Boomers In Costa Rica's Real Estate & More

Tips on Living in Costa Rica

Below is an assortment of tips on living in Costa Rica.  These are some handy things we've learned by living here.  Enjoy!

How to call the

U.S.

for 10 cents a minutes an

Canada

and

Europe

for 10 cents a minute (NOTE: This is for placing calls to land lines only. To place a call to cell phones it costs 42 cents per minute).

You can sign up for this plan with a company called Fergata Verde out of

San Jose

. You must be referred by a member in order to sign up. Call 220-4594. You can ask for someone who speaks English, if necessary.

They will tell you to go to a Banco Nacional and deposit a minimum of $10 (in U.S. dollars only, not colones) in their account, number 1026001181. When you do this, you will receive a receipt with a transaction number on it. Call Fergate Verde back, tell them you have made the deposit. They will ask for the transaction number. They will call you back in 15 minutes after they verify the deposit and give you an account number and a PIN.

To place a call, you will dial either 291-7655 or 291-7656 as an access number. You will press 1 for English, then you will be prompted to enter your account number and PIN. You will be told how much money and minutes you have left on your account and the call will be placed.

As your account balance gets low, you can go back to Banco Nacional anytime and deposit more money into the Fergata Verde account and call them and give them the deposit transaction number. It sounds more complicated than it is.

Another option is to use a calling card, which you can purchase at supermarkets, but generally they have a maximum of 20 minutes of calling time. Calls to the

U.S.

from a calling card are about 28 cents a minute.

Most all prices in almost every store are negotiable. Americans are not used to going into stores and having to haggle over the prices, however, in

Costa Rica

, you will find that most all prices negotiable. This is something that locals know, but many gringos do not until they have lived here for a while. The normal discount is between 15 and 20%. Shortly after I first got here, I bought a dresser with mirror for our bedroom and the list price was 70,000 colones (about $140 at the time). I didn´t know to ask for a discount, and, if I had, I would have been able to get it for $28 less. You should ask how much something costs, and then after they have told you, you should ask how much it is with the discount. ALWAYS ask for a discount for higher priced items such as furniture and appliances. In San Ramon, there are stores that have one price on the price tag and when you turn it over and look on the other side, it has the lowest price they will go on that item. 

If you see something you like and want, BUY IT THEN. Stores don´t stock items like they do in the

U.S.

and the inventory is always changing. That means, if you see something you like, chances are, that after it is sold out, you will never see it again, so, if you like it, buy it. And buy as much or many as you think you will need or want, because, chances are, you won´t be able to buy it later.

Companies don´t send out bills like they do in the States, so the oous is on you to remember when they are due. The best advice we can give you is to write it down on a calendar every month when everything is due – electricity, phone, cable and water.

Paying bills is not as difficult as you read on theIinternet. Actually, there are so many places that you can pay bills, that you almost never have to wait in line. Some of the places that accept payments are the Camera de Commercia (Chamber of Commerce), certain pharmacies, supermarkets and banks. You can also set up online banking depending on the type of account and bank.

There are virtually no street names in most of

Costa Rica

, particularly in towns outside of

San   Jose

. This makes it very difficult to find places and to give directions. This can be, at the very least, frustrating and could also be perilous in case of an emergency. As soon as you move, learn how to give explicit directions to your house or apartment in Spanish.

You can buy one of a lot of things. For example, you can go into a pharmacy and buy one aspirin. Or into a hardware store and buy one screw or nail. This is actually rather handy, because you don´t have to waste money on buying more than you need.

Pedestrians do not have the right of way. As a pedestrian you should be extra careful because in

Costa Rica

, cars, not pedestrians, have the right of way. So you need to be especially vigilant when on foot.

Cargo/transport/moving trucks queue up every day in the same place and are available on demand. Since many Ticos don´t have means of transport, there are cargo trucks which can be rented very easily. For example, in San Ramon, there is a street where all the moving/transport trucks line up all day every day. If you need something to be moved, you can just go to the line and find someone who suits you and for a couple of dollars, they will come and load and move whatever you need. We moved a one-bedroom apartment in two hours for $30.00.

All

U.S.

citizens must declare all foreign bank and financial accounts with a balance of $10,000 or more to the

U.S.

Department of the Treasury. If you have bank or financial accounts in a foreign country with an aggregate balance of more than $10,000 as of December 31, you must file form TD F 90-22.1 with the U.S. Treasury Department by June 30 of the following year. You can find the form with all instructions at irs.gov.

K

eep your garbage outside or take it out before you go to bed. This may sound strange, but kitchen waste attracts bugs. You can go to bed at night and wake up the next morning with all kinds of bugs crawling in and around your garbage can. Best to take out the garbage every night or either leave it outside.

Buy some Quadriderm cream at the pharmacy and keep it on hand. Since there are so many bugs in

Costa Rica

, you are bound to be biten at some point. This is a great cream, it takes away the redness and itch overnight and can be purchased at any pharmacy. There is also a massage lotion called Tei-Fu, which is also good for bites but also good for aches and pains. A good Sunblock with an SPF of 60+ is Helioblock XL Total.
Most Costa Ricans have two last names. In formal situations like on business cards and signs, you will see names like ¨Maria Cecilia Ramirez Gonzalez¨, a first name, middle name and then two last names. The first last name, in this case, Ramirez, is the father´s surname and the second last name, Gonzalez, is the mother´s surname. In an informal environment this lady would refer to herself as Maria Ramirez (using her father´s surname). Therefore, sometimes if you give someone your first, middle and last names, they will drop your last name and think that your middle name is your last name. I have had doctor´s do this when they write a prescription for me. When women marry, they may use their first name and the husband´s last name in social occasions, but all legal documents remain in the legal format that I described above.

Free B&B Stay Offer to View Quality Properties

CR Communities, San Ramon's leading real estate development company (the honest guys in San Ramon), is offering a  two-night free B&B stay if you look at their properties in the up and coming Magallanes section of San Ramon.  This is a limited-time offer, ending on February 29, 2008, so sign up now!

San Ramon offers some stunning ocean and mountain view properties at very reasonable prices compared to the rest of the Central Valley.  The developers here are doing it right!  For additional information on this offer, click here: FREE B&B STAY!

For information on a couple of high quality communities just coming online now in San Ramon with excellent prices and incredible views just five minutes to San Ramon, click here:

http://www.crcommunities.com/properties.html

Free B&B Stay Offer to View Quality Properties

CR Communities, San Ramon's leading real estate development company (the honest guys in San Ramon), is offering a  two-night free B&B stay if you look at their properties in the up and coming Magallanes section of San Ramon.  This is a limited-time offer, ending on February 29, 2008, so sign up now!

San Ramon offers some stunning ocean and mountain view properties at very reasonable prices compared to the rest of the Central Valley.  The developers here are doing it right!  For additional information on this offer, click here: FREE B&B STAY!

For information on a couple of high quality communities just coming online now in San Ramon with excellent prices and incredible views just five minutes to San Ramon, click here:

http://www.crcommunities.com/properties.html

For Retirement, Vacation Living or Investment: Finding a Nice Community in Costa Rica
By Andrew Mastrandonas & Preston Gitlin

Costa Rica is an alluring place for many people. With a terrific climate, stable and democratic government, proximity to the United States, lower cost of living, and many outdoor and cultural activities, it is no wonder this country only the size of West Virginia remains one of the best in the world for a vacation, retirement and investment. Over one million people visit Costa Rica each year generating about $1 billion in revenue for the country. Tourism surpassed coffee and bananas many years ago as the country’s top industry.

Foreigners, particularly North Americans, continue to visit Costa Rica in large numbers with many of them  coming to explore retirement and real estate options. A quick search of “Costa Rica real estate” on Google reveals almost 2.8 million entries. Compare this to any other country on the Central American isthmus, and it’s clear that Costa Rica is first in activity related to real estate geared to foreigners. Since real estate sales are not regulated in Costa Rica—anyone can be a real estate agent or land developer—everyone seems to be involved in real estate in one way or another here. And, with the advent of the Internet, anyone can create a website and offer properties for sale. Usually Americans or Europeans, they seek out Costa Ricans with land or homes and put them on their websites. There are, of course, well known, established real estate companies like Century 21 and Coldwell Banker in Costa Rica as well.

People are finding these websites and doing much research through the Internet to explore various regions, view land and homes for sale, and make contact with real estate agents and others. After spending weeks and months doing research and finding people they think they can trust, they make the trip to Costa Rica, ready to purchase their dream property. When they finally arrive in Costa Rica, they oftentimes realize it is a much different place than they expected—sometimes for the better and sometimes for the worse. For example, they don’t realize from the stunning pictures they found on the Internet that the home of their dreams is next to an automobile repair shop. The stories go on and on. 

We find that if you do your homework first and then visit, you will likely be in better shape than others. Contacting developers by email, carefully reviewing their websites, talking with others who have brought property from them, and asking a wide range of questions about their properties will likely give you a good sense as to whether you should view a particularly property. Even with all of the research many people conduct, with a strong increase in real estate values year after year in Costa Rica, many people feel they must “get in now” in order to ensure they can afford it. With appropriate research, asking the right questions, and carefully thinking about what you want in terms of a living situation, you can find a property you will like, even during a short stay in Costa Rica.

Yes, it is true that property continues to appreciate in Costa Rica, and faster than in many other countries. Before long, the country will not likely offer many real estate bargains unless you want to live in very small towns far away from shopping, restaurants or good medical care. So, how can you “get in now” and avoid the mistakes many people make in purchasing real estate here?

Initially, take the time to get to know the country. Get to know a wide variety of people. Understand real estate values in a particular area by talking to many people including real estate agents, developers, foreigners living in the area, and even locals. Stay in several different towns and get to know each of them while being mindful of your needs for shopping, medical care, entertainment, real estate, and other issues.

It wouldn’t hurt to pick up some Spanish because learning directly from locals about new properties or getting real information from them about an area could prove much more valuable than hearing it from people who are in the business of trying to sell you something. Even if you speak just a little Spanish, “Ticos” will very much appreciate your efforts to communicate with them and oftentimes will go out of their way to help you.

There are also several “retirement tours” of Costa Rica that provide a multi-day trip through various parts of the country, introducing foreigners to specific towns that may be suitable for retirement or finding good quality and reasonably-priced properties. On many of these tours, you’ll meet others who have already made the move to Costa Rica and purchased property. You will also meet a wider variety of real estate agents and developers than you could probably do on your own. And, just by interacting with other tour guests, you’ll learn about what other people are thinking as they consider Costa Rica for retirement, partial-year living, or investment. 

Some of these tours will also introduce you to attorneys, architects, builders, and others who can be helpful to you as you consider buying land and building a home or purchasing an existing home. Take a look at their websites and determine if what the tour offers and the types of clients they serve seem to be geared to your lifestyle. Taking a tour is a convenient way to screen a range of properties quickly, meet experienced developers and learn about areas more quickly than you likely could do on your own. After you’ve taken a tour, definitely stay for several extra days, going back to the areas you liked on the tour or follow up with some of the people you met during the tour. Two of the more well-known tours in Costa Rica are: “Boomers in Costa Rica,” at http://www.boomersincostarica.com and “Live in Costa Rica,” at http://www.liveincostarica.com.

Whether you’ve spent time on your own or took a tour you may have discovered an area or property that may be right for you. What do you do then? What factors should you consider in determining if you should purchase a property? In other words, what makes a nice community for you to enjoy for many years to come while ensuring you feel you got good value through your purchase and can trust the seller of the property?

As in the United States and other countries, there are many resale homes of all types, sizes, ages, quality and prices so we won’t focus on homes, rather, we will look at purchasing land and building in a community as this is more typical for many foreigners who want to move to Costa Rica.

The development of communities geared to foreigners is by no means new to this country. It has been happening for well over a decade, particularly on the Pacific Coast and in the suburbs of the capital, San Jose. However, development continues to occur, with no end in sight. And, because in many cases, an investment in land is still relatively affordable to most developers and the profits can be significant, planned communities, or simply subdividing raw land into smaller parcels and selling them to foreigners, continues to occur frequently.

A quick look at the various glossy real estate magazines, written in English, and oftentimes produced by the Costa Rican arms of international real estate companies make it apparent that the choices for a retirement home, condo, or land to build your dream home are staggering. Do you want the beach? There are many communities on or near the beach. Do you like to play golf? There are several golf options to choose from.  Perhaps a community in one of the quaint mountain towns west and north of San Jose is for you? There are many communities that offer a range of home and/or land options with stunning scenery. Your choices are virtually limitless.

If you are considering a community for your retirement or vacation home, what factors should you consider? Of course, what will make you happy is a personal choice and no one should sway you as to what you need.  In Costa Rica, for example, many realtors and developers often quote they have “the best climate” or that their project is “convenient to_____” (fill in the blank). The point is that no one can tell you what you need, and you alone (or with your significant other) should do your homework and decide what is best for you.

If you think you want to live in a community, below are some considerations to keep in mind:

Do you prefer a planned, gated community where you are close (or fairly close) to your neighbors or do you prefer a more unstructured community, perhaps with a few less amenities and in a more natural setting?

 Would you prefer to live among people similar to you or would you prefer to integrate into a community that is primarily composed of Costa Ricans? Perhaps a combination of foreigners and locals is best for you?

· Do you prefer to live in a home or a condominium?

· How big of a property do you want and can you afford to maintain it?

Are you more interested in a community that has set home plans to choose from (or existing homes already built) or would you rather hire an architect and design and build a home?

Once you have narrowed down the type of community you might want to live in, below are some factors to consider when comparing among several you have looked at:
· 

·       

 

                                                                                                       

Attributes	Property 1	Property 2	Property 3
Location
Buildable space
Privacy
Quality of infrastructure
Type of residents
Climate/weather
Natural setting
Community amenities
Distance to town/services
Price
Investment value
Overall Quality

1 = excellent
5 = poor
NA = Not applicable

While there are other considerations as you look at possible places to live, the table above is intended as a general guidepost you can take with you so you won’t forget about the attributes you liked and disliked for specific developments, particularly if you are looking at many of them.

Of particular importance in your decision-making should be climate and weather. Costa Rica has many microclimates and this will affect the weather where you might decide to live, particularly in comparison to nearby areas. For example, at a given hour it might be sunny in town but just 2-3 miles away it could be raining. Because elevations change quickly in Costa Rica, so does the weather. It is important to consider the amount of rainfall; low, high and average temperatures; and wind throughout the day and at different times during the year. Many shady developers will try to show you their land at the right time of day or year and claim the weather is always terrific. Ask people in the area—those who have lived in the area for years—to give you the real scoop on the climate and weather.

Another important consideration is the infrastructure provided by the developers of the community, particularly, electricity, water, and telephone service. Obviously, if you are going to buy a lot and intend to build a home you will need assurances in writing from the developer that at a minimum electricity and water will be provide to your “lot line” prior to closing on the property. Usually, it is the buyer’s responsibility to bring the electrical and water lines from the edge of the lot to the home. Most architects or builders will help you get this done as part of their services. However, one of the key problems buyers are facing is lack of understanding as to where their water comes from. Many developers are building wells and then telling their clients not to worry because everyone in the community will have access to water.  But, who is going to ensure each member of the community chips in for his or her portion when the pump breaks, or when so many homes are built that the area needs a new pump? It is also possible that down the road, if your community’s water supply does not come from the local municipality, any shortage will be your problem well before it’s the public’s problem. When deciding on a developer to trust, demand information about the proper water studies he or she should have completed and municipal help he or she should have requested. While telephone service is standard in most places it is possible that it will not be available immediately as the government may not have the resources—or may be behind—in providing land lines to new homes. In some areas, it may take many months, and indeed years, for telephone service to be provided. However, this is usually not an issue for most people as they simply purchase cellular service which is readily available and inexpensive.

In the U.S. and other developed countries, most of us have lived in communities where there were paved streets.  In Costa Rica, some planned communities don't offer paved streets.  Instead, many communities use lastre, a combination of hard rock and sand, which handles the affects of rain a lot better.  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 creating roadways.  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 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, keep in mind that 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. 

Taking into consideration rainfall and proper water drainage is critical.  If the developer hasn't put in suitable 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 culverts and drainage pipes that are under the road—called “alcantarillas”—and how big they are.  The alcantarillas 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 and see for yourself.

There are many examples of both terrific and poor communities in Costa Rica. In fact, most people will be able to tell fairly quickly if they believe a development is well-planned, conveniently located and well executed just by seeing the project, talking to people in the area, and learning about the types of people who have already purchased property in the community. However, it is important to ask many questions of the developer or sales person before you purchase. One of the most important issues to address is how accurate the survey work is for the property you are interested in.  For example, in our own experience we bought a large farm from a cost-conscious developer who had already hired his inexpensive surveyor to segregate the farm into smaller parcels. We later found out that the surveyor didn’t properly survey the borders.  If we had not caught his mistake, unknowing lot buyers would have bought land that they didn’t completely own! If you are not happy with the answers you getting, move on, as there are many other choices available.

Communities in Costa Rica are not unlike those you would find in other places. For example, you can find communities with high-rise condos and others offering low rise “garden style” homes—both with limited land and easy maintenance. Other people prefer larger tracts of land in former agricultural areas which generally have 5000 square meters (1.25 acres) to 7000 square meters (1.73 acres) of land, depending on local zoning requirements. Building space in agricultural projects is ample for single-family homes, guest houses, pools, and more. Finally, many developments, built primarily for the local population, called “urbanizacion,” typically have smaller lots and homes.

While there are many developments in Costa Rica, below are a few examples known for both their high quality and value for the price and/or investment purposes. These samples differ in price but they give you a flavor for what is available.

DelPacifico – http://www.delpacifico.net (Pacific Coast)

Pacific Hills at Magallanes – http://www.crcommunities.com/PacificHills.html  (Central Valley)

La Joya de Esperanza - http://www.everybodylovescostarica.com/costa_rica_real_estate.php (Pacific Coast)

Plantation Estates - www.plantationestatescr.com (Central Valley)

 

It’s rarely said that looking for real estate in Costa Rica is not an adventure—it can be. However, it can also be much fun if you keep your eyes and ears open and go with your most important emotion—your common sense.

 

Happy hunting!

Andrew Mastrandonas, a former airline industry executive and management consultant in the United States, lives in Costa Rica where he owns a relocation tour company designed to provide an introduction to Costa Rica for retirees and others considering moving here.  He also owns a bed & breakfast and writes about travel, community issues, and culture for a variety of publications, including the Tico Times.  Andrew can be reached directly at boomersincostarica@gmail.com.  Preston Gitlin, President of CR Communities, a real estate development company offering ocean view properties in San Ramon, contributed to this article. Preston can be reached at pgitlin@crcommunities.com. More information can be found here:  www.crcommunities.com, www.boomersincostarica.com, and www.AngelValleyFarmBandB.com. 

Information on Up and Coming San Ramon--and great real estate too!

We Love Costa Rica, one of the country's most respected information sites for ex-pats and retirees living in or considering Costa Rica, just posted an interesting article on up and coming San Ramon, located in Alajuela province, about 40 minutes from the airport near San Jose.

The San Ramon article is on the home page, fifth article down.  Also, the third article down describes a new development, "Pacific Hills at Magallanes," which has terrific ocean- and mountain-view lots averaging 1.25 acres, at very reasonable, "investment-level" prices.  These are worth a read: welovecostarica.com

San Ramon is one of the few towns in the Central Valley offering a combination of reasonable cost of living, climate, services, good real estate prices, and easy access to the rest of the country, particularly the Pacific Coast, only 35 minutes away.  So check it out at: welovecostarica.com

Take a look soon before these articles disappear! 

Happy hunting!

A Fresh Look at Costa Rica for Retirement and Investing*

For many years, Costa Rica has been touted as one of the top retirement havens in the world. With a stable democracy, growing economy, government friendly to foreigners and tropical climate, as well as incredible natural beauty, it rightly earned the phrase, "the Switzerland of Latin America."  Is this still true today?  Is it as expensive as Switzerland? Are retirees still coming here?  Should they still consider Costa Rica?

For many people, there appear to be less expensive retirement destinations such as Panama or Nicaragua.  To others, Costa Rica has become too touristy.  Still others believe Costa Rica is overrun with "gringos."

I want to debunk these notions, and others, and suggest that Costa Rica is still a terrific place to retire, or to start new life in if you are not yet retired, particularly if you choose your location and activities carefully. 

 Costa Rica is too expensive!

I have been living in Costa Rica for nearly three years but have been in and out the country frequently since 1989 and based my extensive travel throughout the country in conjunction with my "Boomers in Costa Rica Retirement Tours," I've found that there are still inexpensive areas in which to live, particularly if you stay away from the close-in suburbs of San Jose.

Take, for example, the wonderful city of San Ramon in Alajuela province, an agricultural town of 70,000, situated on the northwest edge of the Central Valley.  Home to three former presidents including "Don Pepe," who abolished the army in 1948 and set in motion the basis for today's robust democracy, San Ramon offers a peaceful environment in which to live yet it offers all of the services of a larger city including numerous supermarkets, a mall with a three-screen movie theater, numerous outstanding restaurants and warm, welcoming locals.  It is also only 40 minutes to the international airport in Alajuela, one hour to San Jose and 40 minutes to the Pacific Coast.

But can I afford Costa Rica?

San Ramon, as an example, also offers a wide variety of lots for building one's retirement dream home, either in the mountains which the "Tico Times" called "the Tuscany or Provence of Central America," or in stunning ocean view communities in which one can see the Nicoya Peninsula, the Pacific Ocean and the bustling port city of Puntarenas.  Prices for land remain low with some lots as inexpensive as $40,000 for a one-quarter to one-half acre lot, to $75,000 for an incredible ocean-view lot on 1.25 acres.  With another $60,000 to $75,000, you can have an incredible ocean-view lot and home, complete with all the services you need, for under $200,000.  Of course, there is more expensive property as well.  If you decide you don't want ocean views, you'll pay even less, perhaps around $100,000 or so for a nice lot and home. A couple of examples of communities in the San Ramon area worth taking a look at are:

Residencias Las Terrazas: http://www.residenciaslasterrazas.com

Pacific Hills at Magallanes: http://www.crcommunities.com/PacificHills.html

Both of these residential communities are in the Magallanes section of San Ramon and only five minutes from the center of town. They offer stunning Pacific Ocean and mountain views with good prices. Both developers have excellent reputations for high quality work, and most importantly, are honest and trustworthy—two attributes often hard to find in Costa Rica real estate.

Property taxes are very low, only .25% of the registered value of your property.  I paid $66 in property taxes for an entire year! The local government office even asked me if I wanted to pay my taxes quarterly!

If renting is more your style, you can still find nice two-bedroom, modest homes for rent for under $300/month.  Low housing costs combined with very low prices on food and utilities makes San Ramon an excellent bargain.  The towns of Grecia, Sarchi, Atenas and Puriscal offer excellent value as well; you just need to know where to look or link up with an experienced and knowledgeable local or gringo to help you out.

I also eat inexpensively, perhaps a $3.00 for breakfast, $5.00 for lunch, and then I splurge for dinner, perhaps $6-7, and this is if I go out to eat!  Of course, if you visit some of this country's wonderful outdoor markets, you'll find the freshest meats, fruits and vegetables, and can cook on your own and spend even less.

I need good and convenient medical care!

Some foreigners living in Costa Rica complain that the medical system here is overcrowded and it often takes hours to see a doctor.  Yes, in some areas there are less doctors per capita than in the United States but not everywhere, and often times relates to people who have elected to get on the "CAJA" system, which is the most basic health insurance program, run by the government, to which most Ticos belong.  Once you leave the San Jose area, even if you are on the CAJA, the lines lessen and more often than not, you'll form a great relationship with an English-speaking doctor who is well-trained, and in some cases, will even make house calls.  There are also other privately-run programs that allow you to see any doctor and even these programs are much less expensive than insurance programs in the states.

Costa Rica also has several outstanding hospitals that provide the same level and quality of service that you would find in the United States.  CIMA Hospital San Jose, which is affiliated with Baylor Medical Center in Houston, is a brand new facility with all of the new technologies you would find in any top hospital in the United States.  In fact, my doctor at CIMA has more advanced technology in his office than my doctor in New York City.  Clinica Biblica, also near San Jose, is also another top hospital, with the same quality of service you would find at CIMA.

There are too many tourists!

Costa Rica certainly is a well-traveled tourist destination and sees over 1 million holiday makers a year.  If you visit the beaches at Manuel Antonio, the rain forest of Monteverde or Arenal Volcano during the dry season, yes, you will see many North Americans and Europeans.  However, living here, particularly in towns such as San Ramon or Grecia, you would hardly know it is the tourist season.  These towns, and others, see few tourists and move at their own consistent pace year round.  Actually, visiting tourist destinations during the off season is a significant benefit of living here, particularly given that prices are significantly less than during the high season.

Costa Rica does count among its residents some 40,000 North Americans, mostly from the United States.  They come for a variety of reasons from wanting to leave their corporate careers for more meaningful work to just wanting to retire and enjoy a slower, relaxed pace of life that Costa Rica offers.

While these expatriates are scattered throughout Costa Rica, most of them live in the suburbs surrounding San Jose such as Escazu, Santa Ana and Cuidad Colon.  Quite a few ex-pats live in beach communities up and down the Pacific Coast while a smaller number of people live on the Caribbean coast.  However, many people are beginning to take note of the smaller towns in the Central Valley such as Grecia, Sarchi, Naranjo, Palmares and San Ramon, and even smaller pueblos surrounding these towns.  These towns and pueblos offer a relaxed pace of life, reasonable property prices and an overall lower cost of living.  So, you can live in Costa Rica and not feel overrun by gringos or the high prices in other parts of the country.  However, if you want to live among "your own kind," you can do that too!

Historically, Costa Rica was a country primarily attractive to retirees; those people in their late 50s or early 60s (and in some cases much older) who wanted a small house, and could live much less inexpensively than in North America or Europe.  However, Costa Rica is also beginning to attract a fair number of baby boomers, particularly those people not yet ready to retire.  They may own businesses they can run from virtually anywhere.   They may also be writers or artists.  Still others are coming here to invest their time and money in new businesses.  Many people have made the successful transition from a corporate career in the states to running a bed and breakfast, managing a surf shop, offering tours, investing in real estate, and more much. Costa Rica is a very business-friendly country and the opportunities here are still endless.

The roads are terrible!

Like any developing country, particularly one with a rainy season for part of the year, and with trucks and cars sharing the same, often two-lane road, it can be hard to maintain the roads in perfect condition all the time.  Fortunately, under the new administration of Nobel Peace Prize winner, President Oscar Arias, significant steps are being taken to address these concerns.  Millions of dollars have been allocated to new road construction and repairs.  Costa Rica has come a long way in infrastructure improvements, and it is only getting better.

No hablo espanol!

While one can get by without knowing much Spanish, you'll have a better experience if you try to learn at least some key words, phrases and sentences.  In addition, befriending a Tico (hopefully a bilingual one!) will go a long way in helping you get things done here.  On our retirement tours, for example, we provide a post-tour relocation service where we link up our clients with a Tico to help with some critical "post-move" tasks such as getting a driver's license, hooking up electricity, phone, and Internet services, and a variety of other things.  I couldn't get by without my "Tico connections" and my Spanish is getting better all the time.

But Costa Rica is in Central America!

Central America does have a reputation for being very poor, and historically, a region chock full political chaos, dictators, communists, and meddling by foreign countries.  Costa Rica, however, has had a continuous and stable democracy since 1948 and the transition to new administrations have been as peaceful as they are in the United States.  Yes, there are poor people here but it is nothing like the abject poverty found in Nicaragua or Honduras. Costa Rica also has not experienced the gang warfare that is rampant in El Salvador, Nicaragua, and Honduras.  It remains somewhat dangerous in these countries and the political systems are still not completely stable. Housing and land may be much cheaper in these countries, but is it worth paying less to live if you experience power cuts for six to eight hours each day (as is the case in Nicaragua lately) or more importantly, live in fear? I've also found that the people are much more welcoming to us gringos than in other countries in the region, and don't just befriend us for our money.  They are very hard working, genuinely interested in learning about North Americans, and for us, it is not hard to integrate into Costa Rica society.  I cannot tell you just how many parties and dinners I've been invited to in Tico homes since moving here.  They are friendly people indeed!

With millions of baby boomers in North America-over 70 million of them-retiring now and over the next 20 years-and living longer than previous generations, it will take a lot of money to live well in retirement, particularly in the United States.  Is Costa Rica still a good alternative?  Yes!  Will you do well here and enjoy yourself? Absolutely! Come visit and introduce yourself to the wonderful people and natural environment that we still call paradise. 

 

Andrew Mastrandonas is an American living in Costa Rica where he owns a relocation tour company designed to provide an introduction to Costa Rica for retirees considering moving here.  He also owns a bed & breakfast and writes about travel, community issues, and culture for a variety of publications, including the Tico Times.  For more information: http://www.boomersincostarica.com and http://www.AngelValleyFarmBandB.com.

 
*Originally published in January, 2007 in Offshore Real Estate Magazine and updated in October, 2007.

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.

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,