Costa Rica Real Estate FAQ Index Catalog
Why Costa Rica Real Estate
- Stable government; Currency,Infrastructure,Values foreign investment, Protects foreign investment
- Investment security; excellent lending market, ROI, low tax rate, intrinsic value, insurable title/home
- Healthcare; high-quality, high tech, inexpensive, easy access, insurance
- Economic; stability, foreign investment, government, investment potential
- No ownership restrictions; valued by government, no restrictions, same rights as natives
- Proximity to the U.S.; 10 major North American cities with a 3-5 hour direct flight to Costa Rica
- Culture; high standard of living, friendliness to foreigners, education, low crime rate
- Nature; beaches, rainforest, protected lands and species, eco-tourism, diversity
The Buying process
- Finding a broker; certified, experience, track record, language, area knowledge
- Calculating value; comparative value, asking price, investment potential, true value, municipal
- Purchasing; incorporation, appraisals, home inspections, attorneys, contracts, survey map, registration, notary, taxes, titles, closing
- Financing; mortgages, documentation, banks, property protection, using retirement fund
- Types of properties; stand-alone house, apartments, gated communities, condominiums, timeshare
- Building; land & title, permits, size, utility of land, civil engineer, architect, construction, contractors
- Protecting the investment; insurance, making claims, property management
- Oceanfront real estate; defined, taxes, usage, foreign ownership
- Common & avoidable problems; liens & encumbrances, expropriation, environmental & squatters
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Why Costa Rica Real Estate?
Stable government
Infrastructure
Costa Rica has a well deserved reputation as a beacon of stability, prosperity, and having the least government corruption in Latin America. Costa Rica's infrastructure has traditionally taken a back seat in the priorities of state officials. Lack of maintenance and new government investment had, for many years, put on hold the imminent growth and boom of the Costa Rican economy. Costa Rica has an expansive road system sprawling throughout the country, although most of it has been allowed to weather and erode. Today virtually all of the country is accessible by road. The population center in the highlands of the Central Valley is well connected by paved all-weather roads which also route to the Atlantic and Pacific coasts.
With the recognition of the tremendous economic growth to be had, Costa Rica has made huge strides in transportation investment. The Pan American Highway connects Costa Rica with Nicaragua and Panama, the neighboring countries to the North and the South. There were gaps in the highway that made access from the Central Pacific to the Southern Pacific Zone slow and ineffective. That is quickly being paved to allow a fast and safe ride from boarder to boarder. The real estate of the Southern Zone had long been isolated and is widely recognized by developers and real estate professionals as the new frontier in Costa Rican real estate. This area has been the biggest beneficiary of these improvements for property values have sky rocketed 25% - 40% per year for the last five years. With the completion of this project slated for October, 2009, this trend should continue for several years to come.
World class foreign investment, technology, and management are being brought into the telecommunications and electrical power sectors. Once subject to corruption and government monopoly, the free market has been allowed to enhance the infrastructure astronomically. High-speed internet, satellite TV and first-rate utility services have enabled the quality of life potential to grow as they are now common place in Costa Rican homes.
Costa Rica's exports have been growing in recent years due to the upgrading of the once under-performing ports. Coffee, bananas, lumber, pineapple, sugar, wood and beef are staples of the export market in Costa Rica and are exported in larger numbers and in more cost effective and efficiently ways today than ever before.
In today's Costa Rica, financial outsourcing, software, electronics, pharmaceuticals and ecotourism drive the economy. A large strategic investment in education and modern technology has put Costa Rica in a position of strength with the general trends of the world economy.
Why Costa Rica Real Estate?
Stable government
Protects Foreign Investment
Costa Rica hosts the 4th largest foreign investment by percentage in the world. It is clear that the government and its people value foreign investment for its many benefits to the local economy. The implementation of their foreign investment policies is the great enabler that allows Costa Rica to prosper.
Being proactive with international contracts and treaties is one thing, but it is how the Costa Rican government, time and time again, comes through on their promise. Foreign owned manufacturing, technology and service businesses have been challenged and have persevered with strong government protection. Protecting ownership rights in practice for huge real estate developers and individual foreign home owners alike has facilitated a great boom in the real estate industry.
In practice, foreign investors have been able to successfully defend against local bureaucracy. This long track record of consistent protection with respect titles, insurance, assessments, taxes, corporations, maritime zone laws, and infrastructure make Costa Rica a safe and highly advantageous place to diversify internationally.
Why Costa Rica Real Estate?
Stable government
Values Foreign Investment
Costa Rica hosts the 4th largest foreign investment by percentage in the world. This has enabled enhanced economic performance in Costa Rica on many levels which include the real estate market and transportation. On the cutting edge of international agreements and security measures, the government of Costa Rica has been able to promote foreign investment. Bilateral Treaties with economic power houses in North America, Europe and Asia on the Promotion and Reciprocal Protection of Investment coupled with a long standing track record of honoring foreign investment have allowed Costa Rica to become a hot bed for large return investment. Developers, real estate investors and speculators have been rewarded with the consistant integrity of the Costa Rican government on the issue of foreign investment.
Movable and immovable property, as well as other real rights such as mortgages, securities, usufruct and similar rights are written in with all bilateral treaties of this nature. Titles are insurable, ocean front and other nature concessions are enforceable, and there are measures to help protect against squatters rights. As in the U.S., Costa Rica affords you the rights to carry out economic and commercial activities authorized by legislation or by virtue of a contract.
These factors make international investors interested in underdeveloped tropical real estate for homes, condos, golf courses or resorts ideal. Retirement and vacation home ownership is now common place. The great X factor is the peace loving and friendly Costa Rican culture. Low crime rates and high education rate are the icing on the cake for those prospecting real estate potential in the region.
Why Costa Rica Real Estate?
Stable government
Currency
The colón, plural colones, is the currency of Costa Rica. The Costa Rican Colon was named after explorer Christopher Columbus, known as Cristóbal Colón in Spanish. It replaced the peso as the official currency in 1896. Bills come in denominations of 1,000 2,000 5,000 and 10,000. Business in Costa Rica can done in U.S. dollars as it is the second currency of Costa Rica, but the colones are the primary monetary unit utilized day to day in Costa Rica.
Banco Central De Costa Rica has been the sole issuer of currency since 1950. Costa Rica has four major private banks that are internationally hedged and leveraged much like the banks of Europe, Asia and the U.S. For stability, Costa Rica has had the colon pegged to the dollar with small depreciation occurring each month. Costa Rica, in economic terms, was a crawling peg regime.
On October 16, 2006, this crawling peg was modified due to weakness in the U.S. dollar and the recognition that the colón was notably undervalued. Real estate speculators and investors are encouraged by this step. It enables investments to reflect, more clearly, the true intrinsic value that Costa Rica's economic conditions provide. Costa Rica hosts the fourth largest foreign investment in the world due the low ownership restrictions and strong property rights afforded to foreigners. Currency is rewarded for these factors.
With one of the largest coffee and fruit exports, the intrinsic value of its unique land, and revenues over 1 billion dollars per year in tourism, Costa Rica's economy has acquired a level of stability that gives its currency a lasting foundation for facilitating security and investment.
The exchange rate today is free to float within world market forces on a currency band referenced to the United States dollar. The floor of the band has been set at a fixed value, while the ceiling changes at a fixed rate. In practice the exchange rate has remained fixed at the lower value of the currency band.
