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The Costa Rica Real Estate Market – Past, Present, & Future

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The Costa Rica Real Estate Market

The Costa Rica real estate market has witnessed significant changes over the years, driven by foreign investments and evolving market dynamics. In this post, we will explore the historical background, current state, and future prospects of the Costa Rica real estate market.

The Past

One word I would use to describe the Costa Rica real estate market of the past is “inefficient.” Inefficiency in any market is a double-edged sword, giving rise to both risks, as well as opportunities.

While the current Costa Rica real estate market can hardly be described as wholly efficient, in terms of readily available information to help guide your investment decisions. It’s not the “wild west” that it used to be.

Long gone are the days when gringos could take advantage of “poor” Costa Rican farmers who were more in need of cash than dirt. Buying properties at pennies on the dollar might still be possible in today’s market, but those opportunities are rare to find. These days the really cheap stuff is usually that way for legitimate reasons.

The Costa Rica government has in large part wised up to the shady shenanigans of unscrupulous foreign real estate investors and developers. These days the laws related to property ownership and development are for the most part enforced in areas where foreign real estate investment is rampant.

That’s not to say that attempts to cut corners and build or develop in ways that don’t fully comply with the rules isn’t still going on. But it’s not common practice like it once was. And foreign buyers these days are expecting you to have followed those rules when they consider your property for investment. Skirting the rules and not dotting your i’s and crossing your t’s can come back to haunt you upon resale.

A lot of folks who bought in the past have seen substantial appreciation, with values doubling, tripling, quadrupling, and so on. Do those opportunities simply not exist anymore? Probably not. As the market becomes more efficient, highly speculative opportunities generally tend to dwindle.

The Present

The word I’d use to describe the present Costa Rica real estate market is “semi-efficient.” As the market has matured over the years, better information has become available. I wouldn’t say it is now “readily” available in the sense of a highly efficient market like in the U.S. However, there is information out there, often hidden from plain view. That’s where experienced professionals can really help. 

I believe that my job as a real estate agent in Costa Rica will not be taken over by AI anytime soon. I can’t say the same about my fellow realtors in countries where the market is much more efficient in terms of easily accessible online information. In Costa Rica human interaction with a live real estate agent is a valuable asset for any would-be investor navigating the lingering market inefficiencies that still exist.

Around June of 2020 the short-lived COVID-19 real estate downturn (largely due to the country closing its borders to the outside world) turned on a dime. What had been a buyer’s market since the crazy days before the 2007 world-wide crash, suddenly became a seller’s one. That phenomenon has lingered basically up to the date of this blog post. However, there are signs that it is starting to turn back. 

The COVID inspired buying craze is somewhat subsiding as market pressures are making it harder to find the cash to buy in Costa Rica, which is largely an all-cash market for foreign investors. Listing inventories are on the rise and demand is not keeping up. I predict that while the market will remain a vibrant one, since many of the reasons that drove the COVID craze still exist, a better equilibrium between supply and demand will take hold as we move into the future.

The Future

The future is where things get more interesting. The Costa Rica real estate market will become increasingly efficient as time moves on. The licensing of real estate brokers and agents will likely be mandated, ensuring a higher level of professionalism. The national registry may become more accessible to foreigners, potentially available in multiple languages. The ability to demand that realtors provide a reliable “CMA” (comparative market analysis) will likely become a reality for both sellers and buyers. 

Costa Rica will likely have an actual nation-wide multiple listing service, accessible to foreigners and their out of country agents. This has actually already been developed, but the bugs are still being worked out. It will be a few years before this new MLS achieves the widespread use necessary to make it an essential tool for the Costa Rica real estate investor.

There’s also the question mark of the U.S. dollar retaining its position as the world’s reserve currency. The strength of the dollar against the Costa Rican colon has been another driver of the incredibly strong market we’ve been experiencing. However, this year has seen a downward slide by the dollar. Some smart investors are warning that slide may continue and even gain momentum as large holders of the mountainous U.S. debt seek safer havens. While the U.S. dollar is not likely to collapse anytime soon, a continued slide would make buying with cash in Costa Rica an even more challenging proposition than it already is.

Costa Rica has always been an all-cash market for foreign investors. There just aren’t any legitimate opportunities to obtain conventional-type mortgage financing in the country and U.S. banks won’t lend on foreign properties. Could this change in the future? Probably, as Costa Rican banks seek to exploit the opportunities stemming from ongoing strong foreign investment interest. There’ve already been a couple banks launching expat lending programs, but not in any aggressive sense that makes them viable for most investors.

Conclusion

The Costa Rica real estate market has experienced a significant transformation from its early days of exploitative practices. As the market becomes more efficient and information becomes readily available, investors will be drawn to the safety and transparency it offers. Costa Rica continues to provide affordable options compared to other countries with similar amenities. Moreover, the appealing factors that attract visitors and residents to Costa Rica are likely to remain unchanged in the foreseeable future.

Costa Rica Expat Creativity

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I never was much of a creative person until I moved to Costa Rica. Before I came I’d been a tax lawyer and then owner of a small M&A advisory firm. Not very creative stuff, unless reducing corporate tax bills strikes you as being a creative effort. I guess it can be. However, get too creative with that stuff and you might wind up with more creative time than you ever bargained for, behind bars!

What is creativity anyway?

One way, maybe the most common way, to answer that is that creativity is making something from nothing. But in reality that rarely ever happens. Usually there is some sort of something there and the creative person comes onto the scene and adds to or changes it, making what was seem entirely fresh and new, original even.

Take Andy Warhol’s Campbell’s Soup Can paintings, for instance. Definitely not original in the sense of something from nothing, but nevertheless a very famous series of creative endeavors indeed.

Shortly after arrival to Costa Rica, something sparked the creative impulse in me like living in the U.S. never did. In my case, the creativity came in the form of writing.

I started blogging back in 2005. I’d founded a tour outfitting company and kept most of my writing geared towards Costa Rica tourism-related topics. And then gradually I began writing about other stuff as well, stuff that just hit me early in the morning when I would usually sit down to write.

One of my first blogs was entitled 365 Reasons I Love Costa Rica, which later morphed into, simply, Costa Rica Guy. Many of the older posts appearing in this blog are from those initial efforts. The idea for 365 was to write a different reason every day for a year. But as I wrote the reasons began to gain more and more distance from Costa Rica as the seminal topic. I delved into philosophical stuff, political stuff, and environmental stuff, among other more trivial topics, always attempting to have a Cost Rica tie-in, often very loosely woven.

Later on I started a much more philosophical blog entitled Revolutionary Misfit. I have recently backed off writing in that one because the motivation to do so these days always seems related to politics. And, well, I’d rather spare myself. Nevertheless, there are years of posts in that blog that tell the story of how I came to think the way I currently do.

I believe that Costa Rica, or the expat life in Cost Rica, was, in large part, my muse. I’ve written before about how Costa Rica shifted my paradigm from being quite conservative (politically and otherwise) ideologically to, well, sort of a wild-eyed lefty, or progressive as I like to call myself these days. And that shift would often be evident in my almost daily writing.

About the same time that I launched the Misfit blog, I also began to write eBooks. I wrote a number of them, all still available on Amazon. None have reached any “best seller” list, to put it mildly. However, I’m proud of every word written. Getting all that out of the brain and into cyberspace can be a heart-wrenching, soul-revealing and vulnerability-enhancing endeavor.

Right now I have a memoir of my Costa Rica expat life ready to be edited and perhaps one day published. I’m in no hurry, however, and continue to mull over it and massage the content from time to time, maybe even add to it as my Costa Rica story continues to unfold.

My latest creative effort is a podcast. It’s called the World Changers Expat Podcast. The idea is to interview expats, not just in Costa Rica, but around the globe, who are using their creative impulses to make a difference in the world. I’ve so far recorded three episodes. The goal is one per month.

I’ve seen Costa Rica expat creativity displayed in all sorts of ways. Some do it through an art form (writing, painting, sculpting, music, etc.), arts and crafts, or some type of well-being therapy. Others do it by starting organizations geared towards helping people, animals, or the planet. A lady I recently sold a property to is getting creative via her Tibetan bowl therapy. All you have to do is go to the weekly market, or feria, in Tinamastes and you’ll see a whole bunch of Costa Rica expat creativity unleashed.

Of course, many of our resident expats were creative before ever coming to live in Costa Rica. Others, I’d venture to say, not so much. My Tibetan bowl friend was herself a real estate agent before Costa Rica. Now, there are some ways to “creatively” do real estate, but I’ve found that the pursuit of money and the material it buys, is a sure way to dampen the creative impulse. In fact, I was far more creative before I ever got involved in real estate and I’m now trying to find my way back to the level of creativity I was enjoying in Costa Rica before I became a realtor, despite my ongoing need to make a buck here and there.

I believe we humans are at our core a creative species. Perhaps the only species on earth whose creativity doesn’t merely flow from instinct, but from some deeper region of the brain and the consciousness it either produces, or acts as a kind a radio receiver, allowing us to tune in to a universal consciousness, or perhaps both.

The bottom line is that if you’re contemplating becoming a Costa Rica expat get ready to be inspired creatively. There’s something about this place that just does that. I don’t know if it’s the overwhelming natural beauty, or just the impact (perhaps “shock” is a better word) from living somewhere as strange to the senses (including sense of logic) as Costa Rica can often be.

Probably it’s a little of both.

Don’t plan on coming down here and just vegging out on ocean and mountain views. Open up your mind and let the creative juices flow. The world can stand to benefit from less human effort towards increasing “GDP” and more towards making the world a more beautiful and humane place for its inhabitants.

The world needs your unique brand of Costa Rica expat creativity.

Costa Rican Language of Politeness

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Costa Rican Language of Politeness

Costa Rican society is decidedly polite, especially compared to that of the U.S. It might be the biggest area of culture shock one will experience after being here for a long time and then returning to the U.S. At least that has been my experience.

Now there are exceptions to every rule…

Those exceptions generally apply on the streets, avenues and highways around the country (especially its cities). Just put the most polite tico behind the steering wheel of an automobile and it’s like pouring water on a “gremlin” (you remember those lovable little creatures from that early Spielberg flick?).

Yea, they become little demons hell-bent on destruction.  But for the most part, outside of that environment, politeness rules.

Costa Rican language of politeness.

I am still trying to adapt, because sometimes I just don’t feel like being polite. That’s usually when I’m just too wrapped up in what’s going on in my life at the moment (or in my head) to take the time to try to brighten someone’s day with a simple, disculpe, por favor, or gracias.

Here folks are routinely polite, even when they may not be having the best day. And it’s not as if they’re faking it. The politeness comes natural. In the culture of the U.S., you can readily tell when someone is faking it, can’t you? You know, the so-called “courtesy laugh” at that joke you blew, or the “courtesy smile” when lurking just behind it is seething cynicism.

Now I’m one of those types who tends to wear his emotions on his shirt sleeve. That doesn’t always go over so well in this culture. I’m learning to be polite, because I admit I’m not naturally so, as any of my tico friends would attest. I’m polite when and if I feel like it. The Spanish language of politeness does not roll off the tip of my tongue as easily as…

Gimme 20 of super…and check the oil while you’re at it!

Learning the Costa Rican language of politeness will get you further. It will open doors that sometimes appear to be shut to gringo expats who haven’t learned it yet. It will develop and strengthen relationships. It will make you feel better because you are making others feel better.

Because in reality life isn’t all about us, now is it?

To refuse to learn to adapt to this culture of politeness is to remain in the cynical and pessimistic world where one always demands that his needs be met and to hell with anyone else.

That does not go over so well down here.

So take a tip from the Costa Rica Guy and make your first Spanish lesson be to learn the Costa Rican language of politeness.

And the “palabra mágica” is…

POR FAVOR!

10 Reasons to be Expat Mindful

If you’d like to delve a little deeper into my keys for successful Costa Rica expat living, I recently published an eBook on the topic entitled, Expat Mindfulness: How Expats can Change the World with Impact Mindfulness.

You can get it here on Amazon!

Costa Rica Expat Living Idea: Live in the Mountains – Visit the Beach

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Costa Rica Expat Living Idea: Live in the Mountains - Visit the Beach

I realize that ocean views are really…really…nice. Don’t get me wrong, I like’em too! It’s also nice to be able to grab your board (the surfing variety) and be out in the waves in minutes.

Sure, I get all that.

But, for me, I prefer the following Costa Rica expat living idea: live in the mountains – visit the beach.

I know what you’re thinking. That I have some particular economic, or other, bias, in leading you up the hill rather than down. Truth is, however, I really don’t. I’m a real estate agent for Coldwell Banker in Dominical. That’s the beach. I live in San Isidro. That’s the mountains. I cover both and can just as quickly sell you a house down there as I can up here. I want you to be where you will be the happiest.

I am simply suggesting the following Costa Rica expat living idea: live in the mountains – visit the beach.

I know I’m repeating myself, but that helps with SEO and also to get the point across.

I think the best way to convey this idea is to take it through the screen of the 4 C’s framework. That is, to evaluate the idea based on the 4 C’s of Costa Rica expat living: Climate – Culture – Convenience – Context.

Climate

Unless for some weird reason you just like to sweat, all the time and not just when at the gym, then perhaps the beach heat and humidity will be just right for you. As for me, I prefer the cooler and less humid temps one finds at elevations above 800 meters. For that you need the mountains. Where I live in Quebradas, a mountain community just minutes from downtown San Isidro de El General, the altitude is in that “Goldilocks Zone” of being not too hot and not too cold…it’s just right. There are many other mountainous communities in the area where you can have the same.

Culture

This is a more subtle one than climate. It might not become apparent right away. However, for me anyway, the culture of the mountains wins hands down over the beach. For one thing it’s decidedly tico. In San Isidro, while we do have quite a few expats who “get it” and live up here, the tico culture still predominates.

Many expats come to Costa Rica wanting to immerse in a new culture, only to run as fast as they can for a gringo enclave and its corresponding “bubble culture.” For instance down along the Costa Ballena there is somewhat of a bubble culture. That is, the expats down there tend to live in a “bubble” that separates them in many respects from the locals. That can give rise to cultural resentment. And that can give rise to culture clash. Like I said, up here in the mountains we just don’t have that…yet…and hopefully never will!

Convenience

The ocean view is great. Finding what you might need at the beach isn’t always. Sure there are some nice shopping places down there…with prices that will lighten your wallet faster than you can whistle dixie. San Isidro de El General is the second largest city outside of the GAM of the central valley (the area that includes San Jose, Alajuela, Heredia and Cartago). Here you can find anything you need. We have the largest farmer’s market in the region. Expats at the beach find it necessary to make frequent trips to San Isidro for provisions or services they cannot find at the beach. In short, living within minutes of San Isidro, in a charming mountain community like Quebradas, or one of the many others, is simply much more convenient than living at the beach.

Context

Now here’s where the decision becomes harder. I believe the mountains win fairly decisively with regard to the above 3 C’s. However, this one is much more subjective.

What do you want your life to look like in Costa Rica?

Do you want to live the “bohemian” beach life, or a more rugged and authentic tico-like existence? If you want to be that “surfer dude”, yogi, or open a vegan bakery…you catch my drift…then maybe the beach is a better choice for you. If you want to eat, drink, shop, pay prices, and essentially live like a tico and immerse in authentic tico culture, then, in my opinion, the mountains are a better bet.

To conclude on a very bright note, here’s the coolest thing about Costa Rica’s southern zone: you can have your cake and eat it to! Here the highest mountains in the country are only an hour, or even less, from the beach.

Therefore, the following Costa Rica expat living idea: live in the mountains – visit the beach, is one that can become your reality in the southern zone of Costa Rica.

Now all of the above simply represents the opinion of one lowly expat…and you know what they say about opinions…like a part of the anatomy that I’ll neglect to mention, we all have one.

The Logic for Growth in the Costa Rica Southern Zone is Compelling

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Growth in the Costa Rica Southern Zone

I am bullish on growth in the Southern Zone. That should be clear from a post I wrote some time ago entitled, 10 Reasons to Invest in the Costa Rica Southern Zone.

It’s also where I live and work. I love this place, so I’ll readily admit bias.

Nevertheless, I believe the logic for growth in the Costa Rica southern zone is compelling and here are a few reasons why.

San Isidro de El General – Gateway City on the Move

San Isidro de El General is the gateway city to the Costa Rica southern zone. It is also Costa Rica’s second largest city outside of the GAM (gran area metropolitana), which consists of San Jose, Heredia, Alajuela and Cartago. According to the 2011 census, San Isidro has a population of around 50,000. However, the entire county, or canton, of Perez Zeledon has a population closer to 150,000 according to the 2011 census (and today around 200,000).

Costa Rica’s Highest Mountains and a Gorgeous Coastline

Growth in the Costa Rica Southern Zone

The city is nestled in the valley between Costa Rica’s highest mountain, Cerro Chirripo at 3,820 meters (12,533 feet) and the southern Pacific coast. In fact, there’s no place in the country where seriously high mountains and coast are located in such close proximity. From most locations in and around San Isidro, you can drive to the beach over a well-maintained, paved, road in less than an hour.

Chirripo National Park is a major tourist destination. It is a 2-day hike to reach the summit of Cerro Chirripo and it ranks as one of Costa Rica’s most spectacular experiences. From the summit of Chirripo it’s possible to see both of Costa Rica’s coasts, Pacific and Caribbean, on a clear day!

Perez Zeledon – An Amazing Canton

The county of Perez Zeledon is dotted with small towns, many located at relatively high elevations, that are 30 minutes or less from the city. These towns are popular areas with expats due to their charming ambiance and almost perfect year-round climate. The ability to easily reach the coast in an hour, or less, making for an easy day-trip to the beach, is likewise alluring.

Future Airport Development

Now, here’s a little inside information about the future of San Isidro. You should know that there is an airport in town. Over the years it hasn’t received a lot of use, but all that’s about to change. There are plans for a major airport expansion, as well as large-scale development of an “airport city” in that area. According to reliable sources, hiring is already underway and ground will be broken very soon. The idea is for San Isidro to be the southern zone hub, making the long-awaited rumors of a major airport in the zone a reality.

The Costa Ballena – The “Big Sur” of Costa Rica

Growth in the Costa Rica Southern Zone

The coastal areas of the southern zone are perhaps some of the most scenic and pristine in the country. I often refer to the Costa Ballena, which extends from Dominical to points south of Ojochal, as the “big sur” of Costa Rica, due to the coastal range that hugs the coastline. The beaches of Dominical, Uvita and Ojochal have become “expat havens” due to the great waves, incredible views and ability to somewhat beat the heat by buying and building at elevations of 300 to 500 meters up. The Costanera Highway, which links all these beaches, is one of the most well-maintained roads in the country and you can zip from one beach to another in minutes.

The Osa and Proximity to the Southern Border

The Costanera links with the Pan American in Palmar Norte and from there it’s a 3 hour drive to the Panama border, which offers great shopping and better prices for imported goods than one will generally find elsewhere in Costa Rica. Along the way it’s possible to make detours over to the Osa Peninsula, which is home to the Corcovado National Park, a place National Geographic once called the “most biodiverse location on planet earth.”

Just off the coast from Drake Bay lies Isla del Caño, an island surrounded by a coral reef, making it one of the best scuba diving and snorkeling locations in the country. You can reach the island via a short boat ride from Drake Bay, which is a very popular tourist destination on the Osa.

Controlled Growth Already Occurring

The secret of the southern zone is out. While growth has not exploded as it did in the Guanacaste region some years ago, it is definitely on the expat radar screen. At present there’s more inventory of land and homes than there are buyers. It’s a “buyer’s market” and good deals still can be had. That might change soon, however, as the growth story gets out.

Growth in the Costa Rica Southern Zone

The area has already seen large-scale private investment. A case in point is the 2-year old 5-star resort, AltaGracia, located in the small pueblo of Santa Teresa de Cajon, about a half-hour south of San Isidro. This was a $30 million dollar investment by the Volio coffee family of Costa Rica. The resort features one of the finest spas and equestrian centers that can be found anywhere in Central America. It also features its own landing strip for small planes. The resort is part of the Auberge collection of fine resorts worldwide.

The logic for growth in the Costa Rica southern zone is just too compelling for it not to become a future reality. Of course, there are many risks lurking on a geopolitical scale that could cause the U.S. and world economy to crash and burn. That would have effects throughout the country, as it did after the 2008 crash and ensuing “great recession.”

Nevertheless, barring such potential catastrophes, I believe the southern zone will see measured and steady growth in the coming years. The government of Costa Rica has vowed to be a throttle and mediator in order to prevent the uncontrolled growth experienced in Guanacaste and other areas. That’s a good thing because we don’t want growth and development to ruin the reasons why this area of Costa Rica is so alluring…it’s pristine and untouched nature and abundance of flora and fauna.

Costa Rica Living Mountains or Beach?

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Costa Rica Expat Living - Mountains or Beach?

If you’re considering a move towards Costa Rica expat living, or just an investment in Costa Rica, you might be wondering, which is better for Costa Rica living – mountains or beach?

Like a lot of people out there, I love both. But are both really possible?

Not really. Not if you’re talking about “real mountain living” versus “real beach living.”

Costa Rica Expat Living - Mountains or Beach?

I live in the town of San Isidro de El General, which is nestled in the valley between the towering Talamancas, Costa Rica’s highest mountain range, and the southern Pacific coast. I like to think that I have both, but in reality I am far removed from beach culture and it does take me anywhere from 45 minutes to an hour to get from my front door to the ocean. So, while I am close, I ain’t quite there.

And if it’s not possible to have both here in San Isidro, it’s not really possible anywhere else. So, one has to make a choice. And this post is about helping you make that choice.

Since I do my Costa Rica expat living in the mountains and perhaps I am a little biased in favor of mountain life, I’ll start with…

Costa Rica Expat Living at the Beach

Pros…

Costa Rica boasts some of the best beaches imaginable. The surfing can be great, with waves for beginners, intermediate level and the true experts looking for the biggest, gnarliest rides out there. The beach culture is also a big plus for some. It’s more laid back and bohemian. Since the beach has long been the most popular area for expats to buy into, you can find a unique blend of gringo and tico culture co-existing down there. There you can find things you won’t find up in the mountains, which will be dominated by more of a traditional Costa Rican culture. Things like health food stores, international cuisine, funky bars and discos, lots of “hippie stuff”, etc., etc. All that can be pretty cool and it draws many down there.

Here in the southern zone there is a smaller mountain range that more or less hugs the coast. So, it is possible to live up around 300 or 400 meters above the sea level, where you get spectacular ocean views and sunsets and cool ocean breezes. The flora and fauna along the coast, especially the southern Pacific, is dense tropical rain forest. So, there are a lot of critters lurking in there and it’s not surprising to wake up to the sound of monkeys playing in your backyard.

Sound enticing? Ok, but then there are the…

Cons…

The biggest drawback for most is the heat. It is hot, really hot, at sea level in Costa Rica. It’s true you always have the ocean, or your pool, to cool off in, but get ready for any trip to the market, or anywhere else, to leave you drenched in sweat.

The other aspect that could be a drawback for some, like me, is the unique culture that generally forms where you have a large group of foreigners congregating in a particular area of a foreign country. They tend to try to create a culture of their own. Here on the southern Pacific, Dominical is a great example. Dominical no longer resembles Costa Rica. For one, you’ll see more foreigners down there than locals. The businesses that have opened, while many are super cool for sure, just aren’t tico. And the prices are sky high as a result. At the beach expect to pay a hefty premium for just about everything, especially all that cool stuff!

There can also be a bit of a rift that forms between the ticos and the expats. This is usually lurking beneath the surface and is not readily apparent to the tourist only visiting for a few days. But if you live there, you’ll begin to notice. Sometimes this can result in bad things happening, like home break-ins and even violence. I don’t mean to be overly alarmist with this, but you have to understand that this is understandable when outsiders from other countries move into an area, jack up the price of everything, and thereby make life for the locals more difficult. Resentments can obviously develop as a result. Mutual respect is the key to avoiding this, but sometimes it is not given.

Costa Rica Expat Living in the Mountains

Pros…

If you love mountains like I do, then you’re really going to love Costa Rica’s mountains. Unlike mountains in colder climates, Costa Rica’s are teaming with flora and fauna, of a different variety than what is found along the coast. Heck, just take a trek up to the summit of Chirripo, Costa Rica’s tallest mountain at around 12,500 feet. You will pass through virtually every eco-system that exists within the country, from tropical rain forest, to cloud forest, to the semi-barren desert-like eco-system known as the paramo, which exists well above the tree line in tropical climates. I love the beauty of Costa Rica’s lush green mountains. Even as a lifelong surfer who grew up on the Carolina coast, the mountains of Costa Rica are what drew me here and are what keep me here.

Even though in Costa Rica’s mountains you’re not “at the beach”, you’re still not far from it. I stare up at the Talamancas each morning, but also know that I can hop in my car and be sitting on my surfboard waiting for the next long barrel in less then an hour.

In addition to the natural beauty, I love the traditional tico culture that thrives in the mountains. That hardy, yet warm and gentle, culture is nowhere better represented than my home here in San Isidro de El General, in the canton, or county, of Perez Zeledon. Here the people are for the most part farmers and laborers and must rank as some of the most friendly people on earth. Costa Ricans in general, throughout the country, have that reputation and the ticos of this valley are certainly prime representatives.

With the mountains come rivers, waterfalls, little nooks and crannies where you can rejuvenate in the crystal clear and cold, but not too cold, fresh water.

The weather in Costa Rica’s mountains is about as perfect as you will find on the planet. I am talking low to mid 70’s, with little to no humidity. Down in the valley it can get quite warm, still no where near as hot as the beach, but warm. However, just drive less than 30 minutes up and it’s a whole different story. Many folks come here to live at the beach, but after a year or so, make a b-line to the mountains in order to escape the oppressive beach heat.

Prices of things are lower in the mountains. San Isidro de El General is a great example. This “little town” is actually Costa Rica’s second largest outside of the metropolitan area, or GAM, of the central valley. Here you can find anything you need and at pretty good prices. And that certainly holds true for real estate, both in terms of land, homes, and the cost to build.

OK, OK, I’m beginning to show my bias, so let’s talk about the…

Cons…

I guess the biggest one is that the mountains aren’t the beach. Except in certain rare cases, you won’t get ocean views. You will have to drive a ways to get to the beach, perhaps further than some would like. The culture of the mountains is more traditional tico, not the “fusion culture” discussed above that the beach environment gives rise to.

During the rainy season, which lasts 7 months out of every year, from May through November, the clouds and rain come every afternoon. And it all starts in the mountains. In fact, the mountains act as a bit of a buffer to hold the clouds and rain back for a time before they finally reach the beach later in the day. So, in the mountains you will tend to get more clouds and more rain.

If you get up high enough, the mountains can get downright cold at night. Even cold enough where a nice cozy fireplace can be a very good idea. That might be a drawback for some people…certainly not for me.

So, there you have it. My two cents of opinion on the pros and cons of Costa Rica expat living mountains or beach. I’ll let you make up your own mind about which version of Costa Rica expat living is right for you.

Diversify Your Portfolio with Costa Rica

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Diversify Your Portfolio with Costa Rica

Investment gurus will tell you it takes about 30 different stocks to fully diversify a portfolio.

But what does that mean?

Well, it means that the inherent risk in any one stock is completely wiped away when that stock is combined in a portfolio of 29 other stocks. That is, all you’re left with at that level of diversification is “market” risk, or the risk inherent in the overall market, as opposed to any individual stock.

Investment gurus will also tell you, however, that you should go a step further. You should also diversify in terms of types of stocks, such as large and small cap, domestic and foreign, and so on. They will also tell you to go a step further and diversify in terms of the types of investments. That you should include other investments in addition to stocks and bonds, such as real estate. And the principles of diversification with respect to real assets apply with equal measure. Meaning you should diversify in terms of types of real estate, residential and commercial, domestic and foreign, and so on.

The point is that it can make very good sense, in terms of eliminating risk, to consider foreign real estate as part of a fully diversified investment portfolio. And we believe that to diversify your portfolio with Costa Rica real estate is a wise decision. Here’s why…

There are many types of risk to be concerned about with any investment, such as country risk, political risk, monetary (or inflation) risk, etc., etc. Having all your eggs in one basket, even a basket as seemingly “risk free” as the U.S., can be a dangerous proposition. We all learned that in 2008!

Consider the political situation going on in the U.S. right now. It’s fraught with risk. Wouldn’t you agree?

And these days another type of risk has entered into the lexicon…climate change risk. It could indeed be possible one day soon to own, as the song says, “ocean front property in Arizona.” But all kidding aside, the penchant in the U.S. to develop as close to the high tide mark as possible could mean that many coastal investments will soon be “under water.”

So, how does Costa Rica stack up with regard to all these types of risk. Well, it’s certainly not insulated from them. Costa Rica has its own political and fiscal problems, that’s to be sure. The country is not immune from climate change risks, although perhaps less susceptible than the U.S. Costa Rica’s shores generally do not have the proverbial target painted on them each year when hurricane season comes around. In Costa Rica, building on the shoreline is usually not permitted. Most properties are located far enough and high enough away from the high tide mark to be insulated from rising ocean levels.

Costa Rica is a relatively stable and growing economy. The government has long placed a priority on social spending as opposed to military. In fact, Costa Rica doesn’t even have a military. Now, you might be thinking, well that certainly imposes a risk. Perhaps, but it’s doubtful any of Costa Rica’s neighbors would try anything too aggressive with Costa Rica being perhaps the strongest ally of the U.S. in Latin America.

Costa Rica is a shining example of democracy in a region where that form of government has had its detractors. Peaceful transitions of power are always the norm. Costa Rica’s laws are very friendly toward foreign investment. In fact, with only a couple very limited exceptions, foreigners can hold fee-simple title to real estate with all the rights of a Costa Rican citizen.

Costa Rica has grown into a world-wide tourism juggernaut. This has given rise to strong interest among the foreign investing community in Costa Rica real estate and for good reason. Costa Rica real estate is perhaps some of the most beautiful on planet earth. Costa Rica’s continued growth in tourism and in attracting foreign investment should lead to solid ongoing appreciation potential.

And one thing’s for sure, the effort to diversify your portfolio with Costa Rica real estate will certainly be an enjoyable experience.

Costa Rica is Accessible

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Costa Rica is Accessible

The U.S.A. is a big country, covering a lot of extremely diverse territory from the shores of the East, the plains of the Midwest, the Rocky Mountains, and the Pacific coast.

One of the greatest freedoms enjoyed by citizens, or visitors, of the States is the freedom to jump in a car, or jet airplane, and go anywhere you want within this vast expanse of land. And you can do so without threat of harm.

In some ways Costa Rica is like a microcosm of the U.S. It’s as if the entire U.S.A. were squeezed together into a tight (albeit much more tropical) package.

After all, like the U.S., Costa Rica has two coasts, but only a day’s drive separates them.

Costa Rica has rugged mountains and flat-lands.

Costa Rica is divided into seven provinces, much like the individual States, with freedom of mobility between them.

What’s really cool is that Costa Rica is accessible.

Here, like in the States, one has that great freedom of mobility. You can jump in the car and take off to wherever you choose, granted that the ride might be a tad bumpier.

That’s not true in many other places in this region of the world. For instance, I love Colombia. Colombia is an incredible place with mountains, jungles, amazing biodiversity, the Amazon, etc., etc.

But in Colombia you cannot just go where you want to go. It can be dangerous, although less so these days. There’s still a civil war going on, there are guerrillas, criminal drug traffickers, etc., etc. You can get yourself in a world of hurt if you wind up in the wrong place at the wrong time.

This is also true in many other countries in Latin America, like Mexico, Honduras, or El Salvador.

But here in Costa Rica, if you want to visit some tiny little corner where there are no people, only monkeys, there’s nothing really stopping you.

I really love that aspect of living here, because there’s so much to see and do. I’ve been here for going on 16 years and there are still many things I’ve yet to see and do.

I love that on any given weekend I can throw a dart at a Costa Rica map and take off to parts unknown. It’s a refreshing aspect that’s a gift of the country’s democratic freedom and peace…not to mention the really nice people everywhere!

Costa Rica is accessible and that level of freedom of mobility has been a great boon to the country economically.

It indeed feels remarkably “free” to be able to just get up and go whenever you feel the itch!

The adventures never cease in Costa Rica.

Come and check it out for yourself…

on The Costa Rica Expat Tour, of course!

Living in Costa Rica – How is it?

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Living in Costa Rica - How is it?

Once folks from “up north” find out that I actually “live” in Costa Rica, they invariably ask me…so…

Living in Costa Rica – how is it?

Therefore, I thought I’d write a post on just that very topic.

The most succinct way I can think of to describe living in Costa Rica is in terms of one-word adjectives. So, that’s exactly the way I’ve organized my thoughts in this post…in random order…

Hot – Yes, living in Costa Rica is hot. You can escape some of the heat by moving up in altitude, but let’s face it, Costa Rica’s hot!

Slow – The pace of life here is slow, much slower than what you’re accustomed to. If you’re thinking about living in Costa Rica, get ready to slow down. Many gringos fight that…they refuse to slow down…until Costa Rica slows them down.

Friendly – Costa Rican’s are incredibly friendly…to the point of intimidation. It’s one of the special things that draws millions to this tiny country every year…some of whom never go home…wink!

Overwhelming – Sometimes when I’m driving along the scenic byways of this place, my senses get completely overwhelmed by its natural splendor. If you’re a photography buff, make sure to have your camera ready at all times!

Green – In keeping with the point made immediately above, Costa Rica is green. I once wrote a silly little post about it…but, really, the greenness is captivating and mesmerizing.

Living in Costa Rica - How is it?

Frustrating – Much of this comes down to the cultural fact that folks here live by the maxim that there’s more time than life. They get things done, well, when they get done. Events themselves become much more important than the time they occupy. Timelines, deadlines, and the sort just don’t work well here. So don’t dare come here and try to live by them. That, admittedly, can be frustrating for us gringos.

Exotic – Defined as “originating in or characteristic of a distant foreign country”, you’ll know right away that you’re not in Kansas anymore once you arrive in Costa Rica. The people are exotic, the land is exotic, the flora and fauna are exotic, and all of that creates an intoxicating mix that can become very addicting.

Adventurous – Depending on where you live, just going to the grocery store can be an adventurous experience here. If you’re the type that values adventure, then Costa Rica is probably your place!

Refreshing – There’s something about being in a place so steeped in natural beauty that’s refreshing. Also, there are the cultural aspects that make living in Costa Rica refreshing. People here call it the “pura vida” lifestyle and it can literally add years to your life!

Inspiring – If you want to get more creative with your life, Costa Rica can be a place that can greatly inspire improvement in that direction.

Authentic – Costa Rican’s live life without many of the luxuries that we take for granted up north. Life here takes on more of an authentic quality. It’s a bit like going back to a time when folks had to make do with what they had…and they did…you will too.

Living in Costa Rica - How is it?

Rustic – Defined as being “constructed or made in a plain and simple fashion”…not only is the architecture here quite rustic, but life itself takes on rustic qualities. I don’t know about you, but I love all things rustic.

Natural/Organic – If you want to get healthy and eat a more natural organic diet, there’s no better place. Everything grows here and organic fruits and veggies abound. Living an unprocessed, vegan or vegetarian, lifestyle is much less challenging in Costa Rica than up north.

Romantic – Latin America as a whole is a romantic place…from the language, to the music and dance, to the outlaws and even to the regular folk…Costa Rica is no exception!

(potentially) Risky – We live very risk averse lives in the north. We prefer the dull and boring, but more secure, life over one that is full of adventure, potential danger and risk…don’t we? That’s just not the way life is generally lived in Costa Rica, where jumping off a huge rock into a pounding waterfall would be considered a very normal thing to do. Of course, there’s also the risk that once you come here…you may never leave!

There are certainly other words I could use to describe living in Costa Rica. However, the ones above came immediately to mind, so I went with them.

If you’re an expat in Costa Rica, I’d love to hear your thoughts.

If you want to try your hand at being an expat in Costa Rica, a good first step is to take my Costa Rica expat tour.

Come and adopt a few adjectives that describe for yourself the amazing reality that is expat living in Costa Rica.

Costa Rica Expat Living – the 4 C’s Framework

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The 4 C's of Costa Rica Expat Living

The decision to leave a “comfortable” life in your country of birth for a strange and exotic land is a daunting, perhaps even scary, one.

How exactly does one even go about making such a momentous life-changing decision?

Well, here’s a suggested framework. I’ll call it the 4 C’s of Costa Rica Expat Living…

1. Climate

People who make the decision to become Costa Rica expats are often motivated by the idea of living in a warmer climate. Of course, you could just move to a southern, or southwestern, state and accomplish that. So, I hope there is more to your motivation than climate alone.

Nevertheless, climate does seem to play a significant role for most.

Costa Rica is a warm climate, no doubt about it. But it is also a land of diverse climates. And that is true despite the fact of little temperature change throughout the year.

There are only two seasons: winter and summer. Winter is around 7 months, from May through November. Summer is 5 months in duration, from December through April, with December actually being a somewhat volatile “transition month.”

The thing that separates one season from the other is not temperature, but precipitation…meaning rain. During the winter, in most parts of the country you will get rain and lots of it. Now, that doesn’t mean zero sunlight. Mornings can be delightful, as well as clear nights. But every day around 3:00 PM, or so, the clouds roll in, the thunder might boom, and down it comes.

That is just a fact of Costa Rica life and there’s really no escape from it.

Now, having said all that, here’s the cool thing…Costa Rica is a land of “micro-climates.” And the reason for that is simple…altitude. The Costa Rica landscape is an extremely mountainous one.

If you are near sea level in Costa Rica, it’s going to be hot. All beach areas of Costa Rica are hot…in fact, the hottest of the hot. If you like the idea of being in a warmer climate, but perhaps simmering heat doesn’t really have that much appeal, I have good news. You can easily escape the heat by simply moving up the mountain a few hundred meters.

The higher altitudes of Costa Rica offer almost perfect weather. And what’s great is that you can live in the mountains and still not be very far from the beach. I live at the foot of the tallest mountains in Costa Rica, but still less than an hour from the gorgeous southern Pacific coast.

Yes, climate is an important and somewhat complicated factor in deciding where you want to live in Costa Rica.

2. Culture

The Costa Ricans are known as “ticos.” As an aside, the reason for the name is because in their day-to-day speech, they tend towards the diminutive by using the spanish suffix, tito, or tico. For instance, my name is Scott, but my wife, a tica, often refers to me as “Scottito”…or, little Scott.

The tico culture is a delightful one. There are, however, aspects of it that drive hard-driving gringos, who come from a culture enslaved to the time-clock (since time is money, right?), nuts. The tico culture is one that is never, ever, in a hurry to do anything!

For that and other reasons, gringo expats tend to congregate in enclaves. The closest beach to my home, Playa Dominical, is a great example. There seems to be more gringos down there than ticos. This creates what I refer to as a bubble culture. The gringos seem to occupy a culture of there own that’s somewhat separate and apart from Costa Rica.

For some, that’s a good thing. For others, not so much. It all depends on you and what you want. If you want to immerse yourself in real Costa Rican culture, then I would suggest not opting for a “gringo enclave.” On the other hand, if you’d prefer to be surrounded by people and a culture more familiar to the one you left, then perhaps a gringo enclave would be perfect for you.

Of course, language plays an important role in this decision. How motivated are you to learn the local language, spanish? If the answer is not much, you might be more comfortable surrounded by english speakers. On the other hand, if you really want to learn spanish and be able to communicate with ticos on their level, then immersing yourself in their culture is a very good way to accomplish that.

This can be an important element in making sure your new life in Costa Rica is as enjoyable as you might be envisioning.

3. Convenience

Costa Rica basically has one “huge” city and, apart from that, smaller towns. The huge city is the San Jose metropolitan area, also know as the Gran Area Metropolitana, or GAM. It’s actually the hub of 4 provinces. The main cities of each province are situated so close together that seems like it’s all one huge city in which almost half the entire population of the country lives. So, if you want to escape big city life, then you probably don’t want to live inside the GAM.

On the other hand, if the conveniences of a big city, such as huge shopping malls, American style big-box stores, excellent medical care, the best possible communications infrastructure, etc., are very important to you, then the GAM might be exactly where you need to be.

Like I said, outside of the GAM, you will find mostly small towns and tiny pueblos. There are a few secondary cities of notable size where you can find most conveniences of life in civilization. A couple noteworthy ones are Ciudad Quesada near the Arenal Volcano area and, in the southern Zone, San Isidro de El General.

San Isidro is where I live, so it’s somewhat near and dear to my heart. It is larger enough to have a lot of the conveniences that one would find in the GAM, even a mall with a cinema, but it still retains a small town feel. It’s also surrounded by incredible natural wonders, including Chirripo, Costa Rica’s tallest peak, and it is less than an hour’s drive to the coast.

In terms of convenience, you can opt for the GAM, you could go with one of Costa Rica’s secondary “cities”, such as San Isidro, or you can really live “out there.” Being out there means you better be prepared to live with inconvenience, meaning you need to be the kind of person who can be self-sustaining. Some are looking for exactly that style of expat life and that’s great.

But it’s best to know what you’re getting yourself into as you choose the optimum setting for your new life in Costa Rica.

4. Context

The word context means the circumstances that form the setting for an event. For purposes of this blog post, that “event” is your life.

It’s important that you take into account the overall context for your expat life in Costa Rica. And that depends a lot on the type of person you are, or would like to become…

Are you a rugged mountain person, a bohemian beach-going type, or a city dweller?

Can you catch my drift?

Being happy in Costa Rica means first stepping back and really doing some vision casting. What do you want the picture of your life in Costa Rica to look like? Due to the great diversity that exists here, there are many different forms that picture can take.

I hope that the 4 C’s of Costa Rica Expat Living offers a useful framework for evaluating the type of life you want to live in Costa Rica.

A good place to start in making this evaluation is to take one of my Costa Rica Expat Tours.

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