ranch. And Walmart invested hige sums of money. Costa Rica is now considered one of the five most emerging real estate markets in the world.

In the States you can’t go to a party without talking to someone who has been here or knows somebody who has moved here or invested in property. Costa Rica is indeed the buzz word.

(2) Real Estate Brokers

The real estate industry is in its infancy in Costa Rica. There is NO regulation or licensing for real estate brokers in Costa Rica. Anyone who says they are licensed is not telling the truth EVEN if they work for an international company like Centruty 21, Coldwell Banker or Remax. Consequently you have to be careful. There are hundreds of American carpet baggers who have jumped on the real estate bandwagon here to try and get rich quick. People who have lived here a short time become instant real estate agents. Indeed miracles do happen in Costa Rica. Real estate websites abound with information about retirement and real estate, so it is very hard for potential buyers to know who they are dealing with. In my bestselling book, “Christopher Howard’s The New Golden Door to Retirement and Living in Costa Rica” I have an extensive section on real estate where I tell how to find a broker and make a couple of recommendations. In my new guidebook, “Christopher Howard’s Official Guide to Real Estate in Costa Rica” I go into more detail on the subject.
Broker’s fees usually range from 5 to 10 percent. The latter can be for raw land. Fees are negotiable.

(3) Renting and Rental Laws

For those people who are not going to buy there are plenty of homes and apartments for rent in Costa Rica, especially around larger cities and towns. Depending on location and budget prices can range from a couple of hundred dollars a month to thousands of dollars on the upper end. Basically there is something for everyone. Rental laws are tricky and contracts should be used to protect both the renter and landlord. A good lawyer can explain the nuances of the law. In Chapter 2 of “The Golden Door to Retirement and Living in Costa Rica and in my real estate book you can find detailed information about rentals in Costa Rica.

(4) How to Buy Real Estate and Transfer Costs

(A) If you can’t afford to buy a house in the United States or Canada, prices for decent homes in Costa Rica begin at about $50,000 in a Costa Rican neighborhood Financing available for new homes if you become a resident. If you finance monthly payment includes a life insurance policy that pays off the loan in full in the event of death of the owner.

Property taxes are only .025 of one percent of the homes “declared value.”
So you will certainly pay a lot less than you do in the States.

You do not have to be a resident of Costa Rica to own property and you are entitled to the same ownership rights as citizens of Costa Rica. Ownership of real estate in Costa Rica is fully guaranteed by the constitution to all foreigners. This means your purchase here can be fully secured and safe. Unlike Mexico, some beachfront property may be purchased. However, the 200-meter strip of land along the seacoasts is owned by the government and for public use.

Purchasing property in Costa Rica is very different from making a similar purchase in your home country. The laws of Costa Rica and the property registration process can be somewhat confusing to a foreigner. Your best bet is to work with a broker or real estate consultant when looking for property.” When you find a property, your broker can help you negotiate the price and explain your financing options.

Be aware Real estate deposits and escrows here are very different. Escrow accounts are virtually non-existent unless you are dealing with a title insurance company or have a legal arrangement with your lawyer.

If interested in property, you should first check the status of the property at Registro de la Propiedad (like our land title office). Your lawyer can do this for you. The whole procedure is explained in my books.

If a property appears free and clear of encumbrances, you can then proceed. Your lawyer should then draft a transfer deed or escritura de traspaso to move the ownership from seller to buyer. The transfer deed should include details about financing of the property. In Costa Rica the buyer and the seller usually share the closing costs, unless otherwise agreed, which normally run about four to five percent of the total purchase. A small real estate transfer tax, or 1.5 percent of the actual value, is included, as well as a registration fee, stamps and notary fees, which vary depending on the price of the sale.
Title insurance is optional but advisable. It is common practice with many lawyers in Costa Rica to lower the actual amount paid on a sale to a much lower sum on paper to reduce land transfer tax. This can be risky and problems may arise later on. Make sure you understand what you are expected to pay.

Property may be purchased individually, between several people or in the name of a corporation (sociedad anónima). Buying and registering a property in a corporation has many advantages, mainly, asset protection in the event of a divorce or a lawsuit. When a corporation owns the property, the sale or purchase of the company can be negotiated so you don’t have to pay property taxes or stamp fees. All you have to do is change the board of directors, the legal representatives of the corporation, and transfer the shares.

(5) Financing

In the old days it really didn’t exist here. Now there are a variety of options for both Costa Ricans and foreign residents. Both state and private banks offer financing in dollars. Interest rates are higher than the the U.S. and terms are as long as 25 years. There is also some private financing available. Americans may not need financing if they have a line of credit from home or can get a home equity loan on their property in the States. A well-kept secret is that foreigners may use pre-tax IRAs from the United States to purchase property here. This procedure is perfectly legal. Please see my books for details.

(6) Title Insurance in Costa Rica

Title insure has been available in Costa Rica. Companies have been operating here for years. These companies protect buyers by guaranteeing the property is free of any liens and other impediments that cold hinder the purchase process and/or restrict the owners rights. The cost ranges from.5% to1.5% of the pruchase price.

(7) Hazard Insurance

Home insurance is available in Costa Rica. Insurance is available against fire, theft, home liability and natural disasters. At present the National Insurance company is the only choice, but with the passage of the CAFTA other companies will son be offering home insurance. Some of the details of the coverages are confusing and complicated, so, please refer to my books for details.

(8) Building, Building Costs and Permits

In Costa Rica you can build your retirement dream house since land, labor and materials are inexpensive. However, think twice about undertaking such a project because you could be flirting with disaster. Many foreigners who have built homes complain that it sounds easier than it really is. They would not do it again because of costly delays, permits, sometimes unreliable labor, fussy building inspectors, different laws and building codes and many other unforeseen problems. Be sure to talk with foreigners who have built homes to see what obstacles they encountered. Costs depend on location, materials and the size of the home you want to build. You generally pay $500 to $1,000 a square meter or $45 to $90 a square foot or sometimes less in more rural areas.

Aerocasillas Opens a New Branch in Heredia

Eleven years ago Aerocasillas was the first company in Costa Rica to offer an innovative mail service. Since then the company has grown by leaps and bounds . What they basically do is provide a mail drop and P.O. box in Miami and a physical address where people can send or receive letters and packages. This enables customers living in Costa Rica to have their mail sent to the Miami address from where the company forwards it to Costa Rica.

On December 12, 2007 the company inaugurated its new branch in Heredia, Costa Rica. I had the pleasure of attending the celebration because I have been one of their long-time clients. I run several businesses based in Costa Rica and most of my customers live in the U.S. and Canada. It has always been vital that I get my mail to and from the North America as fast as possible. I am happy to say Aerocasillas has provided me with the service I have needed to run my businesses successfully. Without them it would be have been virtually impossible.

In addition to the basic services mentioned above, people can access mail order products from the United States, subscribe to magazines and newspapers at U.S. domestic rates, obtain replacement parts from abroad and order directly from mail order catalogs such as Land’s End, J.C. Penny and L.L. Bean. Large automobile parts may also be ordered from the United States. Customers can pick up their correspondence directly from Aerocasillas’ offices or have letters and packages picked up and delivered to their home or office. Aerocasillas will also get packages out of customs, thus saving their clients a lot of headaches and costly delays.

The Disadvantages of Self-Guided Retirement Tours

When thinking of retirement in Costa Rica one of the first things that comes to mind is the best way to explore the country. A lot has been written in publications and websites about this subject and some of the information is incorrect.

Those who have a high level of Spanish fluency, who have traveled extensively abroad or visited Costa Rica on numerous occasions will probably have success touring the country on their own. However, they are few and far between.

On the other hand, almost one hundred percent of the participants on my retirement/relocation tours have stated that they could have never explored the country on their own nor made the contacts I provide.

At some point independent travelers will have to drive or take buses which can prove tiresome. There have also been cases where people traveling by bus have had their luggage stolen. Even if you choose to fly, at some point you will a taxi or bus since you won’t have ground transportation which can add up to a lot of money.

On top of that most travelers speak little or no Spanish which can increase their anxiety and make them feel helpless when asking directions when lost. Remember NOT all Costa Ricans speak English. Imagine having car troubles or some other emergency in the middle of nowhere and trying to communicate with people. I had one client for a two-day consultation who insisted on renting an automobile and driving as we toured the Central Valley. After our tour he remarked that he saw very little.

Wouldn’t it be easier to take a guided retirement/relocation tour than to have to deal with all the situations above? I would think so.

The knowledge and contacts you get from an experienced retirement guide are invaluable. And best of all you can leave all of the headaches like finding lodging, transportation, viewing the inside of homes and looking for a good restaurants to your guide.

By the time time you ad up your valuable time, the monetary and emotional costs of a self-guided tour, a guided retirement tour is a no brainer.

For more information about Christopher’s tours see Live in Costa Rica Tours or call TOLL-FREE 800-365-2342