www.CostaRicaTicas.com
https://forum.costaricaticas.com/

Purchasing Real Estate in CR
https://forum.costaricaticas.com/viewtopic.php?f=20&t=51967		 Page 1 of 1
Author:  Tjnc35 [ Wed Sep 18, 2019 9:30 pm ]
Post subject:  Purchasing Real Estate in CR
I've been thinking of buying a home in Costa Rica. I'm able to put down 50% (if necessary) of a home's total value. Between $150,000 to $200,000. Less if over $200,000. I was thinking somewhere in Escazu.

Contrary to my join date, I've been to CR multiple times. I had an epiphany on my last trip. I'm sure I'm not the first but here it is: "Buy a home in CR." No I was not drunk or high out of my mind. I was completely sober, and it made perfect sense.

My reasoning is as follows: 1) income producing property: word of mouth only-meaning I select people I KNOW to visit and stay in my place; if no one stays, then I can still afford the home. I will be highly selective of guests, and 2) a place to stay when I'm visiting.

I visit CR 3 or 4 times per year. Each visit I spend $700 to $1500 on hotels. Those savings combined with the income earned from people will definitely be beneficial.

I will rent in the USA. The reason for renting in the USA is due to the fact if I buy in the USA I will not have the potential to produce income from my home since I am living in it. I would like some ideas.

How should I go about purchasing a home in CR? Has anyone done this before? Is there an attorney you recommend, or how about a home buying agency? Who manages your property if you're not home? Have you purchased a home in CR? What did you do? How did you do it? Any areas you recommend? All ideas are welcome. Thank you.
Author:  LAdiablo [ Wed Sep 18, 2019 11:13 pm ]
Post subject:  Re: Purchasing Real Estate in CR
I know there are American title companies in CR but imo would have a local and US attorney involved
Sure you have thought it through but maybe try renting in CR for 6 months to a year and find out if you feel the same?
Author:  Tjnc35 [ Wed Sep 18, 2019 11:24 pm ]
Post subject:  Re: Purchasing Real Estate in CR
Thanks for the quick response. I do not plan to move there permanently. The purpose of buying the home is as a rental property for people I personally know wanting to travel to CR, income producing investment, and myself while traveling. The amount saved will pay for 3 maybe 4 months worth of a mortgage. Also, whether the property is rented or not, I will still have funds to cover my mortgage. Is the 6 months living in CR necessary in this case with all things considered? Noted about the attorney.
Author:  Ilv4play [ Wed Sep 18, 2019 11:54 pm ]
Post subject:  Re: Purchasing Real Estate in CR
If you are not renting to Locals you will avoid a lot of problems. I would have cameras put in and pay for internet service so you can remotely view them. Even something as simple as the Ring Stick Up cams would be beneficial so you get alerts when people trip them or if you want to go the Camera and DVR route you could bring a system from the US and install it yourself. Internet will cost you about 60.00 per month and I do not know if they have online payments you can do from the US. I do know they do not like to have credit balances for you Utilities so you cannot just give them 500.00 and expect to not have to make a payment for a few months. Having someone you can trust to pay your bills that actually pays them and not takes the money to pay their own bills is going to be that hard part though.
Author:  LAdiablo [ Thu Sep 19, 2019 12:02 am ]
Post subject:  Re: Purchasing Real Estate in CR
just a lot of stories out there about guys buying places and feeling lucky to get out of it
some of the stuff I would hear would have to do w the titles being in multiple family names and extortion
I spent some time looking at property and realized there is no such thing as a licensed realtor
that may have changed but idts, maybe someone else knows
the six month thing is just to actually spend time living there as opposed to visiting
I would think looking at property there and return on investment would be pretty tricky
a whole lot of variables in play
guess it depends on the area and the timing but if you're thinking about beach property...
I just know I saw all sorts of half completed dreams that became nightmares from my first trip forward
not to mention the issues w unoccupied homes being ransacked and squatted
I would proceed w extreme caution and due diligence
Author:  Skosh [ Thu Sep 19, 2019 1:16 am ]
Post subject:  Re: Purchasing Real Estate in CR
Tjnc35 wrote:
....I do not plan to move there permanently. The purpose of buying the home is as a rental property for people I personally know wanting to travel to CR, income producing investment, and myself while traveling. The amount saved will pay for 3 maybe 4 months worth of a mortgage.
I would think long and hard about this before you pull the trigger. I don’t know you but buying property in a foreign country as an “investment” especially when you know you’re only going to be there 3 or 4 times a year sounds like a recipe for disaster. The chances for unintended consequences and bad outcomes are big to begin with and then couple that with being an absentee landlord and they go up even further. Good luck with your decision but you might want to think it through again and certainly talk with other gringo property owners before you pull the trigger. I think you’re looking at this through rose colored glasses and talking with someone that’s been there and done that might take some of the bloom off the rose. The last thing you would want to do is get stuck with an albatross around your neck that you can’t get rid of.
Author:  Orange [ Thu Sep 19, 2019 6:55 pm ]
Post subject:  Re: Purchasing Real Estate in CR
You will need security. Once your neighbors figure out that you are only around every few months for a week, rent it out some, and it stays vacant at times, you'll probably get burglarized on a regular basis. Also, you may want to study the laws in relation to squatters. See link below.
https://news.co.cr/squatters-rights-in- ... ned/61791/

You'll be looking to cut your losses in under a year. Good luck finding a buyer.
Author:  Dekalb45 [ Thu Sep 19, 2019 9:34 pm ]
Post subject:  Re: Purchasing Real Estate in CR
I have owned property including a condo in CR for over ten years. I can not emphasize strongly enough the perils inherent in owning property outside the U.S., especially in CR. See above and then some. Not to mention the ever changing laws geared toward the so called "rich" which really means property owners. Do NOT buy property in CR. Whatever savings on hotel bills you think you will enjoy, they will never materialize. Besides, when there are hotels such as the Sportsmen, why would you want to stay in your room?
Author:  Boynton [ Thu Sep 19, 2019 9:57 pm ]
Post subject:  Re: Purchasing Real Estate in CR
.
Author:  Jawanker [ Thu Sep 19, 2019 10:12 pm ]
Post subject:  Re: Purchasing Real Estate in CR
Boynton wrote:
Bad investment idea, low liquidity, high risk, no capital appreciation potential. Instead, put $100K in a low cost, high dividend ETF from Vanguard. I recommend VYM, stable yield of 3 to 5%. Good diversification in large cap US stocks across multiple sectors. Wait until it drops 5%, then step in with $25K increments each time the price drops by 5%. You should get at least your hotel costs, probably more. You will sleep much better. God bless John Bogle.

Failing that, I hear there are good deals in Barrio Cuba. A real fire sale on properties. :lol:


I have always thought Boynton might be a really smart guy, but never met him in San Jose, He always posts good advice and subtle humor. Take his advice!
Author:  Tjnc35 [ Fri Sep 20, 2019 11:13 am ]
Post subject:  Re: Purchasing Real Estate in CR
Fair enough and noted. I will hold off on purchasing a home in CR and will look at other investment opportunities. Thanks!
Author:  Ilv4play [ Fri Sep 20, 2019 6:37 pm ]
Post subject:  Re: Purchasing Real Estate in CR
On the other hand, renting is relatively cheap so you might want to consider finding a place to rent for a while then let your friends use it for a fee. Internet and cable will run you about 37,000, Water about 6000, power 25-35,000. Depending on the area and size you can expect rents from about 240,000 to probably 600,000 in Escazu per month.
Page 1 of 1 All times are UTC - 5 hours [ DST ]
Powered by phpBB® Forum Software © phpBB Group
https://www.phpbb.com/