Costa Rica is by far, one of the most popular places to invest in real estate — for retirement purposes or investment purposes. It’s easy to see why older couples and singles might want to retire in Costa Rica besides its warm climate, its unique, cultural diversity and low crime rates there are plenty of reasons to buy Costa Rican property. In the following information, we will explain why purchasing property in Costa Rica is financially beneficial and talk about why several American and European investors are choosing property in the beautiful Latin American country of Costa Rica.
In addition to having the rich landscape and plentiful natural resources nearby, property in Costa Rica is surprisingly affordable, especially compared to properties in Europe or the United States. In comparison, property that is located in Europe, but features the same amenities as a house located in this part of Latin America can be at least four times more expensive as a Costa Rican home and up to ten times more expensive. For example, a two-bedroom apartment in San Jose, Costa Rico is approximately $130,000 USD, while a similar two bedroom in London would be priced around $600,000 USD. Therefore, the cost of property in Costa Rica is substantially cheaper than most other parts of the world.
In addition, property owners in Costa Rica who rent out these homes will get high profit return. The median rental yield for permanent property located in Costa Rica is approximately 10% to 12% per year more than the established property value. The profit for holiday rentals may depend on the location of the property and the demand for property in the area. While the gain for holiday rentals is typically higher than the price of the property, seasonal variations sometimes make it difficult to get a good estimate.
Costa Rica offers a convenient resource to help prospective homebuyers search for titles. The public access computer system, “Folio Real” is centrally located inside the office of the Public Registry in San Jose. Before someone buys property (or even seriously considers buying property) in Costa Rica, they should perform a title search in the Folio Real database to get the facts about the property. The information on this database provides prospective buyers with info about the actual property, the location of the property, ownership guidelines, boundaries, mortgages, loans and other information. Purchasing a home with a title that is already registered is a much easier process than buying property without this helpful registry.
Property owners in Costa Rica can also benefit financially by renting out homes, condominiums or apartments. In addition, Costa Rican homeowners also have the option to turn the property into a time-share, where different groups or families have the opportunity to use the property on specified weeks of the year.
There are many reasons why purchasing Costa Rican property is a wise investment — the most important reason for many is the financially profitable aspect of owning property in Costa Rica.