Living in Costa Rica Archives - Costa Rica Expat Tours

It’s still a “buyer’s market” down here in my beloved Southern Zone of Costa Rica, but who knows how long that will last. We are seeing more and more people ready to make that expat exit to Costa Rica and away from life in the politically-charged rat-race up north. We like to call it the “Trump effect.” Like him or not, he is shaking things up and his name is often mentioned when we ask clients about motivation.

I noticed an article in the Tico Times this past week about the Costa Rican colon to U.S. dollar exchange rate recently reaching a 7-year high (of around 580 colones per dollar). That means dollars are going further in Costa Rica these days than ever before.

Now that doesn’t bode well for the economy of Costa Rica in general, as costs for local folks could eventually rise as a result. However, it can be a good thing for U.S. expats and vacationers looking to stretch the value of their dollars in Costa Rica.

How about for Costa Rica real estate prices? Well, prices are on the move, simply as the result of higher demand. Good deals are still out there, don’t get me wrong. Supply still is high, especially here in the southern zone. Just drive around an you will notice “for sale” or “se vende” signs on every other home or lot. It almost seems as if everything is for sale…and I guess for the right price, it is! But inventory levels in high demand spots, like the popular beach community of Ojochal, are thinning. I have noticed homes getting sold only to later reappear on the market at dramatically higher prices. If people start “flipping” properties in that manner, that’s a sure sign that prices are going up…and how! Especially in the southern zone, growth is underway and that will likely put upward pressure on prices.

In Costa Rica virtually all real estate, especially of the sort that appeals to expats, is priced in dollars. So the change in the colon to dollar exchange rate really won’t have an effect. The prices are going up due to increasing demand, pure and simple, and that trend is likely to continue as noted above.

However, it does effect most every other aspect of the expat’s existence. Many expats are living off their U.S. dollars, flowing down from pensions, retirement accounts, investments back home (like rental properties), or businesses that get paid in dollars. With the colon depreciating, or losing value, against the dollar, those funds will buy more in Costa Rica, again, pure and simple.

It’s called math. $1,000 dollars at an exchange rate of 550 will buy 550,000 worth of goods priced in local currency. If the exchange rate jumps to 580, then all a sudden your $1,000 will buy 580,000 worth of goods. Your dollars just gained an additional 30,000 colones worth of buying power. That will buy you quite a few extra Imperials!

The current outlook thus provides two compelling reasons to make your own expat exit to Costa Rica, now rather than later. First, property prices are rising and that trend is likely to accelerate due to the “Trump effect”, as well as property inventory depletion in high demand areas. Second, the price of living in Costa Rica, while not the cheapest of Latin American, is still comparatively good for those who learn how to live (and buy) like the locals. And if you’re relying on dollars to pay your day-to-day living expenses, the burgeoning value of those dollars can make things even better for you!

So, what are you waiting for? Now is perhaps the best time ever for that expat exit to Costa Rica.

And I am here to help!

I have written before about my view that “American-style” consumerism is at the root of many problems the world faces.

Often I have contrasted that high consumption lifestyle with what prevails here in Costa Rica. Comparatively speaking, Costa Rica lifestyle is marked by low consumption, although the influx of North Americans in the last decade threatens to change all that.

Fortunately, many of the expats who settle in Costa Rica do so to escape the high consumption “rat-race” that prevails up north.

Granted, low consumption isn’t for everybody. I understand that. But I could imagine that if enough people lived this way, the earth might be a better place, or at least we’d have a more sustainable planet that might remain an enjoyable place for foreseeable generations.

What exactly am I getting at with this idea of a Costa Rica lifestyle of low consumption?

Let me provide some examples. As always, there are exceptions! But exceptions don’t make the rules.

Costa Ricans don’t, for the most part, use appliances, such as dishwashers and clothes dryers, that consume inordinate amounts of electricity.

They often use “suicide showers”, which heat the water nicely at the shower head, rather than energy wasting hot water heaters. These can be frightening experiences for first-time users.

In the higher altitudes of Costa Rica, like the Central Valley, no one uses air condition, nor heat.

Down on the coast that may be a different story, at least for a/c. But not really if you live high enough to cool things down a bit with an ocean breeze, as well as a spectacular view. Yes, there are places where you can “have your cake and eat it too” in Costa Rica!

In Costa Rica, we grow our own fruit, or it could just be growing wild on its own, right in your backyard. We don’t need to buy our fruit and produce from industrialized farms that are depleting the soil and poisoning it, and us, with pesticides.

We often buy our veggies from local farmer’s markets, like the one pictured above in my hometown of San Isidro de El General. Again, food here is usually grown locally rather than by industrialized farms located far away, who then have to ship the food to a grocer near you. There has been a recent push for organic or hydroponic home gardening and many, including yours truly, are growing our own food in this manner.

In Costa Rica we get the vast majority of our energy from renewable sources, like wind, water and solar.

In Costa Rica we generally buy used cars and then drive them to the last kilometer. This is in large part due to the ridiculously high cost of new imports, but it helps keep our consumption rate low compared to other “more developed” societies where consumers buy new cars every few years. Being a mechanic is a very honorable and in-demand “profession” in Costa Rica as a result.

In Costa Rica we protect the environment because we realize it’s the main reason we get up every morning with a smile on our faces. Not to mention the dollars it brings from others who like to visit frequently and enjoy a similar experience.

I could go on, but you probably already catch my drift.

Now, mind you, those living in places like Duluth or Detroit can’t do some of these climate dependent low consumption things and probably wouldn’t even want to.

That’s fine, since part and parcel of a low-consumption, earth-friendly, attitude of life, is maintaining a non-judgmental mindset towards others.

But for those of you who are intrigued by this Costa Rica lifestyle of low consumption, come on down, the water is very very nice!

Take the Expat Tour and see for yourself.

A Great Time to Make Your Expat Exit to Costa Rica

Costa Rica Lifestyle of Low Consumption

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