Vacation Travelers Group Blog

Costa Rica Realtor Scott Cutter in Manuel Antonio

I recently read Ten Reasons To Rent Before You Buy Real Estate in Costa Rica which encouraged all investors to rent prior to purchasing here in paradise.

As a real estate company dedicated to a cautious process, integrity in our transactions and a patient approach to helping our clients find the right investments here, there are certainly many situations and many clients for whom renting prior to purchasing is absolutely a great idea.

That said, opportunity abounds in todays market and a diligent and professional real estate firm can and should help you make educated and insightful decisions that allow you to take advantage of the opportunities, without exposing yourself to blind risk.

Like most decisions in life, there is no black and white rule in regards to renting or not renting before purchasing… that said, I think it is important for buyers to understand that renting for an extended period of time before buying might not always be the best decision..

Here are 10 reasons why buying quality real estate can be smarter than renting:

1. Recklessly purchasing is never a good idea, but in this market an experienced and professional Realtor (this is a very important factor) can and will show you purchase opportunities unlike anything we’ve seen in the last ten years, and many are being sold at a solid pace. While I am not of the opinion that the market recovery is so strong that all deals will be gone overnight, it is clear that in the current buyer’s market, now is the time to achieve the best strategic pricing both for personal use, and of course, long term appreciation.
2. With rental contracts by law in Costa Rica stipulating a 3 year term, you are committing yourself to 3 years in a rental home or apartment, therefore, setting yourself up to buy in a much different market. While many rentals are done on shorter terms, in many cases, if you leave prior to a year time, you could stand to lose your deposit, which while not necessarily big money is a consideration.
3. Lost equity: Buyers looking in the luxury or premier markets (for example in Escazu, Manuel Antonio, and some areas of Jaco) will likely pay between $4,000 – $5,000 per month for a luxury rental, thus dropping somewhere in the range of $180,000 during the course of their three year lease term in the home. While trial runs and being careful are important, the cost of higher end rentals leaves huge equity losses for the client which, with more aggressive purchase strategies could translate directly into returns on the total investment.
4. Inventory cycles: With most of the bleeding inventory already off the market, and fewer and fewer REAL DEALS on the market place, the inventory to be found in a few years is likely not only to be more expensive, but also adjusted both with inflationary inclusions, as well as less motivated sellers.
5. By renting, you don’t experience the ‘pride of ownership’ and it’s difficult to really take hold of the experience, to belong and to feel a real part of the area. This makes it more difficult to fully immerse yourself in the experience, cultivate your property, garden, relationship with neighbors, etc. It is also important that as a renter you will most likely be here on a tourist visa, requiring that you leave the country every 90 days. With a purchase, you can oftentimes start the residency process as an investor which can be an added plus.
6. Renting a nice, furnished home is relatively expensive. I think a lot of folks make the mistake of trying to ‘rent first’ with a reduced rental budget, inevitably get locked into a property or neighborhood that does sit well with them and hence walk away thinking “Costa Rica is not for me” when they were simply in wrong micro area due to rental options available at their desired rental budget. Just like finding the right place to buy is of incredible importance and is a part of any good realtors dialogue with their clients, where you rent can greatly affect the experience and outlook on the country. Take it from someone who has lived in both cheap dives and luxury homes, that your experience and future vision of Costa Rica can be heavily impacted by your rental budget.
7. On the other hand, if you’re landlord, a relatively high rent is good and one of the advantages you enjoy in owning real estate. Every month you pay rent is a month you could be collecting a return on your investment.
8. Everyone, including our experienced team of long time residents here goes through an adaptation curve. Culture shock, linguistic challenges, local customs, etc are learned over time and nobody learns to speak enough Spanish to communicate effectively overnight. Working through this makes your experience in Costa Rica more rich and rewarding, but as a renter it’s often too easy to ‘pull the rip cord’ and not give yourself the chance fully enjoy your new experience in a foreign country and everything it has to offer. I have been an exchange student and lived in many countries and often times those first 3-6 months are challenging as you adapt… while blindly committing is irresponsible, like most things in life, the full richness and rewards are usually harvested over time and far too many renters confuse adaptation and adjustment to dislike.
9. Many investors, if not the majority of purchasers in Costa Rica are not necessary looking for full time retirement or living. While purchasing a full time residence or retirement home can and should require a much more diligent experiential study of lifestyles, culture, etc. there are large numbers of clients who are purchasing here to diversify their investment portfolio, enjoy a second vacation home, corporate incentive, etc. For these clients… Read More and Video

Costa Rica property

Big News! Our friend Arden has just published her first book about moving to Costa Rica. It’s called Unraveling the Mysteries of Moving to Costa Rica and is actually the first of a series called “Mainers in Costa Rica.”

Through our friendship, Paul and I have been able to learn so much from Arden and her husband David that has helped us in our day to day lives — from how to handle our move to Costa Rica to how to navigate the countless decisions to be made along the way in starting our new lives here. And now, you can learn from their experiences (and mistakes) as well.

Her book is divided into three parts. Part One: “The Mainers Move to Costa Rica” follows their family (which included the two of them, Arden’s 80-something-year-old parents and four pets!) as they moved from Maine to Costa Rica. Part Two: “The Ins and Outs of Shipping” covers the issue of what to do with all your “stuff” as you contemplate your own move — whether to ship, what to ship, and how to ship. Then there is the wealth of information and resources contained in Part Three: “More Useful Stuff,” including sample budgets, FAQs, and much more.

I think you will be both informed and entertained as you read this book. Arden is a true story-teller as well as a knowledgeable and clear communicator. To get more information and download your own copy, Click Here!

Costa Rica Realtor – Jeff Hickcox in Atenas – The following is a story taken from the book Crash Proof authored by Peter D. Schiff. I believe it is a brilliant metaphor for why the U.S. economy is suffering as it is, and also why it is imperative to invest in stable foreign markets.

Schiff suggests investing in foreign assets including businesses, currencies, real estate, and gold to weather the current economic storm that is just beginning.

The Tale of Two Farmers

Farmer Chang grows only oranges. Farmer Jones grows only apples. Each grows only the fruit he produces most efficiently, trading his surplus for the fruit grown by the other. Both farmers benefit from comparative advantage and free trade. The sole reason that Farmer Chang “exports” oranges is so that he can afford to “import” apples, and vice versa.

Suppose that one year a flood wipes out Farmer Jones’ apple crop. Not having any fruit to trade, but hungry nevertheless, he proposes to trade apple IOUs for Farmer Chang’s oranges. Since Farmer Chang cannot eat all the oranges he grows anyway, and since Farmer Jones’ IOUs will pay 10 percent interest (in extra apples, of course), he accepts.

Farmer Chang accepts Farmer Jones’ offer only because of the apples that Farmer Jones’ IOUs promises to pay. By themselves, the IOUs have no intrinsic value. Farmer Chang cannot eat them. It is the promise to pay additional apples that gives the IOUs their value.

When Farmer Jones issues his apple IOUs in exchange for real oranges, he does not actually pay for the oranges. Payment will not really be made until the following year when Farmer Jones redeems his notes by giving Farmer Chang all the apples his IOUs obligate him to pay. Only then can the notes be retired and the transaction be completed.

Now suppose that the following year Farmer Jones’ crop is again destroyed, this time by a hurricane. He and Farmer Chang once again make the same deal, with Farmer Jones getting more of Farmer Chang’s oranges, and Farmer Chang accepting more of Farmer Jones’ IOUs.

Further suppose that similar natural disasters continue to besiege Farmer Jones for several more years, until it finally dawns on him that he is eating pretty well, without actually farming. He therefore decides to turn his apple orchard into a golf course and simply play golf all day while enjoying Farmer Chang’s oranges. In other words, Farmer Jones now operates as a service economy.

Farmer Chang, by contrast, is so busy growing all those oranges that he never gets a chance to play Farmer Jones’ course. In fact, he has been accepting Farmer Jones’s IOUs for so long that he no longer remembers his original reason for doing so. He now counts his wealth based solely on his accumulation of Farmer Jones’ IOUs.

Farmer Jones actually enjoys such a good reputation within the farming community that Farmer Chang is able to trade some of Farmer Jones’ IOUs for goods and services provided by other farmers and merchants. However, as a result of Farmer Jones’ good… read more

Properties for Sale in Costa Rica

Rental Properties in Costa Rica

Original Posting – www.welovecostarica.com

Finca Bellavista is a residential treehouse community in its formative years in the south Pacific coastal mountains of Costa Rica. Finca Bellavista is a rustic, yet comfortable, private retreat off the beaten path where owners and limited numbers of guests can explore the natural wonders of the rainforest canopy. Though Finca Bellavista is in its infancy as a project, there has been a lot of progress to get the community ‘off the ground’ since 2007.

Finca Bellavista’s “base camp” is complete and has a sprawling community complex complete with a large kitchen and dining hall, an open-air lounge and WIFI zone, a rancho, and a bath house. Nearly one-half of the community’s “Sky Trail” transportation network is now up and running, offering stunning canopy and pristine river corridor views. Treehomes are starting to speckle the skyline, and a handful of cabinas and treehouses are ready for rentals and tours. There are quite a few owners in various stages of creating and building treehomes, bringing lots of new energy and excitement to this growing neighborhood, which is truly like no other in the world.

Finca Bellavista, while a one-of-a-kind concept, is also in a one-of-a-kind place. The finca as a whole, comprised of more than 300 acres of secondary rainforest and reclaimed pastureland, provides a nearly custom-built backdrop to house the world’s first planned, modern, sustainable treehouse community. Perched overlooking the Golfo Dulce and nurtured by two whitewater rivers, the location of this unique enclave is unmatched in its magnificence and pulses with life. While it feels a world away, Finca Bellavista boasts easy access to some of the country’s most stunning natural assets, like National Parks, isolated beaches and epic mountainscapes. Those with a spirit of adventure will feel right at home amongst the outdoor activities available on-site and nearby.

The words “Playa Herradura” have earned wider recognition among the surfers of the world. Playa Herradura in Costa Rica is on its way to becoming a Mecca for surfers. Those surfers like the waves that are created in Herradura Bay.

Playa Herradura lies near Costa Rica’s rainforest and some Costa Rica’s most popular National Parks. It is close to the town of Jaco. Playa Herradura provides visitors to this area with both indoor and outdoor activities. The facilities at Los Suenos Resort, a tourist attraction within Playa Herradura, offers a number of outdoor activities including deep sea fishing.

Stellaris Casino and the Poseidon Fitness Spa are both found at Los Suenos Resort. Vacationers, those who do not mind missing out on a bit of the sunshine, or who avoid sleeping during most of the night, spend many hours at either the Casino or Spa. Yet Los Suenos Resort is not just for night owls; nor is it just for those afraid of the sun.

Los Suenos Resort also contains the Los Suenos Marina. From that Marina one could set out for the high seas. One could spend many hours sport fishing, and come back with tuna, marlin, sailfish or dorado (dolphin fish). You could even learn how to catch a roosterfish.

Beyond the Marina other water activities help to entertain the visitors to the area. Some vacationers devote time to scuba diving or snorkeling. Other vacationers set aside plenty of time for golf. Golfers in Playa Herradura enjoy spectacular ocean vistas. A few golfers see some of the area’s four-legged and winged residents when cruising the courses. The smaller local wetlands make water fowl an increasingly common sight in the waterholes scattered close to the greens.

Accommodations Costa Rica

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Caution: Reading this story might make you extremely jealous.

James Island couple Frank Fleming and Kate Rothra Fleming have taken a wild plunge, buying a 117-acre parcel of rainforest deep in the banana-growing region of Costa Rica.

If things go as planned, the two will visit their Eden on the Pacific Coast whenever they can during the next few years, before moving in full-time to run the property as an eco-friendly destination.

And while the banana industry there fell apart years ago, the land remains home to various populations of stressed — but wildly entertaining — red-backed squirrel monkeys.

Frank said he found the property after surfing the Internet early one morning.

“Originally it was owned by a kind of survivalist guy who wanted to go out and grow his own food,” he said. “I think a girlfriend influenced him to turn it into a preserve,” where injured or stray monkeys kept being brought in. They were nursed back to health on a diet of ripe bananas.

“He was also a woodworker who built the cabins,” Kate said.

The couple, both in their 40s, have never been intimidated by travel and seemed to be especially drawn to Central America. The good news for them was that the previous owners had all been from the United States, which alleviated some of the headaches that go along with buying property in a foreign country since they could use U.S. banks to close the sale.

“We were very lucky because it was owned by Americans so we were able to basically wire money to them,” Frank said. Purchase price: about $225,000.

The nearest town is Golfito, which for many years was the country’s largest port on its south Pacific coast. The banana industry thrived there for much of the 20th century, but travel guides say the region’s downfall came after disease infected the banana crops, and worker strikes prompted the United Fruit Co. to pull out. The Costa Rican government tried to help by setting up a duty-free zone in the area.

Frank already had an affinity for banana trees. While his day job is working behind the camera on the locally produced television drama “Army Wives,” he has a side business — “Simply Bananas” — selling landscape banana plants around Charleston. Kate has her own business making and selling jewelry.

Their new property includes 117 acres in total, with two acres of living area, about 14 acres of old pasture lands and 101 acres of green rain forest. Also present are the remnants of the old banana company railroad that delivered…. read more

vacation rentals in Costa Rica

Casa Leo Loco, a 4-bedroom/3 bath Mediterranean style villa near the top of the hill overlooking Playa Tamarindo, has views that will leave you breathless.

On the ocean side of the villa is a flagstone Spanish style courtyard with a fountain, and a large tiled terrace area. There is a tiled “infinity” pool facing the ocean, surrounded by exquisite landscaping and a large outdoor BBQ/cooking area, with a gas oven. The high vantage point offers unparalleled views south to Playa Langosta and north to Playa Grande. The Mexican-tiled kitchen is fully equipped and opens to large dining/living area. The entire living/dining area is screened in and opens onto the terrace. Just off the kitchen is a tiled staircase leading to the master suite and bath.

The luxury master suite features a king size bed, air conditioning, bath with marble tub and counters, and a rosewood dressing table in the bathroom. The balcony off the master suite overlooks the pool and garden and affords an even grander view of the surrounding area. The two guest bedrooms off the main house open onto the terrace and have queen beds, ceiling fans, and private baths.

There is a library/pool house separate from the main house that has a private bath and an air-conditioned tower bedroom on the second floor with a queen bed and a lower bedroom has AC and a double bed.

A caretaker/guard is on-site in a small house located in front of the main house, and is there at all times to ensure your security. The house has cable TV and a stereo for your entertainment. Daily maid service is provided.

With the present situation the way it is, many boomers face the prospect of working the rest of their lives, living without dignity or outliving their money. One viable solution is to move abroad to a country like Costa Rica where boomers can save money on: medical expenses, public transportation, an apartment can be rented for well under $1000, utility bills are because you don’t need heat or air condition in Costa Rica’s Central Valley, hired help is less than $20 per day, and a movie costs $3, to name a few things. A $2,000 Social Security check is a almost a millionaire’s salary here. Moving here definitely deserves consideration given the serious situation in the U.S.

Here is the situation in a nutshell.
“The economy’s finally bouncing back, and many Americans are starting to feel a bit more optimistic. But the nation’s biggest population group remains in a recessionary funk.”

“The first of the baby boomers–the post-war Americans born between 1946 and 1965–start to hit retirement age in 2011. And they’re not coasting gracefully into the golden years. The entire nation, of course, lost its spunk during the recession that lasted from 2007 to 2009. But the once-upbeat baby boomers seem to be taking the longest to shake off the blues. According to surveys by the Pew Research Center, 80 percent of boomers say they’re dissatisfied with the way things are going in the country, a higher proportion than any other age group, younger or older.”

“The Great Recession clearly hit baby boomer retirees at a vulnerable time, when they were close to retirement or at least should have been preparing for it. They got hammered by the recession. More than any other age group, baby boomers feel their long-term prospects were damaged by the recession. More baby boomers, for instance, say they’ve lost money on investments and endured damage to their household finances than any other group. Household net worth is still down about $9 trillion from peak levels of 2007, thanks to huge losses in home equity and stock markets still down about 20 percent from the 2007 high.”

“Unemployment is lower among baby boomers than other groups, but it can be particularly grueling on the unlucky boomers who lost their jobs–especially those without a college education. Unemployment, on average, lasts about 45 weeks for those 55 and older, which is 12 weeks longer than for younger job seekers. And unemployed boomers in declining industries like manufacturing or construction may never find work again in the fields where they spent their careers. Younger workers in that kind of predicament have an easier time getting new training, moving if necessary, and convincing employers to hire them. Doing that when you’re 55 or 60 is daunting.”

“They’re poorly prepared for retirement. Many baby boomers thought rising home values would anchor their retirement plans, one reason the savings rate plummeted over the last decade. The housing bust–which has driven home values down by more than 30 percent nationwide–wrecked that idea. And far fewer boomers have a guaranteed pension plan than in prior generations, which is likely to leave millions of Americans on the cusp of retirement in a huge hole.”

“The Center for Retirement Research at Boston College estimates that 51 percent of people between 55 and 64 will face lower living standards once they retire, mainly because they lack the financial resources to maintain their current habits. Many boomers will keep working well past retirement age, if they can find jobs. About 60 percent of Americans between 50 and 61 say they plan to retire later than they planned. And 35 percent of those 62 and older say they’ve already delayed retirement.”

“They sense national decline. America was still on the rise when boomers came of age in the 1960s and ’70s. It doesn’t feel that way any more. Washington politicians mount loud arguments but… READ MORE

Costa Rica Vacation Rentals

Costa Rica Real Estate for sale by owners

It was Costa Rica’s best-kept secret. I first scouted here three years ago. I fell in love with the setting, and the scenery. I enjoyed good food, and good company.

It reminded me of lake country in Europe…from the dramatic, rich green landscape, the warm bread and crisp pastries in the little Austrian bakery, to the mini Swiss village on one side of the lake.

I couldn’t believe just how affordable property was here, either. Only a handful of expats had discovered this location, and they preferred to keep it to themselves. But word is starting to get out slowly about this hidden gem…

At International Living’s conference in Costa Rica in August 2010, this place stole the show. Some attendees toured the area before the conference. They liked what they saw…and they couldn’t keep it to themselves. We should have had two small tours of the area, one before the conference and one afterwards. That soon turned into four bigger tours…and a lot of excitement. There’s something special about this location…

We’re talking about Arenal, in north central Costa Rica. It’s Costa Rica’s lake country, and it ticks all the right boxes for a growing number of expats and retirees. The weather hovers in the high-70s year round. There’s enough rain to keep the landscape fresh and green.

Arenal often reminds visitors of Lake Tahoe…without the crowds. If you love hiking, swimming, windsurfing, fishing, boating, bird watching, horse riding, or kayaking…this place is paradise. It’s a secret part of Costa Rica, where you’ll find gourmet food, good company, and property prices that seem to belong in a history book.

But the secret’s slowly getting out…as more expats, retirees and property buyers uncover this hidden corner of Costa Rica.

Lakes, Rivers, Waterfalls, and Hot Springs

Let’s start with the natural beauty. It’s easy when you have the right ingredients: the country’s largest lake (33 square miles), a lush landscape of soft rolling hills, lofty mountains, and a towering volcano. For much of the year, only fishermen and sailors break Lake Arenal’s mirror-smooth surface; for a few months, stronger lake breezes bring in windsurfers.

The sharply pointed cone of the volcano reaches 5300 feet. It’s live. That means a spectacular fiery display most evenings…and hot springs. Resorts offer a choice of outdoor pools, with different water temperatures, swim-up bars, and spa treatments–a perfect way to unwind at the end of a long day.

The thermal water has reputed healing powers, and the volcanic mud is great for deep cleansing. There are a number of hotels that offer a variety of treatments…or you can simply soak contentedly outdoors in the heated water and relax.

Throw in crashing waterfalls, deep caverns, and misty cloud forests…and a total of 790 square miles of conservation area, parks and reserves…and “unspoiled paradise” sums this place up.

A Warm Welcome is Waiting…

The expat group in Arenal is small, but very active, and welcoming to newcomers. They meet regularly, often at the Gingerbread Hotel. Once you’ve dined here, you’ll know why. The chef, Eyal, serves delicious, fresh, gourmet food. He prefers to use locally sourced products. On the taste front, his food ranks alongside the top restaurants in Europe or the US…and at much more wallet-friendly prices. It’s by far the best food in Costa Rica.

And Now for the Bargains

The bargain-basement real estate is as mouth-watering as the food. Local-style three bed homes start at $55,000. For $179,000, you get 15 acres of jungle, rivers, pasture, and a small house. A well-maintained 2-bed home in a private community is on the market for $89,000. A home with its own private lake set in two and a half acres is…                READ MORE

Costa Rica Retirement