Don't buy Costa Rica Real Estate, it is overpriced

Richard is the owner/broker of Coldwell Banker Tamarindo, and the founder of the vacation rental company www.viptamarindo.com. Please get in touch if we can help.
Visit www.coldwellbankertamarindo.com for over 3000 beach properties, from all over Costa Rica. Make up your own mind and message me richard@cbtamarindo.com
Summary
A frustrating element of my professional life in Costa Rica is when people make sweeping statements about Costa Rica real estate being overpriced. Today we analyze whether this assertion has validity.
Nicaragua is half the price
Nicaragua/ Belize/Honduras/Peru property prices are much less than in Costa Rica. That said, very rarely have I lost a sale to them. Costa Rica has the rule of law, a robust property registry, stable government and low crime. These fundamentals are necessary prior to even considering a large investment overseas. Some promoters of Costa Rica fudge the prices, give headline pricing for beach properties with no amenities but paint the picture of a beach lifestyle which sometimes causes buyers to feel that they are not getting as much for their money as they had thought.
Half my time is advising buyers, half with sellers
About half my time is advising buyers, half with sellers. So I am in a privileged position, to understand the thought process behind property pricing.
Realtors don't set property prices, sellers do
It sounds obvious, but this is a common misconception. During the listing process the realtor will advise, but the seller decides. Often the seller’s decision is based on their personal circumstances- what they bought at +, what they need for the next step in their lives, at what price they heard that the neighbors sold. A key factor is the seller’s urgency to sell, and in general they are not in a hurry. My office policy is that we will not take overpriced listings, but many realtors will in order to win the listing.
How do you spot an overpriced property?
It is much more difficult to spot an overpriced property in a second home market. Architectural styles and build quality can vary much more in any given neighborhood. The indoor/outdoor lifestyle typical in Costa Rica means a cost per foot comparison is difficult. Historical actual sales prices are not publicly available. Days on market is a good indicator, though second home property days on market is much longer than in a first home market.
Flexible buyers
For 80% of buyers, Costa Rica is a second home that they plan to make their main home over the next few years. It is a cash market, so generally the buyers are financially astute, and have made their money by making good financial decisions. Budgets tend to be flexible, and it is far more about what they want, rather than what they need. For example one property for sale has steps down to a ‘private’ beach. For the right buyer this is a massive plus point, so the property will find a buyer even though it is, by other criteria, overpriced.
Prices today
It is a seller’s market today, inventory is low, and well priced properties are selling quickly. There is less negotiating room, and there is an urgency because buyers know that the property will not be available for long. Prices are steadily increasing, but the market is not overheating. There are still some deals available, but they are becoming less frequent.

Пікірлер: 106

  • @erichertzen3251
    @erichertzen3251 Жыл бұрын

    I looked for a cool climate away from the high heat and humidity of the beaches. Took 11 months to find the perfect place. River splitting my 3 acres. 800m in the jungle. I call it paradise. Fare priced worth more now. My advice is to travel, stay in Airbnb around the country until you feel at peace.

  • @silverbacknubian6366

    @silverbacknubian6366

    Жыл бұрын

    thank you

  • @vladimirskrbic5957
    @vladimirskrbic59573 жыл бұрын

    Thanks for the info, as always Rich.

  • @lisamcwilliam4456
    @lisamcwilliam44562 жыл бұрын

    Nice work Tama Rich x

  • @emanhugh7418
    @emanhugh74182 жыл бұрын

    Great content!!!

  • @davidbrown763
    @davidbrown763 Жыл бұрын

    Very well done Rich. Bravo

  • @edwingonzalez1182
    @edwingonzalez11827 ай бұрын

    Great video thank you.

  • @theyareourbread
    @theyareourbread Жыл бұрын

    Great info thank you

  • @jodyblackwell9012
    @jodyblackwell90122 жыл бұрын

    I havent been able to afford any property in Costa Rica in the 24 Years I've been going there way over priced for some one on a fixed income

  • @tidy
    @tidy2 жыл бұрын

    Costa Rica is very nice. Unfortunately all real estate is sold in US dollars. This is very expensive for Canadians with the exchange rate.

  • @cbtamarindo

    @cbtamarindo

    2 жыл бұрын

    But when you earn rental income from the property, you earn in US dollars. And when you sell you make US dollars. So it all balances out

  • @barrygraham1754

    @barrygraham1754

    Жыл бұрын

    Costa Rica should be forced to use their own country’s currency….

  • @tidy

    @tidy

    Жыл бұрын

    I agree with you Barry!

  • @u4w8cmdd

    @u4w8cmdd

    Жыл бұрын

    @@cbtamarindo no you dont, you dont earn in US DOLLARS at all what bullshit have you been listening to?

  • @directrue1742
    @directrue17423 ай бұрын

    Always making great Videos!🌎🇨🇷

  • @suzannegangs5204
    @suzannegangs5204 Жыл бұрын

    thanks its very informative... what will be the prize of house in rural area with some fruit trees & some garden area p

  • @JohnFisk-OHS-78
    @JohnFisk-OHS-783 жыл бұрын

    Thanks! As always, this is hugely helpful. I really appreciate your even handed approach and the courtesy and respect you show to the people of Costa Rica. For most of us, we are guests in their country. And if you have a moment.. are home inspections typically part of the buying process when purchasing property in C.R.? Here in upstate NY with houses that are 100-150 years old, no one would ever consider a purchase without spending the $400 to have a licensed inspector go over the property. Would that be typical for Costa Rica? Cheers! J

  • @cbtamarindo

    @cbtamarindo

    3 жыл бұрын

    My pleasure

  • @wsolveson
    @wsolveson8 ай бұрын

    Richard, I love your videos. I lived in Ticoland 81-83. It was my John Deere territory for years after. I am returning this January, staying at Casa Tequila in Portrero with family. My paternal grandfather is a Lacey. Let's down some aguilas while I'm there.

  • @johnhatfield6685
    @johnhatfield6685 Жыл бұрын

    Thanks for the informative videos. Whats the commission (total) for a seller in CR. I know it's 6% in the US, just wondering what it is there.

  • @daveleonti8818
    @daveleonti88182 жыл бұрын

    Since you made this video, prices have doubled in some areas, and overall market appreciation has been extremely strong...Just wondering where the analysis came from

  • @victortoombs4754
    @victortoombs47543 жыл бұрын

    Gringo pricing is "alive and well" in CR. There was a nice spec house at the top of the mountain in Coco Bay Estates. It was listed for several years at $1.6M with no buyers. Recently the price was dropped to $790K and it then finally sold.

  • @cbtamarindo

    @cbtamarindo

    3 жыл бұрын

    Some sellers have unrealistic price expectations, nothing to do with gringos. They then either wait for the market to catch up to their price or they lower the price. Same the world over.

  • @victortoombs4754

    @victortoombs4754

    3 жыл бұрын

    @@cbtamarindo Well I respectfully disagree. It's one thing to price your house aggressively because you want top dollar for it, but when you cut the price by 50% that tells me the builder was taking advantage of CR not having an MLS and hoping for an uneducated FOREIGN buyer (sucker) to come in and buy it. It's utterly shameful imho.

  • @dougtilaran3496

    @dougtilaran3496

    Жыл бұрын

    @@victortoombs4754 No land is worth more than 10,000 crc a meter and any house can be built for 80 usd/sf (80,000 crc/meter).I I'm talking Miami/Naples level stuff. Most goods imported for this type of project.. Find a master to MAKE you furniture. Scams abound. Visit shops and you'll find the right guy.Ask a Tico who is too expensive. Find the guy and hire him. Same for mechanics. Ask the Tico whos "too expensive". He's the guy with tools and the ability to read. Avoid farcebook and gringo helpers at all costs.It's a rain forest but good water can be scarce. Go solar/wind if you can. The electric all sucks. Get private health care options. The forced socialist crap is garbage ( mostly good docs-sucky infrastructure and dumbass nurses). The best ones also work at the capitalist hospital-clinics and earn real money. The clowns can't qualify for private so are stuck with the socialist crap and usa welder wages LOL. Pura Vida

  • @victortoombs4754

    @victortoombs4754

    Жыл бұрын

    @@dougtilaran3496 Panama is a much better choice.

  • @larrypartell6748
    @larrypartell67482 жыл бұрын

    are razers hard to find?

  • @bobdublin825
    @bobdublin825 Жыл бұрын

    What’s the climate now in guanacaste for property

  • @J.M.S.Simoes-Pereira
    @J.M.S.Simoes-Pereira4 ай бұрын

    I gave up buying real estate in Costa Rica because the real estate agency said I should transfer the money to a company. He said that the government requires that the money does not go directly to the owner-seller but first goes into the possession of a company that is not a bank. Is it true that the government requires a foreigner to transfer money to a company and not pay directly to the owner who wants to sell it? I dismissed it as a fraud and immediately stopped buying the property that I loved so much. Another thing is that sellers must talk to the buyer about all the documents that the buyer will need to bring to Costa Rica even before they start showing homes.

  • @riskyron1416
    @riskyron1416Ай бұрын

    I rent a house with 7 bedrooms/ 5 baths, 4 car garage on 23 acres for $153 a month. I am 76 years old and no children or relatives. I would be an idiot to even consider buying. Plus all repairs are the responsibility of my landlord/owner.

  • @KAungles
    @KAungles3 жыл бұрын

    Thanks - all good stuff

  • @mrbelinus
    @mrbelinus3 жыл бұрын

    I love your haircut!

  • @LuxuryHomesCostaRica
    @LuxuryHomesCostaRica2 жыл бұрын

    Great job Richard! Let’s connect!

  • @cbtamarindo

    @cbtamarindo

    2 жыл бұрын

    Yes, please get in touch

  • @puravida5683
    @puravida56833 жыл бұрын

    You're right, police in Costa Rica are present, I like the way you carefully phrased that. You might as well file a police report on toilet paper.

  • @riskyron1416

    @riskyron1416

    2 жыл бұрын

    Correct. You see 4 or five in a squad truck. If lucky the driver might be awake while the others sleep. And since they run the lights and sound the siren time to time they alert crooks to pause activity till they pass by. About 3 years ago several Elderly Disabled Americans were severely beaten just outside Liberia Arirport. At least 20 police observed byt did not act. See you mention military. I was US Army and served in Viertnam Nov 1966-7. USASTRATCOM, 1st Signal Brigade Long Lines Battalion, HQ&HQ Co. Made it out just one month prior to TET. I have always had great timing in avoiding disasters.

  • @Rayjon10857
    @Rayjon108572 жыл бұрын

    Are you seeing any pricing adjustments downward due to sellers needing to make changes due to COVID related financial impact? In some areas in the US pricing has been reduced for deals.

  • @captainrich5687

    @captainrich5687

    2 жыл бұрын

    No, the opposite is happening. Prices are increasing.

  • @cbtamarindo

    @cbtamarindo

    2 жыл бұрын

    No it is crazy busy here

  • @rob379lqz
    @rob379lqz2 жыл бұрын

    Absolute GREEN SCREEN behind you.

  • @RobertWilliams-mb9jb
    @RobertWilliams-mb9jb2 жыл бұрын

    The sale of real estate is not a regulated profession in Costa Rica. Anyone can put up a shingle and call themselves a real estate agent.

  • @cbtamarindo

    @cbtamarindo

    2 жыл бұрын

    True and it drives me crazy. All my agbts are obliged to undertake professional training. Richard@cbtamarindo.com

  • @silverbacknubian6366
    @silverbacknubian6366 Жыл бұрын

    Do they have a Zillow Costa Rica?

  • @riskyron1416
    @riskyron14162 жыл бұрын

    Big killer is Nicaragua, Mexico, Panama, Ecuador, Peru and other countries all allow a 40 ft shipping container as well as two vehicles imported tax free. Costa Rica allows you $600 and you are taxed everything after that. Bad deal. Love Costa Rica but I will remain a Perpetual Traveller here. No desire for Residency. Travelling Internationally 3 months a year to get the visa renewals is actually beneficial.

  • @perryelyod4870

    @perryelyod4870

    2 жыл бұрын

    Law 9996 to attract foreign investment has changed that

  • @silverbacknubian6366

    @silverbacknubian6366

    2 жыл бұрын

    Can you ship to Panama and drive to Costa Rica with your goods ?

  • @davidbereczky5319

    @davidbereczky5319

    Ай бұрын

    New lows let you bring in one vehicle, personal belongings and furniture in container to bring in tax free. No military and safer landownership than other Latin American countries.

  • @riskyron1416

    @riskyron1416

    Ай бұрын

    @@silverbacknubian6366 If you own the vehicle free and clear only.

  • @DaveT0818

    @DaveT0818

    11 күн бұрын

    The cost of Caja has really ballooned.. this is why people are "tourists" for years... the progressive nature of this tax has been making me focus a bit more on Panama where my VA medical benefits are honored at the major hospitals.. he keeps talking about 2nd homes... those days are over.. baby boomers bought second homes... gen x and newer have absolutely no interest and are unable now that primary homes have become unaffordable ..

  • @dlvox5222
    @dlvox5222 Жыл бұрын

    My guess is prices have declined as a result of a rise in global interest rates. Sellers are struggling to exit property in other countries.

  • @SirRome-tg1df
    @SirRome-tg1df3 жыл бұрын

    I seen KZreadrs, who live in third world countries, and live comfortably close to the beach front, and have beautiful lives as they enjoy what they have. And rich countries will cost you an arm and a leg to live just a bit of a view of water lol. I rather live comfortably poor in a little hut and enjoy my front view of the river or beach any day.

  • @u4w8cmdd

    @u4w8cmdd

    Жыл бұрын

    poor mind poor life, so whats with the comment then? no one want to hear what you have to say,

  • @Batya755
    @Batya7553 жыл бұрын

    The comment about the crime is not correct. Read the local newspapers and watch the local news. Violent crime is not rare. You can subscribe to several Tico news Outlets on line. CR is like any other country. It has crime. It’s not rare.

  • @genericdeveloper3966

    @genericdeveloper3966

    2 жыл бұрын

    I'm sure it depends on the city. But you are right. When I was in San Jose it looked pretty dicey at night.

  • @tinagioffre3036
    @tinagioffre30362 жыл бұрын

    Yes - i walked down one of those stairways one time (to the beach) and the person who laid the stones on the path (not even the property owner next to the stairs) threatened to shoot me and my daughter “before the police (could) even get there”.

  • @romanpresl4007
    @romanpresl40072 жыл бұрын

    Hi, I don't speak English well, I use a translator. I would like to buy a propety ( only property, no house ) in Costa Rica. Approx. 2000 m2 - and higher. Price up to $ 20,000. Is it possible?

  • @cbtamarindo

    @cbtamarindo

    2 жыл бұрын

    Not at the beach, but in the small towns and beautiful countryside you might find a nice lot

  • @shaunbarrett5284
    @shaunbarrett5284 Жыл бұрын

    Where’d you go?

  • @donmeredith8037
    @donmeredith8037 Жыл бұрын

    Here's the problem...if you change your mind after your purchase your screwed in 2022..days on the market now unacceptable

  • @daniellong2100
    @daniellong2100 Жыл бұрын

    I like this guy. Smart and logical. Seems honest. Gonna come down in Jan for 2nd trip and look. Can I bring my Bulldog? The most important girl in my life- except for my wife. (Gonna get in trouble!)

  • @davidyancey1374
    @davidyancey137410 ай бұрын

    Is bank financing available at.all?

  • @cbtamarindo

    @cbtamarindo

    9 ай бұрын

    Hi! My ISA Julia Henkel would be more than happy to inform you about purchasing real estate in Costa Rica. You can contact her on julia@cbtamarindo.com

  • @erichart7931
    @erichart7931 Жыл бұрын

    Referral of Residential & Commercial Real estate Attorney?

  • @lemon2142
    @lemon2142Ай бұрын

    Costa Rica is expensive….if you look at Tamarino….you find almost nothing under 1 M$ dollars….so yes over priced for me…sadly 😢

  • @dc1674
    @dc16742 жыл бұрын

    Many places are now more expensive than US hotspots like Austin and Florida.

  • @u4w8cmdd

    @u4w8cmdd

    Жыл бұрын

    REALLY?? are you an overnight expert now?

  • @dc1674

    @dc1674

    Жыл бұрын

    @@u4w8cmdd I am a citizen. lived here 18 years and travel the country surveying real estate....so is that overnight? or just an expert?

  • @tinagioffre3036
    @tinagioffre30362 жыл бұрын

    Why do you call people trolls? A lot of people are upset because locals and retirees are getting forced out of their housing and even the town, by an overpriced market. Both ticos & expats. No need to call someone a “troll” because their experience and opinion is different than your own.

  • @gloriagggonzalez7628
    @gloriagggonzalez7628 Жыл бұрын

    When can you find nature like that,peaceful,find out,you will see.

  • @SirRome-tg1df
    @SirRome-tg1df3 жыл бұрын

    As the title indicated, everything is over priced, but the whole world is over priced. Since the beginning of human society, structure of aspects and levels of life expectancy. Everything is over priced on how you view it.

  • @cbtamarindo

    @cbtamarindo

    3 жыл бұрын

    I don't thing you watched the video did you? That is not what i said

  • @RobertWilliams-mb9jb
    @RobertWilliams-mb9jb2 жыл бұрын

    Real estate, the most conspicuous form of wealth. Subject to regulation, taxation and confiscation.

  • @cbtamarindo

    @cbtamarindo

    2 жыл бұрын

    First 2 yes, not the last one though

  • @RobertWilliams-mb9jb

    @RobertWilliams-mb9jb

    2 жыл бұрын

    @@cbtamarindo government has the right to condemn and purchase property if it is deemed to be in the public interest. People do not arbitrarily donate their property for a highway, school or hospital. Maybe you would, but not everyone.

  • @Patriotintexas
    @Patriotintexas3 жыл бұрын

    I'm saving so hard right now to buy there. 36-48 months to go. God willing. (Respect the voting process unlike USA) We need to connect. I would like to retire early there.

  • @victortoombs4754

    @victortoombs4754

    3 жыл бұрын

    Panama is a better option.

  • @loveflores777

    @loveflores777

    3 жыл бұрын

    I have a small home for sale in the country.

  • @RobertWilliams-mb9jb

    @RobertWilliams-mb9jb

    2 жыл бұрын

    So what are you going to do whenever you decide to sell? What if you die before you sell? What happens, you think your children will want your "dream"?

  • @silverbacknubian6366
    @silverbacknubian63662 жыл бұрын

    Thank you, I will keep this in mind when I invest. Do you every make your money back in resale?

  • @cbtamarindo

    @cbtamarindo

    2 жыл бұрын

    Yes

  • @cbtamarindo

    @cbtamarindo

    2 жыл бұрын

    Www coldwellbankertamarindo.com

  • @tinagioffre3036

    @tinagioffre3036

    2 жыл бұрын

    Rarely. That is why so many hotels and homes sold as soon as the market started to heat up. Hotel flores went up for sale one month after Pasatiempo sold. So many restaurants sold. A house that took a sale loss 2 years ago, just sold for more than double.

  • @ericmackhan4099
    @ericmackhan40992 жыл бұрын

    Has anyone ever told you , you look like the actor charles rocket from dumb and dumber ( the bad guy )

  • @cbtamarindo

    @cbtamarindo

    2 жыл бұрын

    No, that is a first. I had to google him. Thanks, he is a handsome chap

  • @JS-jh4cy
    @JS-jh4cy Жыл бұрын

    Yes everything is overpriced, even in Canada today

  • @alrent2992
    @alrent29922 жыл бұрын

    God giveth! Man taketh! Now you know.

  • @GLANCEVLOGS
    @GLANCEVLOGS3 жыл бұрын

    If you guys can afford to buy a house . I suggest to buy in Escazu or Heredia for many reasons . Also Close to the good hospital Cima and hospital Biblica ., best hospital in 🇨🇷 Rica .

  • @victorcosta9590

    @victorcosta9590

    2 жыл бұрын

    UNLESS YOU WORK IN THE SAN JOSÉ METROPOLITAN AREA OF COSTA RICA, THERE IS NO REASON WHY A U.S.A. , CANADIAN, OR WESTERN EUROPEAN CITIZEN WOULD WANT TO LIVE THERE.

  • @RobertWilliams-mb9jb

    @RobertWilliams-mb9jb

    2 жыл бұрын

    I live in Grecia. Whenever I want to pretend I want to leave Costa Rica, I go to Escazu, which is like going to Southern California. And Hospital CIMA? Forget it. I prefer Hospital Metropolitano in Lindora or Clinica Catolica any day of the week.

  • @mopes2713
    @mopes27132 жыл бұрын

    You think Costa Rica is expensive?? Look no further than Nicaragua. An extremely underrated country. You can probably find properties twice the size and twice as luxurious in Nicaragua. Nicaragua gets a bad rep but it’s really one of the safest places in Latin America. Granada or Leon are literally a dream come true for property investment or retirement.

  • @cbtamarindo

    @cbtamarindo

    2 жыл бұрын

    Nicaragua is beautiful, and half the price or less of Costa Rica. In the streets it is fairly safe, but the political situation is unstable. So if you dont have trust in the institutions such as the land registry you are never quite sure if you own the property that you own

  • @alrent2992

    @alrent2992

    2 жыл бұрын

    A legal resident can own a firearm in Nicaragua.

  • @robertdavis5692

    @robertdavis5692

    Жыл бұрын

    Five Words: Daniel Ortega. Chinese connection. Think.

  • @mopes2713

    @mopes2713

    Жыл бұрын

    @@robertdavis5692 So what? Costa Rica has a Chinese connection too, China built their soccer stadium. Believe it or not China is only communist by name, they are one of the biggest capitalists in the world.

  • @robertdavis5692

    @robertdavis5692

    Жыл бұрын

    @@mopes2713 Ha Ha. That stadium was built more than a decade ago. International relations were far different then. It seems you are not informed about the changes in Ortega's relationship with Xi Jinping in 2022 (or the sad, Draconian restrictions the Chinese people suffer at the hands of the Chinese government. Yes, Granada is beautiful, I agree, but if you're not a Nicaraguan citizen, best wishes to you if you own land in Nicaragua.

  • @brucegelman5582
    @brucegelman55826 ай бұрын

    Don't worry.Plenty of idiots will overpay for ream estate in Costa Rica...the new Hawaii

  • @SirRome-tg1df
    @SirRome-tg1df3 жыл бұрын

    If you have to much ambitions in your life therefore everything is over priced, since you will looking on the wrong ways of enjoying life.

  • @riskyron1416

    @riskyron1416

    2 жыл бұрын

    Fully agree to many think life is all about money. It becomes a prison they construct for themselves always afraid of what they might lose and especially those that would take it from them. In the end they will leave it all behind when they die. But friendships and deeds are eternal.

  • @u4w8cmdd

    @u4w8cmdd

    Жыл бұрын

    @@riskyron1416 you have no idea, what friends i guess you haven't woken up yet, no one is your friend these days even if you have known them all your life, so you think money is nothing? well you are asleep in life badly, unfortunately money is everything, it buys you time and freedom, what else could a person ask for, the only reason why you talk like that is because you have always never had NO MONEY and never will, so go and live in india where all they do is smile and talk shit all day cause they are all the same POOR.

  • @icysurfer1
    @icysurfer19 ай бұрын

    Rich Kid.

  • @Bratwire
    @Bratwire6 ай бұрын

    Do u have a lot of Canadians trying to invest in rentals?

  • @briansbucket7011
    @briansbucket7011 Жыл бұрын

    Great info thank you