Properties in Costa Rica Blog

Monthly Archives: March 2013


Top Mistakes Made by Foreigners Buying in Costa Rica

March 14, 2013

Properties in Costa Rica

Costa Rica is an amazing country with tons of biodiversity and natural attractions, friendly local people, safe for retirees and families, and real estate opportunities for any level investor.  Many come to Costa Rica with romantic dreams and grandiose plans of how they will live the rest of their life in tropical paradise stress free on the beach or a mountain retreat.  However, some common mistakes can lead to frustration and disillusionment of this idyllic dream and for some, result in returning to their country of origin.  This blog will discuss some of those mistakes and how to avoid them in order to truly enjoy the “Pura Vida” lifestyle.

Buyer Beware – There are many buyers that come to Costa Rica and think they can purchase a home or property on their own and do not need to use a realtor.  There are tons of “Se Vende” or “For Sale” signs everywhere and it is not hard to find many property options, however, it is not easy to find quality property options.  Basically anyone can try and sell their property by placing a sign on it or having their brother or uncle try and sell it for them, but many do not understand the legality and usability of their own property.  By using a qualified and experienced broker you can quickly filter through a lot of properties that are just plain undesirable and start to view properties that work for your specific goals.  Many factors can change the actual usability of a property for example: set backs from rivers, creeks, and springs can make building where you planned impossible and if there is no other place to build on that property, then it is not worth purchasing.  Also minimum property sizes on a private road can vary in different Cantons of the country, so having someone that knows these details is an invaluable asset.  Make sure you realtor or broker has experience in their local area, legal and other useful contacts, and at the very least has taken the course offered by the national real estate association; Camara Costarricense de Corredores de Bienes Raices (CCCBR).

Not in Kansas Anymore – This goes without saying, but many people assume everything here will be just like in the States, Canada, or Europe.  Well surprise it is not!  Although Costa Rica is developing and now has many amenities it did not have even a few years ago, it is still not a “get whatever you want when you want it” society.  People used to this type of immediate service and availability can be in for a rude awakening.  Everything takes longer here and especially real estate transactions where the “Rigistro” or National Registry is involved processing papers and building permits from the local Municipality take longer as well.  It is not just buying land or a home, it can be anything and a common example I like to use is just going to the hardware store.  In the U.S. you go to Home Depot or Lowes, everything is well marked and you can usually find what you want without any help, grab it, and go check out.  Here not so fast…. you need to get someone to help you and sometimes even take a number if it is crowded, then they gather your items and write up a “factura” or bill and sometimes can even pass you on to someone else for this.  Then you have to go to another employee at the register or “caja” and pay your bill.  Meanwhile another person is packing up your items and then you have to go show them your receipt and retrieve the items you paid for.  If there is a word in Spanish for efficiency it is not used in the Costa Rican vocabulary often.  Rather than dwell and complain about the differences it is better to learn patience and embrace them as part of life in a new culture.

Lost in Translation – Costa Rica is obviously a Spanish speaking country, but many locals speak some English and a person can get by on vacation with virtually no Spanish.  However, once you live here full time it is best to learn some Spanish for daily interactions.  Many full time residents to not even bother learning basic phrases and expect everyone to know some English; which in tourism areas may work, but in local towns and more rural areas knowing some Spanish will help tremendously.  Also local people respect the effort of trying to learn their language and will commonly try and help out with pronunciation or vocabulary.  Many times they will want to try out their English while you try out your Spanish.  Whether you take a course once moving here or practice at home with an online course, it will pay off in everyday interactions and help you integrate with the local community.

Jumping In – Another common mistake buyers make is moving too fast.  They fall in love with this country while on vacation, go home and sell everything, and make the plunge.  This can work out for a few, but most people should take their time and rent a home here first or make numerous extended visits to make sure Costa Rica is the right move for them.  At least research first and consider carefully the differences of life in a foreign country vs what you are used to.  This is a huge lifetime decision and a substantial financial investment, so making the right decision is vital.  Renting in a various areas to see which part of the country you like the best is a good idea, maybe different climates too like next to the beach or in the mountains.   Most of our clients we work with through the research stage and for a couple trips before they purchase.  We can also help in finding vacation and long term rental homes for any amount of time.  Whether it is your first or fifteenth trip we can help you through the process, and will work with you as long as it takes to make the right decision for you.

How Hard Can it Be – Many buyers think they will find the perfect piece of land and build their dream home easily and quickly and move right in.  Well, not so fast…. the building process here takes much longer and just getting the proper permits can take well over 3 months.  If you are not going to be here during construction than an English speaking builder/contractor is highly recommended in order to ensure everything goes to plan and can provide you with constant and accurate updates of the building process.  If you are planning on being here during construction it is still worth considering a professional contractor that knows the in and outs of building here, is well connected with local architects, engineers, and the local municipality for permitting, has knowledge of the best supply stores, and has a crew that has worked together many times before.  Another good idea is to build a small caretaker home or guest apartment first in order to have a place to live while you build a larger main house. Building a home anywhere from scratch is stressful enough, why not make it as unproblematic as possible by hiring a professional.

Patience is a Virtue – Basically most mistakes and frustration come from lack of patience.  This is a hard learned skill and toke me some time after moving here to achieve any resemblance of patience.  I was a very impatient person over 7 years ago and wanted immediate results for anything and everything.  That had to change in order for me to truly appreciate this country, the people, culture, and customs.  Still would not say I have fully obtained it and still find myself sometimes screaming on the inside “HURRY UP!” while waiting at a bank or I.C.E. office and my number has a long way from getting called.  But it is a constant learning process and you just have to really stop and smell the roses, or thousands of different types of flowers in this case.

For more local tips and advice you can contact me

by Joshua Kanter

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Why it’s Safe to Live and Travel in Costa Rica

Properties in Costa Rica

Costa Rica has been a favorite destination for tourists, retirees, and second home owners for many years.  It is perfectly safe to travel and live here full time in this country.  Of course you have to use caution in certain areas of the San Jose due to crime concerns and use common sense to avoid petty theft when travelling with cash, passports, and electronics throughout the country.  In tourism areas there is always petty theft of thieves breaking into cars and taking wallets, cameras, and cell phones or snatching an unattended bag in a crowded public place.  In the capital city of San Jose crime is of greater concern and many home owners have bars on their windows and live in gated communities with 24 hour security.

I have lived here for over 7 years and been traveling here since 1998, over 14 years.  I have not ever felt unsafe or threatened.  Crime rates have increased during this time, but out where we live in the rural area around Dominical it is not as much a concern as in other areas.  There is also the C.A.P. (Crime Awareness & Prevention) on Crime of Costa Rica that was founded in Playa Dominical. They have taken many steps to reduce crime in the area and have even installed cameras at many local area establishments and near the beach.  Below are tips from C.A.P. on how to travel safely around the country.

1.        During your stay here use caution when contacting unknown people.
2.        When swimming or playing in the ocean, make sure someone is watching your valuables.
3.        Use caution when visiting remote locations or isolated beaches.
4.        When in restaurants, markets, or other public areas NEVER leave your valuables unattended.
5.        When you travel by car, always lock the doors, and never leave your personal items in sight.
6.        When staying in hotels use the safety boxes to keep cash, jewels and documents protected.
7.        Lock doors and windows in your place of lodging.
8.        Keep a photocopy of all documents/passports in order to facilitate the retrieval of any lost item.
9.        Don’t be a victim.  Be aware of your surroundings and know WHERE you are at all times.
10.      Do not wear valuable jewelry that can draw attention to you.
11.      In the city carry small backpacks in front of you.
12.      Stay alert if someone approaches or pushes you, or you feel that you are being followed. Notify the nearest police officer or walk into the nearest public establishment.
13.      To exchange money only use banks or authorized exchange windows.  You will need your passport for all bank transactions.
14.      Use ATM’s that are located in public and well lit areas.  Avoid help from strangers.  Withdraw, count your money, and put it away before leaving.
15.      If traveling by bus keep all carry-ons in your possession.  Verify you have all items before departing bus.
16.      In the event of an emergency always call 911 first.  Ask for an English speaking operator.  Identify your local police station and/or town.
17.      If during your travels you feel lost or experience any difficulties you can call 800-TURISMO.

Costa Rica is a safe and peaceful country with the exception of a few bad apples.  As long as you follow these suggestions above you should have a fun vacation or be able to live here tranquilly.  If you are interested in donating funds towards preventing crime, then visit the C.A.P. on Crime website for more information.

by Joshua Kanter

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Costa Rica Local Workers and Their Benefits

Properties in Costa Rica

Labor in Costa Rica is very affordable compared to the U.S., Canada, or Europe and many ex-pats employ a full or part time gardener and house cleaner.  Since the jungle grows so fast around here, a gardener can keep the property and the landscaping maintained.  Same for a finished home, having some help cleaning windows, sweeping, mopping, and more helps maintain its beauty.  After all most people move to Costa Rica to relax, not do house and yard work.

The salary of a full time worker is modest and about $100 to $150 per week depending on how long they have worked for you.  If you are paying minimum wage, then there is a mandatory increase every 6 months. If you are paying above minimum wage, then you can give raises when you please.  Most all Costa Ricans are very hard and honest workers and although there can be a bad apple from time to time, my experiences have been mostly positive.

The employer is required to pay the equivalent of social security and health insurance to the “Caja Costariccencse de Seguro Social” or commonly called the “Caja”.   This is every month and for a full time minimum wage employee runs about $130 per month.  Even part time employees should be covered, but for a pro-rated the monthly fee.   The “Caja” gives each “patron” or boss a slip of paper each month to give their employees.  This paper is what they would take to the hospital if they get sick or anyone in their family gets sick, and provides proof of insurance.

All employees should also have the equivalent of Worker’s Compensation Insurance through “Instituto Nacional de Seguros” or “I.N.S.”  A worker’s comp policy is about $120 to $200 per year depending on the type of work and hours performed.   This covers any injury incurred while on the job and will pay their salary if they are incapacitated for an extended period of time.

Another option if you only need a part time employee and hire a ‘contract worker’ and they will be responsible for their own private insurance and worker’s comp policy.  The salary can be per day and slightly higher to cover this added expense for the worker. However, many employees just pocket this extra money and go uninsured, which is why it is recommended to pay the insurance and policy for part time and full time employees alike.

If you do not live in Costa Rica full time you may consider a professional property management company like ours and set up a specific schedule for workers as needed on your property or home.  Our team of gardeners and house cleaners all have their proper insurance and worker’s comp policies in place, and you just pay per day of work.  Even if you live in Costa Rica and do not want the hassle of paying monthly and yearly insurances, then we can handle it all for you and provide a custom cleaning and maintenance schedule to fit your needs!

by Joshua Kanter

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