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After considering all options and possible problems about relocating in Costa Rica, my next concern is this; if I were to buy a property as a retirement gift to myself and my wife, I consider the fact that acquiring a real estate property can also be a viable and a good long term investment option. Something I can leave for my wife or my son in the future. So my question is: which is a more practical investment, a condominium unit or a single detached residential unit? A realtor said that condominium units have 50 years investment span but they only have 50% loan value when use as collateral in a mortgage. Is it true? What is Costa Rica’s or banks mortgage policy on condo and single detached residential units?
The value of your condo will depend on the value of neighbouring condos, maintenance of the common grounds and you could make a lot of improvements to a condo but still not be able to sell it for more than the others in the same development.
Whereas a stand alone home will be very much more difficult to compare and should you make improvements, they will have a higher ‘added value’ than they would in a condo. Having said that, remember that in Costa Rica a ‘condo’ could be $100K apartment or a $780,000 stand alone home.
I would not even consider the mortgage aspects of this as this is changing and will certainly change over the next 25 years.
Scott Oliver
Author of How To Buy Costa Rica Real Estate Without Losing Your CamisaPS. Forgive the very rushed reply as I am in the process of moving right now.
JulioScott,
I can’t answer your question, but I think it’s the wrong question. Considering the difficulties of obtaining a mortgage loan in CR, as well as the ridiculous interest rate you’d have to pay, if possible you’re much better off paying in cash. In that case your worry about a 50% LTV is moot.
More importantly (much, much, much more), the trials and tribulations of maintaining security at a detached residential unit FAR outweigh any financial drawback of buying a condo.
I, and many others on this forum, have talked about this issue many times, but it’s very hard for us Gringos to accept it. It’s one of those things that you have to experience for yourself before you develop the extreme level of paranoia necessary to keep your material possessions from walking.
IMHO the most difficult cultural challenge for Gringos living in CR is the fact that you truly become a slave of your house. The best way to avoid a burglary is to ALWAYS have someone there. That means never leaving, or hiring a live-in caretaker. Please don’t make me rehash what happened to us. It’s too depressing. Just listen to me when I tell you that if I had gobs and gobs of money to pay for security, I would consider it once again. Short of that, we’ll be looking at condos and highly secure gated communities when the time comes. If the investment is slightly worse than a detached home not in a gated community, then that’s the price of freedom and tranquility. Cheap if you ask me.
You might want to read “Costa Rica Condos – Advantages of Gated Communities: which you will find at
And again remember that a ‘condo’ in a ‘gated community’ could be just about any kind of a home here from a small $100K home to million dollar homes…
Scott Oliver – Founder
WeLoveCostaRica.comFYI: I purchased a single detached house in a gated community (in Sep 05) that has appreciated 40% since I bought the lot. I paid cash for the lot and paid installments as the house was built over 12 months. The final payment and transfer of title to my S.A. corp. is pending approval of the final urbanization plans in May 07. The builder, which has 30 homes and 10 townhouses plus a community pool, will finish out the development in 07 (we think). He predicts the house could be sold at that time and total appreciation would be 80%.
These numbers are based on sales in both this development and phase II which is nearby and almost sold out.
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