The Buying Process
Types of Properties
Apartments
Stand-alone homes are not only the standard for Americans buying real estate in Costa Rica, but it also the most common type of home for Ticos. Throughout the Central Valley, urban and suburban homes are sprawled throughout much like you would see in the U.S. Custom-designed apartment complexes are relatively new of the Costa Rican real estate scene. They are being presented as a solution to the high demand for safe and secure, high-quality and easy to maintain living in Costa Rica.
Most of these complexes are located in the heavily populated Central Valley near the capital city of San Jose. For those who wish to be near the city and enjoy urban living, apartments are becoming a popular choice. Even in the beach communities, this is becoming a trend. In the Southern Zone, there are strong restrictions to keep population and pollution down, but in the Central Pacific coast there are several larger cities with urban living right on the beach!
Town house-style and two-story terraced apartments can be found near the international airports in Liberia and San Jose and in the coastal cities of Jaco and Quepos. Security is 24/7 shopping, city conveniences and culture are all around you. These modern developments are ideal for those who love apartment living.
The Buying Process
Types of Properties
Gated Communities
Gated communities have a lot to offer expatriates, real estate investors and retirees. Even wealthier Ticos are tending to favor gated communities for their real estate investments and daily lifestyle. Gated communities offer the individual ownership of land and homes. They combine this with shared pools, fitness centers and other luxuries much like a resort would. Those who love to spend time in Costa Rica for vacation who also want to own real estate take full advantage of some of the nicer gated communities in and around the Central Valley and on the beach.
Resort-style gated communities are usually developed by the large hotel chains and offer luxury condo or stand-along home living. They offer residences sporting facilities, marinas, pools and 18-hole golf courses. Commercial outlets are abundant around the large resort style gated communities because of the demand this large population of wealth naturally brings to the area. The community usually has its own commercial depots as well like restaurants, bars, grocery stores and convenience stores. Retirees and habitual vacationers love the resort-style gated community life.
Gated large-plot communities are very popular among real estate investors and expatriates looking for a piece of the frontier with a little added security that will come with working within a larger development and the gated security. While these usually have less attractions and amenities, large plots offer extensive real estate ownership and a very authentic and natural life style. Owning 5-10 acres of rainforest and coastal plain overlooking the jungle mountains and the ocean is very appealing for many. These types of developments often have builders and architects that are easy to work with and have limited or no building restrictions. Community amenities are usually limited by still often include pools, fitness centers, restaurants and parks.
Traditional gated communities offer 1/4 to 2 acre plots which combine individual ownership independence, with the security and community build in with gated community and neighborhood living. This is a very American style for development and is very popular among people from the U.S.
The Buying Process
Types of Properties
Condominiums
Condominium life-style in Costa Rica is not much different than in the U.S. It combines a full-amenity resort lifestyle and security with private ownership and investment. Living close to your neighbors could be a downside with loud children or barking dogs, but there are developments with different rules and regulations that may suit different buyers.
When buying a condo, you should do the same due diligence as when buying your own home. All condos must be listed in the National Registry. Costa Rican law states that the land condos are build on is common ground (finca madre) and is jointly owned by all residents. Each unit that stands on this common ground is individually owned.
A property owners' association is required for all condominium complexes and it must create bylaws which have to include:
- Maintenance fee schedule
- General Assembly meeting schedule
- An elected administrator
- A statement for the rights and usages for the common grounds
- Regulations and rules for the visible architecture and decor for homes or units
- Dispute and conflict resolution rules and sanctions
Costa Rica Real Estate FAQ Index Catalog
The Buying Process
Types of Properties
Time Shares
For those who would like to invest money in Costa Rican real estate, but do not want to invest a lot of time and effort into it, time shares could be a good solution. Time shares have an administration that will market your home, maintain your home and help you sell it when you are ready. The owner of a time share is responsible for dues that cover security, maintaining the common areas and home improvements. A good time share will make up for these costs with rentals with money left over as profit!
Fixed week time shares are set up so that you own the rights to a specific week each year. This the most common set-up and most expensive to buy into.
Floating week time shares allow you to buy into a specific week, but there is no guarantee that it will be available.
Random week has you assigned to your time period.
For those who wish to use their property for vacation regularly, time shares can really pay off. Lack of control and significant investment may push you away from this type of real estate.
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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The Buying Process
Types of Properties
Stand-Alone Homes
In Costa Rica, there are an abundance of stand-alone homes. Costa Rican culture, much like the U.S. values private ownership and opportunities for individual investment in land and real estate. In more socialistic nations, communal living and apartments are very standard. While that type of environment can be found in Costa Rica, the influx of North American retirees and expatriates has brought with them the value of owning your own land and home.
Along the Pacific Coast, many American style mansions overlooking the ocean and rainforest mountains can be found. Building rules and restrictions are very low and utilities are readily available to homes in most municipalities. Taxes and codes are very loose, for it is the home owner that dictates the value of their home or any improvement to it or the land.
Security systems, care takers and grounds keepers are easy to find in Costa Rica. These services alleviate some of the concerns regarding squatting and other property rights infringements. Because the main push in this new frontier for real estate has been U.S. influenced, much like our frontier days, large plots with stand-alone homes are many foreign real estate investor's dream when the look to buy Costa Rican real estate. With the infrastructure and services to maintain a second home or retirement property of this nature, stand-alone homes are very popular in Costa Rica.
