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For
Retirement, Vacation Living or Investment:
Finding
a Nice Community in Costa Rica
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Costa
Rica
is an alluring place for many people. With a terrific climate, stable and
democratic government, proximity to the United States, lower cost of living,
and many outdoor and cultural activities, it is no wonder this country
only the size of West Virginia remains one of the best in the world for
a vacation, retirement and investment. Over one million people visit Costa
Rica each year generating about $1 billion in revenue for the country.Tourism
surpassed coffee and bananas many years ago as the country's top industry.
Foreigners,
particularly North Americans, continue to visit Costa Rica in large numbers
with many of them coming to explore retirement and real estate options.
A quick search of Costa Rica real estate on Google reveals almost 2.8 million
entries. Compare this to any other country on the Central American isthmus,
and it's clear that Costa Rica is first in activity related to real estate
geared to foreigners. Since real estate sales are not regulated in Costa
Rica,anyone can be a real estate agent or land developer,everyone seems
to be involved in real estate in one way or another here.And, with the
advent of the Internet, anyone can create a website and offer properties
for sale. Usually Americans or Europeans, they seek out Costa Ricans with
land or homes and put them on their websites.
There are,
of course, well known, established real estate companies like Century 21
and Coldwell Banker in Costa Rica as well.
People are
finding these websites and doing much research through the Internet to
explore various regions, view land and homes for sale, and make contact
with real estate agents and others. After spending weeks and months doing
research and finding people they think they can trust, they make the trip
to Costa Rica, ready to purchase their dream property. When they finally
arrive in Costa Rica, they oftentimes realize it is a much different place
than they expected,sometimes for the better and sometimes for the worse.
For example, they don,t realize from the stunning pictures they found on
the Internet that the home of their dreams is next to an automobile repair
shop. The stories go on and on.
We find that
if you do your homework first and then visit, you will likely be in better
shape than others. Contacting developers by email, carefully reviewing
their websites, talking with others who have brought property from them,
and asking a wide range of questions about their properties will likely
give you a good sense as to whether you should view a particularly property.
Even
with all of the research many people conduct, with a strong increase in
real estate values year after year in Costa Rica, many people feel they
must get in now, in order to ensure they can afford it.With appropriate
research, asking the right questions, and carefully thinking about what
you want in terms of a living situation, you can find a property you will
like, even during a short stay in Costa Rica.
Yes, it is
true that property continues to appreciate in Costa Rica, and faster than
in many other countries. Before long, the country will not likely offer
many real estate bargains unless you want to live in very small towns far
away from shopping, restaurants or good medical care. So how can you get
in now and avoid the mistakes many people make in purchasing real estate
here?
Initially,
take the time to get to know the country. Get to know a wide variety of
people.Understand real estate values in a particular area by talking to
many people including real estate agents, developers, foreigners living
in the area, and even locals. Stay in several different towns and get to
know each of them while being mindful of your needs for shopping, medical
care, entertainment, real estate, and other issues.
It wouldn't
hurt to pick up some Spanish because learning directly from locals about
new properties or getting real information from them about an area could
prove much more valuable than hearing it from people who are in the business
of trying to sell you something. Even if you speak just a little Spanish,
Ticos,
will very much appreciate your efforts to communicate with them and oftentimes
will go out of their way to help you.
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There
are also several retirement tours of Costa Rica that provide a multi-day
trip through various parts of the country,introducing foreigners to specific
towns that may be suitable for retirement or finding good quality and reasonably-priced
properties.
On many of
these tours, you'll meet others who have already made the move to Costa
Rica and purchased property. You will also meet a wider variety of real
estate agents and developers than you could probably do on your own.And,
just by interacting with other tour guests, you'll learn about what other
people are thinking as they consider Costa Rica for retirement, partial-year
living, or investment.
Some of these
tours will also introduce you to attorneys, architects, builders, and others
who can be helpful to you as you consider buying land and building a home
or purchasing an existing home. Take a look at their websites and determine
if what the tour offers and the types of clients they serve seem to be
geared to your lifestyle.
Taking a tour
is a convenient way to screen a range of properties quickly, meet experienced
developers and learn about areas more quickly than you likely could do
on your own. After you've taken a tour, definitely stay for several extra
days, going back to the areas you liked on the tour or follow up with some
of the people you met during the tour.
Whether you've
spent time on your own or took a tour you may have discovered an area or
property that may be right for you. What do you do then? What factors
should you consider in determining if you should purchase a property?In
other words, what makes a nice community for you to enjoy for many years
to come while ensuring you feel you got good value through your purchase
and can trust the seller of the property?
As in the United
States and other countries, there are many resale homes of all types, sizes,
ages, quality and prices so we won't focus on homes, rather, we will look
at purchasing land and building in a community as this is more typical
for many foreigners who want to move to Costa Rica.
The development
of communities geared to foreigners is by no means new to this country.
It has been happening for well over a decade, particularly on the Pacific
Coast and in the suburbs of the capital, San Jose.However, development
continues to occur, with no end in sight.And, because in many cases, an
investment in land is still relatively affordable to most developers and
the profits can be significant, planned communities, or simply subdividing
raw land into smaller parcels and selling them to foreigners, continues
to occur frequently.
A quick look
at the various glossy real estate magazines, written in English, and oftentimes
produced by the Costa Rican arms of international real estate companies
make it apparent that the choices for a retirement home, condo, or land
to build your dream home are staggering. Do you want the beach? There
are many communities on or near the beach.
Do you like
to play golf? There are several golf options to choose from.
Perhaps a community in one of the quaint mountain towns west and north
of San Jose is for you? There are many communities that offer a range of
home and/or land options with stunning scenery. Your choices are virtually
limitless.
If you are
considering a community for your retirement or vacation home, what factors
should you consider? Of course, what will make you happy is a personal
choice and no one should sway you as to what you need. In Costa Rica, for
example, many realtors and developers often quote they have, the best climate,
or that their project is, convenient to, (fill in the blank). The point
is that no one can tell you what you need, and you alone (or with your
significant other) should do your homework and decide what is best for
you.
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| Subscribing
Is A Good Idea |
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| If you
think you want to live in a community, below are some considerations to
keep in mind:
* Do you prefer a planned, gated community where you are close (or fairly
close) to your neighbors or do you prefer a more unstructured community,
perhaps with a few less amenities and in a more natural setting?
* Would you prefer to live among people similar to you or would you prefer
to integrate into a community that is primarily composed of Costa Ricans?Perhaps
a combination of foreigners and locals is best for you?
* Do you prefer to live in a home or a condominium?
* How big of a property do you want and can you afford to maintain it?
* Are you more interested in a community that has set home plans to choose
from (or existing homes already built) or would you rather hire an architect
and design and build a home?
Once you
have narrowed down the type of community you might want to live in, below
are some factors to consider when comparing among several you have looked
at:
Location
Available
space to build
Privacy
Quality of
infrastructure
Type of residents
Climate/weather
Natural setting
Community
amenities
Distance to
town/services
Price
Investment
value
Overall Quality
While there
are other considerations as you look at possible places to live, the table
above is intended as a general guidepost you can take with you so you won't
forget about the attributes you liked and disliked for specific developments,
particularly if you are looking at many of them.
Of particular
importance in your decision-making should be climate and weather.
Costa Rica has many microclimates and this will affect the weather where
you might decide to live, particularly in comparison to nearby areas.
For example, at a given hour it might be sunny in town but just 2-3 miles
away it could be raining. Because elevations change quickly in Costa Rica,
so does the weather.It is important to consider the amount of rainfall;
low, high and average temperatures; and wind throughout the day and at
different times during the year. Many shady developers will try to show
you their land at the right time of day or year and claim the weather is
always terrific.Ask people in the area,those who have lived in the area
for years, to give you the real scoop on the climate and weather.
Another important
consideration is the infrastructure provided by the developers of the community,
particularly, electricity, water, and telephone service. Obviously, if
you are going to buy a lot and intend to build a home you will need assurances
in writing from the developer that at a minimum electricity and water will
be provide to your ,lot line, prior to closing on the property. Usually,
it is the buyer,s responsibility to bring the electrical and water lines
from the edge of the lot to the home.Most architects or builders will help
you get this done as part of their services.
However, one
of the key problems buyers are facing is lack of understanding as to where
their water comes from. Many developers are building wells and then telling
their clients not to worry because everyone in the community will have
access to water. But, who is going to ensure each member of the community
chips in for his or her portion when the pump breaks, or when so many homes
are built that the area needs a new pump? It is also possible that down
the road, if your community's water supply does not come from the local
municipality, any shortage will be your problem well before it's the public's
problem. When deciding on a developer to trust, demand information about
the proper water studies he or she should have completed and municipal
help he or she should have requested. While telephone service is
standard in most places it is possible that it will not be available immediately
as the government may not have the resources or may be behind in providing
land lines to new homes. In some areas, it may take many months,
and indeed years, for telephone service to be provided. However, this is
usually not an issue for most people as they simply purchase cellular service
which is readily available and inexpensive.
In the U.S.
and other developed countries, most of us have lived in communities where
there were paved streets.In Costa Rica, some planned communities don't
offer paved streets. Instead, many communities use lastre, a combination
of hard rock and sand, which handles the affects of rain a lot better.Lastre
roads are actually quite nice, easy to maintain, and keep expenses low
for both the developer and the residents of a community.
However, rock
roads can be troublesome if your developer is not experienced in creating
roadways. As many people know, Costa Rica has two seasons: the dry season
(from December to May) and the rainy season (from June to November). A
good rock road needs to be able to survive the rainy season.
Some developers put in lastre or rock roads in the dry season just to see
them washed away in the rainy season, and often times, the residents of
a community get stuck with the bill for new roads or repairs. How do you
know, then, if the road put in by a developer is a good one? First, and
foremost, keep in mind that the surface of the road is only part of the
story.A pretty road with nice rock and sand will look good but if the developer
hasn't considered what's around the road--or what will "attack it," it
may not last through the first rain of the season.
Taking into
consideration rainfall and proper water drainage is critical.
If the developer hasn't put in suitable drainage, rain water may spill
into the road from various parts of the development and make a mess of
it. So, when looking at a lot you potentially want to buy, talk to the
developer about the roads and understand how they were constructed, how
drainage is handled and what happens if the road needs repairs. Second,
find out to what extent the developer has put drainage pipes under the
road in areas that may require them such as if there is a small stream
or spring that drains near a road. Third, ask about the type of culverts
and drainage pipes that are under the road,called ,alcantarillas,,and how
big they are. The alcantarillas need to be big enough to handle the anticipated
water drainage. Finally, before buying a lot it wouldn't hurt to go out
to the property during a heavy rainstorm and see for yourself.
There are many
examples of both terrific and poor communities in Costa Rica.In fact, most
people will be able to tell fairly quickly if they believe a development
is well-planned, conveniently located and well executed just by seeing
the project, talking to people in the area, and learning about the types
of people who have already purchased property in the community. However,
it is important to ask many questions of the developer or sales person
before you purchase.One of the most important issues to address is how
accurate the survey work is for the property you are interested in. For
example, in our own experience we bought a large farm from a cost-conscious
developer who had already hired his inexpensive surveyor to segregate the
farm into smaller parcels.We later found out that the surveyor didn,t properly
survey the borders. If we had not caught his mistake, unknowing lot buyers
would have bought land that they didn,t completely own!If you are not happy
with the answers you getting, move on, as there are many other choices
available.
Communities
in Costa Rica are not unlike those you would find in other places.
For example, you can find communities with high-rise condos and others
offering low rise ,garden style, homes,both with limited land and easy
maintenance.Other people prefer larger tracts of land in former agricultural
areas which generally have 5000 square meters (1.25 acres) to 7000 square
meters (1.73 acres) of land, depending on local zoning requirements.
Building space in agricultural projects is ample for single-family homes,
guest houses, pools, and more.Finally, many developments, built primarily
for the local population, called urbanizacion, typically have smaller lots
and homes.
While there
are many developments in Costa Rica, below are a few examples known for
both their high quality and value for the price and/or investment purposes.
These samples differ in price but they give you a flavor for what is available
on the Pacific Coast.
Vista Las Palmas
- Vista Las Palmas Jaco
Los Suenos
Condos - Los Suenos Condos
Costa Linda
Condos in Jaco Beach - Costa
Linda Jaco
Sonesta Jaco
- Monterey Estates Esterillos
It's rarely
said that looking for real estate in Costa Rica is not an adventure it
can be. However, it can also be much fun if you keep your eyes and ears
open and go with your most important emotion,your common sense.
Happy hunting! |
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