The age old question which I am sure could be an ongoing debate. Really, if you think about it, most real estate is a good investment.

When I lived in Tampa, FL, I bought anything that was a ‘good deal’ to me. If I could fill it with tenants, get some good cash flow where the market was appreciating, I would buy it.

Many of us have a portfolio that includes real estate, which continues to be a strong investment. However, is all real estate a great investment? Yes and No.

I have made money in real estate and lost money. I continue to stay in the green by learning from my mistakes. Mistakes were made when I didn’t take time to do my due diligence.

What can you do? No matter where you buy in the country, ask yourself these questions:

1. Am I buying a property in an area that is seeing a lot of development.
2. How is the infrastructure in the area?
3. Is there community water or well?
4. Septic or sewer?
5. Electricity on site?
6. Cable or Satellite or both? Phone?
7. Is the title clean?
8. Is the property fully titled or concession property?

If you are planning on renting:

1. What are the average rents?
2. Management?
3. Maintenance?
4. Utilities costs?
5. Maid service?

You may ask, Water? Yes! Little things we may take for granted being outside the states are of issue here and need to be addressed.

At the beach, almost all single family dwellings and condos are on wells. There are some bigger developments that have their own water treatment plants, but they are few and far between. Larger towns have their own water associations (or ASADA).

The bigger problem is that some areas do have water shortages, and you need to be aware of this. As for phone, getting a land line used to be a lengthy process here, but I am happy to say that has improved drastically. Most phone lines (if you have lines running to the property are installed within a week or two in our area).

Not all areas receive cable TV either. If you don’t have access to cable, you basically have ONE choice–SKY TV. Sky really does stink (the customer service, not the programming so much). But, it’s better than nothing…

While investing at the beach in the Guanacaste region has always been profitable for me, I have also made a point of doing due diligence. Your chances of making money will be much higher when you do your homework very carefully.

And, of course, always have patience. Things go a bit slower in the land of “Pura Vida”. You have to mentally prepare yourself that not everything here is done in a “New York Minute.”

The Pacific Northwest region, known as Guanacaste, (once part of Nicaragua), peaked in 2006 and came down hard in 2008. Prices came way down, in some cases, as much as 50%!

The good news is that this year, things have been picking up drastically for properties that are priced at realistic market prices. Interest has been renewed and many individuals and families are coming to Costa Rica to invest in and rent on a long term basis.

Those looking to retire see their dollar stretch more here. Those looking to buy a vacation rental are looking to have the benefit of both rental income and having a place to stay that pays for itself.

• You can see a video interview with Becky Clower about investing in Costa Rica real estate here.
• You can also see a video interview with Becky Clower about living in Costa Rica here.

Things changed a lot when AutoMercado Grocery store opened its doors in 2008 to the Tamarindo and surrounding beach areas.

This supermarket is one of the largest chains in Costa Rica, but there were no AutoMercados until 2008 in our area of Guanacaste! There wasn’t much out near the beach in terms of services if you go back in time 10 years ago.

Now, you see restaurants, banks, commercial centers, shops, popping up everywhere. With the development, bring people and demand for real estate.

The Daniel Oduber Airport in Liberia continues to have multiple daily non-stop flights to many parts of the world and recently underwent a multi-million dollar expansion that opened up our region to more visitors and opportunities for jobs for the locals.

Instead of flying into San Jose airport (4 hours away from our beach area), you can fly into Liberia and get to the beach in typically an hour or less. That has also made the demand for this area very high.

The good news is, even with all this development, our region still has vast protected areas that will never be constructed on. This region will never be a “South Beach” or “Cancun” with high rises that line the shores.

Just remember to do your due diligence and remember that while buying real estate is exciting in this country, it is also a big investment and should be treated as such.

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Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.