Properties in Costa Rica Blog

Costa Rica real estate is typically a cash market for foreign investors. The main reason is Costa Rican banks lend money at a significantly higher interest rate than the Prime rate, which has been cut to historically low level since January of 2009. However, you don’t have to give up the dream of owning your own piece of paradise, because there are two elements working in your favor—lower prices and seller financing.

Pricing After The Downturn

Whether you desire a luxury home or an ocean view lot, there’s never been a better time to buy Costa Rica real estate. Land values are down by 50-60% from the peak in 2008. Houses have held their value a bit more, but even these turnkey options are lower.

Seller Financing Is Easy

Before the downturn, most foreign buyers—Americans, Canadians, Europeans—traveled to Costa Rica with cash to invest. Then, the downturn hit and property values around the world decreased… dramatically in some areas. Equity in their home dried up along with previously abundant lines of credit. This is where property owners in Costa Rica got creative.

In fact, “holding paper” in the form of a registered mortgage, became more than an option, it quickly became common. “Holding paper” means the seller is willing to take a portion of the purchase price up front and hold a note in the form of a trust or mortgage. Your lawyers set up a trust or a mortgage here in Costa Rica.

Here’s the security for the seller… If the buyer defaults on the terms of the trust or mortgage (usually by missing payments), the seller can initiate the foreclosure process.

Term-inology

Generally speaking, we see certain deal points common to the seller financing deals (e.g., approx.. half of the purchase price down, a term of less than 5 years). While other details like interest rates, ballon payments, and monthly/annual payments vary greatly.

Cash is still king in the Costa Rica real estate market. If you, as a cash investor, have been sitting on the sidelines waiting for the right time to buy your dream property in the tropics, your time is now. You have the maximum buying power with the maximum inventory of ocean view land.

by Rod Martin

A Superfood is defined generally as “a food considered especially nutritious or otherwise beneficial to health and well-being”.  Many move to Costa Rica in hopes of doing that very thing, benefiting their health and well-being.  In this day and age there are varying discussions on superfoods (Are they really super?) but it is certain, eating healthy is smart.  This is one easy thing to accomplish in Costa Rica and if you are into the superfood movement, you will love it here.

Cacao.  Not only are Cacao seeds the main ingredient in chocolate but they can be turned into cacao butter, cacao oil, cacao powder, all which have varying uses and all of which smell like chocolate.  Yum.  But it is the antioxidant flavanols which you find in cacao that are of benefit to your health.  Cacao plants grow very easily in Costa Rica, particularly in secondary rainforest areas.  What to try something really different?  The fruity, somewhat slimy, “meat” of the Cacao is a unique experience in itself!

Kale.  Grown mainly in the central valley area of Costa Rica, you will find a couple different leaf types of kale are available here.   Kale is from the same family as broccoli and contains the same vitamins and anticancer chemicals.

Chia Seeds.  Chi chi chi chia, we all know the infomercials where you can own your very own pottery pet that grows a chia fur, well who ever thought people would eat those seeds? The proper name for Chia is Salvia Hispanica.  This tiny seed is known for its high omega-3 fatty acid content, as well as calcium, phosphorus and manganese.

Coconut oil.  One of the best oils to cook with, coconut oil promotes heart health, brain health and the immune system.  It is easy on your digestive system and great for use as a topical moisturizer.  Plus, it adds a nice coconut flavor to any dish.

Agua de Pipa.  Drinking coconut water has become a trend; companies are capitalizing on the bottling of this refreshing juice.  This clear “water” is taken from young green coconuts called pipas and is sold on practically every corner of every beach town in Costa Rica.  Here you don’t buy it in a bottle; you drink it straight from the coconut.  If you can’t find a vendor, just look for a tree and knock one down (of course you will need a machete to open it).  Known for its rich electrolyte concentration, this juice also contains high amounts of vitamins, minerals, amino acids, antioxidants and plant hormones called cytokinins.

These are only a few of the superfoods available in Costa Rica that you will find at most local farmers markets, plus usually they are organic.  Due to the marketing and distribution of these kinds of foods, they can be quite costly at the supermarket in Canada or the US, but in Costa Rica they are very affordable.  How does $2 for a bunch of kale or $1.25 for a pipa sound to you?  It is easy to make these, and other, superfoods part of your healthy lifestyle in Costa Rica.

by Zoe Longworth

Located up the hill on Alto Las Palomas, Vista al Valle Santa Ana is a unique and exclusive development that represents the meaning of a relaxing and distinctive lifestyle away from the crowd but just minutes from all modern amenities in both Escazu and Santa Ana.

Trip Advisor recently ranked the Travelers Choice Top 10 Beaches of Central America, Costa Rica dominated the list. The ever-popular Manuel Antonio  National Park won the top spot, with lush jungle surrounding by powder sand beach. The crowd favorite Playa Samara took second place, this one being the top choice for tourists to Nicoya region. Along this same coastline, Norsara took fourth while Playa Santa Teresa took fifth place. The Guanacaste region was represented by Playa Avenllanes and Playa Conchal which took sixth and seventh, respectively. The popular surf spot of Playa Hermosa took eighth and on the Carribean side, Playa Viejo took ninth. Popular beaches aside, what if you are looking for an uncrowded and untouched beach? Can they still be found? The short answer is, yes! (or maybe Si!)

Head south of San Jose, about 3.5 hours by car and you will arrive at an area called the Costa Ballena (Whale Coast). By this point you have just passed the “off the grid” beach of Matapalo , with its crescent shoreline and reclusive feel. Ranking number 40 on CNN’s Worlds 100 Best Beaches, Playa Dominical  has long been a surf destination. In fact, many wave hunters claim it is the most consistent surf in Costa Rica. Due to the strong rip tides, there are times when this beach isn’t recommended for swimming, but the fun atmosphere and beach side dining makes up for it. It is a great place to soak up the ‘pura vida’.

The small cove beach of Dominicalito  is a more tranquil option compared to its big sister Dominical. The serene surroundings and unique topography, such as the Roca de Amancio tree island, are picturesque to say the least. Enjoy surfing at high tide or playing in the sandy bay at low tide. Sunset dining at the La Parcela restaurant, located on the peninsula separating Dominicalito and the adjacent bay, is a nice way to end your day at the beach.

Before arriving in the town of Uvita you will come to Playa Hermosa  , not to be confused with Playa Hermosa of Jaco. Easily accessed off the highway, the two mile beach at Playa Hermosa is the ultimate retreat. Sun bathing, surfing, bonfires, sunsets, all the favorite things about visiting the beach can be enjoyed here.

When you reach Uvita  , you enter the area famous for the Marino Ballena National Park . This park boasts one of the most beautifully preserved areas in Costa Rica. The beach, known as Playa Chaman by the locals, is ideal for beginning surfers, swimming and snorkelling. During the annual migration of Humpback whales (AugustOctober), Uvita hosts the Whales and Dolphins Festival. At low tide, one can walk the famous Whale’s Tail sand bar, which can also be viewed from the hotels and mountain property  that lines the coast. Entrance into the park is $6 for visitors.

We are going to skip over one beach and head to Playa Pinuelas, known for its local fishing and very much fits into the “hidden” category. The view of Tres Ninas rock formation is optimal from this rocky cove. Next is Playa Ventanas, aptly named for the “windows” in the rock walls that allow the ocean to rush through. This beach is a favorite among Costa Ricans and visitors due to its majestic cove situated between palm trees and the blue Pacific. Beyond this is Playa Tortuga  , an untouched beach where turtles nest and the Terraba River joins the Pacific Ocean.

This entire southern coastline is where pristine is defined and hidden is found. When you find yourself in the warm rolling waves of the Pacific Ocean, silence surrounding you and you look back to the shore of one of these beaches, palm trees framing the emerald green mountain coastline, you will never want to leave.

But wait a minute, what about the beach we skipped over? Ladies and gentleman, we announce to you the best hidden beach in Costa Rica is… Playa Arco. Unfortunately, that is all we can tell you. You have to visit to find out more.

by Rod Martin

When you read these words- pineapple, palm trees, surfing, fish tacos, sea turtles, coconuts, lava rocks, humpback whales- what comes to mind?  Perhaps you may think, Hawaii.  Those things are also what Costa Rica is made of.  Throw in sloths, bananas, hummingbirds, coffee, monkeys, rainforest, birds of paradise, volcanoes and you haven’t even scratched the surface!

Many travel to Hawaii for family vacations, weddings or honeymoons.  It offers the conveniences of North America wrapped up in a beautiful package.  Costa Rica is an exotic version of Hawaii.  It is only a 3 or 4 hour flight from Texas or Miami, making it a reasonable option for that yearly escape from the cold, or for that retirement dream home.  While it is not an island, it is a foreign country, giving off a sense of excitement for those who want to venture outside their comfort zone.

The list of activities is endless, surfing, zip-ling, horseback riding, canyoning, ATV tours, bird watching, snorkeling, scuba diving, hiking and so on.  The diverse wildlife is breath taking, and no doubt, seeing monkeys Tarzan from tree to tree will bring a smile to your face every time.  The flora is colorful, think birds of paradise and orchids, and fragrant, imagine ginger and lavender.  The landscape encompasses volcanoes and cloud forests to miles of sandy beaches and rivers, all topped off with radiant sunsets.  Then there are the beaches, which can be best described with one word, uncrowded.  Numerous beaches dot the two coastlines of Costa Rica, these are what truly make up the “rich coast”.

Maybe you have thought, ‘wow Hawaii would be a nice place to retire full time’.  Have you considered Costa Rica? If you are looking for simple living away from the hustle and bustle, with comfortable mountain climates within a 10 minute drive to the beach, Costa Rica can give you that.

The language barrier may seem intimidating, but rest assured, you can get by without speaking a word of Spanish.  It is amazing how far hand gestures will get you.  Although, your experience and relationships are only enriched if you even just put forth the effort to speak the language.

For those who are looking for organic, eco friendly living, more and more eco conscience individuals are relocating here and thus contributing to the “one with nature” movement.  While those who have been here for years, whether native or foreigner, are proud to fight in order to maintain the essence of Costa Rica.  While inflation as affected Costa Rica, a budget conscious life can be lived.   Then again, if you can afford to visit Hawaii, you can afford to visit Costa Rica.  And when people have relocated from Hawaii for the surfing and lifestyle of Costa Rica; that in itself says something!

If you are unfamiliar with all that Costa Rica has to offer, or have just started considering it as your next vacation or retirement move, take the dive and fly on down!  How can you go wrong with lounging on the beach, fresh smoothie in hand, listening to the calm ocean waves?

by Zoe Longworth

If you are looking for your next family vacation you might want to consider Costa Rica. If you have not been to Costa Rica you probably know somebody that has been or somebody that has property in Costa Rica.

This small country in Central America has become one of the prime spots for families to visit during their vacation. What Costa Rica offers is an environment of extremely friendly people along with kid-friendly activities that allow everyone to enjoy some adventure and be surrounded by nature. We could go on for hours about the importance of getting your kids out into nature but we just want to emphasize here how kid-friendly Costa Rica has become.

Take for example the canyoneering adventure that allows you to rappel down different waterfalls in the middle of the rainforest. This was an adventure strictly for the extreme adventure crowd while now their is a canyoneering company in the Arenal area that can take kids of all ages allowing your 5 year old to take part in an adventure that will put him among the top adventure 5 year olds on the planet!

Also you can not think of Costa Rica without the famous zipline. Here you will find many different ziplines and plenty are kid-friendly. Not all ziplines are kid-friendly but if you know the right ones then you can guarantee a family outing for the entire family from ages 4 – 90!

Some other adventures that Costa Rica’s tourism industry has geared towards kids have been the surf lessons and whitewater rafting. Costa Rica is known on a worldly level for the waves you can find on the over 800 miles of coastline. There are a number of places where your young ones can learn to surf small waves and almost always stand up on their first or second try. Along with surfing is the whitewater rafting. In a country that is made of mountains and rain the rafting is some of the finest on Earth. There is a river for everyone. Be it the crazy uncle who has not given up kayaking on class VI rapids or the little 5 year old nephew who is looking to get wet but stay in the boat. Costa Rica whitewater rafting can cater to rafters of all levels and sizes.

Half of my family is from Canada, eh. My mother grew up in Newfoundland until the age of 13 when my grandfather found work in California. The extended family that stayed behind, some later moving to Ottawa, would frequently visit us in the San Francisco Bay Area, especially during the cold, winter months.

A few years ago, when I moved down to Costa Rica full time, I realized there are a lot of Canadians visiting (102,471 in 2009*) and living the area. One of the main reason Canadians (virtually all nationalities for that matter) visit, buy land, and in some cases, relocate to Costa Rica is the weather. As one client put it, “Shoveling snow sucks.” I have only experienced it a couple of times in Lake Tahoe, California, and I’d have to agree.

Shorts, No Shoes

The Costa Ballena (Whale Coast) is the tropics. Those living near the beach are rarely (if ever) cold here, and most people walk around in shorts 365 days out of the year. For those who “melt in the heat”, the Costa Ballena’s unique geography offers many cooler locations up in the mountains, most offering spectacular views, waterfalls, and close proximity to the beaches and/or San Isidro, one of the fastest growing cities in Central America. It rains 6 months out of the year, but even in September most mornings begin with blue skies and sunshine.

Active Adult Communities

The landscape and its wildlife are spectacular. In fact, I’ve seen it written that the Corcovado National Park on the Osa Peninsula is “home to more plant & animal species than all of North America combined.” Add in the many outdoor activities available in the area— world class sport fishing, whale watching, bird watching, hiking, golf, tennis, and surfing to name a few — and retirement in Costa Rica is actually when many expat residents really start living.

Another reason Canadians love Costa Rica is the cultural adventure. It starts with the Costa Ricans, also known as Ticos. On the whole, the polite locals are family and community-focused, and even the toughest-looking hombre will break into a smile if you smile. Yes, there are a few cultural nuances to adapt to—“yes” doesn’t always mean “yes”, “tico time” means being late, strange driving habits— but ultimately these are all opportunities to take a deep breath and grow a little. The Costa Ballena has a safe, laid back feel to it, add a hammock and a good book into the mix, and it is relaxation-defined.

A “Lot” For A Little

Foreign investors continue to visit and invest in the Costa Ballena. Add in the fact that annual property tax in Costa Rica is .25% and there is no Capital Gains Tax, and the investment picture is even more appealing. Canadian citizens who claim non-resident status and have residency in Costa Rica are not double taxed by the Canadian government on their Costa Rica income. If you’ve always wanted to make Costa Rica your home, please consult your tax attorney for more details. But, in summary, to be a non-resident Canadian you must—

1. live in Canada for less than 183 days in the tax year

2. not have any residential ties (e.g. cars, houses, a spouse or dependents) in Canada.

We see a lot of people visiting, buying and relocating to The Costa Ballena. There is so much room for growth here; success only requires imagination, a little research, and a few good connections.

Our office is made up of foreigners who have now made the Costa Ballena their permanent home. The communities each have a varying group of expatriates, for instance the town of Ojochal has become known for its community of French Canadians, mainly because of the popular fine dining restaurants run by such individuals.

Beautiful weather, abundant wildlife, friendly people, and good investment opportunities… no wonder so many Canadians are buying real estate in the Southern Pacific Zone of Costa Rica!

*Written by Rod Martin, Agent of PropertiesinDominical.com

There are Toucans and Beaches, but Why Else should you Consider Costa Rica for your Retirement?

Costa Rica is one of the most desirable places in the World to retire for its beautiful natural scenery, tranquil “Pura Vida” lifestyle, friendly locals, year round temperate climate, and many more reasons depending on the individual. Below you will find the Top 10 Reasons that most people retire here. The majority of retires are from the U.S., Canada, and Europe making Costa Rica a unique country of many cultures living peacefully together in paradise and truly enjoying life.

Peace and Stability – Costa Rica is commonly known as the Switzerland of Latin America due to its neutral political stance, peaceful democracy, and dramatic mountainous landscapes. There has been some form of democracy in Costa Rica for well over 100 years and the country abolished its military long ago in 1949. The United States is their closest ally and many expats already live in Costa Rica. Former President Oscar Arias was once awarded the Nobel Peace Prize in 1987.

Cost of Living – Life in Costa Rica is very affordable and one of the lowest in the Americas. For $1,200 per month a retired couple can live very well and for around $2,000 per month can live affluently. Utilities are up to 30% cheaper in Costa Rica than the US and Europe and a full time gardener and house keeper can be obtained for a few hundred dollars per month each. Numerous inexpensive local restaurants with fresh local fruits, vegetables, meats, and seafood ingredients make eating out enjoyable.

Lifestyle – The ‘Pura Vida’ or the ‘Pure life’ is the local expression for everything from a greeting to a state of mind. The pace of life here is laid back and punctuality is merely a suggestion, which is the whole idea of retirement. There is also plenty to do for those searching a healthy active lifestyle such as: surfing, hiking, white water rafting, bird watching, sport fishing, biking, zip line tours, horseback riding, walking secluded beaches, and much more. Explore or relax as much as one desires. According to the New Economics Forum Costa Rica is the happiest country in the World, ranking 1st on the Happy Planet Index since 2009, up from 3rd in 2006. It also consistently ranks among the top Latin American countries on the Human Development Index.

Affordable Health Care – The cost of health care in Costa Rica is a fraction of that in the US or Europe. Many even come here for medical tourism to enjoy the benefits of World class medicine and a top travel destination. Public health care is readily available and private hospitals such as: CIMA Hospital, Clinica Biblia, and Hospital Catolica are filled with specialist doctors that have studied abroad.

Climate – The year round warm weather is another of the desirable reasons to call Costa Rica home. The central valley has moderate temperatures and enjoys weather in the70’s most of the year. The coastal climates are warmer with plenty of sunshine for days at the beach. There are only two seasons here; dry season typically November through April and rainy season typically May through October. Even in the rainy season there are mostly sunny mornings with afternoon or evening rains. September and October are usually the rainiest months of the year.

Natural Beauty – Costa Rica is unsurpassed as one of the most naturally beautiful countries in the World with mountains, rainforests, volcanoes, pristine beaches, rivers, and two coastlines bordered by the Caribbean Sea and the Pacific Ocean. Costa Rica, despite accounting for only 0.25% of the World’s land mass, it is home to 5% of the World’s biodiversity. National Geographic has called the Corcavado National Park on the Osa Peninsula in the Soutern Pacific Zone one of the most bio diverse places on the entire planet.

Sustainability – Costa Rica is very ‘green’ or eco minded with the majority of utility power coming from hydro-electric sources, protecting rain forests and wild life, and promoting eco-tourism. The government even has plans to become the World’s first carbon neutral country by 2021. Costa Rica ranked 3rd in the World, and 1st in the Americas on the 2010 Environmental Performance Index. An astounding 25% of its total landmass is protected by reserves and national parks, more than any other country by percentage.

Taxes – Low tax rates are another popular reason for people to retire in Costa Rica. There is no income tax paid on income earned outside of the country and no capital gains tax. Property taxes here are extremely low at only 0.25% of the recorded property value.

Business Opportunity – There are numerous investment opportunities in Costa Rica with historically rising real estate values, ever increasing international trade, and a large tourism sector. It is the number one Latin American tourist destination, which is more than a $2 billion per year industry. Retirees can start a small business such as; bed and breakfast, hotel, restaurant, fishing charter, tour operator, spa, and more providing themselves with income and additional jobs for the local work force. Costa Rica also has a highly educated population with over a 94% literacy rate.

Comfort Factor – Costa Rica has more Americans living here per capita than any other country outside the United States. The locals are friendly to expatriates and there is less feeling of isolation with other retirees nearby. Only a 3 hour flight from Florida and the US; its close location makes visiting the States easy and accessible. Other comforts include majority English channels on SkyTV, internet access even in rural areas through satellites or 3G cell phone networks, and the same or comparable stores and services in the larger cities and towns.

It is evident that the reasons for retiring in Costa Rica go beyond the natural beauty and friendly locals. If you are considering retirement in a foreign land, the reasons for considering Costa Rica are best experienced in person and it truly is a choice you do not want to overlook.

Written by Joshua Kanter, Agent with Properties in Dominical.

In the past investing in Costa Rica real estate was one of the best investments Worldwide, with exponential returns year over year. However, these exuberant returns were unsustainable and when the global economic crisis hit the property values had to come back down to realistic levels. Today it appears we have past the bottom of the cycle and many of the fire sales have been swooped up by savvy investors. It is still very much a buyer’s market and great time to invest in Costa Rica because as the U.S. and other World economies recover, the property values here will once again begin to increase.

Costa Rica is a safe place to live, with peaceful laid back locals and a ‘Pura Vida’ lifestyle. It is also safe to invest in Costa Rica with the majority of property having fee simple title that foreigners can own outright. There are properties directly on the beach that are “concession” and are technically leased from the government, and proceed with caution in those cases; better yet, search for another titled property slightly off the beach or elevated location overlooking over the ocean. All real estate transactions are done through a local attorney and the proper due diligence is performed in order to make sure the property in question is free of any leans, taxes, or other legal issues. Stewart Title and Chicago Title are also operating in Costa Rica and offer title insurance for added peace of mind over you investment.

This country is also one of the most desirable places to retire in the entire World. The ‘Baby boomers’ are now just beginning to retire and for years to come many will be looking for tropical destinations to live full or part time. Costa Rica real estate values will benefit from this trend and offer exactly what most retirees moving abroad look for:

-Temperate year round warm climates

-Mountain property with amazing views of the ocean, coastline, or valleys

-Close proximity to beaches, restaurants, and amenities

-Plenty of activities or hobbies to enjoy

-Affordable medical treatment and health care

-Accepting, helpful, and hard working local population

-Low cost of living and high quality of life

Many people are looking for investments outside of their home country for diversification. Diversify your portfolio with property or second home in Costa Rica as an alternative to stocks, bonds, and mutual fund investments. A property that increases in value as a long term investment can often beat stock market returns. Owning and operating a business in Costa Rica can be done on a 90 day tourist visa, you do not need to be a resident, this has made it easy for many to invest in bed and breakfasts or hotels, restaurants or tourism. Others have invested in a home with the goal of operating it as a vacation rental, with tourism on a steady incline, vacation rentals are consistently in demand. There are various options to generate an income off your foreign investment.

Costa Rica is also a forward thinking country with over 25% of its landmass in wildlife refuges and nature reserves and even has goals to be the World’s first carbon neutral country by 2025. This natural beauty attracts millions of tourists per year and as eco-tourism becomes more popular Costa Rica will be poised to continue growing its tourism sector; which is already its number one source of GDP. It is consistently #1 or #2 in most visited Latin American countries year to year. The more people that travel to Costa Rica and experience its scenery, culture, and pace of life, the more people that will want to own a piece of this unique paradise in the future.

Costa Rica is a true alternative to traditional investments and well positioned to continue as a leader in places to retire and travel; thus increasing real estate values across the country. Pending another Worldwide economic meltdown this tropical destination will remain one of the best foreign investments money can buy. If there is a complete global financial collapse, the self sustainability of many properties in Costa Rica will allow you to grow your own organic fruits and veggies, raise chickens, and live off the land. Regardless of what the future holds, now is the time to investigate Costa Rica for your next investment.

by Zoe Longworth