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Why do we have clients buying in Costa Rica?

By
Real Estate Agent with Coastal Properties Group International - Christie's International

View from home in Costa RicaWhy are some of our clients buying properties and/or land in Costa Rica? Of course there's the weather, the views, the wonderful Costa Rican people ... but why are they buying now?

For many people, our current economic conditions are scary.

What if ... we have super inflation when the bailout bills come due?

What if ... our taxes become the majority of our income?

What if ... there's a "one time" tax or fee on our savings and investments?

What if ... there's a "temporary emergency" and temporarily we can't get our money out of savings or stocks?

What if ... we can't afford to retire in the US and life the lifestyle we want to enjoy (or even if we can't afford to live here while we're working)?

Most of our clients certainly aren't ready to permanently leave the United States (though some are) or to cash out all their assets and invest somewhere else. They are ready, however, to take a portion of their assets and invest them outside the U.S. in a county that's established democracy and neutrality, in fixed assets, in a non-leveraged country. It helps even more if that country is close (to Florida, in our case) and a great destination.

For me - it doesn't make sense to invest abroad if you're borrowing money and taking on additional debt. If you have liquidity, though, it may make sense to take SOME of your funds and invest elsewhere.

We work with colleagues who are very familiar with Costa Rica, and who can truly look out for your interests.

Posted by

Sharon Simms
CIPS CRS CLHMS CRB RSPS
Coastal Properties Group
CHRISTIE'S International Real Estate
238 Beach Drive NE
St Petersburg, FL 33701
www.ssimms.com    www.coastalpgi.com   www.christiesrealestate.com
(727) 898-2582    Sharon@SimmsTeam.com

 

Dawn Barrier Las Vegas Real Estate
HomeSmart Encore - Las Vegas - Las Vegas, NV
Homes in Las Vegas Nevada 702-812-4550

Sharon,

Great info!  Love the pic too! I hope to visit there someday!

Vegas is picking up some cash buyers as well due to the prices being so low now.

May 15, 2009 02:55 PM
Kathy Toth
Ann Arbor Market Center Keller Williams - Ann Arbor, MI
Ann Arbor Real Estate Experts - Kathy Toth Team

This is an increasing trend and not just for wealthy people. There are a number of coutries that have some very welcoming laws for expats willing to relocate. We can live quite comfortably on a modest pension in any number of central or south american countries. It's clearly not for everyone, just depends on your sense of adventure.

May 15, 2009 03:24 PM
Elizabeth Bolton
RE/MAX Destiny Real Estate Cambridge, MA - Cambridge, MA
Cambridge MA Realtor

Hi Sharon ~ For quite a while now Costa Rica seems to be the favorite destination for my colleagues. A number of them bought property there and one former agent from my office moved there permanently and is selling real estate there. 

Liz

May 15, 2009 04:18 PM
William Johnson
Retired - La Jolla, CA
Retired

Hi Sharon, Didn't I understand to you say that yu either intended to or did buy a property there. Costa Rica was great visiting but I rather think I Belize. But then, wherever the sun and water are in harmony, is where you will no doubt find me. Speaking of Sun and Water, St. Petersburg also comes to mind but out of the country also sounds a bit more interesting.

May 15, 2009 04:28 PM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Good points Sharon. I didn't realize all this was going on with Costa Rica.

May 15, 2009 04:33 PM
Richard Dolbeare
Inactive - Wailuku, HI
Living the Hawaii Lifestyle

Hi Sharon.  I'd thought about #4 which is a real risk but not #3.  Now that's a scary thought and one I certainly hope we don't see.  As for Costa Rica, I hear it's a great place to retire but I would just worry about those nasty snakes.

May 15, 2009 06:54 PM
Dana Wilkinson
Connect Realty, The Woodlands, TX - The Woodlands, TX
Broker-Your TX agent for The Woodlands-Spring-Conr

I think it would be interesting to have a home in another country, as I love to travel.  I don't think I could live permanently outside of the US, but I have friends who do and love it.  It is more of a personal choice, or out of necessity, rather than a political move or tax evasion in my opinion.  There are always the few who are dodging something, but many just like adventure, or need to go somewhere where the dollar goes a bit further.

May 17, 2009 11:16 AM
Anonymous
Marzia Rivera

My clients hired me to go to Costa Rica with them in 2006 as a translater little did they know English is wide spread spoken throughout the country. 

One of the Investors did purchase a condo to be built in a Resort and now rents it for vacation rentals as well as offers for fractional ownership.  It worked great for him as he loves to visit Costa Rica for vacations and receives the benefit of ownership while off setting the expenses.

 

 

May 17, 2009 12:04 PM
#12
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Sharon,  Lots of positive buzz about Costs Rica.  My neighbor owns there and loves it !

May 17, 2009 01:27 PM
Robert Worthington
Worthington Realty - Manitowoc, WI

Great post Sharon, thanks for the info.

May 17, 2009 01:37 PM
Mike Henderson
Your complete source for buying HUD homes - Littleton, CO
HUD Home Hub - 303-949-5848

A lot of online poker sites base their operations out of Costa Rica.  I've heard it's a great place from these people.

May 17, 2009 07:56 PM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

What are the complications and considerations in buying foreign real estate or working as an agent in that area?  Could be some interesting post.

May 18, 2009 03:20 AM
Anonymous
Linda Landry

Great post Sharon!  I've always fantasized about relocating to Costa Rica permanantly!

May 18, 2009 04:34 AM
#17
Palm Coast Homes
100 Plus Realty LLC - Palm Coast, FL
Palm Coast/Flagler County Real Estate, The Ross/Co

Costa Rica is one of my favorite places...the people, the climate, the attitude. etc.  I have visited many times and almost bought a villa there a few years back....glad I did not as I now see prices falling and inventories rising....much like Florida.

I decided against it when I took into consideration what was going on in the market in Florida.  I witnessed the same type of sales people selling real estate based off of investment and future appreciation....selling many properties to short term flippers attempting to make a quick buck...that works fine unless you are the last fool through the door.  If someone attempts to sell you any type of real estate anywhere this way..run away.

Many of the people who have purchased in certain areas of Costa Rica and are now upside down or suffering to sell just like they are in Florida.   I personally plan to wait a few years and then look again at purchasing down there.   The biggest concern for people should be the ease of getting in and out of there by air...as fuel costs continue to increase and more airlines are forced to scale back on their flights or raise fares so that it is no longer cost effective to flay to your second home in costa rica for a week...you will see Costa Rica impacted. 

Also make sure you are very well educated on how you carry title there and about all the import taxes.  Thinking about taking your car....wow...you will freak when you see how much it costs.  Many fall into the I could live in paradise trap....afterall vacation is great...but it is not real life.....Costa Rica is not for everyone. Yes, the power goes off A LOT...the roads are very primative in many areas, the sewer systems need repairs...the building codes may not be as strict as we are used to.  I toured some very high end - touted to be luxury properties that had very nice cosmetic fixtures..but upon closer review...the buildings were built very quickly, had lots or problems and some were even being required to be torn down. etc.etc.etc.   I spoke with several ex-pats that enjoyed the life for a while but have now decided to move back to the US....they say frankly.."We got bored".

Keep in mind that many of the people that did buy there, did so with equity they took out of there homes and yes most of them I met were from California....does not take a rocket scientist to figure out what is going to happen with that....they are now upside down in both California and Costa Rica in their homes.

Yes...Costa Rica is a wonderful place...personally I would recommend renting for a year or two to make sure it is for you before buying.  You may think that Tamarindo is the best place for you and then realize it is a very dry desert type climate until summer when the rains come and then it is like Oregon or Seattle...crazy rain and flooding in the summers there...or you may decide somewhere like Jaco is better and the realize that was not the right choice either.  Or maybe even Manuel Antonio and then decide it is too tropical.

The most important thing..is please do realize that it is NOT your country....tread lightly....do not move to Costa Rica in order to escape all that you believe to be wrong with the US and then try to change it to be what you ran away from.....I saw the California effect all over the place while I was down there and many of the original pioneers that moved to Costa Rica years ago are now choosing to go to Nicaragua and Panama to escape the American attitude....just FYI.  You want to make sure you do not fall into the last fool to buy scenario that occured in Florida in 2005-2006.  Do your research, be patient and make sure that Pura Vida is your lifestyle.

May 18, 2009 04:53 AM
Bobbi Blades
Re/Max on the Coast - Pensacola, FL
ABR,CRS,GRI,PMN,RRS

Good points.  I understand that it's a great place to vacation as well.  Good alternative for those that love to vacation outside of the US and simply want to have a place they can call their other home.

May 18, 2009 08:07 AM
Debra V. Edwards
edwards builders and realty, inc. - Cashiers, NC
Realtor/Builder, Cashiers, NC., Highlands, NC., Glenville

WOW...I'm impressed with you, Kristi...sounds like you've done either your homework, or have done alot of traveling there.

Well, What If...we bond together and 'fix' America...as I wish the Illegals would go back to their countries and fix what is broken there...then, maybe some of the jobs would come back to we law abiding, legal citizens of America... we, the taxpayers...we, the silent majority that carry the load of the majority...we, Main Street America. 

Costa Rica...hmmm...how would I get my horses and dogs there?  Better stay here in the W. Car. Mtns.

Thanks for a thought provoking post.  debra

May 18, 2009 01:51 PM
Sharon Simms
Coastal Properties Group International - Christie's International - Saint Petersburg, FL
St. Petersburg FL - CRS CIPS CLHMS RSPS

Thank you all for your comments and perspectives. People should obviously not buy from hype or fancy brochures, and working with a knowledgeable trustworthy professional is a must. It's also logical that people will fare better going "to" something rather than running "from" something. Also interesting - though a small country, there are HUGE differences in areas in climate, topography, infrastructure, etc. There can be great variations within just a few miles. Always a good idea - in a foreign country or here in the US - to visit different areas (and preferably stay long enough to "live" there rather than "visit") and to visit at different times of year.

May 19, 2009 04:48 AM
Anonymous
cion Schreiner

Hello  eve ryone !

     Just reading your comments  about Costa Rica. Iam a broker in S California and in 2005 my family and I vacationed in Costa Rica- in Escazu and then to the beach area. We rented a villa in PLAYA OCOTAL- called BAHIA PEZ VELA!   What a beautiful place , quiet, serene and very peaceful. Guess what! I bought one of the villas ( there are only 40)  and since then has  been renting it thru the resort and thru the different websites such as VRBO. We are 10 min from COCO and across the bay is the 4 Seasons, and other high end hotels.I go 2-3 times a year, and getting familiar with the real estate there. Most of the franchise owners were formerly agents from Calif.  You can check our website at :   www. COSTARICABEACHGATEAWAY.com. Name of the resort is BAHIA PEZ VELA and they too have their website.   NOTE: When I close an escrow on the high end, I give them one week to stay in the villa as a thank you and the cleints love it ( worth $1700-2500 depending on the season)Great incentive! E mail me if you have questions. Costa Rica and the people are great! PURA VIDA'''

Cion  Schreiner--- Dynamic Realty, Rancho Cucamonga, Calif.

P.S Would love to hear from anybody wanting to know more about Costa Rica- and their real estate. I have connections .

 

 

 

 

May 22, 2009 01:40 AM
#22
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

I guess for a tax shelter and or investment it would be a great place to buy.

I don't have anyone going that route>

Patricia Aulson/Portsmouth NH Real Estate

May 28, 2009 01:42 AM
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Jul 18, 2012 02:26 AM
#24