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Good Move running the place yourself. If it is an established business that’s made the travel guides and has a following you might even do better than 10%. As with any business there are so many variables that must considered. With the way the economy is right now… any travel related business has some risk to it. On the other hand… with the economy as it is… there aren’t many place you can park your money these days! So why not give the hotel thing a try! If you’ll be living on site, working the place yourself, then the price tag isn’t that high.
It depends on many things. Are you buying the place… or just becoming one of a number of investors? If you’re running the place and have your hands on the operation you can count on a much better chance of turning a positive profit… if not… just keep your money in the mattress!
Edited on Nov 26, 2008 11:32
I think Oscar and the boys are just a little bit ahead of the curve (pretty rare for politicians)… they see what’s coming in the US… and rather than see wave after wave of poorer Americans coming to CR… they want to raise the standards a bit to keep the ship afloat! Shame is that the US didn’t do the same thing YEARS ago… no doubt the statement “Bring me your tired, your poor, your huddled masses yearning to be free” is coming home to roost!
CR on the other hand is saying “Bring me your retired (Not going to take a Tico’s job), your rich (Spend away Gringo), the few that meet our needs”
With the proposed changes we can see that CR is cherry picking retirees, and all but trying to eliminate rentistas. They have a good idea that many rentistas are younger people working in some way (many in real estate) and therefore taking jobs from Ticos.
As for the US, It was a nice ride for a while… but without MAJOR change… and some MAJOR pain…. even the new president is not going to get things turned around. Americans don’t have the stomach or the will for the required steps to make things right. And isn’t it funny that the president-elect isn’t even in office yet and his people have already floated the idea that the tax breaks for the rich might not be allowed to go away right away… thus confirming what most of us knew already… just another politician that thinks that “we the people” should just take whatever crumbs fall from the table of the rich!
The ideas above might not be that far from the truth! Just think… MILLIONS of baby boomers hitting retirement age in the US. We’ve all heard the forcast of the changes in the social dynamics that this was to bring about. A social security system headed for a fall… Medicare even a bigger problem. Health care systems overwhelmed. Food shortages… and let’s not forget energy and global warming! Plus decreasing tax revenues as the doomers leave the workforce. All around a pretty nasty future. But now… 401K’s have been all but cut in half… so many people near or thinking about retirement… and sadly many people IN retirement… will be forced to continue working (or returning to work)…paying taxes… adding to SS… paying into Medicare… Millions more people that would have been enjoying a retirement, perhaps escaping America, will instead be showing you where the washers are in isle 6 at Home Depot or welcoming you to Wal-Mart!!! All locked into a system to keep it fueled! Sounds almost like “The Matrix” doesn’t it? A pretty sad reality.
The proposed changes seem quite rash… but in the new world there will be those that can afford to live comfortably in retirement… and those that will serve them. This change has been coming for a long time… when we saw the shift from defined benefit plans (company pensions) to defined contribution plans (401k/403b/457) years ago. Companies and the government threw the task to the worker to plan their future and make the right moves. Sadly most didn’t, they were too busy buying 54″ plasma TV’s and cars they couldn’t afford. Tapping the equity in their homes (the “old school” nest egg of our parent’s generation) like it was an oil well… and spending it as fast as they could! And those that did contribute to a DCP, they have seen their life savings in these accounts vanish in the blink of an eye (well over the last 4 months)! So now we have a shrinking housing market, a stock market in freefall, and millions of people with NOTHING to fall back on! The old one-two punch! And don’t think for a minute it will all come back in the next few years!
I got out in March and have been thrilled sitting on the sidelines as the “doomsdayer” as many of my friends and family called me. But then again they all thought I was CRAZY with the whole Costa Rica thing too!!! LOL
This disaster has been coming a long time… and is coming to a head sooner than many thought. Has anyone ever witnessed how widespread this financial meltdown has become, or the speed at which it is happening? Or even thought it possible even two years ago? There are bigger problems coming. All those folks that NEVER put a dime away in a tax deferred plan at some point will be looking to “retire”. Even though they have nothing put away. That’s the next big “bailout” coming. As all the babyboomers hit 65, are unable to work, unable to live on SS income, and have no other income… then it gets REAL interesting! And that’s where the proposed changes in income levels come in here in CR.
Oscar and the boys are just trying to make sure that when the bottom falls out in the US and the mass escape starts that CR doesn’t get hit with wave after wave of poorer retirees that will drag the economy in CR down… funny how the US is headed towards becoming a third world country and CR is raising the requirements for admission!
As for the contents of this posting… my Crazy 8 ball came up with most of these ideas…. so don’t blame me! LOL
Edited on Nov 24, 2008 09:04
So does anyone have an idea how the new tax will be calculated? The difference in the two examples above makes you wonder! If the plan is to calculate the new tax from dollar one… it’s going to get expensive real quick! And if the new tax above and beyond the current tax rate we already pay… it gets even more interesting. Perhaps Randall can clear this up?
Scott… my thoughts and prayers are with you… for no matter how old our loved ones get…. and how we know that we must let them go at some point… the time is never right… and the task never an easy one.
Whoops… a package of cookies for the ladies in the Muni office always works wonders as well… last year they even called out the supervisor to say hello and say thank you. It’s always nice doing business and taking care of the normally very frustrating things when everyone is smiling!
Edited on Nov 20, 2008 14:54
The other question is how will they be calculating the new taxes? Seems the Tico Times has an article today (http://www.ticotimes.net/topstory.htm) which indicates that the taxes on a $200,000 house would be $1000/yr under the proposed changes.
Yet there is an article on this site by Randall Zamora that would seem to indicate the tax would be $45.45/yr ($200,000- 181,818 = 18,182*.25%= $45.45). That’s using the method in his example.
That’s quite a difference… perhaps we might want to clear that up. Somehow I don’t think Oscar is going to clean up the slums by hitting “rich” Gringos for 45 bucks a year!
I’m not sure if Randall reads the forums… this would be a really good point to clear up.
As for paying your taxes… I’d have to agree… why chance it! I go down to the Muni in January… hand them last years receipt… they punch up the accounts…. and I pay them… quick and easy.
Edited on Nov 21, 2008 20:05
I’ve watched this whole thread… and have to wonder… does ANYONE here have legal status based on being some type of “artist”? I’ve seen the claims and the quotes as to what the law is… but I know several artist… and not one of them has legal staus under this questionable area of law… perhaps someone knows someone that’s here as an “artisit”?
Head over to this link http://www.registronacional.go.cr/bienes_inmuebles/inmuebles.htm
From there you should be able to hash it out with a basic knowledge of spanish. Use the “consultas” function and you’ll be given a choice of how you wish to search. You can check with the folio or cedula. If the property is owned by a non-citizen not using a S.A. as a holding company… you’ll need the passport #…. and you may or may not have to place a “P” in front of that number, try it both ways if you don’t get a reply the on the first attempt.
I don’t think the map (Plano) is online… at least not that I can find, however you will be able to obtain the total area of the property and the names of the neighboring property owners as listed. Using this info and looking at the plano presented by the seller you can get an good idea or what’s what! It’s always best to have an attorney look it over. I do most of my own searches when looking at properties, but always have a qualified attorney check my work before going any further.
As far as tracking down owners… it doesn’t appear that current contact info is maintained on the registry (ie Address). So finding the current owner and contacting them might be a challenge. Best to check with the neighbors… someone will know the owner and how to contact them.
The system is VERY slow at times…. and at others totally useless. However, it’s better then is available in many ares in the US!!
Good Luck!
Edited on Nov 13, 2008 21:28
Similar as in many of the same conviences…. same electrical, telephone, internet service, and TV. Many of the nice things you don’t mind having in such a wonderful new home.
Lotus mentioned two possible spots… both have their own good points and bad. The reason most of us picked CR was for the mix of climates, natural beauty, the people, secure/stable government, the culture, lower cost of living, travel ease, being American friendly, widespread english, good currency exchange, and how similar things are to home. There really aren’t too many places that have that many things going for them. Hence the reason we made the choice of CR.
But then again…. with the money CR wants new imports to have now… ALL those things can be overcome! Funny things about money…. it can make life a lot easier sometime!
Edited on Nov 13, 2008 06:03
Gee… I wonder if “OfftoPanamawego.com” is available…. might be the next big thing! LOL
I’ll take a wait and see on this issue… Oscar and the boys can’t be THAT foolish… but then again… he’s shown that he isn’t the sharpest knife in the drawer lately! Let’s all hope that when it comes up to debate… they see the error in cutting off what it a very important stream of investment and job creation.
Edited on Nov 13, 2008 06:00
SumaSAL…. Can you give us some idea how stopping the flow of investment into CR will be a positive thing for anyone? Do you really think that the few “rich” pensionados and fewer REALLY “rich” rentistas able to meet the new requirements will improve the working conditions for the folks in CR looking for work? Remember well that in the world of supply and demand when there are more people looking for work then there are positions… the pay goes DOWN! There’s no doubt there will be few jobs available. It will be an employers market. I’ve often had to pay above scale to get the right people. And I’m glad to do it! When the bottom falls out of the employment market… the “rich” expats out there will be able to name their price… and Tico’s will be happy to find the work! That’s not a situation I want my Tico friends and neighbors to have to deal with!
Edited on Nov 13, 2008 03:08
I’d have to agree Scott… placing such high requirements would infact be an end to both program for 95% of folks thinking about the move! Besides… as much as we love CR, if one was able to come up $25,000/month for a family of five… they’re are MANY other nice places to live in the world! Panama is right next door and will enjoy a big boost if these changes go through!
We can only hope that they see the financial impact this will have on the flow of investment and jobs in CR. With the slowing world economy it’s an odd time to be looking to make such changes that will decrease the flow of investment. China can’t possibly make up the difference! LOL
Maybe they’re just starting high knowing the final numbers will be lower…
Perhaps it’s part of a bigger plan to limit the flow of retirees and refugees from the US once the bottom completely falls out and the mass exodus begins. Odd how this proposal got a life of it’s own and is movng so quickly in a country known for it’s normal snail pace when it comes to change! Maybe Oscar made good use of that slush fund and has greased the right palms!
We’ll all just have to wait and see!
Edited on Nov 12, 2008 13:50
Let’s hope the new proposals, if passed, makes allowances for minor dependents. If not the dream of moving to CR with kids is over for most people! While I’m not sure that Oscar and the boys know what their doing on this one, I do hope they see that a family cannot afford $25,000/ Month for the pleasure of living in CR. If they could… I can think of any number of places I would rather be hanging my hat! Good luck Rafaelo!
