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Looking for opinions and comments. After having been to CR many times. I plan on making it my retirement home. The only problem is I have 5 more years to work. I am considering buying a condo in the Santa Ana Escazu area now and renting it for 4-5 years. Anyone doing the same? Rental horror stories? Would it be wise to buy now or wait five years. Significant 5 year price increases? I am heading down in two weeks to look at properties.
Thanks, DonIn looking at the demographics of the USA, I would suggest that prices are not going any lower…
1. Most gringo buyers here are not paying for their homes with mortgages, they are paying in full and require no financing. Buyers that need to sell their homes in the US before they buy here are suffering because their homes are not selling, the others will not.
2. As times get tougher in the US – and they will – I anticipate that MORE people will look at Costa Rica as an affordable and attractive place to live and the people that are ‘thinking’ about it will probably accelerate their plans so that they can do it sooner rather than later.
3. Demographically speaking, forty-six percent of the baby boomers are still in their 40s while one in six is between 42 and 44 years old so there are plenty of baby-boomers that haven’t really started to think about their retirement but will soon. The more negative the environment becomes in the USA, the more receptive they will be to the idea of retiring abroad.
4. The overall ‘public opinion’ in the US about US foreign and domestic policies appears to be changing dramatically and I know people leaving the USA to escape from what they believe is political persecution. This will probably continue.
5. I believe price points remain important. I do not wish to be in the market of selling million dollar homes. I prefer being in the ‘high-probability, low-risk’ market where we are marketing homes that will appeal to a larger number of foreigners rather than just a few. Would suggest that 90% of the homes sell for under $250K. They love ‘lush’ surroundings and yes! A luxurious swimming pool area is always a plus…
6. It’s not just Americans that are buying Costa Rica real estate and for most Europeans, our prices are ridiculously low.
Bottom line? We are in a wonderful place at a good time and I remain confident that unless there are catastrophic political events within Costa Rica – whcih I do NOT expect – we should see an attractive and profitable future ahead.
Scott Oliver – Founder
WeLoveCostaRica.comI appreciate your input concerning price appreciation. I would be buying using cash funds looking to buy in the 80k to 120k price range and maintaining my home in the US. for at least the next 5 years. I guess I am more concerned about renting the property and dealing with possible evictions. I would use a property management service but still concerned. Also what kind of rental income would be generated with a long term rental. I own rental property in the US and sometimes tenants can be a problem.
The Central valley area tends to have more professional, longer term rentals whereas the beach areas tend to have more short-term, higher-impact rentals.
For a home that you would buy for $80-$120K you would expect to rent for APPROXIMATELY US$500-$1,000 depending on the area and whether it’s furnished or not.
We are presently evaluating the viability of offering a property management service to our VIP Members who have been asking us for help in this area.
Scott Oliver – Founder
WeLoveCostaRica.com
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