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SunnySoleil

What to believe about buying real estate in Costa Rica?

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I don't know anything about buying, but I just wanted to add that according to the law, CR landlords have the right to raise the rent 15% every year. Not all do, but most do raise it some. Our landlord is a friend of ours,but our rent still went up some at the year mark.

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Your rent went up at the one year mark while mine went up at the 3 year mark. ("Can you pay another 10,000 colones per month?" she asked me.) Isn't there something about whether the rent is in dollars or colones and the frequency with which they can raise the rent?

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Hmm, I don't know if there's a difference, the esposo said he didn't know anything about that either. Ours went up about 5%. But the thing is, salaries don't go up that much, and everything else goes up a percentage in January, too, so if a landlord raises it every year (even if not the full 15%), folks are falling farther and farther behind as time goes on. I don't know what we'll do in the future ... we have a possibility to get a lot from a family member in the future, so we'd have to pay to build, but not for the land. That's a possibility, but I don't know beans about building, and have read it's a whole different ballgame here, so ... I'd need to do mega research on that. Buying at our ages scares the crap out of me ... I don't think we have enough years to pay something off, jeje, but being subjected to constantly rising rents on a fixed CR pension ... neither option makes me want to turn cartwheels.

 

Then again, maybe I'll hit the gordo and end up one of those gringos with a view from her infinity pool. bwahahahahhaahaha..........

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Wait, this just in from the esposo:

 

Art. 67 de la ley: Cuando el precio del arrendamiento de una vivienda sea en moneda extranjera, se mantendrá la suma convenida por todo el plazo del contrato, sin derecho a reajuste.

O sea, no aplica un reajuste. Supongo que lo que hacen los dueños es pactar contratos cortos, y así, de esto modo, pactar un nuevo contrato, pero más caro.

 

So ... apparently landlords can't raise the rent during the length of the signed contract if the rent is set in dollars. You were right, Eleanor.

Edited by stewart.tb

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I don't know anything about buying, but I just wanted to add that according to the law, CR landlords have the right to raise the rent 15% every year. Not all do, but most do raise it some. Our landlord is a friend of ours,but our rent still went up some at the year mark.

 

You can track the monthly average rent history at

 

http://www.encuentra24.com/costa-rica-en/real-estate-for-rent-apartments/hermoso-apartamento-patio-seguro-y-tranquilo/2373279

 

... in some places it is going up and some places it going down in others .....

 

Also, it appears that zoning is not really strict in CR since it appears that folks can build a structure behind their home and rent it out from the advertisements I see .....which might keep rent down since anyone can enter the market at anytime.

 

Here is the advanced search for all of SJ.where rent appears to be going down overall year over year ....

 

http://www.encuentra24.com/costa-rica-en/cnad/statistic/type/realestate#.UTjMvxyG218

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What happens in San Jose with rents, etc, has little to do with the rest of the country. And what happens in Tamarindo or Liberia or Puntarenas has little to do with Dos Rios or Tilaran or Dominical.

 

Each area has its own economy and its own rent structures. So if you don't live in San Jose, then all that stuff about the rents is really meaningless.

 

As for the law about raising the rent and whether landlords take advantage of it: That, too, has to to with the local economy and the availability of places to rent as well as the desirability of certain tenants. Where I live, there are quite a few places for rent so I think my landlady is happy to have someone who is stable and has a stable income and takes care of the place and makes improvements. In some cases, I know that the landlord/landlady will push a tenant to the limit with raising the rent. It really depends on the individual situation.

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What happens in San Jose with rents, etc, has little to do with the rest of the country. And what happens in Tamarindo or Liberia or Puntarenas has little to do with Dos Rios or Tilaran or Dominical.

 

Each area has its own economy and its own rent structures. So if you don't live in San Jose, then all that stuff about the rents is really meaningless.

 

As for the law about raising the rent and whether landlords take advantage of it: That, too, has to to with the local economy and the availability of places to rent as well as the desirability of certain tenants. Where I live, there are quite a few places for rent so I think my landlady is happy to have someone who is stable and has a stable income and takes care of the place and makes improvements. In some cases, I know that the landlord/landlady will push a tenant to the limit with raising the rent. It really depends on the individual situation.

 

fyi ... the website has the rent and sales history for other cities besides SJ .... I just picked SJ as an example but folk are free to select any area they are interested in living.

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Sorry to be so stupid, Jim, but when I go to the encuentra website, it just shows one rental and some information about prices of homes to buy. What am I doing wrong?

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Sorry to be so stupid, Jim, but when I go to the encuentra website, it just shows one rental and some information about prices of homes to buy. What am I doing wrong?

 

No problem ... my fault .... too much information ... the first link has a single rental with the rental history at the bottom and the second link had the regional rental history at the bottom.

 

http://www.encuentra24.com/costa-rica-en/cnad/statistic/type/realestate#.UTj-rByG219

 

It should bring up "advanced search", "statistics", "Region"

 

I hope that works ... pretty cool information ..... I am sorry I do not know much about all the cities and regions beyond what the site displays.

post-17397-0-59161900-1362690230_thumb.jpg

Edited by jimvignola

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What is happening on this thread in regards to negativity being more common than positivity is called the "Zeigarnik Effect". We remember emotionally unresolved, therefore negative events, much more readily than the positive. (I'm a psychotherapist and that's why I geek out on this stuff.) My guess is that it is skewed because people who have had wonderful experiences in Costa Rica are less likely to post here.

 

I will add how wonderfully helpful all the info is....both positive and negative. Living here is probably a blend of both extremes. Leaving your home country to escape to *paradise* is just not realistic. Again, to use a psychological term, everyone and every place has a shadow side. I guess we all just have to assess if the cons of a specific place are fewer than the pros given our each person's unique personality.

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OK - I found the information - but it has very little of anything that is not in the Central Valley. I checked a few - including Liberia and La Fortuna, but there was nothing for either of them.

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sunnysoleil: Sometimes people think that contributors to this forum are way too negative. Really, it's just a wish and a hope that someone can be warned before making any decisions they will regret. Sometimes "La-dee-da" turns into "What have I done?" So people who participate in this forum try to make sure that people understand the downside of any situation regarding Costa Rica and moving to Costa Rica. Sometimes living here is like riding in one of those bumper cars at the carnival. Just when you think you have things figured out, they change without any warning and it is often a big shock to people who are used to things being more cut and dried.

 

And frankly -- I don't enjoy participating in a forum that is being analyzed by a psychotherapist.

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Haven't been able to access the forum, again, until a few minutes ago.

Anyway we have been in this rental house for just over a year. We signed no lease just agreed to the owners price and he never even tried to 'up the rent' on the anniversary.

Eleanor, I agree that 'being a good guy' in disguise causes some of us, to be seen as negative :ph34r: rather than been viewed as someone who tries to help them avoid the pitfalls that may lurk ahead...

 

If I told you all the 'downs' we have experienced here, you really wouldn't believe me :huh:

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MODERATOR NOTE: UNPLEASANT POSTS

 

Just FWIW . . .

 

Everyone eventually is going to encounter aspects of responses or topics that they do not care for. This happens sooner or later on all discussion groups That's just par for the course, and it is ulikely that that will ever change.

 

So we can either accept the fact, or have a tantrum about it. Either is fine, but in the second case the offended person(s) would be wiser to take their tantrum off-list and do it privately at home so they will not be inflicting it on any other members. Another reason that it is better to do so off-list at home is because then we can be as loud as we like and still we won't annoy or offend our fellow list-members as we rant on.

 

Or if one is able to state their opinion respectfully, then there is no reason for not offering one's reply on-list.

 

But, if you cannot say something nicely, probably it is best to say nothing at all on-list.

 

And if someone does happen to say something that offends you, you can always let them know off-list via PM. If, after a reasonable attempt you are unable to resolve a situation off-list via PM, then please advise the Forums Moderator, privately.

 

Regards,

 

Paul M.

Forums Moderator

==

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What is happening on this thread in regards to negativity being more common than positivity is called the "Zeigarnik Effect". We remember emotionally unresolved, therefore negative events, much more readily than the positive. (I'm a psychotherapist and that's why I geek out on this stuff.) My guess is that it is skewed because people who have had wonderful experiences in Costa Rica are less likely to post here.

 

I will add how wonderfully helpful all the info is....both positive and negative. Living here is probably a blend of both extremes. Leaving your home country to escape to *paradise* is just not realistic. Again, to use a psychological term, everyone and every place has a shadow side. I guess we all just have to assess if the cons of a specific place are fewer than the pros given our each person's unique personality.

 

You can not account for folk's age from their post. I am guessing folks who are older and have less time to absorb loses are more risk adverse. Many baby boomers assumed their home would be their pension and now find they were wrong which breeds that negativity Given enough time, every investment will probably pan out. For many retirees the 26 years break even point above is just too long to wait. What I tell my kids is that it is likely any depressed property you buy now with cheap money from historically low interest rates that will be subjected to the tremendous inflation that is predicted to come will in the next 20-30 years be a great investment. Many of the homes in the US are being purchased by corporations as investments because of those factors. With you being young and having deeper pockets, you are probably better suited than many to hang in there over the long haul and reap the rewards. My advice would be to have an eye that what you buy is rent-able. That way you have a plan B and cover your costs if you need to move back or move on.

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