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Unmarried couple (he 40, she 33), together 6 years now & dedicated lifestyle partners. Both US citizens (for now), university degreed, living and working in South Korea (him 10 years, she 5) currently.
To give the short version, we want to take our savings (relatively small – $US 50,000), and relocate to Costa Rica, with the intention/hope of opening a bed & breakfast – a small, ‘family-run’ operation. Eventually, we would like to apply for residency/citizenship, and abandon the USA altogether.
After spending time going through the literature and talking with people, as well as perusing this site, we are getting the impression that Costa Rica is open to ‘set’ retirees or those with BIG money to invest, but a couple like us — well, seems to be ‘out of luck’ to be honest (meaning, a couple who want to go and open a small business/build or buy or renovate a smaller property).
Having spent 6 weeks in Indonesia last year, it seems much more ‘doable’ there. Our hearts are set on Costa Rica, but we want to go where we CAN make our dream into a reality!
Warmest Regards from Seoul,
Glen & Christina
If we can answer questions for anyone, to help answer our titled question, please just ask.
There are plenty of opportunities in Costa Rica for people – and NOT just for people with BIG money – but sorry to be blunt that at your age, there is nothing that I know of that would allow you to start a B&B (or any other business in Costa Rica) and get legal residency here for $50K.
If someone was to ask what legal “opportunities” would be available for two Costa Ricans trying to start a business in the US with $50K – the answer would be the same.
Scott Oliver – Founder
WeLoveCostaRica.comScott is certainly correct. $50,000US won’t get you much of a start. I know a couple, however, who rented an existing B&B for a time and determined that they could make a go of it, so they bought it. I’m sure, however, that they have invested much more than $50K in the property. So even if you could find a B&B to rent and operate, what will happen when the owner wants to sell?
Building costs here are around $45 – 80 per square foot. The purchase of a property in first class shape would run you the same or more, plus the cost of the land. So you can see that $50,000 isn’t going to buy you very many square feet of housing for yourselves plus guests.
Hola,
Sorry, I don’t agree with you guys. Of course, there is nothing of a business to be bought for 50K, but the rent is another option. If you come to Costa Rica for some time, you might want to visit different areas, choose where you want to settle down, meet with the people of your area, and find new contacts.
I have a friend who bought a property and did not have much money. The owner sold for a cash of 10% and financed the rest…. My friend has other incomes though, but wants to use part of the profits from the B&B to pay the owner, and improve the property. That could happen to you..but you won’t know unless you try !!!
Hasta Luego
JoThis is assuming that our couple dreaming of a Costa Rica B&B actually has experience in successfully managing a B&B.
Questions for you minuit:
1. What sort of legal residency would you recommend to them? What residency status in Costa Rica would you think would be best?
2. Or are you suggesting that they live and work here illegally?
3. How exactly do they stay in the country and work in their own business legally?And as an example “if” they could buy a B&B with only a 10% down payment and the owner (who would have to be out of his mind to finance this purchase anyway) could finance the rest, lets’ say they were incredibly lucky to pay only half of what they have = $25,000 which means that they are buying a “B&B” which might cost approximately US$225,000 after deducting their various legal costs and other expenses.
4. Please explain how they would “improve the property” with the remaining $25K
5. Do you think they would also be able to pay their mortgage with the ramaining $25K?
6. How much do you think those monthly payments would be over 25 years? Maybe around $1,800 per month?
7. Would they be able to pay all their advertising costs also with this remaining $25K to try and bring in paying guests?
8. Are you suggesting that US$25K would be enough to do all of that?
9. And how many guest rooms do you think a B&B that cost $225K would have? 1, 2, 3 maybe four? One of which they would have to live in, right?
10. What kind of occupancy rate do you think they would have?
11. What price do you think they could rent out those three rooms for?It’s good to dream but unfortunately – and I am sorry to say it quite like this but – sometimes reality really does smack you in the face.
Scott Oliver – Founder
WeLoveCostaRica.comPS. It would appear from that getting residency to live in Indonesia is actually far more restrictive and complicated than Costa Rica so you have some serious homework to do …
Hola,
In the example I gave, I don’t know if my friend has residency or not. She has a Tico boyfriend, with whom she bought the property. I know she paid 10 000$ on a 100 000$ house. I know also she has an income from a widdow pension or something like that. I know she has 3 or 5 years to pay the owner….and I know her project is to rent her house to her friends and family who live in Canada, to earn a supp income… The situation is different that is right…
But that was not my poiint. This young couple has a dream, and I think they should not be discouraged before they have at least tried. They first can come on vacation, select an area where they feel good, and from there, opportunities might present themselves. if it is not a B&B, it could be a little restaurant, a small business where they could partner with a skilled Tico who maybe has not the money to start himself….I don’t know…
They are young and motivated, and deserve a chance. They would not be the first to go through the painful legal stuff. It has been done by thousands of us, and still can be done…. And it doesn’t have to be done on their first trip.
No one of us expats would be in Costa Rica today if we had not once dreamed…. Just my 10 colones…
Hasta Luego
Jo
All VERY valid points by all parties… one of the reasons I love this website and the forums!
Everyone has the right to dream… but when we attempt to make a dream a reality at some point we have to look at the facts. Better to continue having a dream… and in time when reality and the dream are somewhat closer… GO FOR IT!
In this situation given the facts… I don’t see making this dream a reality… the ages… the required investment… and the residency issues can not possibly be all addressed with the funding indicated… not if you’re looking to do it the right way, legally or with any real possiblility of success!
Costa Rica is a paradise… but as with any paradise it’s littered with the wreckage of dreamers… I tell people that all the time! I’d hate to see this couple distroy a dream, ruin a relationship, and make $50,000 disappear in a year!
Just my two cents….
You are absolutely correct. These are two folks in their prime earning years who could easily fritter away their life’s savings and have no jobs to fall back upon. Dreams are important to us all, but, as you say, it’s important to be grounded in reality.
Any plan to do what is proposed needs to be well very developed. You cannot expect to just step off the plane, spot an opportunity, and make a go of it. There’s an old saying: “If you fail to plan, you plan to fail.” It couldn’t be more true than with regard to moving to a strange new country with a few dollars in your pocket and your head in the clouds.
Check out Magnoliacloudforest.com, my cousin Mario started this with under $50,000 for land and building the cabin. The website is still up , but tours are no longer being offered , so this isn´t a promotion of someone else´s business. Let me know what you think ?
Dear Glen & Christina:
I appreciate your effort in trying to find an answer to your question whether $50,000 is enough to follow your dream. I have spent a lot of time over the past three years wandering the “information highway” of Costa Rica real estate and I think you can. Now I am not saying that you should buy sight unseen, but over a period of time you can find some very exciting ideas that have potential. I am not certain if I should list this link or not but here is example of what one could check out while visiting Costa Rica to see if it was a fit for their goals or not:
http://www.crlandoffice.com/costa-rica-properties/listing-details/36/
I have watched this property for about six months or so, and to me it seems on the surface and everyone notice I said surface, it might be worth checking out to see if it would work for you. My retirement budget in three years for housing is what you already have in the bank. Is it the amount I would really like to have? “NO,” but it is an amount that can and will work for me. Why? Because I only need one opportunity, only one house that is exciting to me and my goal is finished. I encourage you think through whether you would maybe in better financial position in one more year, or maybe two years or even five years working and savings would give the life you want. I had to do that myself last year and realize I couldn’t take my Social Security at 66 when I am eligible, but need the benefit of work one more year until at 67. It took me about six weeks being mad at myself for not saving more since I was 18 but hey, life is not perfect is it?
Hold on to your goal and your dream…you can figure out how to make it work for the two of you. From this baby boomer’s point of view for to two young people your ages to have saved $50,000, you have done well! I hope you can see it as well because it truly is very well!
In closing, all the books I have read recently on retirement can be summed in this way: all goals in life are negotiable and all goals can and are changeable!
Thanks,
Tom
Portland, OregonGlen and Christina, you say, “If we can answer questions for anyone, to help answer our titled question, please just ask.”
Ok, fair enough. My first question would be…..Have you ever been to Costa Rica? The second question, depending on the answer to the first……If you have been to Costa Rica before, how long were you here?
CR isn’t what it used to be. Either is $50K.
Once there was a time here when you could play loose goose and make about anything happen on 50K in CR. Now CR is mainstream.
So you need to find another place. Maybe Indo, maybe somewhere in S. America – somewhere that is cheap like CR used to be. This place is hardly cheap anymore. But it still offers great value. To get the value you need to first have the bucks to pony up.
The problem is many people want to hedge their bet, they want to pioneer but they do not want the downside risk. The conservative explorer never sails far from home. Global warming? What about Iceland? Set sails my friend. I came to CR in 1989 on a whim / no Spanish. Set sail my friend.
To tell you the truth, moving to CR is almost like being the last one on the truck, which is usually the first to fall off. See where I am going with this. You can either be a maverick or be part of the heard. The heard is going to where once only the mavericks’ dared to tread.
Sorry I had to add an intangible.
The power of knowing.
So many times I get up and say, why an I still doing whatever it is that I am doing. One day it makes sense, the other, not so much.
So what keeps me going is the power of knowing. What do I know? Very little, but I draw quite a few assumptions!
The point is there is an intuitive knowing that creates perseverance. Sometimes perseverance is all it takes. If you persevere, you can succeed by default (I have seen it happen many times. Even though your product and service is not the best, it is the only one left as the others have fallen to the way side, walla sucess). This theory of Knowing and Perseverance is crucial to accomplishment.
Next, go some place you love to be, not some place that pencils out.
Doing so, even if playing with Mr. Loss and Mr. Gain does not work out to your satisfaction, you had the lifestyle, the memories. I’d much rather be penny less living in shorts and T shirts in CR than working in an office making 100k a year where it snows!
It sounds like many people have their heads in the clouds!!
As reading some of these posts I see that many people encourage the way of the Illegal purpetural tourist. I am also sure that many people are practising what they preach.
I would say go ahead take the 50,000 dollars come and do what ever you like! How ever when the winds change and if you are not allowed back into the country because of the amount of stamps in your passport. Remember you were warned!!!!!
I will not have any feelings for the people that are breaking the laws of Costa Rica! Purpetural Tourism is that breaking the law! To me this is taking advantage of they system and if you are not let back in I would say Pura Vida!!!!
Hey Scott… I’d have to agree with you big time… I’d hate to see someone (in this case a couple with a dream) get hurt. I think the very fact that they came to this forum looking for advice speaks volumes about them… I’m sure they want to do it the right way with the best information, imput, and advice possible to see their dream become a reality.
I’ve already given my view… and I’m not one to trash someone elses dream… I know many people have offered opinions on possible options on buying or renting a business… but from what I can see… none have addressed ALL the issues (Investment/Living Expenses/Residency) in one posting with the capital available.
As for the PT issue… no doubt change will come… and people will still be operating under the radar in CR… but folks that seek advice as this couple has are normally much more intelligent and want to do things the right way!
I wish them luck and hope that the information offered helps them make their dream a reality… if not now… at some time in the future!
Edited on Apr 29, 2007 20:26
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