What's Drawing Canadians to Costa Rica?
Oct 25, 2013
You may be thinking to yourself, “of course Canadians are moving to Costa Rica! They need to get away from their igloos and killer polar bears!” Well… that’s part of it.
All stereotypes aside, Canadians have been flocking to Costa Rica in astonishing numbers. Although it’s difficult to know exactly how many have made this country their full-time home, the estimated number is 10,000. And that’s not including the 150,000 or so that simply visited this paradise in 2012.
So what’s the deal? Aside from nice weather – which, by the way can be found in many parts of the southern US and beyond – why is Costa Rica such a high-demand destination for Canadians? Well, simply put, wealth savvy Canucks are seeing the opportunities presented.
It doesn’t take a financial or real estate expert to tell you that all over Canada, it’s becoming more and more difficult to find ‘good deals’ on investment properties. Without having to wait a decade (or more!) to see an ROI, that is. And if you’ve been to Costa Rica (and Canada, or are Canadian), you likely noticed that the overall feel of the country is very comparable to what Canada was back in the 80s. Everywhere you look is opportunity… it simply comes down to knowing where to look. Thankfully, Where International knows where to look, and we’ve been successful in locating two prime areas of the country that can be considered highly profitable. With the guidance and education from our Costa Rican Developers, it’s possible to come out farther ahead than many other real estate market opportunities.
‘Flipping’ Canadian Real Estate – Not What it Used To Be
Chances are, even if you’re not a nighthawk, you’re familiar with the late-night infomercials telling you how you can ‘make millions’ from ‘flipping’ real estate or become an instant entrepreneur, with the help of a tiny one-bedroom apartment.
2013 reality check: this has become gradually more difficult to do in Canada… with the average Canadian home sticker price being $320,000 - $350,000, it’s difficult for the casual investor, who’s just starting out, to buy properties and renovate (either minor or major); then turn around and sell them for profit.
Back in the 70s, it wasn’t uncommon to find a family home with a sale price of $20,000 - $40,000. Although this is completely impossible to do in Canada now, it’s not unrealistic in Costa Rica.
That being said… although you may find a piece of property for $20,000 in Costa Rica, be weary… Costa Rica is not Canada, and the rules are much more lax when it comes to selling land (go HERE to read more about points to keep in mind when purchasing land in Latin America). However, there truly are good deals to be had on both the Nicoya Peninsula and in the Southern Zone. And an interesting point you may not be aware of; in most cases, properties in Costa Rica are priced exceptionally lower then their appraised value, meaning that investor returns and gains happen at a much quicker rate.
By representing developers that have been working in Costa Rica for over 10 years each, it’s important to remember that this isn’t some ‘get rich quick’ scheme. It’s just the reality. And a trip to Costa Rica will prove it… one of the most important points to remember, is that you need to align yourself with reliable, trustworthy and experienced people when doing business of any kind in Costa Rica (or any other foreign country, for that matter!). Both of our Costa Rican developers have a large Canadian demographic within their communities, and routinely make trips to Canada to conduct seminars or participate in trade shows. And escaping cold weather, snow and ice aside… Canadians are smart people. Many of them have figured out that buying a condo in Florida may not bring in the rental income or resale value it could have 10 or 15 years ago. Heading further south is where it’s at… with Costa Rica being one of the primary epicenters for retirement and/or vacation home ownership.
So are you ready to visit Costa Rica? Even if you’re not interested in straight up ‘investing’, owning your own piece of paradise has a nice ring to it! Plus, during the time that you’re not enjoying your Costa Rican home, it can pay its way by being a rental to other folks looking to get away. Think of it as an ‘indirect investment’…
Discovery Weekends are a wonderful, commitment-free way to check out a country and developer. We’ve done the legwork for you and are offering both the Nicoya Peninsula and the Southern Zone as trustworthy and experienced developer options. Book your Discovery Weekend now!