Boomers In Costa Rica's Real Estate & More

What do you really know about roads?

Many foreigners are buying lots in developments in Costa Rica in order to build their dream home and have a sense of community with others.  All developers should provide you three essential items before you close on your lot: 1.) Electricity to your lot line, water, and good roads throughout the development.

In the U.S. and other developed countries, most of us lived in communities where there were paved streets.  In Costa Rica, many planned communities don't offer paved streets.   Many offer hard-packed dirt/rock roads with a surface called "lastre," which is a combination of stone of varying sizes and sand.  Lastre roads are actually quite nice, easy to maintain and keep expenses low for both the developer and the residents of a community.

However, lastre roads can be troublesome if your developer is not experienced in putting them in.  As many people know, Costa Rica has two seasons: the dry season (from December to May) and the rainy season (from June to November).  A good lastre road needs to be able to survive the rainy season.   Some developers have put in lastre roads in the dry season just to see them washed away in the rainy season, and oftentimes, the residents of a community get stuck with the bill for new roads or repairs.  How do you know, then, if the road put in by a developer is a good one?  First, and foremost, the surface of the road is only part of the story.  A pretty road with nice rock and sand will look good but if the developer hasn't considered what's around the road--or what will "attack it," it may not last through the first rain of the season.  Rain (and proper drainage) is what it is all about.  If the developer hasn't put in proper drainage, rain water may spill into the road from various parts of the development and make a mess of it.  So, when looking at a lot you potentially want to buy, talk to the developer about the roads and understand how they were constructed, how drainage is handled and what happens if the road needs repairs.  Second, find out to what extent the developer has put drainage pipes under the road in areas that may require them such as if there is a small stream or spring that drains near a road.  Third, ask about the type of drainage pipes are under the road--often called "cantareas," and how big they are.  The cantareas need to be big enough to handle the anticipated water drainage.  Finally, before buying a lot it wouldn't hurt to go out to the property during a heavy rainstorm (if you have the time) and see for yourself.

Good luck!

For more information such as this, consider a Boomers in Costa Rica Tours tour of the Central Valley to learn more about buying real estate in Costa Rica and avoiding costly mistakes.

New Property from Paradise Management in San Ramon

From our friends Steven and Janet, take a look at this property in San Ramon they have for sale for only $29,000!

This past week, we just got a house in a beautiful, quiet high valley. The house has great views and is listed at what we think is a hard to find price point.... $29,000, a great price for a well-built, concrete 2-bedroom
1-Bath Home. The kitchen opens to a covered deck area with wide, open views. The house is ripe for remodeling. With some finish detailing, it would be a great country home about one-half hour from San Ramon. Contact us for more info at info@costaricapm.com

 

To see many other properties offered by Steven and Janet, check out their website: Paradise Management, San Ramon

Exclusion to U.S. income taxes while living in Costa Rica

Discussing payment of taxes, the IRS, or anything remotely related to the U.S. government are not fun topics!  However, knowing what you might owe Uncle Sam as result of working in Costa Rica, owning a business or selling real estate in Costa Rica, is important.  Below are some details on exclusions to income while residing overseas

In order to qualify for the exclusion to income taxes, you must pass three tests:

Your tax home (place where you work) must be in a foreign country
You must have foreign earned income (does not include lodging, meals, fringes)
You must pass either the "bona fide" residence or "physical presence" test in a foreign country.
The "bona fide" residence test is passed if you have a home in a foreign country for at least one uninterrupted tax year. Generally, the tax law anticipates that you have moved to this country with the intention of staying there for a long while. Most people claim the physical presence test instead.

For additional information, get it right from the source: Tax Guide for U.S. Citizens Residing Abroad

Boomers in Costa Rica Tours Announces 2008 Tour Dates
Plans in the works for Pacific Coast tour

Boomers in Costa Rica announced its eagerly awaited 2008 tour dates for Costa Rica's only baby boomer-focused relocation/retirement/real estate tour.   Information on 2008 tour dates can be found here:
2008 Boomers Tours Dates

In addition, the company announced that starting in 2008 it will offer a Pacific Coast tour due to increasing interest in living near Costa Rica's terrific beaches.  Itineraries and pricing for the Pacific Coast tour will be announced soon.

A few spots remain for the September 3-6 and September 24-27, 2007 tours with special low season pricing offered for September only.  For additional information and to sign up, send and email to: boomersincostarica@gmail.com. 
To receive special pricing, guests must sign up for one these tours by no later than August 20th.

Boomers in Costa Rica Tours
Invest, Live, Retire in PARADISE!

Special Pricing for Boomer's September 24-27, 2007 Tour!  ACT NOW!!!

 We have some spots remaining for our September 3rd to 6th relocation/retirement/real estate tour of the Central Valley!  Anyone seeing this post and signing up for this tour by August 20th will receive very special pricing.  When you email, please make sure you let us know you saw this on "Boomers Blog!"  If you cannot make this tour, we may have a few spots on the September 24th-27th tour (also with special pricing but not quite as special as the late September tour).

We have some great real estate options in our inventory including terrific resale homes and stunning ocean- and mountain-view lots--all at reasonable prices and sold by honest developers and realtors!  These are people we work with each day and trust implicitly!

For additional information, please visit our website at: Boomers Tours!
You can email us at: boomersincostarica@gmail.com

Finding real estate in Costa Rica: Searching on your own or not?

Many people come to Costa Rica with the idea that when they get here, they'll find stunning land or their dream home at pennies on the dollars, and they save money by doing everything themselves.  It is possible to find real estate in Costa Rica on your own, but you'd better have this "box of tools" at your disposal:

1. You speak fluent Spanish.  You just won't get far without it.  Even if you do find something, without being fluent in Spanish, you'll likely pay more than you should.  Even if you find a local, s/he will more often than not have the seller's best interests in mind, not yours, as you'll be seen as a "rich gringo."
2. You fully understand the market.  There is no real estate "MLS" here as you find in the United States or any regulation of the real estate industry.  Anyone with land can sell it; likewise, anyone can become a real estate agent by simply printing business cards and finding a few unsuspecting locals who have land or a home(s), and/or buyers to represent.
3. You have real estate "comparables" at your disposal.  Really knowing if you are paying too much will be next to impossible in Costa Rica.  You will only hear rumors about what other land or other homes have sold for.  The final price is kept secret and you have no way to find out the real price of comparable properties.
4. You really know who the seller is.  Many times an "owner" may have had a piece of property, or even a house, in his family for many years, but the owner never bothered to get the property officially titled in the "Registro Nacional."  This process can take up to a year.  In aother case, an "owner" may claim to own the land and sell it to you, but he's also sold it to others!  This does happen!  Finally, an owner may claim he is the owner but he is simply selling it for someone else, marking up the price significantly from the owner's original asking price and taking the difference.
5. You know all of the extra costs after you buy the property.  If you are buying land, you'll have to pay to bring electricity, water, telephone, and Internet to your property if it doesn't exist already--and who will help you with this?  You'll have to find out if these services are even nearby and when the government monopoly that handles these services will get to you.
6. You know the formal boundaries of the property and are aware of any restrictions on building on your property.  Many surveys are very old and may not accurately represent the boundaries of the property today.  You'll need to get a new survey done (at your own cost!).  A beautiful stream runs through your property but you cannot build within 100 meters of it.  If your property is too small and you cannot fit a home on it, what do you do then? This does indeed happen all the time!
7. You understand the types of roads and activity near your property.  So, you've seen the property a few times and it appears to be a very quiet area and you like that.  However, is it coffee picking season and will you be inundated with coffee processing trucks twice a year for a month or more?  Is there a lot of sugar cane near your property?  Will workers be burning sugar cane annually for two months very close to your property and transporting the cane with large trucks day and night?

There is much more that can go wrong beyond these examples.  However, you can find property on your own but it's no easy task and the question is whether doing it on your own is worth the time and additional expense you might incur for the cost savings you may achieve.  Here are some things you can do:

1. Find a qualified, experienced real estate agent to help you search for properties.  Check references of at least 3-4 clients.  Similarly, only work with developers who have a proven track record in real estate development and have references from clients who have bought in their communities.
2. Rent a house for six months to a year before starting your hunt for real estate. Get to know your neighbors--other ex-pats and locals alike, who over time you'll come to trust for advice and guidance.
3. Learn some Spanish!  This will go a long way in helping you understand what you need to know about properties and their sellers.
4. Take relocation tour such as Boomers in Costa Rica (Boomers Tours) to learn more about living in Costa Rica and what to watch out for.
5. Buy one of the many books on living in Costa Rica.  There are many, and while none are perfect, you'll gain some good insight into buying real estate.
6. Email us if you need help: boomersincostarica@gmail.com.  We been through everything  you'll likely go through, have made all of the mistakes you could make (but have learned from them!) but most importantly, have found honest people with integrity here and make no bones about who to stay away from!

Have fun!  Just be careful out there in the wild world of Costa Rican real estate!