Sure, Costa Rica is a beautiful country, a happy and peaceful country and owning a house at the beach or in the mountain surrounded by nature sounds like a dream come true… but let’s be real, as wonderful as this all may sound at the end of the day what we need to know before spending an important amount of money is whether or not it will be a good investment.
Leaving aside all the magazine cover ideas on “owning a house in paradise”, we want to give you five real reasons why buying real estate in Costa Rica is a solid investment, in addition to the fact that property is certainly more affordable than in the United States and Canada:
1) Political Stability: This factor weighs into consideration when deciding on investing in real estate. Costa Rica is a democracy; in fact, it is considered the most stable country in Central America and even in Latin America. Costa Rica has no army since it was abolished in 1948; the country’s stability helps the economic climate and the stability of the markets.
2) Steady Growth: Even though the past couple of years Costa Rica has faced a difficult economic climate due to its fiscal deficit, the country has managed to maintain a steady economic growth, it is a country open to foreign investment and maintains the lowest poverty rates in Latin America and the Caribbean which has also reflected in strong indicators of human development.
3) Access and Efficiency of Services: Even in remote areas Costa Rica offers access to all main services at a high-quality level, transportation services are available in most areas of the county.
4) Low Property Taxes: In comparison to the United States and Canada, the taxes paid on property are much lower, even in the case of luxury houses which must pay a special Solidarity Tax where the amount to be paid goes from a minimum of 0.25% for properties with values of up to ¢323 million colones (approximately $561,842.00 USD) and in increments of 0.05% with a max of 0.55% for properties which value exceeds an approximate $3,379,5751.00 USD (¢1,943,000,000.00).
5) Growing Expat Communities: Every year more and more foreigners turn their eyes to Costa Rica, whether to retire or simply to relocate, expat communities are growing in many popular destinations such as the Central Pacific.
Millions of tourists visit Costa Rica every year attracted by its beautiful (true magazine cover) beaches and lush nature, and visitors require a place to stay, many expats invest in real estate with the idea of renting out their vacation home, managed properly a property can truly pay off.
If you are considering investing in real estate in this country make sure you pick a reputable real estate agency that can guide you in the right direction and help you find the perfect property in the perfect area for your needs at the right value. Palms Realty is an excellent option that offers experience, professionalism, and great customer service.