Properties in Costa Rica Blog

Real estate is a popular and often safe way to start investing, and when it comes to real estate investments, a vacation home can offer a lot of personal and financial benefits. With current housing rates being at an all-time low in an incredibly active market, it may be the perfect time to consider investing in a vacation home to rent out. From creating another source of income and building equity, to simplifying your getaways and planning for retirement, owning a vacation home rental has great potential for rewards. If you’re considering adding a new property to your real estate portfolio, here are the top reasons why you should consider buying a vacation home rental as your next real estate investment.

Great Income Potential

When you buy a vacation home and rent it out, you can easily create a short-term rental revenue stream. The income from your rental home can supplement your normal salary, allowing you greater income potential. Short-term vacation rentals also typically have a higher return on investment than long-term rentals in metropolitan markets. While the cap rate for a long-term rental is usually around 4-5%, short term rentals often have a cap rate of 10% or higher, making a vacation home a potentially lucrative real estate investment.

Home Appreciation

As with most smart real estate investments, your vacation home is likely to appreciate in value over time, especially if you make smart choices when it comes to renovations and refurbishing that can increase the value of your home. That way if you do decide to eventually sell your home, you have the potential to make a hefty profit.

Personal Getaway

Owning a vacation home allows you to have your own personal getaway home. While you may want to rent your home out most of the year, you can carve out time to visit while it’s empty for an easy and affordable vacation that can even save you money. 

Market Opportunity is Endless

While successful long-term rentals usually exist near major cities, vacation homes can be scattered all along with the globe, even in more secluded areas with vast income potential. Whether you’re looking to invest in a beach home, mountain home, or a cabin in the woods, there are endless opportunities and bound-to-be renters who will likely find your vacation home the perfect getaway. 

Build Equity and Reduces Homeowner Costs

Having multiple revenue streams and building an income property portfolio is an important investment goal for the majority of second homeowners. However, owning a home can come with many expenses such as mortgage payments, utilities, insurance fees, property taxes, HOA fees, and maintenance costs. Owning a rental property has great potential at counterbalancing these homeowner costs from the very beginning, even for first-time buyers. Consistent rental income can cover these monthly homeowner expenses and even help pay off the home in a shorter time than if you had chosen to live in it, allowing you to eventually create a nice profit from the rental. Vacation rental owners may also be eligible for specific tax deductions which can also help increase your potential income. 

Plan for Retirement

Whether retirement is a few years away or a few decades, owning a vacation rental can help you plan for a stress-free future. When choosing a vacation home to rent out, it’s important to think about where you may want to retire — a beach, in the mountains, or in your favorite city. As you move closer to retirement, the amount you may owe on your vacation home will be smaller or may even be completely paid off, allowing you to eventually make it your own home.

As one of the most biologically intense countries in the world, Costa Rica has long been known for attracting people craving a more self-sufficient way of life. As one of the first countries in the world to be 100% powered by renewables, it serves as a mecca for those seeking to live in harmony with nature. The natural environment and climate is conducive to a sustainable lifestyle. Year after year people who want to grow their own food, be energy independent and have their own independent water supply move here. This trend shows no sign of slowing down anytime soon either.

From farms to eco-retreats to to permaculture to micro farms, there is a large, enthusiastic, committed community for sustainable living and green design here. The country is known for its eco-tourism, and it’s a major industry for this small country. As a country, Costa Rica was the first in the world to run 100% on renewables. What this trend reflects is a desire among the locals as well as incoming expats to simplify their lives. It’s about downsizing, simplifying in style, and living in harmony with nature. People crave a high quality life at a slower pace and Costa Rica delivers on that desire. The country’s commitment to the environment and protecting biodiversity means it supports the sustainable lifestyle new residents seek.

Costa Rica’s climate makes it conducive to living sustainably and the year round near perfect weather simplifies energy needs because the country does not experience large fluctuations in temperatures throughout the year. In addition, the climate also supports year round agriculture, which makes it easy for locals to grow and produce much of their own food. There is a lot of rich land available, and the relatively young housing stock means that homes tend to be simple yet built with current materials, and can easily be adapted.

Self-sufficiency is part of the culture. People purchasing property and homes here want to take more control of their lives and be able to manage their resources for a number of reasons. For some it’s simply about reducing cost of living, and for others, it’s forged through a deep commitment to living a more sustainable lifestyle, and for others, it’s about a lifestyle choice that allows for more independence. The available housing inventory offers plenty of attractive options for those seeking partial self-sufficiency to those seeking 100% self-sufficiency.

The fact remains there are a number of issues attracting North Americans and Europeans to Costa Rica. Self-sufficiency is a rich part of the culture and history; it’s not an idea people are struggling to grasp and adapt to as is the case for much of North America.These expats seek a simpler more balanced life, and Costa Rica is conducive to a self-sufficient lifestyle. It’s a top international destination when it comes to living a sustainably and finding a home to achieve that goal.

Dramatic volcanoes and mountainous ranges, national parks, lush green rainforests and proximity to San Jose, makes Costa Rica’s Central Valley one of the most desirable regions in the country. Here a cosmopolitan flair meets a laid back environmentally conscious sensibility. The Central Valley has grown to be a blend of cultures dating back to the original indigenous settlers and now absorbing the expats from North America and Europe to create an international melting pot of world cultures.

The region offers world-class medical care, excellent schools such as the Country Day School, cultural activities, the modern conveniences of restaurants and shops. The area has undergone careful sustainable development to create an inviting 21st Century environment complete with reliable high-speed wireless that is also ecologically sound. The Central Valley represents a pleasant anomaly that is highly desirable to many people.

San Jose forms the epicenter of the Central Valley. As Costa Rica’s capital, it is the urban center and the cultural and business pulse of the country. It’s also where you will find the best medical care in the country. These factors make the area very attractive to business people, as well as expats living and working in Costa Rica. Here you have the cultural charm, laid back lifestyle, commitment to sustainability coupled with a cosmopolitan vibe and 21st Century infrastructure and amenities. People are well-educated and aware of their environment here.

Neighboring Santa Ana and Escazu are two of the poshest neighborhoods in Costa Rica. Escazu is frequently referred to as the “Beverly Hills” of Costa Rica. These are the swanky areas in the Central Valley with many cultural activities as well as upscale shops, boutiques, and restaurants. These towns cater to a mixture of Ticos and expats living in the area and tends to be international. They are cosmopolitan, charming and offer easy access to downtown San Jose, top medical care and some of Costa Rica’s finest schools.

There are also neighboring colonial towns of Heredia, Alajuela, and Cartago. These places are deeply rooted in Costa Rica’s cultural history dating back to the 16th Century. As the oldest settlements in the country, part of their charm resides in the colonial architecture and traditional town planning. These are very attractive pleasant communities that offer a slower pace of life while still being close to the buzz and action of San Jose.

Alajuela is a pleasant escape from the hustle and bustle of San Jose. The central market, with fresh produce, fish, and meats, is a popular local meeting spot on Saturdays. This small city is in driving distance to the world-famous Arenal Volcano and Monteverde Forest Reserve. Also nearby is the Manuel Brenes Biological Reserve, which is filled with splendid orchids and rich vegetation.

Cartago was Costa Rica’s first capital and one of the oldest communities in Costa Rica. It was the capital until 1823. It’s famous for its grand gray and white Byzantine church, the Basilica de Nuestra Senora de Los Angles, which is home to the famous Black Madonna statue who is Costa Rica’s patron Saint. With rich soil, Cartago is a major producer of milk, potatoes, onions and coffee. The Reventazon River runs through the town too. It is also home to the well-respected Costa Rica Institute of Technology.

Heredia is the smallest Costa Rica providence, and it’s also the most authentic. There are few places that can really match the traditional charm of this town. Referred to as the “City of Flowers,” there’s an abundance of orchids, and it’s surrounded by coffee plantations. In the middle of the town, there is a Central Park, which acts as a meeting place. Here you will find the famous Costa Rica church, the Basilica de Barva. It’s also close to the Barva Volcano in Braulio Carrillo National Park.

These are just a few of the defining places in Costa Rica’s Central Valley. They form much of the core of the country’s cultural heritage. By successfully preserving the past while adapting to the needs of the present and future, these towns create pleasant, stable environments anchored in the country’s rich and diverse cultural history.

As of 2010 Costa Rica was home for 210 different foreign companies creating 58,000 jobs. This number will grow in the coming years as IBM has decided to invest $300 million and add 1,000 jobs over the next 10 years.

This type of investment in Costa Rica is a home run for the Laura Chinchilla administration and great news for the ever growing techy industry in Costa Rica. Laura has set a goal to have $9 billion in foreign direct investment by 2014 and news like this from IBM i

s a huge leap towards that goal. This is one of the largest investments in Costa Rica in the past decade.

The IBM managers said they picked Costa Rica because they were aware of the talent they could find here. It is said the Laura Chinchilla in her visit to New York last year which was an attempt to rally businesses to invest in her country was where she made the contact with IBM. She then followed up her contact in the month of May and here they are today agreeing to the sweet tune of $300 million dollar investment starting in 2012.

This is excellent news and who knows what other contacts Laura might have made in New York. We can just sit back and wait to see what other major companies follow in the lead of Intel, Hewlett Packard, and now IBM as they put Costa Rica in the global spotlight for the tech industry.

Properties in Costa Rica
Toll Free: 1-607-6772

Today is the day the Costa Rica census will begin. There are 35,000 Costa Rican’s making their rounds to over 1,300,000 different homes. This census is going to update the last census which was done in the year 2000. This will be interesting as Costa Rica has seen much growth since the year 2000. The census will provide the government and population with some of the living conditions along with economic conditions of different households all over the country.

In just over 6 months we will know the new population of Costa Rica along with an interesting number of how many foreigners are now calling Costa Rica home. This number of foreigners and retirees will be much higher than it was in the year 2000 and should be a good indicator of how many foreigners enjoy the retired life in Costa Rica.

It is a simple process as memebers mostly teachers will be making their rounds and doing a short interview. If nobody is home in your house then there will be a sheet left and you can fill out the paper with the information. All of the information stated will be private.

A census household is described by a household who share a common budget and prepare food. This will be valuable information for all businesses and government services throughout Costa Rica.

Properties in Costa Rica
Toll Free: 1-888-607-6772

Source: La Nacion