There are a few clear reasons why you should buy a house in Costa Rica. This country has one of the lowest crime rates as compared to its counterparts in Central America. The people living in Costa Rica are warm and welcoming. The cost of living is not very high. And for people who are interested in investing their hard-earned money in real estate here, there is good news – real estate comes at a very affordable price. This article will serve as a guide for investors who plan to invest in real estate in Costa Rica.
Real estate in Costa Rica is now expanding. A lot of people from all around the globe are looking to invest their hard-earned money in this lovely country in order to ensure a peaceful life post-retirement. The lure of the breathtaking landscape is too tough to overcome. The beauty of this land draws many investors who rush into buying property here without much forethought. This article provides investors with a few handy tips which will prevent them from falling for falsified property deals.
Costa Rica is a beautiful country where buying real estate can be a really good investment, usually, property sells for a fraction of what it would cost you in the United States for something similar; property taxes are reasonable and whether you live here permanently or vacation occasionally the country has a lot to offer, not just in terms of beauty and excellent weather. When It comes to the every day life Costa Rica has a lot of pluses such as economic and political stability, friendly people, good options for work and education, good health services. So yes, buying real estate can be a good idea, as long as you go about it the right way.
Finding a place on your own: Don’t make the mistake of going into a real estate deal blind. Sure, you may save a commission, but you are risking a lot more than what you’d be saving. Request the help of an area expert. When you are in a foreign country the rules are different, the culture is different and it is better to work through someone that has experience dealing with the market and understands its peculiarities. Don’t settle for the first sign of a real estate office you see on the road, go online, make a couple of phone calls, check different portfolios, ask questions, be clear on how they work and choose a real estate agent that you feel comfortable with and understands what you are looking for. This is the right time to be very picky. The second step involves getting a reputable real estate attorney. Don’t EVER use the seller’s attorney. Get advice from expat sites like us or the American Embassy to choose a reputable lawyer or firm. There are many legal aspects that could affect a property, and you want to make sure that everything is clear and in order before you proceed with the purchase. Having a realtor and a separate attorney will give you security and two expert opinions that should help you make the right choices and feel confident and safe in your decision.
Tip 1: Do not rush into signing a property deal assuming that there are many who might want to take the property away if you wait for some time. Instead, rent out the property that captured your interest, live there for a few months, see if you like the place and then sign on the dotted line. This will ensure that you get to buy a place that meets all your requirements.
Tip 2: Some properties that come up for sale in Costa Rica are, at times, a part of the land owned by the local government. Be careful while buying such land. Ensure that the property you are investing in does not in any way fall under government property. Be cautious while purchasing a small property too, since certain local laws mention that you can purchase property with a smaller area (less than 5000 sq feet) only if they are on the main road.
Tip 3: Certain investors purchase properties which are very large (around 3-4 acres). What you need to keep in mind while purchasing such properties are the overhead costs that you will eventually incur, like getting electricity connections, building roads which lead to your property, and even fencing your property. It is better to consider the overall cost that you will incur first and then negotiate with the owner on giving the best price possible.
Tip 4: Run checks of the entire neighborhood to ensure that the area is safe for family and retired people. This is because there are certain areas in Costa Rica that are not recommended, since they are infested with criminals or various crime-related activities. Running a check on the neighborhood will help you lead a stress-free purchase of the house.
Tip 5: When you, as a buyer of property in Costa Rica, and the seller have reached an agreement on the price for the property, date of purchase, and other important details, ensure that you have it in writing rather than relying on just the verbal commitment.
Tip 6: It is recommended that you engage the services of a local attorney who can guide you through the entire process of buying a property in Costa Rica. From checking the legality of the property to finally registering it in your name after the purchase, the attorney will take on these responsibilities to ease your mind.
Tip 7: Special care needs to be taken while buying houses directly. At times, there might be concerns like a leaking roof, broken sewage pipe, or improper electrical wiring. To ensure that all these things are taken care of correctly, get an engineer to run a complete check of the property and give you an assurance that you are investing your hard-earned money in buying the right property.
Finally, all the details are verified and you are ready to purchase the property, contact a local attorney who is also a Public Notary, to draw up the sale deed for the property and also execute the sale. After the sale, the attorney also has to update the records in “Folio Real,” so that you are reflected as the new owner of the property.
