[ticaricayesenia]

I am perplexed, the average tico from what I have heard and observed, must be living on a household income of 1000 dollars or less per month. How is it than that I see so many ticos driving cars, and owning houses. Is there financing available, are they recieving loans. I also am on an income of around 1200 dollars a month, do you have any advice on what course of action i need to take if I want to purchase a home or vehicle without the cash up front.

[newman]

ticaricayesenia, on May 21 2009, 01:35 PM, said:

I am perplexed, the average tico from what I have heard and observed, must be living on a household income of 1000 dollars or less per month. How is it than that I see so many ticos driving cars, and owning houses. Is there financing available, are they recieving loans. I also am on an income of around 1200 dollars a month, do you have any advice on what course of action i need to take if I want to purchase a home or vehicle without the cash up front.

The TICOS carry a very high level of debt!! If you're interested in further advice, message me, please

[MiamiDavid]

newman, on May 22 2009, 12:21 PM, said:

The TICOS carry a very high level of debt!! If you're interested in further advice, message me, please

A running joke among Ticos is that they would gladly buy the Royal Navy if Brittan would give them terms.

Ever notice the stupid billboard "Ahore yo?" With the dorky wide eyed girl. In other words "you mean _I_ can actually save money?"

They spend every penny they have within days of payday, and rarely seem to consider paying debts.

[ebjr]

newman, on May 22 2009, 12:21 PM, said:

The TICOS carry a very high level of debt!! If you're interested in further advice, message me, please

That seems contrary to everything i've read so far on credit in CR. From what I understand its not nearly as easy as in the US to buy on credit, especially when it comes to buying real estate.
A simple explanation as to why so many average Ticos have a car and home is that they save and buy the car they can afford and have homes passed down from family members or are simply renters.

[jdocop]

I agree with ebjr here........most Ticos I know don't have credit, but if they have anything of real value, it is because they saved and paid cash!

[newman]

jdocop, on May 22 2009, 07:47 PM, said:

I agree with ebjr here........most Ticos I know don't have credit, but if they have anything of real value, it is because they saved and paid cash!

One must be aware that the TICOs are pawning their Christmas presents on 2 Enero (January) for the "Cuestas de Enero"! This should give some insight into their way of thinking about their financial situation!

[kenn]

ticaricayesenia, on May 21 2009, 01:35 PM, said:

I am perplexed, the average tico from what I have heard and observed, must be living on a household income of 1000 dollars or less per month. How is it than that I see so many ticos driving cars, and owning houses. Is there financing available, are they recieving loans. I also am on an income of around 1200 dollars a month, do you have any advice on what course of action i need to take if I want to purchase a home or vehicle without the cash up front.

First of all, the average FAMILY income is less than $600 a month, not a grand. Now, this average is countrywide, so it includes a lot of rural folks who are sometimes land rich and have cash under their mattresses, so in the cities Ticos average more. However, it isn't a lot. The car thing is a misconception (perhaps based upon traffic). As of a few years ago, 80% of Ticos did not own cars. Most of these don't even have a license. A few well-off or credit-savvy distort the image for the bulk. The home-ownership is a little different. Lots of Ticos have houses owned outright. The houses have been in the family forever, some uncle died, and the next in line gets the house. Lots of Ticos also rent.

However, the credit explosion has been real, and from what I hear some Ticos have gotten in way over their heads. On the other hand, it has long been a culture where you can buy a toaster for $2 every 15 days. In the end you pay $50 for a $15 toaster, so it's a deal to have a credit card and only pay $30 for it. My sense is that it is similar with cars but houses are different, although I don't know.

[costaricafinca]

Newman I surely disagree with your statement,'One must be aware that the TICOs are pawning their Christmas presents on 2 Enero (January) for the "Cuestas de Enero"! This should give some insight into their way of thinking about their financial situation!'
Obviously, some may do so, but the majority actually exchange very few gifts. as compared to North American and Europeans.
Christmas is much more of a religious holiday rather then commercial. But, I don't think there is any comparison, as to the 'frenzy' which happens every Boxing Day when sales are announced. And look now at the people who have lots there homes due to having lived way above their monthly income in North America
I am aware the many Ticos are now experiencing problems with credit card debt, but most of the ones I have met over the past 8 years save or in the case of a larger purchase get a bank loan and then buy the item.
Newly married couples here are content with buying/building a smaller Tico style home to start off their new life and not insist because they feel it is 'their right' to have a home equal or better than the one their parents now own.