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Hi All. I’ve been visiting the board for awhile reading all the great info.
For some time now I have been wanting to try a long term stint in Costa Rica with the objective of making it permanent. I’ve visited numerous times and have lived/worked abroad for stretches as long as 6 months. I’m an avid surfer so Costa Rica is my natural choice.
Anyway, it seems more difficult to make something work in Costa Rica if you are NOT a retiree, and without retirement income. I do have access to high paying- short term work in the states should I need it, but ultimately it would be nice if I could sustain myself and my fiance without having to leave every few months. I also have some money saved ($150k) that I could use to start-up a business. I don’t intend to dive in head first though.
I realize these are “broad stroke” questions, but I’d like a few prespectives anyway.
1st Question:
I was wondering if people here could give me an idea of how non-retiree’s tend to fare on a long-term basis? Do most of them stay and make something work long term/indefinetly or do many of these tend to leave due to lack of funds, opportunities, money or other?2nd Question:
I have a good deal of experience with Real Estate purchasing, sales and investments. As a small-time investor I buy, remodel, and sell houses here in California on a somewhat frequent basis (~3 homes/yr). I would love to be able to do something similar or related in CR. So, are opportunities (i.e. Buying, Selling, and Brokering) still abundant, or is every gringo into Real Estate making it a tough, over-competitive way to go?3rd Question
Could you give me an synopsis of the overall Real Estate Market conditions now in Costa Rica?
* Is it currently a buyers, sellers or nuetral market now?* Does it follow the North American RE market? In otherwords, has the recent cooling of the Real Estate Market in North America also affected Real Estate in CR?
* Is it unrealistic to expect to buy or build a 1500′ home within 5-10 minutes of a surfing beach for under $200k?
Thanks,
BillYou could write a book in answer to your questions but I’ll trey to answer them briefly here…
1. This is a BIG question and you must remember that to work here as a paid employee or independent business person, you MUST carefully think about your legal status (and your fiancee’s legal status) and how you live here. BEFORE making this kind of a move, I would strongly encourage you to consult with a Costa Rican immigration attorney AFTER you have decided what you ‘think’ you want to do…
Anybody that tells you that XX% of people that came to live in Costa Rica ended up returning to the USA is GUESSING! There are no real stats on this and it always amazes me how people quote these numbers and then when you ask them where they got their numbers from, they cannot tell you. They are pulled out of the air so don’t listen to them!
Like everything else in life, the better you plan, the better the result will be but sometime plans just don’t work out right and sometimes you just have the wrong plan.
2. It may seem like “every gringo” is “into real estate” but as in every business, integrity and quality will stand out. I try VERY hard to keep this site clean, to filter out 100+ websites (no kidding) that try to advertize their crap on this site through Google because “quality” is crucially important to me and although that has drastically limited my income, IMHO it’s better to make a little money honestly than to make a LOT of money and not give a damn about people, in this case our VIP Memberswho just don’t appreciate what dangers are out there.
If you offer something ‘unique’, if you can stand head and shoulders above the rest and can ‘renovate’ three houses per year in Costa Rica and can play the game right and legal in Costa Rica, I’m sure you will make a very good living and before you know it, you’ll have more business than you can handle.
3. The real estate market in many areas of the US is suffering – I do follow it closely – but if our area is anything to go by, the preferred real estate brokers that I recommend have NEVER been busier.
3. Yes! Unfortunately that is unrealistic in many of the hot areas but no! There are plenty of areas where that is still possible “if” you are willing to be located somewhere that is not quite the ‘in’ place at the moment and sorry! But I am not an expert in the best surfing beaches so could not pinpoint which areas would be best for you or not …
Scott Oliver – Founder
WeLoveCostaRica.comSince I surf and have spent some time exploring different parts of the Pacific coast for both waves and property, Ill throw in my two cents.
Although around Jaco the real estate market is red hot, it is possible to find either a condo or small house for under $200k. Scott has a few of the condo projects listed here. You could look for a house south of Jaco from Playa Hermosa to Dominical where there is great surf and homes that can be found. I really like the break at Hermosa and the location, close to Jaco, Manuel Antonio and less than 2 hours to the airport/San Jose. You would probaly be better off finding a piece of land and building your own home and although it won’t easy you can find a buildable lot for $50-$100k from Jaco to Bejuco, maybe even with an ocean view, and then build for approx. $60 per square foot. These areas are on fire with development but offer a good near to long term investment in my opinion. If you have a longer outlook you may want to investigate the Osa as it appears development is really picking up down there but prices are all over the board so you will need to get on the ground and really do some investigating and find a really connected local broker to show you around. THis is all almost impossible to do over the internet, you have to get down there, maybe make a connection with one of the brokers Scott recomends to get started. I will list a few real estate sites but i;mnot certain Scott will alow them to stay up based on the commercial posting rule:
http://www.centralpacificrealty.com Adam is someone I have met and came recommended by a few good friends in Playa Hermosa, although his site can be a bit outdated it’s best to speak with him. Bob is building little surf communities in Bejuco(fnished) and Esterillos (underway) There have been some mixed reviews on the current one. I know Bob and have surfed with him and he is a solid guy with a good rep in the area. Do your homework, http://www.costaricaltd.com
Best of luck!
KeithBill,
I’m glad you’re not diving in head first. Scott’s right, there are no stats on non-retired Gringo longevity in CR, but from my experience what you hear is true, particularly for those who “want to start a business”.
Costa Rica is an incredible place to visit as a tourist, and a great place to retire if you can adapt. Non-retiree expats, on the other hand, must earn their keep in the context of the foreign culture of a developing country, which is VERY difficult. It’s still a relatively closed economy with a well developed Old Boy network, and if you’re not in, you’re out. You’ll need to compete with other Tico businesspeople who are less “out” than you, and who’s financial needs are a fraction of your own.
In business, you play to your strengths. This may mean serving the expat community as some kind of professional, like tax accounting, asset management, real estate broker, consultant, etc. These professions have less business baggage to complicate things, like offices, employees, etc. They also offer the benefit of earning money in dollars.
This is the key to financial success in Costa Rica – earn in dollars, spend in colones.
Regarding remodeling, keep in mind that construction techniques are radically different in CR. For instance, you can always tell who the plumber is. He’s the guy carrying around a hammer and chisel.
Thanks for all the info.
Keith, I am planning a “fact finding” trip along with a business partner of mine. He is coming around Thanksgiving, and I will be down in December. If you’re up for it I’d love to stop by for lunch, surfing or whatever. We have some ambitious plans and need local knowledge.
Anyway, email me if you’d like: wmorganonline@yahoo.com
Thanks,
Bill
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