Tourists and real estate investors have been visiting real estate in Costa Rica for years. Many have made it their home. In fact Costa Rica has more US expatriates than any other country in Central America. They’re attracted by the tropical climate, the friendly people, rich biodiversity and incredible scenery. But before you follow in their footsteps make sure you review this 5 point checklist:
1) Don’t assume you’ll be able to find property sales and transaction data
Official property data such as sales data, time on the market, and price trends are not available for real estate in Costa Rica. This means that you’ll need to spend some time getting an idea of value. It’s not as simple as asking your real estate agent to run the price and transaction data for all properties in your market. Start with building a spreadsheet of asking prices for the type of property you are looking for and then and triangulate this information with as many different sources as you can.
2) Discover where the tourists are going
If a destination has a high number of tourist visitors you can assume that there is something attractive about the place. Perhaps it’s got some great surfing, a beautiful coastline or a unique ecosystem. Infrastructure improvements may also be underway to support the tourism industry. All across the globe, popular tourist destinations become strong real estate centers.
3) Work with more than one real estate agent
There is no Multiple Listing Service in Costa Rica and most listings are ‘open.’ Without a central database to pull all listings together, real estate agents will have different listings. There will be some overlap of course, but if you want to be certain you’re seeing all there is to offer, make sure you put aside the time to view property with all the agents active in your target mark
et.
4) Choose an English speaking lawyer
Property contracts in Costa Rica are in Spanish. So unless you are fluent in Spanish it makes sense to hire a bi-lingual lawyer, fluent in English, who can translate the documents for you. If you’re going to be out of the country for the due diligence period choose a lawyer who is comfortable (and quick) on email.
5) Rent before you buy, if you can
Take you time before buying real estate in Costa Rica. If you are able, rent for at least six months. That way you’ll get a real feel of the place, the culture, the community as well as the products and services available. All the things you’ll need to be comfortable with before you buy.
For more information and strategies for successful international real estate investing in Costa Rica, check out Reveal Real Estate.