In the past investing in Costa Rica real estate was one of the best investments Worldwide with exponential returns year over year. However, these exuberant returns were unsustainable and when the global economic crisis hit the property values had to come back down to realistic levels. Today it appears we have past the bottom of the cycle and many of the fire sales have been swooped up by savvy investors. It is still very much a buyer’s market and great time to invest in Costa Rica because as the U.S. and other World economies recover, the property values here will once again begin to increase.
Costa Rica is a safe place to live with peaceful laid back locals and the ‘Pura Vida’ lifestyle. It is also safe to invest in Costa Rica with the majority of property having fee simple title that foreigners can own outright. There are properties directly on the beach that are “concession” and are technically leased from the government, and I recommend proceeding with caution in those cases or better yet searching for another titled property slightly off the beach or elevated location overlooking over the ocean. All real estate transactions are done through a local attorney and the proper due diligence is performed in order to make sure the property in question is free of any leans, taxes, or other legal issues. Stewart Title and Chicago Title are also operating in Costa Rica and offer title insurance for added peace of mind over you investment.
This country is also one of the most desirable places to retire in the entire World. The ‘Baby boomers’ are now just beginning to retire and for years to come many will be looking for tropical destinations to live full or part time. Costa Rica real estate values will benefit from this trend and offer exactly what most retirees moving abroad look for:
-Temperate year round warm climates
-Mountain property with amazing views of the ocean, coastline, or valleys
-Close proximity to beaches, restaurants, and amenities
-Plenty of activities or hobbies to enjoy
-Affordable medical treatment and health care
-Accepting, helpful, and hard working local population
-Low cost of living and high quality of life
Diversify your portfolio with property or second home in Costa Rica as an alternative to stocks, bonds, and mutual fund investments. Many people are looking for investments outside of their home country for diversification. A property that increases in value as a long term investment can often beat stock market returns. Also a second vacation home can be rented to generate rental income from your foreign investment.
Costa Rica is also a forward thinking country with over 25% of its landmass in nature reserves and national parks has goals to be the World’s first carbon neutral country by 2025. This natural beauty attracts millions of tourists per year and as eco-tourism becomes more popular Costa Rica will be poised to continue growing its tourism sector; which is already its number one source of GDP. It is consistently #1 or #2 in most visited Latin American countries year to year. The more people that travel to Costa Rica and experience its scenery, culture, and pace of life, the more people that will want to own a piece of this unique paradise in the future.
Costa Rica is a true alternative to traditional investments and well positioned to continue as a leader in places to retire and travel; thus increasing real estate values across the country. Pending another Worldwide economic meltdown this tropical destination will remain one of the best foreign investments money can buy. And if there is a complete global financial collapse, then it may be best to have property in Costa Rica where you can come grow your own organic fruits and veggies, raise some chickens, and live off the land:)