Does and early retirement to Costa Rica cut expenses in half?

Please see part 1 if you haven’t already.

My e-mail inbox, and Facebook, and LinkedIn messages, repeatedly urged me to go to the Wall Street Journal to read this article. It appears that my friends know my interests.

I spend much of my days talking with people who are interested in making Costa Rica their home. Real estate occupies a fundamental place in this decision hence, the referrals to this article, written by a couple of 60-some gals that relocated to Playa Naranjo on the Gulf of Nicoya, 5 hours north of where I live in Uvita Costa Rica.

Cost of Living in Costa Rica

In detailing out living expenses here, the author (Vicki) says that she has cut her living expenses in half:

We spend about $50 a week on food (for two people). Native fare is rice and beans (about $2 for about two pounds), potatoes, yucca, onions, red peppers and carrots (about 25 cents each). For $1 you can buy three cantaloupes, or two avocados, or four mangos, or three oranges (in season), a watermelon, or a whole pineapple and enough fish to feed two. Two pounds of ground beef (86% lean) or boneless chicken cost about $4. On occasion, I’ll splurge, paying about $6 for a bag of Cheetos or miniature chocolates.

I am one of those guys that doesn’t pay much attention to what stuff costs at the grocery store. This is not due to vast wealth, although I suspect that the wealthy are among the most vigilant of such things. That is likely one of the reasons why they are wealthy.

What I do pay attention to is when something is outrageously expensive, like walnuts, and cheese. Peanut butter is prohibitive and only the not-good-for-you-hydrogenated-oils-added type is available anyway. This is a bummer for those of us that thrive on peanut butter on bananas. Here we live where bananas grow like weeds, and there isn’t a decent source for quality peanut butter. Give me a break! Such are the ironies of life.

So, I’ll go with Vickie’s report on the costs of various staples.

Housing prices are off their highs of two or three years ago. You can buy a nice two-bedroom home on about an acre of land for between $100,000 and $300,000. My utility bill is $50 to $150 a month, depending on how much I use the air conditioning. My property tax last year was under $100.

You can get a good idea of housing prices in The Zone by looking around this blog. It would seem that houses are a bit less expensive in Playa Naranjo if Vicki has her numbers right. Although, maybe not. I understand that up north there are lots of small, 1/4 acre, piano key style housing developments. Since we don’t have this type of property here, we are not comparing mangoes with mangoes. Most lot sizes here are multi-acres and have ocean views.

Having said that, we do have one house that is actually quite nice starting out our housing options at $150,000.

This is a bit of an anomaly. I would typify our house options as starting at around the $250,000 – $300,000 range, and go up from there.

Expense: Electricity – Pools and Air Conditioning

So much depends on how you want to live. I don’t have air conditioning, but I find that a pool is nearly indispensable here in Costa Rica.

Electricity is expensive here. As with so many things here in Costa Rica, the powers that be are saddled with the challenge of two extremely different economic strata living together in one country. There is a graduated use scale for billing electricity consumption. They seem to have done a pretty good job of determining how to really nail the primary consumers and leave the simple, non-consuming farmers alone.

Unfortunately, the high cost of “luz” as electricity is called in Costa Rica, affects the price of food. The cost of running all those refrigeration boxes in a grocery store is the primary expense of running such a business and affects the price on the non-refrigerated peanut butter, which is the real tragedy of this story.

There are a number of different strategies for dealing with the high cost of electricity here in Costa Rica. One couple I know feel that there is a time of day, when the demand is low, when you get more kilowatt bang for the buck. So they set up to do their laundry in the wee hours of the morning. Others say that this is simply not true and that there is no timing involved with the billing of electricity.

On properties where there is more than one structure, like a main house with a guest house, you can run two meters, one for each building. This helps economize on the scaled, consumption based billing of ICE (EE-say, not ice) the electric company.

Pools, refrigerators and air conditioning are the primary contenders for causing a shock with the monthly electric bill. One trick that I learned from a veteran expat pool owner, is to ignore the traditional pool care procedures and instead do this.

Run your filter for a couple hours a day only. This will obviously cut down on electrical consumption. However, the thought is that you need to filter all of your water, once a day. So, you calculate the amount of water you’ve got, with the amount of water that your filter filters per hour, and you’ll likely come up with the need to run your filter for 4 hours.

Well, ignore that.

Go with the two hours. Use your tester to make sure that you always have the right amount of chlorine in your pool. I switched from a salt pool over to chlorine for economic reasons, so I’m not talking here about salt. You’ve got to run the filter to get the salt/chlorine conversion, and that requires longer runs of the filter, which makes economizing on electricity difficult if not impossible.

When the 2 hour cycle starts, gradually pour a half cup to a cup of granulated chlorine into your pool’s skimmer. I have gone for months with this program with no problem. We do, on occasion have problems, but not any more than the normal amount for pool owners, and our electricity bills went down.

Disclaimer: I am no pool expert. We have had problems now that have required professional help to clear up, but I think that most people with pools have such concerns, even when they are doing the conventional, electricity-gobbling pool care system. Also, if you decide you want to try this program, really keep an eye on your pool. Learn how to use additives like “Shock” and “PH” powders. If you see any discoloration in your tile or grout, you’ve probably got algae. Get rid of it. I use a steel brush and swim around with a mask and snorkel prowling for any irregularities.

My but I do carry on. There is so much more to say on this topic of retiring to Costa Rica.

Gratuitous use of my primary search term for Google purposes: Costa Rica Real Estate

More Retire Early to Costa Rica coming soon.

Comments and Criticisms of a Wall Street Journal Article

There is a rather interesting article over there on that good ole U. S. icon, The Wall Street Journal. From where I sit, living as an expat in Costa Rica since 1999, I found the article, written by Vicki Berrong, a good read, and the comments at the end quite enjoyable as well. However, as with all things human, the article presents lots of opportunity for criticism and opinion, which I more than happily engage in here.

Perfect Profile of a Costa Rica Real Estate Prospect

How I came to live on the Pacific coast of Costa Rica is a story about early retirement, tight budgets and lots of planning.

Because of being a long time expat, living in Uvita, and working in real estate, I talk almost on a daily basis with such people who want to know how to chart their course so that they can avoid as many rocks below the surface as possible.

I’ve copied some parts of the article here, and I’ll make comments on these points, but I encourage you give it a read in its entirety by clicking here. Even the title I find to be right on the mark: “Best Place to Retire Early” typifies so many folk that we talk with these days.  However, early retirement brings along with it the need to generate a bit of income in your new land of residence, which is a common aspect of our Costa Rica real estate consultations.

My best friend, Carol, and I began thinking seriously about retirement roughly 12 years ago. We knew we wanted to retire early, but we recognized that our small nest eggs (and the fact that Medicare doesn’t kick in until age 65) could make that difficult. Eventually, we concluded that living outside the U.S. would allow us to stretch our dollars and retire on (our) schedule. Thus was born a 10-year plan: five years to pay down as much debt as possible, and five years to find a home overseas.

What Vicki describes here is a perfect profile of visitors to our Uvita real estate office – I’d say realistically we talk with 3 – 5 of such individuals and couples a week. Please keep in mind that we are just now emerging out of rainy season here in Costa Rica which is typically a slower time of year as regards the number of visitors, so this number could easily go up now that we are in a busier time of year.

Besides enjoying reading Vicki’s experience in the article, I really enjoyed the comments that can be seen at the bottom of the article. I’ll address those at the bottom of this article.

How Big is Costa Rica Really?

After a total of seven trips to this small country (about the size of New Hampshire and Vermont combined, with a population of about 4.6 million), we found “home”

OK, so I’ve got a bit of egg on my face. As an authority on the matter of moving to Costa Rica, I have quoted this point VERY differently, and done so numerous times over the years, no doubt to many of the readers of this blog. I haven’t searched it, but I suspect that even in this blog there are examples of my erroneous comparisons of Costa Rica being the same size as Rhode Island or that you can fit six Costa Rica’s into Colorado.

I did some research based on Vicki’s declaration and here’s what I came up with, establishing that Vicki was spot on with her analogy and I was WAY off with my Rhode Island comparison, but somewhat vindicated with the nearness of my Colorado comparison.

• Size of Costa Rica: 19,730 sq. miles
• Size of Vermont: 9,622.8 sq. miles
• Size of New Hampshire: 9,350 sq. miles
• Size of Colorado: 104,185 sq. miles
• Size of Rhode Island: 1,213.9 sq. miles

Costa Rica Prices & Costa Rica Coffee

a cost of living at least 50% lower than in the U.S.—and good coffee

I’m not so sure about this cost of living comment. Maybe when all is said and done, it tallies up to this percentage of difference… maybe.

Us Guys talk all day long with folks who are wanting to relocate to our area. We have a certain amount of obligation to make sure that the old image of Costa Rica, which was certainly accurate at that time, needs to be re-adjusted in the current time that we are living in. Costa Rica is no longer an inexpensive place to live.

I got a kick out of Vicki’s $16.00 per gallon of gas statement – obviously a goof (unless that’s what gas costs in Playa Naranjo.  Frankly, I wouldn’t know). We are running at a little over $5.00, but some of the other costs are much higher here, namely vital staples like peanut butter and cheddar cheese – well any cheese for that matter.

About Costa Rican coffee – AWESOME! It is the best, and it’s cheap. You can pay buckets of cash for some of the marketed Jamaican Blue Mountain or Kona Gold, or whatever, or you can upgrade to a finer taste and gentler effect to the body by buying whatever, rot-gut, off-the-shelf, grocery store brand of Costa Rican coffee you like. When I visit the States, I bring coffee with me for the visit, or look for the Costa Rican blends in the health food stores there, where they charge a premium for the stuff.

I do tend to run on about things. So I guess what had started as an article commenting on a Wall Street Journal article abut buying land and living in Costa Rica is turning into a series.

In the next article I will comment on a few more points in Vicki’s article, but I’m REALLY looking forward to getting into the submitted comments on the article.

Stay tuned.

Disclaimer:
This article will serve as an update to what is happening in the golf project here in The Zone. The name has been changed to protect the innocent. Guys In The Zone is a real estate agency. We make our money on commissions paid by sellers for sales that we broker. Buyers of land sometimes operate on the mistaken notion that if they go directly to the seller, they will get a lower price because of there not being a commission involved. Even though the price paid is the same either way, we still have to deal with this thought process. So I have changed the name of the golf resort to Guys In The Zone Links or GITZL, which has a nice ring to it anyway. This way, if buyers are intrigued by what they read here, and they do a Google search for the golf course, they’ll just come full circle back to us, and we can then broker the deal.  We make money, and they get our representation in their purchase of a  golf course property in Costa Rica’s southern zone. Everybody wins.

Yes, there is golf in Costa Rica's southern zone.

It could be that the Guys In The Zone Links (GITZL) is heading for one of those “critical mass” experiences. The resort has been there, going through the Costa Rica labyrinth of disorganized bureaucracy for the past three and a half years.  As GITZL emerges, we see other such projects in Costa Rica languishing in the throes of various obstacles:

• a global economic crisis
• conflicting philosophies among founders
• lack of funding
• a nearly impossible Latin American permitting process
• etc…

For the thirty-some land owners in GITZL, who bought untitled land years ago, the titles are almost in. I know what you’re thinking: “Haven’t I heard this before?” Hmmmm, yes, I believe you have heard this before. So, we’ll see. However, at this point, and this time around, all permissions, permits, signatures, departments, laundry lists and handshakes have been made, acquired, stamped and clamped. There is no logistical obstacle and they are now just simply waiting for the documents to be delivered.

GITZL has not paid one colon/cent under the table to achieve its current fully permitted status.

I used to be a shareholder in GITZL and I used to sit on the board of directors there. All of that changed when the GITZL Corporation was unable to make its mortgage payments. Instead of folding and hurting all those who put their belief in the words of dealers (such as yours truly), and bought untitled land there, the shareholders got together and prioritized… -(now prepare yourself. We are talking here about behind the scenes corporate maneuverings, in an effort to make vast sums of money) – the wellbeing of those who had bought land in the project. The shareholders, at personal expense, allowed the project to go to the primary shareholder without a struggle. This primary shareholder, of his own volition, felt that it was important to protect the land owners there, that their ownership would be recognized and guaranteed.

I know, you’re thinking that you have stumbled upon a science fiction account of life on another planet. But you haven’t, and this is not. What you are reading is a firsthand account of my observations over the past 4 or so years. I am also one of those shareholders who lost in excess of $100k in the process (but who knows? The fat lady has not yet sung.)

My recent re-involvement in the project was inspired by one of our unexpected leads that came to us looking for a hotel plot. These prospective buyers really want to be able to offer golf to their guests as well. Their idea was to purchase a piece of land that would accommodate not only the horizontal hotel layout, but also nine holes of golf. There really is no such property left here in Costa Rica’s southern pacific zone. Enter GITZL.

There is a piece of land in GITZL that is slated for a hotel. It has been thought that one of the big franchise hotel names might approach GITZL and ask if they can put one of their monolithic hotels on it. (This Costa Rica real estate blogger is hoping not, but that’s just me putting in my unsolicited, tree hugging two cents.) Lord knows it would be a financial coup for GITZL. But in keeping with its surroundings, and even the design of the project, a more intimate layout of free standing bungalow villas sprinkled around a central restaurant / lobby would be more appropriate.

Locations of hotel plot and finished model condominium - Click to enlarge

This all coincides nicely with what our European investor was/is looking for. His budget easily buys the land allotted for the hotel, valued at two million USD.

So, we’ll see what happens with that deal. Presentations are being made in various offices in London and Malaga, and so we wait. The point, however, isn’t to crow about The Guys good fortune to have such a prospect, (although we are certainly to be able to crow about such things.) But all of this is about re-connecting with this odd little golf project here in the nether reaches of Costa Rica’s southern pacific zone.

Paspalum is a fancy name for grass

The place is beautiful. The existing nine holes roll around gorgeous Costa Rican trees and fauna, and are vibrant with an amazing array of birds and, well, life. Look anywhere on the course and you feel like you are observing a contrived setting, staged for some international golf magazine, complete with white sand bunkers.

The paspalum grass is a marvel. I witnessed a small tractor pulling a liquid tank that was spraying a fairway. Expecting to be told that this was an herbicide, or some such chemical, I was told that it was salt water. Weeds die in a saline environment, Paspalum thrives. Hmmm, can we use the overused “green” handle here? If so, I imagine myself making a presentation there, standing alongside one of the holes, able to say “and this is a truly green green” – get it? Ok, I know. I should apologize – but really, what is the point of being alive if we aren’t going to live, verdad?

So the weeds are handled without chemicals, what about fertilizing and bugs? Enter the ultra-acid soil of Costa Rica. The antidote is lime, or calcium. Mix this into the soil and you manage your PH, while driving off any pests. The little blighters thrive in acid but not in a balanced PH environment. So yes, I believe we can call this project green.

As for the Critical Mass mentioned at the outset, I just wonder if, as the GITZL folks quietly go about their business out there, if one day the world doesn’t wake up and there is a mad dash to be part of this amazing project. They’ve got a show condo – 2 bedrooms, granite counter tops, all teak wood ceilings, cabinets and furniture for $219,000 – a price that would have been impossible to believe prior to the economic tumble.

I suppose this could come to be viewed as the upside of the downtime – (OK – sorry about that one.

Facebook: www.facebook.com/guysinthezone

I was excited to find the Poll functionality on LinkedIn a couple of weeks ago. The question I came up with “What is the top reason to buy land in Costa Rica’s southern Pacific zone?” seemed like a good jumping off point for this regular feature on the blog. Although the sample size was small, the responses were revealing.

Low Property Tax
Costa Rica’s property tax rate is .25% on registered value. That means if you buy a $400,000 house in Uvita, you will pay $1,000 in property tax, plus another $1,000 (or .25%) for the new Luxury Tax passed in 2010. Your total annual property tax bill will be $2,000 which is a third of what you will pay in Houston, Texas.

Investment Value
If we can agree that people want safe, beautiful, and affordable environments to live in, then the southern Pacific zone of Costa Rica has to make that list. Clearly, “affordable” is a relative term. Some clients have $50,000 for a house, some have $1.5 million; however, this market has dipped according to the simple dynamics of Supply and Demand. An ocean view property (only 8 minutes from Uvita) listed for $30,000 was unheard of five years ago, yet now we have it (Sunny Josecito). In fact, we have access to just about every type of investment in every property category.

Growth Potential
I can’t tell you how many times per week people ask me when the International Airport will be completed in Palmar. Given the fact that construction has not started, it is a difficult question to answer. Eventually, it will be constructed (for better or for worse), and the area and property values will grow as a result. I state this with a fair degree of conviction because I’ve seen what paving the Costanera (Coastal Highway) and re-paving the road between San Isidro and Dominical has done for the area. I believe if it weren’t for those two improvements, the downturn would have hit our area much harder.

Walking the dog on your favorite beach.

Weather and Beaches
Today (Sept. 29th, 2011) marks the middle of the rainy season, yet we had sun with its accompanying ocean breeze all day long. The evenings are typically cool, especially if your house is strategically located facing the Pacific Ocean and its beaches. Speaking of beaches, The Zone has something for every sun lover. You want to surf or watch surfing, go to Dominical. You want a good dog-walking beach, go to Playa Hermosa. You want to do some cave exploring, go to Playa Ventanas. I’ve spent more time on the ocean the past 4 years than in my entire life in California, because the water is warm, dare I say perfect, year round.

Relaxing Lifestyle
According to our voters, this is the top reason to buy land in Costa Rica. You don’t realize how stressful life is in the progressive Western world, until you move here. Both Ben and I came from Santa Cruz and Aspen, gorgeous towns in California and Colorado, respectively. We lived the typical cycle of working hard and playing hard, and then right back to working hard again. We were surrounded by friends, family and neighbors who were stressed by this same cycle and material pressures. It all added up to a simple yet consistent desire for change. Without question, Costa Rica presents an opportunity to slooooow down and simplify. Sometimes I surf in the morning, sometimes I walk a big farm. There’s no rushing to Starbucks on the way to pick up the dry cleaning. Here, we sit down and enjoy our coffee. We wear shorts and flip flops. If anything, life in The Zone is indeed relaxing.

So, yes there are many reasons to buy land in Costa Rica. Whether as an investment, as a relocation destination, or simply as a place to visit and unplug for a couple of weeks in the winter… The Zone will not disappoint.

“Houses that produce rental income” has become an increasingly popular Costa Rica real estate strategy in The Zone. In this video, The Guys explain WHY this investment strategy is smart and how it can be achieved in a fertile rental market.  We moved out of the office and shot the video “on location” at such a property above Dominical, Costa Rica.

Boredom... or relaxation?

“You can only walk the dog on the beach and read in the hammock so much.  I miss my work” – this from an expat who achieved “the dream”. He and his wife had retired from their successful business in the U. S. and had bought land and built a gorgeous ocean view home here in Costa Rica’s southern pacific zone.

Hearing this statement set my wheels to turning. I can’t remember the last time that I was bored. Natalie either, we both need to set time aside and make sure that we spend some time every week walking the dogs on the beach and reading in a hammock.  These activities are downright good for the soul. However, I can definitely see how there is a limit to how much one can do of these activities before they get to jonesing for some activity of a more productive nature.

I work with lots of people that are re-locating or who are looking to make a connection of some kind to the zone.  In the consultation phase, I focus on helping with understanding the various aspects of life here that are different from “back home”. How to buy property, how to open a bank account, a corporation, how to learn Spanish, how to get health insurance, where is there a decent dentist and so on. In my consultations, I try and touch on the various points that are a concern to all of us as we integrate with life here in The Zone.  Up till this point, I had never really thought about boredom-management being a line item on my consultation list.

One of my dearest friends is, well how to say… along in years. Yeah, that’s it. His life has been one of extraordinary and high achievement.  He’s at the point now where they won’t sell him life insurance, (well, they will but at the price its more realistic to say they won’t.)  He tells me that a “long term” investment to him is measured in months, not years.

This dear old friend and I started doing business together some time back.  I’ll never forget when he said to me “Ben, you’re keeping me alive”.

Here again, a man who had achieved what so many set out to achieve, and now his life is being enhanced by being included in what I do on a daily basis.  I find this fascinating.  Is there something missing from “the dream”?

I’ve got to work. I have financial obligations and am not in a position to retire. So I look for ways to do this while living in this foreign land. I truly believe that working here in Costa Rica is an act of creativity. In fact, it was my efforts to be creative and to think outside of the box that initially drew my attention over to some of the potential business “assets” that I have available to me.  How about an older man that figured things out in his day back in the States?  Would he be interested in sharing his thoughts and perspectives on my business efforts? “Ben, you’re keeping me alive” he says. This is what I call a fit.

My dear old friend and my clients mentioned earlier differ in that Old Friend is happy and content here. The other is moving back to the States.  Granted, there are lots of reasons for moving back to the States. When our kids have kids we tend to lose our minds and feel that being with the grandkids is the thing that has to be done, regardless of what it takes. However, I’ve met a number of folks here that say that the kids can come here to see them, by golly.

I wonder if the difference really might be the activity/boredom balance.

Now in my real estate and relocation consulting service, I include this point about boredom in the schpiel.  Costa Rica isn’t like the States where so much of one’s time is spent shopping as a form of pastime or entertainment. You lose this habit here pronto.  Shopping here in the zone takes about 2 hours, tops, then you’re done.

You can make a day of it, and many do, if you want to go up to the San Isidro farmers market on Thursday and/or Friday. Travel time from Uvita is just under an hour each way.  It’s also quite the adventure to simply stroll the streets of San Isidro and window shop. This can be a lot of fun, but it won’t ever be more than the occasional thing that you do here.

Interesting Ideas

There are some interesting and creative efforts that have been made by folks who have chosen to make Costa Rica their home. In an upcoming article I’ll tell you about some of these efforts.  I’ve even got a favorite that I’ll share with you.

First, I’ll take the easy road and tell you what I do. I run the real estate company: Guys In The Zone.  My partner Rod Martin and I have forged one of the deepest working/friendship relationships on the planet.  Knowing that you’ve got a partner through thick and thin gives life a depth that it otherwise doesn’t have and I’ve got this in Rod.

So, we call it the business of real estate, but the funny thing is, we spend the majority of our time doing things that really aren’t “real estate” by definition.

All those points that I mentioned above, the points about bank accounts, learning Spanish and so on? We consider these topics regularly as we work with people on real estate.  Who would’a thunk that a discussion about how to learn Spanish or quieting the internal dialogue would be involved with the business of real estate?  Well, it’s all part of the package.  When you sell real estate in Costa Rica, you become the single point of contact for folks that are interested in The Zone either as a place to vacation, invest, migrate to for half the year, or full blown live here. I gotta say, this makes life interesting.

In addition to this I enjoy writing articles such as this one for our blog (www.thezoneblog.com), as well as publishing articles in the local Montañas al Mar magazine.  I’m involved with CAP (Crime Awareness and Prevention) and just try and find things that need doing. The Guys in the Zone also run a couple of the local web site portals  that serve as visitors guides to the area (www.dominical.biz and www.uvita.biz).

I say all that to demonstrate why the thought of boredom is a strange one in my world.

I’ll be posting some examples of the creative ways that expats not only fill time, but support their lives while living here in this sparsely populated area of the world.

Boredom... or relaxation?

“You can only walk the dog on the beach and read in the hammock so much. I miss my work” – this from an expat who achieved “the dream”. He and his wife had retired from their successful business in the U. S. and had bought land and built a gorgeous ocean view home here in Costa Rica’s southern pacific zone.

Hearing this statement set my wheels to turning. I can’t remember the last time that I was bored. Natalie either, we both need to set time aside and make sure that we spend some time every week walking the dogs on the beach and reading in a hammock. These activities are downright good for the soul. However, I can definitely see how there is a limit to how much one can do of these activities before they get to jonesing for some activity of a more productive nature.

I work with lots of people that are re-locating or who are looking to make a connection of some kind to the zone. In the consultation phase, I focus on helping with understanding the various aspects of life here that are different from “back home”. How to buy property, how to open a bank account, a corporation, how to learn Spanish, how to get health insurance, where is there a decent dentist and so on. In my consultations, I try and touch on the various points that are a concern to all of us as we integrate with life here in The Zone. Up till this point, I had never really thought about boredom-management being a line item on my consultation list.

One of my dearest friends is, well how to say… along in years. Yeah, that’s it. His life has been one of extraordinary and high achievement. He’s at the point now where they won’t sell him life insurance, (well, they will but at the price its more realistic to say they won’t.) He tells me that a “long term” investment to him is measured in months, not years.

This dear old friend and I started doing business together some time back. I’ll never forget when he said to me “Ben, you’re keeping me alive”.

Here again, a man who had achieved what so many set out to achieve, and now his life is being enhanced by being included in what I do on a daily basis. I find this fascinating. Is there something missing from “the dream”?

I’ve got to work. I have financial obligations and am not in a position to retire. So I look for ways to do this while living in this foreign land. I truly believe that working here in Costa Rica is an act of creativity. In fact, it was my efforts to be creative and to think outside of the box that initially drew my attention over to some of the potential business “assets” that I have available to me. How about an older man that figured things out in his day back in the States? Would he be interested in sharing his thoughts and perspectives on my business efforts? “Ben, you’re keeping me alive” he says. This is what I call a fit.

My dear old friend and my clients mentioned earlier differ in that Old Friend is happy and content here. The other is moving back to the States. Granted, there are lots of reasons for moving back to the States. When our kids have kids we tend to lose our minds and feel that being with the grandkids is the thing that has to be done, regardless of what it takes. However, I’ve met a number of folks here that say that the kids can come here to see them, by golly.

I wonder if the difference really might be the activity/boredom balance.

Now in my real estate and relocation consulting service, I include this point about boredom in the schpiel. Costa Rica isn’t like the States where so much of one’s time is spent shopping as a form of pastime or entertainment. You lose this habit here pronto. Shopping here in the zone takes about 2 hours, tops, then you’re done.

You can make a day of it, and many do, if you want to go up to the San Isidro farmers market on Thursday and/or Friday. Travel time from Uvita is just under an hour each way. It’s also quite the adventure to simply stroll the streets of San Isidro and window shop. This can be a lot of fun, but it won’t ever be more than the occasional thing that you do here.

Interesting Ideas

There are some interesting and creative efforts that have been made by folks who have chosen to make Costa Rica their home. In an upcoming article I’ll tell you about some of these efforts. I’ve even got a favorite that I’ll share with you.

First, I’ll take the easy road and tell you what I do. I run the real estate company: Guys In The Zone. My partner Rod Martin and I have forged one of the deepest working/friendship relationships on the planet. Knowing that you’ve got a partner through thick and thin gives life a depth that it otherwise doesn’t have and I’ve got this in Rod.

So, we call it the business of real estate, but the funny thing is, we spend the majority of our time doing things that really aren’t “real estate” by definition.

All those points that I mentioned above, the points about bank accounts, learning Spanish and so on? We consider these topics regularly as we work with people on real estate. Who would’a thunk that a discussion about how to learn Spanish or quieting the internal dialogue would be involved with the business of real estate? Well, it’s all part of the package. When you sell real estate in Costa Rica, you become the single point of contact for folks that are interested in The Zone either as a place to vacation, invest, migrate to for half the year, or full blown live here. I gotta say, this makes life interesting.

In addition to this I enjoy writing articles such as this one for our blog (www.thezoneblog.com), as well as publishing articles in the local Montañas al Mar magazine. I’m involved with CAP (Crime Awareness and Prevention) and just try and find things that need doing. The Guys in the Zone also run a couple of the local web site portals that serve as visitors guides to the area (www.dominical.biz and www.uvita.biz).

I say all that to demonstrate why the thought of boredom is a strange one in my world.

I’ll be posting some examples of the creative ways that expats not only fill time, but support their lives while living here in this sparsely populated area of the world.

Episode 12 features a candid look at community in the Southern Pacific Zone of Costa Rica. If you’re considering relocating, buying a house, raw land, or a commercial business in the greater Dominical or Uvita areas, we encourage you to watch. And, please feel free to share your comments or questions. Gracias.

Talk Show – Episode12 by GuysInTheZone

This gorgeous natural swimming hole sits below one of the nicer homes in Uvita.

It’s one of the most popular questions we, the Guys In The Zone, field— “What’s been selling? We get this question from both buyers and sellers.  Generally speaking, the answer is— great deals.

PRICE

Price is the #1 determining factor for a great deal, but there is another factor that is equally important— the living experience.  Ben, my business partner in Costa Rica real estate, phrases it this way, “do any unique features of the property significantly affect the quality of the living experience?”

There are very few remaining places on the planet where things are (1) inexpensive and (2) incredible.  During the boom years of 2004-2008, Costa Rica real estate was inexpensive and incredible.  Large farms were purchased $1.00/meter squared and nice ocean view lots were under $100,000.

Three years after the peak of 2008, property values across the border came down between 40-50%.  Many houses are now selling for replacement cost or less.  Once again, we have large farms for $1.00/m2.  The obvious reason was the global economic downturn and continual 10:1 ratio of sellers to buyers.  Basic economics tells us that price, or in this case property value, had to come down.  Our listing database is now filled with good properties in every category—houses, land, large parcels and commercial.

THE LIVING EXPERIENCE

For most people, buying real estate in Costa Rica isn’t just about getting a great deal.  You can move to Orlando, Florida if that is your only goal.  It is about the unique features that significantly enrich the living experience.  When Ben and I get a new land or house listing that has an ocean view and a trail to a nearby river… Read the full story

Answer: 98%.  The Question… what percentage of people first visit Costa Rica as tourists before buying their own piece of paradise?

Uvita's Whale's Tail formation taken from Escaleras.

Costa Rica is attractive as a vacation spot, for retirement and investment, especially in this “buyer’s market.”  In particular, the Southern Pacific Zone (and I’m talking about the area south from Quepos to Palmar) has a number a factors that set it apart from the rest of Costa Rica—the mountains-to-the-sea geography, sunset ocean views, the verdant jungles, and the protected habitats.  In addition, up and down this coastal region, resident Ticos and foreigners from all parts of the world enjoy a “small town” community feel.

For those who haven’t been down to The Zone (as we like to call it), there are small differences between the small towns in this area–

• DOMINICAL–  Many of the visitors who choose Dominical as a home base are surfers or other people who want to be within walking distance to the beach.
• UVITA–  Those who choose Uvita have either already explored Dominical or want to be close to the famous Whale’s Tail and boat launch for whale and dolphin tours, snorkeling and scuba diving adventures.  Simply put, the magical nature of these activities brings people back, year after year, in increasing numbers.
• OJOCHAL–  Located 15 minutes south of Uvita, Ojochal is one of the more established expat communities.  Originally, the coastal road only came as far north as Ojochal, hence the pre-Costanera wave of development starting in the late 90′s.  It is known as the multi-cultural hub of The Zone and home to an amazing array of culinary options.

The Zone has received a flood of publicity over the past four to five years.  Heralded as one of the world’s eco-tourism hot spots, most tourists come to our area excited by the likelihood of seeing exotic animals up close and personal.  In fact, groups of monkeys and toucans make daily visits to our property and most of the eco-hotels in the region.

Boom Markets

Another reason for the area’s popularity, one we have written about extensively, is access — the completed Coastal Highway, the improved road from San Isidro, and the proposed International Airport in the Palmar/Sierpe area 40 minutes south of Uvita.  According to the Instituto Costarricense de Turismo, tourism is up 9.6 percent for the first half of this year compared with 2009.[1] Perhaps the stimulus package in the U.S. and Europe is working?  (That was a joke.)

We only need to look at the effect of the new international airport in the Guanacaste region—131,295 tourist arrivals in the first half of 2010[2]— to understand why tourists, retirees and investors flocked there.  Thanks to the ardent publicity of television, print, and web advertising (e.g., International Living Magazine), there was a tourism and real estate boom in the first part of this decade.  The first part of 2010 is no different, as activity is up in this buyer’s market.

The Painful 2%

As for the two percent of property buyers left out of the original answer (in fact, they are the group who sparked this article), there are actually foreign investors who buy property sight-unseen.  Just in case you are not familiar with the term, it means buying land without physically seeing what you are buying.  This often happens when prospective buyers attend marketing seminars that pitch only one or two specific developments in an area.  The simple reason for this is… these marketing specialists are often The Developer!   They lure prospective investors to Costa Rica with attractive incentives like “fly and buy” programs, where discounts are applied to immediate land purchases.

There are potential problems with following this developer’s path to your future paradise.  Here’s a common scenario; you finally arrive at the small, regional airport in Costa Rica.  You meet your bilingual feet-on-the-ground sales agent/tour guide/driver.  He explains you have a full and exciting week ahead—dinners, outdoor activities, and multiple tours of the developments— so full and exciting that you never really have time to look around and get an objective view on land values and investment opportunities.

BEWARE… their bottom line is to sell you property in their developments.  I can’t tell you how many “seminar buyers” (most of whom are from Canada?) come to us after the fact and are shocked at the real market value of their land… and this was when the market was still strong.

Ben in the field with a client.

Pure Brokering

There is a simple way to avoid this investment pitfall.  Most of the real estate agencies in the area offer what we “Guys” like to call: pure brokering.  I use the word “pure” to indicate what Ben & I like to do.  I guess you could say, it’s the Guys In The Zone style.  First and foremost on our agenda is: “find you the most ideal property that fits your objectives” – pure brokering.

People ask us daily how the market is doing, and if you’ve been tuning into our Talk Shows for the past couple of years you know the market here has reflected the global market’s trend downward.  Markets go up and down… that’s just a fact of life wherever you are.  Ask any of the real estate companies in the area, activity is up… and this is typically our slow season.  It feels like we have hit the bottom, and this high season (Dec-Feb) is expected to live up to its name.

There are a variety of factors that make The Zone an attractive place to vacation, invest, and eventually retire.  And let me tell you, the only thing better than watching a flock of toucans hopping in the trees… is when you are watching a flock of toucans hopping the trees on your own property.

[2] http://www2.prensalibre.cr/pl/la_economia/28972-ingreso-de-turistas-aumento-un-96-en-primer-semestre-del-ano.html