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.

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.

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.

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.

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.  Two of the more well-known tours in Costa Rica are: “Boomers in Costa Rica,” at http://www.boomersincostarica.com and “Live in Costa Rica,” at http://www.liveincostarica.com.

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 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?

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, lastre 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 lastre road needs to be able to survive the rainy season.   Some developers put in lastre roads in the dry season just to see them washed away in the rainy season, and oftentimes, 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.

DelPacifico – http://www.delpacifico.net (Pacific Coast).

Hacienda Atenas – http://www.haciendaatenas.com (Central Valley).

Pacific Hills at Magallanes – http://www.crcommunities.com/PacificHills.html  (Central Valley).

La Joya de Esperanza - http://www.everybodylovescostarica.com/costa_rica_real_estate.php (Pacific Coast).

Plantation Estates -  www.plantationestatescr.com (Central Valley).

Sonesta Jaco – http://www.sonestajaco.com (Pacific Coast).

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!