RSSTourists are lured to Costa Rica, the peaceful country sandwiched between the Pacific and Caribbean Coasts due to incomparable weather, tropical lifestyles, friendly people and some of the best adventure sports opportunities such as surfing, fishing and eco-tourism.
The financial incentives are equally attractive to those wishing a second home or retirement option. Costa Rica boasts low-cost real estate, a favorable tax climate and ownership rights for non-residents that are unrivaled in Central and Latin America.
However, the real estate market of Costa Rica has undergone several changes over the last few years. The biggest change visible during the past decade is that the prices of property have dramatically increased, as Costa Rica has become more and more an international community. Property prices range considerably from $40,000 to upwards of $200,000 1/4-acre for a beachfront home-site, beachfront homes range from $165,000 to more than $3 million and seaside condominiums range from $54,000 to $250,000 or more, depending on size and location.
The best and fastest-selling properties in Costa Rica are generally located in the Central Valley and along the Pacific coast. Although the Central Valley covers only about 5% of Costa Rica's land mass, it contains the bulk of the country's population. Therefore, the prices of real estate around the greater metropolitan area including San José, Alajuela, Heredia and Escazú where many of the country's businesses and services are located tend to be some of the highest in the country.
Most of the reasonable real estate deals can be found in the remote areas, such as the Northern Osa Peninsula in Costa Rica's southern region and the central and northern Pacific coast where a number of major developments are underway.
The beachfront property in Costa Rica is governed by different and more complex regulations than other properties. The area comprising the first 200m above high tide mark along Costa Rica's coastlines is called the Maritime Zone. The first 50m are owned by the public, overseen by the government and are inalienable.
The remaining 150m of land is known as Concessions Property and can be leased from the corresponding Municipality. Foreigners who are not residents are restricted to a maximum of 49% ownership of leased beach properties. The remaining 51% must belong to a Costa Rican national or resident, or a Costa Rican corporation.
Of the total land in coastal region of Costa Rica, 95% of the coastal properties come under this law. An elite 5% of coastal land has ownership dating back as far as the era of Spanish land grants. This small percentage is fully titled and not subject to concession law or regulation. For purchasing a Concessions Property within the Maritime Zone, the payments must be made to the local Municipality, who also governs the coastal zoning and building regulations, along with the Costa Rican Tourist Board, the Ministry of Public Works and Transportation and others.
In Costa Rica, finance facility to buy a property is not available to foreigners as is in North America or Europe. Foreigners can opt to buy property with an existing mortgage and assume the mortgage payments. Foreigners who have legal residency generally qualify for bank loans if they can provide evidence of a job and adequate income. Interest rates will depend on whether the loan is in colones or U.S. dollars and whether the lender is a public or a private institution. Current rate ranges between 25 and 29% in colones, and between 12 and 15% in dollars.
According to the law, an attorney is required in Costa Rica to complete the land transfer. The lawyer must perform a title search at the Public Registry to make sure the property is available for sale, check its boundary lines and other specifications and ensure it is free of liens.
Source: www.costaricaoutdoors.com
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