Whether you want to move internationally or enjoy having your own vacation home, real estate in Costa Rica is a good investment.
Always dreamed of having a home in the tropics someday?
Lots of people from the U.S. and Canada are buying homes in the tropical paradise of Costa Rica. Whether they’re making the big move to an international life, or looking to profit from a vacation home investment, the warm climate, lower living costs and affordable real estate are luring folks south.
Many people come on vacation to Costa Rica and fall in love with the beaches. But the benefits of buying in the Central Valley are numerous: cooler more moderate temperatures, mountain views, ease of travel close to the San Jose International Airport, and the modern conveniences of living near the city.
“Buying Costa Rica homes as vacation rental investments is one way many people help finance the purchase and upkeep of their future retirement home,” said Dennis Easters, a Costa Rica realtor and co-owner of Pure Life Development in Atenas. “Vacation rentals are a good investment if you are not ready to move to Costa Rica full-time, or you are retired and able to vacation whenever you want.”
Real estate is almost always a good investment, according to most financial advisors. They will tell you that real estate as a hard asset tends to hold its value, generate more stable returns, and therefore, be less vulnerable in volatile economies.
In Costa Rica, international home buyers can buy titled property. Important to note is that coastal properties in the maritime zone are subject to concession laws which are different. Another incentive for buying a home or piece of land is if it is valued at $200,000 or more, you qualify for Costa Rican residency as an investor.
“A vacation home is a hard asset of real estate,” explained Easters. “Some people already have one vacation home and found it is profitable. Then, they end up buying multiple homes and running them as a business.”
Although setting up your home as a vacation rental takes time and profits are not immediate, said Easters, “you can expect about a 5 to 7% return on investment rate on vacation rentals in the Atenas area.”
Article by Shannon Farley