Why Investing in Costa Rica Makes SenseFrom the Desk of Michael Simons Broker/Owner RE/MAX Tres Amigos – Playa Hermosa Broker/Owner RE/MAX Prestige Ocean Properties – Playa Panama Broker/Owner RE/MAX Ocean Village – Playas del Coco People ask me all the time “Why Invest in Costa Rica?” and I say – Why Not? Got a better idea?
You don’t want to put your money in a bank where you get no return. The Stock market is way too risky. What about US real estate? Forget it. It’s going to take a decade to turn around.
But Costa Rica, on the other hand, has everything an investor wants:
A stable democratic country
Very little crime
Low carrying costs
And most importantly – They welcome foreigners
People ask me all the time “Why live in Costa Rica?” and I say Why not? Tell me where else?
You can’t live in the Caribbean, too many hurricanes and high cost of living. Most people can’t afford Hawaii. Mexico and the other Central American countries are way too dangerous. And who wants to stay in the USA?
With the taxes as high as they are, and about to get higher, forget it – You can’t afford to retire. Not to mention the cost of living, insurance, crime – you get the picture.
But Costa Rica is perfect!
The weather is spectacular 365 days a year. The people are wonderful. The cost of living is half of the USA. It’s close enough that you can go home in a blink of an eye. You get very good medical insurance and your carrying costs are next to nothing. Pura Vida as they say.
Now – If you’re going to invest or live in Costa Rica there is only ONE place to even consider – Guanacaste and the Papagayo Bay.
Why? Follow the Investment dollars. I tell most of my clients that investing in Costa Rica is not like investing in the States or Canada. You can’t just buy anywhere. You have to pick your spots.
The government of Costa Rica, compared to other Central American countries, is very well off. But they do not have an unlimited supply of money. So when they decide to focus on an area, like they have here in Guanacaste, they are going to make sure it succeeds. They can’t afford to make a mistake, because they can’t afford to throw money away. The government has decided that this is where a lot of their investment dollars will be going over the next 10 years. They have sunk millions into upgrading the infrastructure: roads, municipal water, telephone, internet and cable and satellite TV.
The Government has also supported hundreds of projects from golf courses to resort hotels to marinas and have even expanded the airport to handle all of the incoming traffic.
The private sector has followed suit with two new private Hospitals opening recently – The Hospital CIMA Guanacaste next to the Papagayo Do It Center just 15 minutes from the beach and Hospital San Rafael Arcangel in the center of Liberia, just 35 minutes from the beach areas.
Putting your money into the Papagayo area is about as safe of an investment as you can get. With everything that is happening we will see record returns on our money in just a few years, in my opinion. What I am seeing is that due to the resurgence of the stock market back home and the confidence in our future economy and real estate market in the US, more and more people are moving their money to offshore investments such as real estate here in Costa Rica. And with the downturn in the Canadian dollar and economy, more and more of our friends from the Great White North are looking for safer, more consistent investment. We have been seeing consistent returns of about 8% per year for the last 5 years and expect it to continue. In the last 2-3 years the market has been steadily growing and showing signs of making another significant break upwards making this one of the hottest investments going. We expect to see this same kind of growth over the next 5 years as hundreds of millions of dollars continues to be invested in our area. There’s never been a better time for investing in Costa Rica.
As the sign says above the border crossing
WELCOME TO COSTA RICA!