a real estate success story from Costa Rica

I was talking with an American who now lives in Costa Rica. He came here about ten year ago, and has done extremely well. He knew the country before he came, and had researched Central America. He invested a lot in the Quepos area, on the pacific coast. He bought one piece of land just outside Manuel Antonio National Park, about 7 km from Quepos, whichnis the most popular, though smallest, national park in the country. He built a very high standard residence there - which now lets out at $US8k PW (possibly just in season, but the tourist season is long). He has it for sale at $US1.8M. The lot cost him $150,000; I don't know how much it cost to build.

Despite his success in Costa Rica, he suggests that Panama is a better place to live. Costa Rica has very high import duties - 40% - which Panama does not have. He says it is cheaper to buy there, and cheaper to live.

He couldn't believe the prices of real estate in Australia.

As an example of what's available, he told me about a farm lot for sale in the community he lives. It's about 15m from Quepos, up in the hills a little. About 10 years ago, a consortium bought a horse farm and subdivided it. He has a house on one of those lots. It was divided into eight lots of about 6000m? each. The whole area is fenced and gated. There's a place for sale there. It's an octagonal place, two storeys, with windows all around to take advantage of the 360? views. He guesses the living area is about 90m? each floor, plus decks. It was built about 8 years ago, but the owner has barely lived there - the GFC hit her hard. It needs some maintenance due to the owner's absence. It's fully air conditioned. There are full time workers to maintain the property - the owner wouldn't even need a lawn mower.

The owner is asking $US320k, but would probably accept $280k if there was no agent. It would probably come fully furnished. It costs about $4.5k pa for maintenance, security etc.
 
Geoff, I know someone who came to Australia with his parents when he was a boy. They came from Argentina. About ten years ago he went back there and purchased a house at a ski resort and another house near Buenos Aires for next to nothing.
 
Geoff, I know someone who came to Australia with his parents when he was a boy. They came from Argentina. About ten years ago he went back there and purchased a house at a ski resort and another house near Buenos Aires for next to nothing.

There is exceptional value to be had in Argentina. The problem lies in the fact that the country is a serial defaulter. Sure you will get great value in Argentina, which is fine if you live there. Problems only arise if you plan to repatriate your funds. I saw a lovely vineyard with house for sale in Mendoza (the wine growing area). A few acres for just US$50,000. A great retirement option for those who speak Spanish and have foreign currency income.
 
Be careful about generalising. What happens in Costa Rica may be quite different from what happens thousands of kilometres away in Argentina.

In just two adjacent countries - Panama has actively gone after the expat retiree market, offering easy options for people with an independent income to retire. Residence in Costa Rica, although not that difficult, is not as easy. CR imposes an import tax of about 40% on everything; Panama, with the income from the canal, does not need this. Also people over 60 in Panama get all sorts of discounts. I'll be able to check more soon, I'll be there tomorrow.

BTW, Nicaragua has announced a programming to build a canal to rival Panama's.
 
Be careful about generalising. What happens in Costa Rica may be quite different from what happens thousands of kilometres away in Argentina.

In just two adjacent countries - Panama has actively gone after the expat retiree market, offering easy options for people with an independent income to retire. Residence in Costa Rica, although not that difficult, is not as easy. CR imposes an import tax of about 40% on everything; Panama, with the income from the canal, does not need this. Also people over 60 in Panama get all sorts of discounts. I'll be able to check more soon, I'll be there tomorrow.

BTW, Nicaragua has announced a programming to build a canal to rival Panama's.

A lovely part of the world, to be sure. A fine and very affordable destination for US retirees. But I'd be wary of putting large amounts of money into any of these countries, Chile being the only exception. Most of these places are perfectly happy to allow foreign ownership. But when its time to repatriate your money, that's when problems arise.

I am not sure what estate taxes apply if one dies and leaves one's property to one's children. Something to think about.

Didn't Panama nationalize foreigner owned bank accounts post Noriega? It wasn't all that long ago. Scary.
 
A lovely part of the world, to be sure. A fine and very affordable destination for US retirees. But I'd be wary of putting large amounts of money into any of these countries, Chile being the only exception. Most of these places are perfectly happy to allow foreign ownership. But when its time to repatriate your money, that's when problems arise.

I am not sure what estate taxes apply if one dies and leaves one's property to one's children. Something to think about.

Didn't Panama nationalize foreigner owned bank accounts post Noriega? It wasn't all that long ago. Scary.

No estate taxes.

Repatriation of money is not a problem, especially if done through a corporation.

If we're looking at recent history, Chile has a more scary history than many.
 
No estate taxes.

Repatriation of money is not a problem, especially if done through a corporation.

If we're looking at recent history, Chile has a more scary history than many.

I defer to your wisdom. Unlike you, I've never even been to South America. You, on the other hand, are married to the place in more ways than one. Full marks for taking the time to learn Spanish BTW.
 
I'm currently in Central America - I haven't been to South America yet. I will be in Medellin in Colombia for a few days, my only excursion into South America.

I mention Panama only because I know a little more about it. Guatemala is probably cheaper, but I'd have trouble living there. I loved Monteverde in Costa Rica, it's a beautiful place. I've only just arrived in Panama today, so haven't seen too much yet. ATM I'm sitting in a porch in Boquete, up in the hills, with a view of the ocean in the distance to the left, rainforest in the canyon ahead, and a long dormant volcano on the right. The owners retired from the US quite a number of years earlier than they would have at home. Living costs are very low, medical care is top standard (they can call a specialist on his mobile direct to arrange an appointment), medical insurance is cheap ($us55 pcm per person plus $200pa cancer rider), but even without cover a GP visit costs $10. Being a higher altitude they don't require air con so costs are low.

That's not to say other places aren't worth while. I just don't have the time this visit to go to other places in South America other than Medellin in Colombia. I've hears a number of other countries mentioned as good retirement destinations. Not all of them are in the Americas. I'm not putting Chile down. I just don't k ow much about it.
 
I'm currently in Central America - I haven't been to South America yet. I will be in Medellin in Colombia for a few days, my only excursion into South America.

I mention Panama only because I know a little more about it. Guatemala is probably cheaper, but I'd have trouble living there. I loved Monteverde in Costa Rica, it's a beautiful place. I've only just arrived in Panama today, so haven't seen too much yet. ATM I'm sitting in a porch in Boquete, up in the hills, with a view of the ocean in the distance to the left, rainforest in the canyon ahead, and a long dormant volcano on the right. The owners retired from the US quite a number of years earlier than they would have at home. Living costs are very low, medical care is top standard (they can call a specialist on his mobile direct to arrange an appointment), medical insurance is cheap ($us55 pcm per person plus $200pa cancer rider), but even without cover a GP visit costs $10. Being a higher altitude they don't require air con so costs are low.

That's not to say other places aren't worth while. I just don't have the time this visit to go to other places in South America other than Medellin in Colombia. I've hears a number of other countries mentioned as good retirement destinations. Not all of them are in the Americas. I'm not putting Chile down. I just don't k ow much about it.
 
Some South American countries have done scary things to property owners, the Venezuelan government in particular confiscated tens of thousands of properties not long ago to give to their supporters. Friend of mine regularly goes there (his wife is Venezuelan), the stories are incredible. If you had a property within 150 meters of the coast.. poof.. the government took it. And if you had a spare bedroom in your house you were forced to make it available for social housing (unless you?re a government supporter....). Chavez was a nightmare.
 
Venezuala is not a good place to even visit. Chavez's sucessor is no better. He claimed that Chavez intervened with God to get a Latin American pope.

Politics is a concern. Most countries are stable now. But most have had a history. Guatemala, Nicaragua, Panama, El Salvador, Peru, Colombia, Chile...

Nothing is guaranteed
 
Some South American countries have done scary things to property owners, the Venezuelan government in particular confiscated tens of thousands of properties not long ago to give to their supporters. Friend of mine regularly goes there (his wife is Venezuelan), the stories are incredible. If you had a property within 150 meters of the coast.. poof.. the government took it. And if you had a spare bedroom in your house you were forced to make it available for social housing (unless you?re a government supporter....). Chavez was a nightmare.

Fairly par for the course for a tinpot socialist country.
 
Funny enough my wife an I invested in a property in Atofagusta in Chile. We paid AUD 7000 for the property 5 years ago, we sold it two years ago for 100K AUD it took almost a year to settle.
 
Funny enough my wife an I invested in a property in Atofagusta in Chile. We paid AUD 7000 for the property 5 years ago, we sold it two years ago for 100K AUD it took almost a year to settle.

:eek:

Any more of these?:cool:

I also know some friends they bought properties in Hong Kong during SARS and they made a fortune now...........
 
Funny enough my wife an I invested in a property in Atofagusta in Chile. We paid AUD 7000 for the property 5 years ago, we sold it two years ago for 100K AUD it took almost a year to settle.

That's very interesting. Could you tell us any more about the property? House? Did you do anything to the property? Any reason why the property skyrocketed so much?
 
Funny enough my wife an I invested in a property in Atofagusta in Chile. We paid AUD 7000 for the property 5 years ago, we sold it two years ago for 100K AUD it took almost a year to settle.

Good work! Love to hear stories like yours.

You chose well. Chile is no tinpot dictatorship. Both right and left sides of politics are pretty committed to property ownership and have gone out of their way to attract foreign investment.

Contrast that to Nicaragua, where (despite his recent turnaround) Comrade Ortega has proven himself to be a nutter. The funny thing is that in the 80s, when he was nationalizing assets and crushing dissent he still found time and money to buy a $300 set of designer spectacle frames. Still, Nicaragua's fortunes could rise exponentially if the plan for a second transoceanic canal comes to fruition. The Panamanians have everry reason to be scared. Serves them right for jacking up ship transit rates to extortionate levels.
 
My partner and I almost had a holiday brain melt whist in Uruguay ,

We commited to buy a block of land in Punta Del Diablo near the border with brazil, water views about 5 blocks back from the beach 700m2 for 35Kusd

I still think about it today, thinking i wish we went through with it, and then on the flip side thinking im glad we didn't becuase the 35k Got us into our current project.

Would love to know what prices are like now, but my spanish is not good enough to toll the realestate sites.

But as far as stability goes, when i was doing my research uruaguay was one of the more stable countries int he region. I heard the comparison "The Switzerland of south america" Many times!
 
I think prices in Australia shock many people, and still rising in some States.

I guess there are opportunities everywhere but it comes down to research and whether you are prepared to take the risk. I would love to buy a cheap cheap holiday home in France or Italy but have heard horror stories.

Also on the subject of cheap o/seas properties it was only 3 years ago that you could buy foreclosures in USA for $30K, those properties are now almost back to 2007 prices of $130K, then we have the Aussie dollar slip sliding.

MTR:)
 
Cartagena

Cuba seems to be opening up ;)

Loved reading re Costa Rica - definitely interesting. Visited a g/f in Cartagena who was learning Spanish - gorgeous town - nearly sank a lot of $$ into a condo there but again, as someone else mentioned - tough navigating/negotiating foreign languages & processes.
 
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