Buying vacation property near Uvita

Can't help with the Uvita question, but the new rules regarding the residency issue means that the required amount has decreased. However, questions still remains  but it may help you.

Thank you for the link. I wasn't aware they had dropped the minimum investment to $150k.

Klordson40.........October is the best time to check out properties.You will be able to witness how Costa Rica can transform itself into the rainiest place on earth ! The path of water and mud will reveal itself easily,on any property/home with drainage issues. As for making passive income,keep on punching the numbers to see if it is even worth it,management fees,paying taxes to Hacienda on the rent and repairs.The other financial anchor that people do to themselves is,putting their assets in a corporation, asorbing more fees and to dissolve it later,it is costly.If you have money to get rid of or throw,I can't of a better place to do it than in our Costa Rica !

I have read that September- October is the best months because of the rain and hadn't thought of looking for drainage issues during that time.

I looked into creating an LLC in Costa Rica but the cost of doing so didn't seem justified. I also read that owning property through a corporation can prevent you from applying for a visa with that investment.

I plan to continue doing as much research as possible before October to ensure that I make the best decision possible. Thank you for your the info @edwinemora! You have given me even more optimism that this is a good investment decision.

Yes it's now now to $150k for inventor Residency
I start building homes here with my Tica fiancée
We are getting into the rental side building apartments
We work mostly in San Jose area where the professionals Ticos work so house and apartment go quickly

Few pointers Rents are very low so if you are looking to make big money on rental properties like in the states This at the place
Rents range from. $400 to 1200 a month. Areas like Escazu they can range from $1000 to $5000

Here you will make a few shekels on your rental income after all your expenses and don't forget these nutty HOE fees a lot of development have

One more thing if you decide to bail on your CR dream, selling your home will be a lengthy experience for you especially if you are outside the city area and priced in at over $200k.  Once over $200k you need to market to over Expat wanting to try the CR dream

These are my opinions from my 2 years of being here in this cool place
The comments above by other are very true Rain and Flooding is a way of life here

I came back last night from NYC and the airport was getting hit with insane rain. My plane did a little slip and slide

Good luck All

Thank you very much for your reply and recent experience with real estate investment in CR. We are mostly focused on vacation rentals in areas where we could charge higher nightly/ monthly rents. I know that property management and other fees can wipe out a lot of the profits too.

We plan to move to CR once we have our finances sorted out here in the states. My girlfriend will be working remotely and that will make our transition easier as well as having the ability to come and go when needed to keep up with maintenance of the property.

Our budget for our first property is under $200k so we shouldn't have the issues you mentioned of trying to resell if things didn't work. We are very committed people and I think, given the right mindset and determination, we can make our dream work.

Another expense to add to your list and are under 55, is that your mandatory affiliation with CAJA, the socialized health system could cost you $450  per month...whether you use it or not. In fact many expats also purchase private heath insurance, as the list for specialists can take a very long time...

Realize too, that there are lots of vacation rentals at the many beaches in the country, that sit empty year round.

I only need to sign up for the CAJA when applying for a visa and not just to purchase property, correct? As for the empty vacation rentals, I would assume that's only in certain areas of the country where demand is lower than the current supply. The Uvita area seems to have really low supply but a fairly high demand and I believe that the demand will only increase there. As opposed to Guanacaste where there is a surplus of property and the selling prices are higher compared to other parts of the country. I feel optimistic that Costa Ballena will be one of the top areas for tourists to visit in the coming years. I would be interested to hear more of your thoughts and anyone else who has current experience in CR.

Klordson40......Correct,caja only for residency.Uvita and Ojochal are the most sought after places in the world right now ! Anything under 200k will be encumbered with something very serious.If anything,I hope you have your own independent attorney that comes from the very utmost referral,definitely NOT from who you are going to buy from.

Yes, once you have legal residency, you must become affiliated with CAJA. So when becoming either a Rentista or Investor you will be required to do this, however if you just purchase a property, you won't. Nor will you benefit from these new rules
As you read the info on the link I previously posted, there is many questions on how the government are going to accomplish this.
I lived in CR for over 18 years, until 2 years ago and as another poster mentioned, buying a property is easy... selling can be a nightmare.
I would advise any/everyone to rent first and see if your chosen area fulfills your requirements before purchasing both land or property.
It is often said on the many forums, between 50-60% of those moving to CR, return to their previous homeland within 3-5 years.

It has been very difficult finding anything under $200k in that area, but we have found a couple potential options in that area we would like to look at in person. Do you feel that an attorney is still needed if buying through a real estate agency? Dominical Real Estate and Remax We sell paradise are 2 of the companies I have found properties with.

K-40....it is imperative to have your own legal consul ! A good real estate company are the same ones that guided buyers to "Kiana Resorts",in Dominical a few years ago,it was lose-lose,when the new mayor in town came and shut it down,it was a sold out project.Do you know the different ownership structures of owning real estate in Costa Rica ? A lot of people buy into a "corporate share subdivision"and all they own is pillow feathers.

I have read some bad stories about shady agents and people who try to sell property they don't own. Is there a trusted real estate attorney in CR you would recommend that won't break the bank?

It is imperative that you have someone in or very close to your property at all times when you or the property manager isn't there, to prevent theft, unless you decide to purchase a condo, which may be a little safer. Of course, this is another expense. Also check how humid it is there, as electricity tends to cost a lot more when it is near the beach and AC is used extensively....especially when rented by tourists.

And yes, it is very important to use your own lawyer.

K-40......Everyone is touting "Outliers",they have a good track record but not cheap.A good attorney

should be your first priority !

I have contacted Outlier to get an estimate of cost and documentation that would be required.

I would be owning under my personal name to start and not under any corporate structure to prevent issues with visa application later on.

klordson40 wrote:

It has been very difficult finding anything under $200k in that area, but we have found a couple potential options in that area we would like to look at in person. Do you feel that an attorney is still needed if buying through a real estate agency? Dominical Real Estate and Remax We sell paradise are 2 of the companies I have found properties with.

Absolutely ALWAYS get your OWN attorney. Do not use the seller's attorney for buying real estate! Why? Because there is always a tendency for the attorney working for the seller to want to approve the sale, regardless of what problems might exist.

I had the seller's attorney flat out LIE to me when I was buying a property. Told me the property was free and clear of encumbrances or problems. I wanted to make sure so hired my own attorney , then found out it was indeed NOT free and clear.

As for renting properties here in Costa Rica, you may or may not make money at that, but if you do, the USA has requirements that you pay them their piece of the pie in taxes, and you have to file tax forms every year, you have to file financial statements every year for all CR bank accounts , especially any that hold over $10k at any time during the year. Not doing so is a serious crime with potentially huge fines. You'll need an accountant and/or attorney to file all that stuff for you.

You also have to file papers with Costa Rica quarterly , also for any business, I do believe. (Check on this with an expert but pretty sure that is the case.)

Costa Rica is a country that loves bureaucracy if you own a business.

Not trying to scare you or anyone else away. Certainly people do it here and some make a lot of money. But just go into it with eyes wide open.

If I were you I'd come down here to live for at least 6 months during rainy season and find people who do own businesses and talk to them about all the hassles and benefits. You may want to talk to people in an area different than you plan to do business in because those near where you want to put your business may want to discourage you from being competition...?

There are a lot of youtube videos on this as well and some are from very negative people so take that into account. There is one series of videos about Costa Rica businesses which are informative but the 2 guys who do them are super negative. Too negative in my view. But they do make some good points along the way.

As for attorneys here they may try to encourage you to start a business here, so they have a business client... so watch out for that as well. Do lots of research and take it all with a grain of salt. Remember that people can have ulterior motives, whether Tico or gringo . And it's just as if not more likely for a gringo to cheat you here, as a Tico.

I had a Canadian here trying to pull a fast one on me and luckily I figured it out and used someone else to build my house.

klordson40 wrote:

I have read some bad stories about shady agents and people who try to sell property they don't own. Is there a trusted real estate attorney in CR you would recommend that won't break the bank?

There are shady real estate agents because there are NO certified real estate agents - they are just people who sell property. I could be a "real estate agent" tomorrow if I wanted to.

That said, there are honest ones. And there are dishonest ones.
This is why you need a real estate attorney of you own. They will check any property and make sure it is properly titled and without liens etc., help handle the money.

Make sure you have access to electricity, water, and access to get to your property.

As for air conditioning the Uvita area is very humid. I had a client who wanted to look at my property here in San Ramon because it is less humid than Uvita or that area above Uvita. And I thought WOW, it's humid here so it must REALLY be humid there. All of Costa Rica is humid except maybe up north in Guanacaste; not sure about there.

A huge factor in running a.c. is whether or not the structure is well sealed. If it is not, it'll cost a fortune to keep it cool and dry. Having a lot of insulation above the ceiling helps too.

As for residency Outlier is very good or at least were for us. As to other things like owning a business, I don't know but I'd guess they probably are okay.

Samramon, Thank you for the informative response. I have been very leery of the entire buying process since I began doing research because of all the negative reviews I've heard of others buying homes in CR. Do you have a recommendation for an attorney? I have a consultation with Outlier but do feel they might be a bit expensive for me.

Our main purpose of buying a property in CR is to eventually apply for the investment visa and have a potential home for the future. We are very concerned about the future of living in the US and have no intentions of retiring here so it only makes sense to start the transition before that time comes.

Klord40......Samramon,Just gave you a beautiful piece of honest and factual information.Do not come to Costa Rica if you are on a budget....A lot of these clowns on these other sites are just going gush-cake it for you.

klordson40 wrote:

Samramon, Thank you for the informative response. I have been very leery of the entire buying process since I began doing research because of all the negative reviews I've heard of others buying homes in CR. Do you have a recommendation for an attorney? I have a consultation with Outlier but do feel they might be a bit expensive for me.

Our main purpose of buying a property in CR is to eventually apply for the investment visa and have a potential home for the future. We are very concerned about the future of living in the US and have no intentions of retiring here so it only makes sense to start the transition before that time comes.

The buying process isn't that bad; if you want to be sure have the property checked by TWO attorneys. Like I did when the 2nd one caught the first one's lies. But if you get a good recommendation 1 should be sufficient.
My attorney speaks Spanish only and is here in San Ramon.

You probably want to get an attorney in the Uvita area. There are lots of gringos there so you should be able to get a good recommendation. Try to find a Facebook group for that area to get to know people who live there. San Isidro de El General is the closest city there. Should be able to find a good attorney there. Try to find someone with at least 3 recommendations from other gringos/Ticos but who is not friends with your realtor.

I've always heard it's good to get a LOCAL attorney, and that makes sense because usually your real estate attorney can also do other things like serve as notary for documents you may need along the way, and so on. So a local one is good to have. Even like with residency every year you have to get a document for your wife, that an attorney can do. You may have to fill out tax forms or get a lost car registration or do a contract for buying or selling a car, etc etc. Good to have a local attorney.
Also in my experience getting a San Jose attorney costs a lot more. (But maybe not always...)

Do expect to pay more for any services in English (attorneys, doctors, taxis, dentists, etc). If you don't know Spanish, start learning.

Make sure you'll have water because I recall hearing that in the area below San Isidro some properties were having trouble getting water for new properties. That was years ago so maybe they've resolved it. Just double check with locals and attorney etc.

It's not too hard to check properties yourself online to see if they have liens etc, but if you speak no Spanish that may be a problem. It can be done in a few minutes once you learn how. For the most part that's all the attorneys do - they go online and check the Registro to see if it has liens, is properly titled, who it's titled to and so on. There used to be a youtube video on how to do it. Not sure if it still exists or has been updated...

Here is another thing,but you probably know this already because it is a fact.No one is going to tell you about the escalating crime in that whole region you are looking in,why botch the rising property values.The police here don't care ,much of the crime goes unreported and you don't want the police in your home.

I actually haven't heard much about the crime rate in that area but I didn't that every home for sale had bars around every window and door. Do you think that the crime is worse near Uvita than the Caribbean side? We spent some time there and loved it but we read a lot about the crime there before we went. I know every place has its problems but that could push us closer to San Isidro or another city neaby if the crime is increasingly worse in Uvita.

klordson40 wrote:

I actually haven't heard much about the crime rate in that area but I didn't that every home for sale had bars around every window and door. Do you think that the crime is worse near Uvita than the Caribbean side? We spent some time there and loved it but we read a lot about the crime there before we went. I know every place has its problems but that could push us closer to San Isidro or another city neaby if the crime is increasingly worse in Uvita.

Wherever you buy or rent, ask the neighbors in the general area about when was the last time they heard of a break-in, in the immediate area.

Here where I live, west of San Ramon, for example the last break-in was about 7 years ago, a year before I came here to live.

Ask your neighbors, "What were the circumstances?"

Here: The owner broken into was a Tico with a milk business. He was single and everyone knew he was single and he went out to work with cows on another property every morning and didn't return home for hours.
So it was easy for anyone in the area to target him. Also being a milk-business guy he was perceived to be rich enough to have expensive things in his home.

The other guy, also around that same time, who was targeted, also lived alone, worked every day, and lived right on the main road. Living on the main road means everyone who lives around there can see if your car is home, if you're around, and knows when you are not home.

These are risk factors.

My place on the other hand, is off the main road, not visible from the main road. Anyone who knows me (and I keep a low profile) knows I am retired and seldom leave my home and when I do, I have someone watching over it.
Also I have video cameras and signs posted saying I have video cameras and signs posted "Beware of Dog". And a  gate that is always locked. unless someone I know is coming.

None of these factors (cameras, dog, gate) stop anyone if they really want to get in. Locks can be easily broken, dogs can be killed, police pay little attention to camera evidence.

BUT a combination of all these factors - especially not being visible from the street, and - I didn't mention - a small humble home, not a huge luxurious gringo-ish one - make a difference in how much you are a target. Not sure it helps but I also contribute to the community whenever they need money for some improvement. I'm on social security and "everyone knows that" so my contribution is appreciated. Being a rich gringo who brags about how rich they are (there is one here like that) is a dumb move. On the other hand everyone knows the truth, that I am on a small pension. Also I have a very good friend I made here, who everyone knows is my friend and he does work for me and I treat him right.

I feel that having cameras and a locked gate, house not visible from the road or the gate - are very positive factors, as is having people in the community who see me as an upstanding person.

Aside from all that, there just aren't many "bad seed" types who live around here. Mostly working Ticos with families.

It's just my opinion - others may disagree - but my observation is that most crime happens to rich gringos who live in opulent homes, and often around other rich gringos in a gated community. To me gated communities are a "goal" for professional burglars. And often the guards or gardeners give the burglars the inside info on who's not home for a week...

100% petty theft is at a all time here
I am up on a mountain top in Puriscal and we have a motorcycle gang driving up this far robbing home
Now the are stealing the copper from from and internet lines going into the developments and cell towers
Knowing us off line for days and weeks

So yes petty theft is escalating all through COSTA Rica

If you want an HONEST and very good lawyer who lives in San Jose metro area and specializes in Mortgages/Real Estate, contact Fabiola Ruiz.   I can recommend her from personal use.  Her contact info is [email protected].  Her phone is +506-8842-2179.   good luck

Please send me a PM and I can discuss my rental property   -  how I set it up, how it works with the least amount of problems - we have enjoyed good rental income and still been able to use it ourselves during high season.  Uvita - way to hot and humid.  We've had guests who experienced it first hand (told us they could watch mold growing on their clothes).  If you're planning on having rental property in Uvita, you will definately need air conditioning (which is very expensive in Costa Rica).  PM for all my details.

I may have exactly what you're looking for - message me please

To support Klordsman comments, I want to expand on the “crazy HOA fees” that will be over $500/month on higher end projects.   I had such place and paid 730/mo hoa - 10,000 year, plus tourist use LOT electricity so annually electric bill was $5000 so even when I did 70% occupancy or better annually  in higher end there is not annual saturation demand in your market, so your $200 average high season (2-3 months Jan - Mar) can gets 60-80% occupancy will drop to $160 night during average season (Apr - July) that might yield 40-70% occupancy and the Transition season August - December gets lower demand but lower prices of 130-150 can raise occupancy to 30-70% and especially if you offer average $1800-2200/long term monthly rates.  October November see lowest demand periods at about 25% occupancy for me so i push monthly use.  Also my learning curve was to not do many long term months in high season.  Apologize to my. Cañadían friends that love to come get good rate offering to pay elec. They will not use much power due to their culture.  Math loss is obvious unless you rate unit with mindset that if you do nightly it will be about 70-80-% demand/occupancy.   Hope that helps. I would never offer that wen I was learning.   But those are my realistic conservative budgets/planning mind.  You can do better but I was. 35-39k with 15-17k costs.  I sold mine and got cheaper broader market units. Each make about $10k after expenses.   Easier crowd to.     The middle class loves to be here.  The upper crust likes to fuss.

Commenting on my own post is i wasn't finished edits/grammar check. Sorry for crude and non refined numbers syntax. But that was based on Jaco higher end ocean front and only moderate marketing and Airbnb Vrbo listing.  If you work a deal with management group.  I don't think you can get lot more than $20-25k net but let me get out and defer