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If, as a Canadian, you dislike your money being spent on a capitalist war in Afghanistan, imagine how, as an American, I feel about my money going down the same hole when we don’t even have socialized medicine here and probably never will. In my country, it is every man for himself and the women and children and aged and infirmed are left to fend for themselves. This is a cruel and very UNenlightened society. I am not sad to be leaving it for Costa Rica.
I admire the Costa Ricans for their vision of a country without an army, a government dedicated (at least in theory) to the benefit of the common citizen and the welfare of the environment. However poorly the above goals may be executed, they are still worthy goals and represent a sentiment in the people that is absent in the U.S.

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You see a tunnel. I do not. The world has seen dangerous times before and today is no worse than 20 years ago when we had a hair trigger on thousands of nuclear weapons pointed everywhere. If you want a light at the end of your tunnel, here is one; a veritable ocean of money we baby boomers currently have invested and will be using for all kinds of services when some of it is retired from the market. Where is all of that invested money going to go right now? Real estate?
One can play endless games of cherry picking blocks of time to illustrate the horrors of a secular bear market or to show the marvels of compounded interest. Those are POSSIBILITIES . I am more interested in PROBABILITIES and it is much more likely that the market will pay off over a 5 year period than not. I have some money in my U.S. home, some in Costa Rica property and most in the stock market. You were once a broker. Where is the biggest part of your wealth right now? I am curious to know just how seriously you are taking your beliefs about current events. Has your caution sent your money some place special?

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associating most crime with drugs is more typical of an american mentality than the mind set that believes in throwing money at a problem. Economic disparity is a more fundamental cause. Countries with low crime stats are economically balanced countries with strong cultural and legal incentives. Costa Rica has lately been experiencing more economic imbalance. A lot of money comes into the country but is not distributed in an equitable way. That is usually the function of taxes and we all know that property taxes in CR are a joke but I don;t see anyone laughing at the resulting increased crime rate, though.
I am an american who has bought property in Costa Rica. Lower taxes was ONE reason to do so, but certainly not the only reason and for now, I am prepared to suffer the negatives of living in a poorer country with a lower tax base. If and when the time comes that I am not satisfied with living conditions in CR, then the only options are to leave or stay and hope the costa Ricans can work their way out of the mess by increasing property taxes. Again, you get what you pay for.

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As american expats brag about how little they are paying in property taxes, some of them and some tourists are being treated to one of the consequences……no money for a decent police force. I have heard some Ticos lay blame at the feet of corrupt politicians stealing resources which would otherwise have been applied to improving law enforcement. I don;t know enough about the situation in Costa Rica to have an informed opinion. But common sense goes a long way sometimes in seeing causes for problems. It is stupid to expect to see an american style police force, complete with cars, modern communications and weapons, and still get the benefit of low taxes. Who is going to pay for this?
Once again, if you are not happy with what you see in Costa Rica and expect a change, you may be guilty of naivet’e in the extreme. You don’t get paradise for free anywhere.

Edited on Jul 22, 2007 06:36

Edited on Jul 22, 2007 06:37

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Thanks so much for sharing this stuff. I am intensely interested in this subject as I am planning a home construction in the Central Valley. I am still trying to work out how I can be present during the construction while I keep my self employed in Miami until my retirement. Please consider writing an article about your experience.

I took a few photos of a house under construction in Palmares, not far from my property. I was very impressed with the quality of workmanship and the luxurious details all around the project. An engineer on site estimated costs at about $75 a square foot. We are talking swimming pool, granite counter tops, quality tile flooring and intricate plaster work on interior walls and ceilings. The locals seem to know what they are doing.
http://home-and-garden.webshots.com/album/557743180shniPd

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I have not seen this description yet. Is there a particular area where you are seeing this?

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Jaco to Quepos is about one and a half hours. From Quepos to Manuel Antonio is another 15 or 20 minutes. The road to Quepos is excellent, perhaps the best in the country and reminds me of the good highways in the U.S. midwest. There are a couple of bridges, however, that will scare the bejesus out of you. One is known as the “Oh My God” bridge and you won’t believe the state of disrepair.

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I do not know the place well and did not mean to give you any negative impression of Jaco. I have driven through it several times. Like Quepos, I do not feel entirely comfortable there but that just reflects my own preference for the peace, quiet and beauty of the mountains of the Central Valley (San Ramon). If Jaco suits you, that’s great. There seem to bel plenty of expats in the area if that is what you are seeking. Have you visited many other places in Costa Rica?

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Gonna re-state the obvious here because it is so important…If you haven’t visited Jaco yet, do so before anything else.

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I am retiring to Costa Rica for a lot of reasons but none of them have anything to do with finding other americans. There are plenty of us here in Miami still. Besides, Costa Rican have always made me fee very welcome and comfortable when I visit. I may never blend into the scenery there, but I still enjoy being in the thick of it.

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Unbelievable! I live in Miami and today am paying out $5700 insurance on a 1412 foot home which was appraised at $370,000 recently..and that is with a huge deductible amount. And here comes hurricane season again. The taxes are over $3000 and that is counting a $25000 homestead reduction in the home’s value.’
My attorney tells me the taxes on my Costa Rican property are less than $150…PER YEAR. If this insurance info is correct, Costa Rican insurance and taxes will be under $1000 per year. That is an additional seven grand and change in my pocket every year!

Edited on Jun 15, 2007 08:00

Edited on Jun 15, 2007 08:03

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i am in a similar situation and have been advised by arcr that as long as a child is attending school, he falls under the parents’ pensionado plan. My son will be college age when we come over and therefor an adult per Costa Rican law .I am hoping he will stay in CR for university (we are spanish speakers). Should he decide to NOT attend college for a year or more, I would simply deposit the rentista amount in his name. There may be other options. This was one that was presented to me.

Edited on Jun 13, 2007 08:40

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I spent some time with an on site engineer at a very nice home he was building in Palmares. He estimated the cost at about $78 a square foot. This was with granite counter tops, plaster walls and ceilings and top of the line appliances. It was a stunning home the likes of which you might find in West Palm beach or better Miami neighborhoods and you would be hard pressed to build any more luxury into that project. I am no expert but I was impressed with the quality. The workers in that area seem to do excellent work and building materials are made or stored all around that area so transport costs are minimal. I am trying to guess what costs will be in 4 years time as material prices are rising so quickly.

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diversification…same good advice that holds true for stock market and real estate investments apply to banking as well. This leaves me considering what could trigger a crisis that would sink more than one nationally chartered Costa Rican bank.

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which brings up another question: What, if any, are the negatives to having the requisite money deposit for residency in a Costa Rican bank? I maintain a small bank account in Costa Rica and so far as I can see, there is no problem.

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