Are you considered investing abroad in residential real estate? Well, now is the right time.
If the idea of transferring funds to acquire property abroad sounds complicated, the answer is, well, yes and no.
On the one hand, it is difficult at any level to contemplate the possibility of investment loss and much more when that risk occurs outside the national border where property laws and other legal restrictions can potentially be unknown. Compound that with the general risks associated with a real estate investment, such as reduced diversification, lack of liquidity, and a high initial outlay. But for an individual who has both the ability and the willingness to take a greater degree of risk, depending on his specific set of circumstances the result may be worth the effort.
The reason is that the increase in a direct investment in real estate abroad may have the potential to be greater than other alternatives after taking into account such factors as:
– Low cost of entry relative to other opportunities
– The potentially high expected return
– Legal protections that may exist in certain markets
– Intangible benefits and other incentives, such as access to beachfront property at an affordable price.
– By limiting exposure to countries that have a foreign investor base, it may be possible to substantially mitigate the risk of financial losses.
Costa Rica, the right decision
Take Costa Rica. This is where we suggest to focus your dollar investment, and so far the outcome feedback has been a very rewarding experience. Despite its classification as an emerging market, Costa Rica acts like any other developed nation with respect to its regulatory framework. For example, in Costa Rica there are no residency restrictions, property taxes are immaterial, and property rights of foreigners are treated fairly and protected in the same way as local inhabitants.
In addition, all documentation related to a property is registered in the national registry and made available to anyone to view online. Additionally, the legal system works extremely efficiently when it comes to foreclosures and other real estate disputes, and standard insurance is widely available to homeowners.
Investing in real estate in Costa Rica has some other important benefits, we can highlight:
– Access to a competitive and qualified workforce
– Unique natural resources
– Availability to traditional lenders (as well as private investors)
–The cost of living is half that of many cities in the United States, while construction costs and other operating costs, such as maintenance and property management, are also significantly. minors.
– The country is a leading destination for tourism, and expatriates, who choose to relocate for various reasons, such as retirement, affordability, improved quality of life and a higher standard of living, as well as the desire to live in a safe, stable and spectacular natural environment.
Real Estate Investment by foreign buyers increasing in Costa Rica
Considering also the country’s history of relative financial stability and other favorable factors of economic growth, it is not surprising that the real estate market in Costa Rica has attracted foreign buyers from around the world. In fact, according to a country analysis prepared by the distinguished research group, local real estate experts have observed a double-digit increase in Costa Rican real estate transactions since 2014.
What satisfies us most about investing in Costa Rica is the ability to obtain emerging market returns in a country that not only offers the same luxuries, security, incentives and benefits as almost any other industrial nation, but is also in a class of its own when it comes to ecology and natural beauty.
That is a value proposition that is well worth to consider! Contact us for more information, we will be more than willing to support you all along the way!