Life Is Good in Grecia!
Many investors are wondering these days whether the decline of real estate in the U.S. would affect property values in Costa Rica. With the global financial crisis hitting most real estate markets around the world, has Costa Rica real estate market been hit? Have the prices in Costa Rica fallen through the floor lately as they have in the States? The answer to both questions is a resounding “no”! Are there some huge bargains? YES!
Costa Rica real estate market is heating up! Costa Rica’s open investment and trade policies and political stability have encouraged real estate investors from all over the world to come here to invest (see Why Invest in Costa Rica Real Estate? for more details). Property values in the Central Valley have not tumbled as they have in the States. In fact, Costa Rica has continued to enjoy a steady increase in property values, which have doubled and in some cases tripled over the past decade. The Central Valley real estate, particularly, is thriving. While the investment opportunities in the States are narrowing by the second, Costa Rica land investment growth has been double digits. Property and
land prices are skyrocketing in Costa Rica, and buyers are quickly catching on to this fact, trying to hold on tight to offers as prices soar even higher. Keeping in mind that foreigners are entitled to the same ownership rights as Costa Rican citizens, I’d say now is the right time to pick up a fine piece of property or purchase land to invest in Costa Rica real estate. You might also want to stop by and take a closer look at the beautiful, stress-free life you can have here in Grecia and the associated townships. Yes, we have a hospital, quality medical care, a brand new shopping mall, and state-of-the-art movie theaters (of course the movies are in English).
Costa Rica is still a bargain for land, housing and lifestyle. In terms of quality of life, cost of living, and year-round temperate climate, nothing comes close to Grecia. Life in Grecia is still far less expensive than life in the States, Canada, or Europe. Just remember that North American luxuries come at a considerable price, so try to stay close to the Costa Rican lifestyle and standards (see The Cost of Living in Costa Rica for more information). Remember also that goods imported from the U.S. are more expensive in Costa Rica, so for the most part, you’re better off using local brands.
A rule of thumb is that services and labor in Costa Rica are inexpensive, and hired help always proves to be a bargain. While the “style cut” for men is always $30+ and for women $50+ in the States, I can get a “style cut” in Grecia for only $6. While a maid in Dallas charges $60 for a 5-hour day, a maid in Grecia charges $11 for the same 5-hour day. Need a gardener? You can get one in Grecia for less than $2 an hour. In Dallas, a gardener charges $25 an hour.
Utilities and household expenses in Costa Rica – such as electricity, water, phone, and cable – cost only a fraction of the price you pay in the States. Would you like your water bill to be less than $10 in Grecia or more than $130 in Dallas? In Grecia, the year-round temperate climate also keeps electricity costs down as you don’t need to heat your home or use air conditioners. You also don’t need to cook with gas because most stoves are electric.
Cars and gasoline are the only exceptions. In Costa Rica, they are typically 20%-25% more expensive than they are in States. On the other hand, buses and taxicabs are very inexpensive, so you might want to try them for a change. Probably 20% of the people we know don’t even own a car. The public transportation system here is highly developed, with new buses with convenient early and late runtimes.
Now let’s talk about taxes! Costa Rica’s tax system is friendly to foreign residents, and it is way less complicated
than that of the U.S., Canada, or European countries. Those who earn $800 or less working in Costa Rica are not required to pay income tax at all. Ticos and Foreigners earning over $800 in Costa Rica are required to pay income tax ranging from 10 to 15 percent of annual income. What’s really great about the Costa Rican tax system is that foreign residents living in Costa Rica are not taxed on income earned outside of the country. For homeowners, property taxes in Costa Rica also bear good news as they pale in comparison to those in the United States. Let me ask you this: would you like your property taxes to be $187 in Grecia or $7,800 in Dallas?
Want to see a doctor? $20 in Grecia gets you a one-hour visit, not just a 10-minute rush job. Medical care in Costa Rica is first-class and very inexpensive. The Costa Rican government is committed to offering Ticos and foreigners affordable access to one of the world’s best health care systems. Costa Rica is known for its first-rate medical services ranging from dental care and optical laser surgery to cosmetic surgery and life-extension treatments. Residents can get access to medical care through private insurance, subscription to the CCSS (Costa Rican Social Security), or a combination of both. Through INS (the National Insurance Institute), private medical insurance costs $50-$100 a month per person. Through the CAJA’s public service, insurance for a family (two adults and their under-18 dependants) costs $30-$70 a month.
Many Costa Rican doctors have been trained in North America or Europe, and almost every doctor in Costa Rica speaks English fluently, so you don’t have to worry about speaking Spanish. Cosmetic and reconstructive surgery and dental care in Costa Rica are at least 60% lower than those in the States, and all the materials used in surgical and dental procedures are FDA-approved and imported from the United States. On another note, if you want to see a vet, $24 in Grecia gets your vet to come to your house. In Dallas, you can’t see a vet for less than $60, and you certainly must drive to his place.
With a high standard (yet low cost) of living, world-class (yet inexpensive) medical care, a thriving real estate market, a foreigner-friendly government, an investment-friendly environment, social and political stability, and a tropical climate year round, Costa Rica offers a quality of life that is unparalleled. I have many times called it “Hawaii on a budget.” With the Baby Boomers seeking a place to retire with less money than they thought they would have, Costa Rica seems like the only logical choice (check Why Costa Rica? at CostaRicaLandToday.com for more reading). In Costa Rica, you will get more for your money as the U.S. dollar enjoys
a much greater purchasing power here than it does back home (currently one U.S. dollar is worth 551 Costa Rican Colones). Remember that a couple can live in Costa Rica for about $1000 per month as long as they watch and budget. We know people here in Grecia that live comfortably and happily on that and sometimes less (Social Security) and enjoy a quality of life that is totally unattainable for the same amounts in the States. With that sum, they can also have cable TV, enjoy cultural activities, and occasionally dine out. Retirees can also live comfortably on their pensions.
As always, at CostaRicaLandToday, we can help you find your dream home, land for building, or just lots for your retirement investing or living in the Central Valley, specifically Grecia, San Isidro, San Miguel, San Ramon, San Luis, El Cajon, San Pedro, and Santa Rosa de Poas. Let us help you through this journey of living and investing in the polite culture of Costa Rica.
Remember that one of the main Costa Rican greetings for “hello” or a typical response to “how’s it going?” is “Pura Vida”, which loosely translates to “The good life.”
Our wish for you is Pura Vida!
