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Ok, two separate topics…..
The easy one – what kind of mortgage rate can be expected in CR?
What kind of car makes the most sense? We hear that finding a good mechanic can be a hassle, so I guess the question is, which car has the easiest and most available repairs? I am thinking Honda?
mortgage rates are high here — about 9% the last time i checked, and there isn’t a 30 year loan, maybe a 15 or less, and they are pretty hard to get, esp for ferrinners.
can’t speak of the cars cause i don’t even have one, but the japanese makes are ubiquitous.
maravilla is correct. Mortgages are difficult and time consuming to obtain and terms are much less attractive than in the U.S. There is no long-term fixed mortgage financing, so all you’re likely to find is something with maybe five years at a fixed rate and the remainder indexed. You’ll also be required to carry life insurance to guarantee the loan. That life insurance can be obtained in the U.S. and “pledged” to the mortgage here. (“Collateral assignment” is the proper term.)
If you are unable to finance your home in Costa Rica any other way, such as obtaining financing in the U.S. and bringing the money here, then you might consider using a Costa Rican mortgage broker. They don’t work real cheaply, but they do know the ropes and that’s a real advantage.
As to a car, I’d think hard about a Suzuki SUV. You see Suzukis, old and new, everywhere. They must be either cheap or easy and cheap to repair or very reliable because they’re very popular. An SUV, even if you never take it off the pavement, will give you added carrying capacity and ground clearance and maybe extra durability.
If I had the luxury of time, I’d import a vehicle from the U.S. That way, you’d know what its history is and you’d be getting all the safety equipment. And you would have a wide selection of cars to choose among.
Import duties and freight run up the costs of vehicles in Costa Rica but they cannot be avoided. Whether you pay those costs yourself or pay them to an importer who paid them, in the end it’s you who’ll foot those bills. So why not get a known quantity that you select from a wide variety of choices?
We are closing on another property later today with a mortgage of just under 7% for 30 years but we are permanent residents.
Not all Costa Rican banks offer mortgages to non-residents, most of them do for permanent, legal residents but be warned that the Costa Rica mortgage process can be L-O-N-G, paper intensive, full of BS and the commissions you will pay for this extremely unpleasant experience can be outrageous.
I love my Toyota RAV, it’s 11 years old now and has been used and occasionally abused but still moves nicely…
Scott
[b]VictoriaLST,[/b] you haven’t mentioned that you have ever been to Costa Rica.
So, it would be better to live here for an extended time, before even trying to buy a house, especially if you don’t have to funds so need to secure a mortgage.
As Scott mentions, not all banks offer mortgages to non-residents. On another forum, an ex-pat mentioned that the mortgage he was able to obtain 2 years ago, has increased by $400 per month.*I have found your other postings, saying you intend to visit for an extended period Good!
that’s pretty common, as i have heard that from a couple of other people too. i sure wouldn’t move here with the idea in mind that you are going to buy a house with borrowed money. almost everyone i know who moved here came with a bundle of cash, bought their house outright, and never once thought about a mortgage. it’s about the only way to live here economically, i.e. having your residence be free and clear of any encumbrance. with the way the cost of living is going up every year, it’s about the only way many people can continue to afford to live here if all they have is social security.
I have a different experience here! In the last two months I have been working with four ticos and one gringo that were able to get financing with HSBC and some other banks. Rates were really good under 7% and up to 30 years. However here they will only do 80% loans so you have to have the 20% down.
The Tico market is really becoming more like North American in the mortgages and rates are no longer double digits like they used to be. However it is mostly the central valley that they are doing the loans. I have heard that the banks are more reluctant on covering loans on the coast at this time.
Also the only foreigner that they are offering it to is North Americans not Colombians or Venezuelans! I don’t know about EUs?[quote=”ticorealtor”]
Also the only foreigner that they are offering it to is North Americans not Colombians or Venezuelans! [/quote]HAHA!!!! I wonder why???:lol::lol:
The earlier comment about renting is very appropriate if you have never visited here or maybe only have limited experience down here. Rentals are unbelievably cheap and affordable and you’re not tied down. You can rent for a year or 2 and if you still really like it you can buy later. The real estate market here in CR as I’ve mentioned in previous posts is very inefficient and illiquid. If you buy now and decide in a year you don’t like it and need to sell then in all likelihood you’ll take a pretty big hit.
Thank you all for your comments and wisdom. We have visited CR and we are planning on renting in different locations for a month at a time. We will probably start near Lake Arenal and move slooooooowly south. With so many climate zones and natural attractions, it may take us a while to decide on a location. I did like the idea of buying a car/truck instead of renting one and the ones mentioned all sound excellent.
Now if we could just sell our house in Georgia…. Anyone planning on a return to the states? Wanna trade??
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