Are you dreaming about making an investment in Costa Rica real estate but you’re not sure if it’s right for you? This week’s article is a follow-up to last week’s topic of how to make a FI/RE investment strategy work for you in Costa Rica. We want to share with you a number of examples of successful investment strategies that repeatedly succeed in our Costa Ballena region.
Some spend their summers visiting lakes, rivers, and beaches, taking in the late evening summer sunsets, filling their lives with color and joy. They play all day in the cool water, splashing around in their canoes and barbecuing sausages with friends and family. But as autumn approaches in full decay, and the days get shorter, and the months get colder, these summer revelers begin to dream about feeling that warmth again. These are the people who reach out to us, wondering, “Is this my time to finally move to Costa Rica?”
Off the bat, it may not seem like the most practical decision to pick up your life and move to the tropics just for the weather. But what if we could convince you that it’s not as impractical of a choice as it may at first appear. In fact, we have a few recent clients that would suggest otherwise, that investing in Costa Rica has been a great decision for them. They have found ways to turn their warm experiences in the land of pura vida into a savvy investment strategy. Not only does Costa Rica warm their hearts and bodies. It heats up their financial portfolios, too!
We want to respect their privacy while also giving you an inside look into some great examples of success in Costa Rica. We will keep their names and details out but we hope that you find inspiration in their stories and that you make the best choices in pursuit of your best life.
Luxury Rental Investments
One of our Osa Tropical Properties agents, Rebecca Rowntree, had a recent set of luxury home buyers who are a perfect example of an investor couple who caught Costa Rica rental home fever! They purchased a luxury home this year near Uvita, Costa Rica and they are already on the hunt for another one that fits their same criteria. And what criteria is that? Well, they are due to make a rental income for 2019 of over 10% on their investment. With payouts like that, plus being able to enjoy your stunning vacation home any time of year that it’s not booked with renters, it’s no wonder that this investor couple is looking to expand their holdings in the South Pacific. And more young couples from all over the world are choosing Costa Ballena, Costa Rica to maximize their investment dollars.
Simple Home-Stay Portfolios
A 30-something duo of investors, who own a number of single-family rental homes in Texas, thought to expand their portfolio in 2019 with a Costa Rica real estate investment. They found Ojochal and fell in love with an easy, low-budget property that has a main home and pool. They use the home to host vacation renters, who love the location and proximity to the abundant eco-tourism activities in the area. The property also has a one-bedroom cabin, plus a small plunge pool, which the couple enjoys in their quiet corner of the sizable 2-acre jungle property. They enjoy their home-stay guests and the local income flow makes it easier to budget while spending the majority of their year in Ojochal. They still travel back and forth to Texas but mainly work remotely from their tropical garden while colorful butterflies flutter past their laptop screens.
Not only are remote employees happier, but they are prepared to work longer hours, according to a recent Owl Labs study. Remote workers tend to work more hours but also earn higher wages and hold higher positions. By ditching the long drive to and from the office, there is more time for actual work. And the feeling of dread caused by a sterile office environment is easily relaxed when you climb into the hammock on your ocean and garden view terrace during any time of year. There could not be a more perfect place to fill out spreadsheets and write emails, rain or shine.
Osa Tropical Properties’ broker, Kevin Champagne’s recent home buyer has fallen so much in love with Ojochal that it’s tough to believe that he might not have even come here in the first place! As it has been with so many others, Kevin’s client had been looking all over the country for the best Costa Rica real estate investment. He had visited all of the favorite tourism destinations but left Ojochal in the Southern Zone until the very end. But he was so taken with the scenery, community and reasonable prices for real estate that he knew right away that this was the place for him.
Many people assume that they will fall in love with the more popular, more established areas that historically have been the preferred destinations for visitors from around the world. But what many are finding these days is that the stories about too hot, too wet, and too remote are simply not true!
The Costa Ballena actually has a number of communities that are well worth considering. Not only do we have a diversity of established international communities, with specialty shops, designer boutiques and spectacular culinary destinations. We also have some of the most breath-taking landscapes with fantastic weather that is warm and fresh at the same time. Kevin’s client is so taken by this place that he is already looking for investment numbers two and three so that he can share this wonderland with the world.
Successful Small Business Ventures
A good number of hospitality entrepreneurs have decided to extend their high-seasons by moving to the Costa Ballena. And our long-time agent, Marcia Oro, who has lived in Ojochal for 13 years has seen a number of investors find long-term success with their small local businesses. Our well-developed expat communities have less of a low season, especially at a well-run establishment that provides great food and entertainment all year long.
We have a great culinary tradition in the Costa Ballena that attracts the best chefs from Costa Rica and around the world. Many want to try their hand at serving our gregarious international expats who love to go out for good food with great friends. The longest-standing establishments will typically have consistent ownership and staff because they care about hosting their friends and neighbors and want to attract repeat business. Visitors to our region will often remark about how many quality establishments there are in our small region, which is one of the main reasons why people visit again and again.
Many entrepreneurs who decide to move to Costa Rica will buy a home or property to qualify for residency. By investing in $200,000 USD worth of assets like a home, car, or business, they can apply for residency in Costa Rica. This legally allows investors to manage their own business in this country. The most successful entrepreneurs in our community have started businesses in property management, real estate and home inspection, and as builders, hairstylists, yoga teachers, spa owners, and more. Service and hand-made goods seem to be the businesses of choice in our communities of grateful expats who want to share their gifts.
This next investor is finding so much success with their storage business that it’s a shame that he wants to sell. Perhaps a little less on the sexy side, it may not be the first thing on your mind when you think of opening a business in Costa Rica. But with the number of expats moving into our region, it’s not a big wonder why there is a years’-long waiting list to move into these long-term storage units. Those who are building homes will often already have transported their household goods from their country of origin. And because there are so many people in this scenario, there is a big demand for long-term storage. Big enough that this seller is currently netting 12% return on investment.
Want to know more about these or other stories from investors into Costa Rica real estate? This might be your time to start thinking about investing in a different future while the Costa Ballena real estate market is still heating up! Contact us by using the form below and you will automatically be signed up for our weekly newsletter that includes all of the best new listings in the Costa Ballena, plus weekly features in life, culture, and real estate news in our local market. We look forward to hearing from you soon!