When it comes to real estate, Costa Rica is quite a popular spot. Whether you are thinking of acquiring a property for investment or imaging your perfect holiday destination, this post can help you make a smart decision:
Is Property Investment A Good Idea In Costa Rica?
The one-word answer would be yes. Costa Rica is both good investment value and a great lifestyle to offer to its buyers. The services and infrastructure in Costa Rica are almost at par with that of the more developed countries. This coupled with a low crime rate, and beauty of Costa Rica makes living in the country a win-win situation.
If you are looking for Costa Rica as an investment, even then buying a property there is a good idea. Property prices in Costa Rica have been rising in the last decade, and are expected to continue in the direction in the future. This means you can get a good value of your property if you wish to sell it later. The investment return is particularly good for coastal properties.
If you are looking to buy a property to rent out, even then, the investment is a good idea. Costa Rica’s rich physical diversity makes it a holiday destination for tourists almost all year round. There’s never an off-season where you might have to face any dips in rentals.
Expat Friendly Property Laws
Costa Rica’s government realizes the importance of foreign investment for their economy. To attract foreign investment, they allow property buyers the same rights as locals. The government has assured these rights to their foreign investors through the constitution. This means that as an investor, you get the same rights as a local. You don’t need to partner with a local in order to buy Costa Rican property.
The Costa Rican government has also made acquiring property as fair and transparent as they can. Almost all properties in Costa Rica are registered and titled. This makes it easier for investors to move forward with trust. If you are offered an untitled property, it would be best to avoid the property.
How to Buy Property In Costa Rica
Before buying a property in any place, you need to hire a real estate broker. Hiring a real estate broker in Costa Rica might be a little challenging. Real estate agents in Costa Rica don’t require a license before working as one. This means that anyone can become a broker, but that doesn’t mean everyone has the experience. Research your broker carefully before hiring one. You can ask for recommendations from investor friends if you have some.
Your broker will help you choose the right property. Sit down with him and explain your requirements. Tell him the reason for your investment and your budget. Your broker will give you a choice of properties. Once you pick your preferred property, you will make an offer for the property. Research your offer carefully. Find out the value of the neighboring properties to estimate your offer.
Financing Property In Costa Rica
As a foreign investor, you wouldn’t be able to finance your new home through a home loan from a Costa Rican bank. A good option is to use your retirement funds or look for a home equity loan. You can get more information on acquitting a home equity loan on Crediful.com.
Hire An Attorney
Before buying any property, it’s always a wise decision to hire an attorney. Your attorney will conduct due diligence of the property. He will verify all documents, from a legal angle. He will take care of your fees and taxes. Your attorney will not just make the entire process hassle-free, but he will also make sure you won’t be caught up in a legal problem later on.
The closing period can vary anything between 60-90 days. Once the legal contract is drawn up, the next step is signing and recording the deeds with the Public Registrar. If you can’t sign the deed personally, you can give your lawyer the power of attorney and have it signed for you. The last step is paying the closing fees. The closing fees are divided between the buyer and the seller.
A few additional tips to make the process of buying a property in Costa Rica smoother:
- Don’t rush the process. Review everything carefully. Check and recheck every step.
- Ask for reviews and recommendations. When hiring your broker and lawyer, you need to be extra careful. Hiring the wrong people can make the process very frustrating and long.
- Visit Your Property before buying it. Don’t depend on the judgment of your broker. Go and visit the property at least two or three times. Get another opinion if you can.
Once you have the property, it’s time to relax and enjoy it!