You will hear these pieces of advice time and time again because they are tried and true. A golden rule in real estate, don’t just think of cost, think of value, think long term, and always think of re-sale, no matter what your plans may be. Here are our compiled best practices when it comes to investing in real estate and buying property in Costa Rica.
Get Clear on Your Purpose
Be sure to have a clear understanding of your investment and financial goals. There are different kinds of investors. Know which category you fall into. Are you trying to preserve your wealth, yield income, attempting to gain portfolio diversification, or is it more personal, and you would like to live in Costa Rica for the lifestyle benefits and buy a property in order to obtain residency? Get clear on your goals and when decision making, always come back to the original reason(s) that motivated you to buy in the first place. That will give you a big indication of whether or not to take the plunge, and whether the deal on the table is right for you.
Buy on the fringe and wait. Buy land near a growing city. Buy real estate when other people want to sell. Hold what you buy.
Prioritize the Basics
Realize bigger is not always better. A larger home or piece of land will require maintenance, and the jungle elements need to be managed on a regular basis. Essentials in Costa Rica include ample outdoor covered living space and cool breezes that run through the property or home. You may need to make trade-offs, but stick to keeping your absolute must-haves, to do this, you need a clear list as a benchmark.
Did you Know?
On average, it is found that grand open views of water that are highly exclusive can add up to 59% of the value of a property.
Take Your Time
A good deal will be a good deal, and can happen at any time, there is no right time to enter the market. What is important is finding the right property for your needs. Travel around to various areas, rent out a space where you would like to buy, go for lunch or dinner in your new neighbourhood – does it feel like you are home? With the seasonality in Costa Rica, it’s also wise for people seeking to live in the tropics full time to spend time, at different times of the year before relocating. Maybe the heat and humidity in one region affects you more than you could imagine and a mountain property will be better suited for your needs. Only once you have tried it out, will you find out.
Don’t wait to buy real estate, buy real estate and wait.
– Will Rogers
Find the Right Realtor
You will save time. They know what’s available (new inventory is added almost daily!), are well versed in local laws, they know the market, potential deals that are available, homes that may not be listed but that meet all of your requirements, and they will be well versed in the art of negotiation.
Plan Ahead
Imagine you have already bought the property. Who will take care of the house if you are not going to live here full time? Does the road you live on have yearly maintenance fees, if so, when are they due? Will you need a 4×4 vehicle? Run through as many scenarios as possible and plan with these in mind.
Real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.
– Robert Kiyosaki
Dot your I’s and cross your T’s
Find a good lawyer. Get your due diligence done, ask a lot of questions. Figure out budgets beforehand, understand what goes into home maintenance in Costa Rica, and most importantly, make friends with the locals, they too are a wealth of information.
