Costa Rica Real Estate – This is part of our series on buying real estate in Costa Rica. We hope to provide information needed to make an informed decision about purchasing land, condos, houses or commercial property in Costa Rica. If you want more information about this property or buying real estate in general you can request the free e-book, “Secrets of Buying Real Estate in Costa Rica”
Hidden treasure can be found in Central America and you don’t need to dig to find it. The treasure comes in the form of low-cost real estate in a country of divergent natural wonder, a nation of peace, fantastic democratic tradition and friendly people – Costa Rica.
Costa Rica is known all over the world as a haven for vacation, retirement and investment because it goes way beyond scenic beaches, majestic mountains and temperate weather all year round. It is a country that offers the best real estate investment opportunities bundled with strong economic growth making it more and more attractive to both investors and baby boomers who have ascertained that they can make smart business ventures on income properties to enhance their retirement scheme. Costa Rican law also gives equal rights to locals and foreigners to own a fee-simple property in the country and there are no residency restrictions forcing you to reside in the country to own and enjoy a property. To sum it all up, a developing country with growing economy like that of Costa Rica is the best possible method for people to accumulate strong and juicy ROI.
But what are the factors we are looking for in high value investment destinations like Costa Rica? The main factor is security offered by a stable democratic government, second is stable economic growth that promotes strong local and national growth, and third is potential to earn high income.
Making an income property investment in Costa Rica will surely benefit you since property values are less fluctuating compared to shares and investment in other industries. You can also generate a sizable income in rental property and reap benefits due to capital growth once your property’s value increases in value in the long run. Furthermore, you can take out a loan to buy an investment property and loan interest plus property expenses can be offset by rental income. To top it all off, real estate is hard asset, something that you can touch and see.
Now the question is: can you afford an investment property? Yes you definitely can. Since Costa Rica is still a developing country you can easily find income property in modern condo within fully developed gated community that has great amenities and ocean view for below $180,000; this is about 50 to 70 per cent less expensive than comparable properties in the United States or European countries. Additionally, you can find a property investment in Costa Rica which you can control with just an investment of 10 to 35 per cent of the purchase price.
Since this is an investment we are hardly expecting you to stay or reside in the country full time so the type of property and how you plan on managing it is of utmost importance; if your property is not managed properly you may find yourself entangled in property squabbles or squatter eviction problem so it is imperative that you have a plan on how you will manage your property even when you are away. Based on research and study the most protected, easiest and cost-effective properties to buy are those in gated communities of trusted and well-known developers with proven track record that offer management service and whose focus is on the vacation rental market.
So why are gated communities leading in real estate market? Simple, this is because buyers feel that they are much more protected from common pitfalls of purchasing stand-alone properties that come with people and management issues. Moreover, income potential in gated-communities is higher compared to other types of property as they offer full service, amenities, security and property management for investors who are seeking income investment opportunities abroad.
Property Ownership Types
Is the Property Really for Sale?
What is the Maritime Zone?
Myths About Squatters
Construction, Architects & Engineers
Purchasing Under a Corporation
And so much more……..