Is It Safe Buying Property In Costa Rica?
If you’re an expat, foreigner or even a local Costa Rican citizen looking to buy property in Costa Rica, then you have already asked yourself the question: how safe is it to buy property in Costa Rica?
Well, it’s safe. Why? Simple, Costa Rica is a stable democracy that has been going strong for now 200 years. It doesn’t have an army, meaning it’s a peaceful country with very peaceful citizens and mentality. It has a really strong democratic and law abiding mentality, as well as having one of the fastest growing GDP’s per capita in Latin America, according to Statista.
On top of just mentioning the safety of the country and its citizens, you also want to look at the growth and safety of other important factors, such as the land and real estate. Therefore, in this article we will explore these things.
Buying Land In Costa Rica
Buying land in Costa Rica isn’t just a safe investment, but a very, very smart one. The land in Costa Rica has been gaining value for many years now, especially if you buy in the coastal regions of Puntarenas or Guanacaste.
Let’s assume you are looking to buy land to then either build on it, or well, directly buy a house. You want to make sure your investment is safe, so you turn and look at rental yields. Well, Costa Rica’s rental yields range from 5% to 8% during long term rentals. That’s better than a long term CD.
On top of that, these rental yields exclude AirBnB yields, which are clearly much higher, but do fluctuate too. The good new son that, is that Costa Rica is a country driven by tourism, with most of its income coming from the high influx of tourists coming into the country every year. Costa Rica receives over 2.4 million tourists every year, with tourism accounting to over 5% of the total national GDP, according to the OECD.
As you can see for yourself, the numbers make sense, rentals in Costa Rica are a safe bet, and AirBnB in Costa Rica is also a safe bet, since tourism is even growing year by year.
When it comes to the value of land, the demand for residential real estate from foreigners and locals alike has kept on growing for 3 years in a row, and in average it has grown in vale for 7 years straight. It is expected to keep on growing over the next 3 years.
This means, whatever investment you make in buying land, it will pay off, especially if this is done in the coastal regions.
Pros & Cons Of Buying Property In Costa Rica
Buying property in Costa Rica does have some minor setbacks, as well as great pros, but let’s take a look at them.
Pros
The pros or advantages of buying land and/or property in Costa Rica are quite obvious:
- Safety in the country, which makes it great to live in
- A stable democracy, which protects your investment for decades if not centuries
- Excellent long term rental yields ranging from 5% to 8%
- Excellent AirBnB rental yields
- Growing tourism arrival rate
- Expected growth in land value over the next 3 years
- A sustainable and eco-friendly country which guarantees a high air quality
- High standard of living
- Access to premium healthcare and education
Cons
It’s not all flowers and sunshine in Costa Rica, so let’s take a look at the cons.
- It can take some time for you to get some permits, such as access to water. If the property you buy already has the permits, great, if not, be patient.
- Rising prices in property value. This can be a pro, but also a con, the longer you hesitate, the prices are going up, which can make it expensive to buy.
- It can take slightly longer to build due to the rainy season, which can incur in higher construction costs
Best Place To Buy A House In Costa Rica
The best regions to buy a house and property in Costa Rica are definitely the Central Valley, Puntarenas, and especially Guanacaste. However, this is a very broad recommendation. If you want more precise and exact locations, we recommend the following:
- Escazú (San José province)
- Curridabat (San José province)
- Santa Ana
- Uvita (Puntarenas province)
- Dominical (Puntarenas province)
- Playa Negra (Guanacaste province)
- Playa Samara (Guanacaste province)
- Playa Camaronal (Guanacaste province)
All these recommendations are based on very important factors:
- Growing land value
- Rental yields
- Access to healthcare, education and basic services
- Safety of the area
- Recreational activities nearby
Overall, if you want to buy a more affordable house or property in Costa Rica, San José province, alongside other areas of the Central Valley region, are your best shot. Escazú, Santa Ana or Curridabat all have the great advantage of being safe, clean, close to the major international airport, great access to top quality healthcare and international education, as well as work.
When it comes to the coastal regions, Puntarenas has some famous places such as Santa Teresa, but the roaring prices, the lack of healthcare facilities and the terrible road access, make it more of whim than a true smart investment.
Instead, places like Playa Dominical, Uvita or even Playa Hermosa, are far better to live in and even rent out or use as second homes.
Finally, the best region to buy at the moment is Guanacaste. It is a region where tourism is growing by a yearly 7%, with enormous international investment in both hotels, as well as industries. There are more jobs for locals looking for long term rentals, as well as more tourists coming every month helping short term rentals grow too.
You also have access to the best beaches, waves, and top-quality healthcare as well as good amount of international schools and a welcoming international expat community.
The best beaches, value for money, to buy at the moment, are Playa Camaronal, Playa Samara, and most importantly, Playa Negra. The Kalma Playa Negra project being one of the preferred options.
Sure, you can still decide to just get a roof top tent, such as the local Guana Equipment tent brand and live an off-the-grid lifestyle, but we all know that if you plan to move to Costa Rica, you want to make sure you live a peaceful, serene and safe life, that’s why Kalma is the best choice!
How To Buy A House In Costa Rica
Buying a house in Costa Rica doesn’t have as many tricks as you think. If you are coming from abroad, you can get an investor visa, which will require a $200,000 minimum investment, which can go into land, house, or a company.
You can also buy a house or property without one. However, the investor visa gives you the flexibility of allowing you to live there long term.
As to how to buy it, the easiest way is to do it through a real estate company. If you don’t trust buying directly from a local, do it through a real estate agent. However, you can also buy directly from a local, and save them up to 7% in commission fees which they lose.
It’s still safe if you do it through an escrow company and with a lawyer. Always ask for an escrow account to be opened, and make sure you hire the right lawyers in order to be sure that the process is safe!
