Just wondering what your thoughts are now on this topic that was covered on here in June. It seems since then the market has exploded in the central Pacific, I could not even begin to name all the projects being built, planned in the Jaco area. And it appears that sales are brisk and ground is being broken and most of the condos being developed are by large developers with experience. I must say I have often wondered about the tourist industry as I have also observed as pointed out in other posts the lack of guests in hotels in this region. Los suenos always seems deserted, the hotels in Jaco never seem that full. we stay for 3-4 weeks in Playa Hermosa/Jaco and the bigger hotels like Terraza seem barely occupied when ever we are there. Some of the smaller places fill up (less than 6 rooms) but that changes weekly. I was really surprised when I saw Terraza adding rooms to the hotel, where is everyone? There is a project being developed in Jaco called "Garden of Dreams" and although I am building a house in Hermosa I was considering buying a unit for investment there. They seem very sincere and well intentioned and are marketing this based on being able to rent it out to earn income. They quote government numbers that appear to support there claims of a busy tourist trade and hotels filled with guests. But over the last 4 years I have been visiting at times twice a year for up to 6 weeks at a time in different seasons the whole area is half empty. I surf and when you leave Jaco or Playa Hermosa the beaches are empty, never seen anyone on Los suenos' beach. Bottom line is most of the hotels are half empty...what gives? Are the government numbers fudged...not that that would suprise me.

You are confirming what a fair number of people have seen this year.

I wrote about this back in June. Tourism is most assuredly down in many areas as are apparently real estate prices.

Jaco especially has issues. Drugs and gang type activity are written about in most newspapers. The local merchant's associations have been begging for more police presence in and around Jaco.

I did not know Los Sueños was suffering though. Interesting.

As for the goverment fudging numbers... THAT was discussed ad nauseum in these forums for weeks!

TG

What about all this developement going on, it appears that it is booming? What is your take on on this?

One has nothing to do with the other.

That was not the question, sorry if I was not clear. I was wondering your opinion of the state of the real estate market especialy in the central pacific area in and around Jaco.

The opinion of some of the developers and others there is the same as everywhere...."If you build it, they will come...."

One of the towers we know being planned, some 250 units, has already presold some 100. In total I understand there are (amongst various projects) some 1300 units planned for Jaco. Will they all sell? Who knows. Will depend on price IMHO.

They say tourism is down? I think it is based more on number of hotel rooms now available compared to 5 years ago. At that time Costa Rica was just breaking the 1 million visitors per year. Last year saw 1.4 million visitors, yet the hotels are complaining of lower occupancy. That can only mean a)more rooms or b)tourist are staying in places other than hotels.

Anyone else noticed the huge number of backpacker hostels that have opened up?

Than you for that insight.

wow, I learned something here. that's something new. thanks. oh btw... i'm a newbie ( in case you can't from that panel on the side)

Like RP said, with all the development room capacity has more than doubled (maybe tripled) in the last few years and there has not been the coorisponding growth in numbers of visitors. I was in Manuel Antonio just last week and all the resort managers are saying the same thing. The numbers of visitors to the park itself is up. Tour operators, ATV, canopy tours, fishing charters, ect are growing their businesses. They are doing fine.

Hotels are sucking wind because so many new rooms have come into the market and there just aren't enough visitors to fill them all. The NEWER locations tend to get a greater share, so the older properties REALLY feel the hurt.

This phenomenon is not unique to Costa Rica. This is a typical pattern of what happens in resort destinations that get HOT.

Arenal is hurting because the mountain is not as active as it once was and once you have seen it, well you have seen it. They are just not getting many return visitors.

Absolutely, positively, without any question, if there was any significant drop in the TOTAL number of visitors to Costa Rica the airlines would be cutting flights. Their margins are so thin, they just do not mess around with that at all. This is one statistic that it is essentially impossible for the govenment to fudge. Unless there is something going on that I am unaware of, there have not been any such cuts in service. The flights I have been on have been full!

I have to think with all this over capaicty that eventaully market forces are going to come into play and some real deals are going to become available. Then again, who knows? If CR gets the growth, it will all even itself out.

The central Pacific zone is still developing like crazy - especially Jaco.

The problem that I have noticed is that about 80% of the buyers for these condo pre-sales seem to be investor/speculators. The traditional end-user like the average retiree or the vacation home buyer wants nothing to do with Jaco.

This is what I fear for that area. Investors/speculators are driving the growth, but ultimately they will need an end-user or buyer for their investment. Many of the retirees from the USA or Canada that I speak with will not buy in Jaco. The supply is already outgrowing demand.

I have learned of church groups that used to visit Costa Rica annually. They always stopped over for a couple of nights in Jaco. Last year, the teens in the group were approached numerous times by drug dealers trying to sell them crack. That church group has now canceled their annual trip to Costa Rica. This is just one of many stories that are turning off the average retiree from this area. The overwhelming majority of foreign retirees want a peaceful and safe retirement. Jaco simply can not provide for that.

The developers are making big dollars, but I would suggest to the investor/speculators to put their capital into other Costa Rica markets that DO attract the average retiree. Clearly there are many areas offering good investment fundamentals.

Good Luck! Pura Vida!
Jeff Hickcox

Jeff, that is an interesting insight into the Jaco market: that it is in fact speculators that are propping up the real estate values in the Jaco area. For those that are patient, there may be some great opportunities when the speculative bubble bursts in Jaco, wouldn’t you say?

I have argued in other threads that the Family Vacationer and the Eco Tourists have been displaced in two primary destinations, Jaco and Tamarindo. They have been displaced by an even greater number of the Party Seekers that come to these areas to seek out what they have become. Moral arguments aside, from an economic stand point this trend is not necessarily unsustainable, nor is it necessarily bad for the Costa Rican tourism industry as a whole. There are an awful lot of people, with an awful lot of money, that are always on the look out for new destinations in which they can fullfill their pursuit of pleasure. Jaco and Tamarido are filling that nitche within Costa Rica.

What will be interesting to see over time is if the Party Seeker demographic will step up and invest in real estate in these areas as an “end user” as you say. I agree with you, I think both destinations have lost their ability to attract the Retiree market. If the partiers do not step up to the plate and invests as "end users", it should be expected that there will be a major shake out in this area. If they do step up to the plate, we may be seeing just the very beginnings of growth in these destinations.

Speculators will continue to make money until they drive prices higher than the financial fundamentals of the average "end-user".

This happened in the States during the bubble, most notably in areas like Vegas and Florida, where development got way ahead of demand, and way ahead of financing fundamentals. Now the Financial institutions are taking a beating, the buyers are foreclosing, and the development has halted.

I do not think we are even close to that yet in Costa Rica - and particular Jaco/Tamarindo. The bubble is still blowing up and lenders are scrambling to offer products in CR.

The availability of Financing (or Capital) is the biggest indicator of up or down RE cyles. With sub-prime lenders collapsing in the States, and the prime lenders proceeding with extreme caution, Capitol is leaving the U.S. market, thus continuing to suck the air out of the bursting bubble. And this could just be the beginning...

In Jaco there is capital flying everywhere, albeit alot of it is quasy-private capital, it is still just the beginning of this terrific up-cycle. The fundamentals are starting to look erily similar to US in 2001-02, where capital was everywhere, development was exploding, the cost of building was rising daily, and buyers were lining up. With those fundamentals much money was made even during the next 4 years.

I believe there is money to be made in almost every facet of real estate in Costa Rica. I just think investors should be aware that when investors outway "end-user" buyers on a particular project - they may be assuming more risk. At this point, these pre-condo sales and buy & hold strategies should remain solid for at least a few more years.

90% of the demand (end-user) - that I have experience with - is looking for a home under $250,000. Certainly, the 10% crowd is actively involved in Costa Rica, but the 90%(middle-class buyers) are what will sustain this up-ward drive for years. So, in my view, I would really scrutinize any investment over $250K. Like I said before, money is being made way above that pricing and will continue to be made.

You are right about the party crowd. They do exist and they do have money. I'm just not sure what percentage of overall demand they represent in Costa Rica. I don't know the tourism numbers well enough to have an educated opinion - although, I have heard that inventories of hotel rooms and condo rentals are also way above demand. Have you heard any statistics to prove or disprove that?? I am hungry to find some hard data on that.

Jeff Hickcox

That is all very interesting Jeff.

To answer your question, no I do not have any data on that. I am not sure there is anyone collecting it.

However, I think there is a consensus among the resort managers that I have talked to that this is the case. You don’t need hard data to see the explosive growth in the resort destinations.

I am with you, I think we are in the very beginning of all this. People look at Jaco and Tamarindo and compare it to what they were 5 years ago and the perception is that both destinations have become over developed.

My perception is that they remain under developed, at least in terms of being resort destinations. I spent time on Maui in the early 80’s before it exploded and I lived there through much of the 90s. What a lot of people here don’t understand is what happens to a place when a destination becomes a global hot spot. Most just look in the rear view mirror and compare it to what it once was and they can’t believe the change.

Many people are turned off by the change, which is understandable. Personally, I am not a fan of resort destinations and they are not the type of place that I want to go when I am on vacation. However I also understand the economic realities of what happens to a destination when it becomes HOT and the corresponding opportunities.

While many are turned off by the changes that have taken place in these destinations, many more will be attracted to the improvements in infrastructure. There is a demographic shift that takes place with the type of visitor that is attracted to a destination as it goes through this sort of transformation. Your example of the church group is a perfect example. Jaco is booming, the church group you mentioned has been replaced twice over by a differnet type of visitor.

I don't think it is all bad nor do I believe that it is something to fear. Maui at one time had similar problems with drugs and crime in its early growth stages. Yet Maui turned out pretty damn nice. Maui has concentrated resort development in two primary locations and a major part of the island is much how it always was, albeit with improved infrastructure and a higher standard of living for the inhabitants.

I have mentioned this before and I mention it again, very few people here appreciate how important the Four Seasons Papagayo is to Costa Rica. Few appreciate the economic impact. That resort alone has put Costa Rica on the map for the moneyed elite. Everyone is focused on the gross numbers of visitors coming here every year. Few understand that one couple at the Four Seasons will spend as much in a week as 60 backpackers will in a month. A couple there can easily run up a $10,000 or $20,000 tab for a one week stay, and 30K, 40K is not out of the question. When people like that start coming here and they start investing here, they have a transformational impact.

Some have argued on this BB that tourism and the real estate markets are not related. I could not disagree more. There is a pattern to all this that has played out in many destinations around the world. This is all new to Costa Rica, but in reality, it is an old story that has played itself out many times in the past.

I'll throw this out as I think it might be valid.

I am sorta with Kahuna on this but from a different angle. I think most boomers are looking at Costa Rica for the simple fact they cannot afford to live in the US after retirement. Sad fact. But it is those boomers who will be buying the lions share of property I think.

Therefore, what is very unclear is what happens when the cost of living in Costa Rica, not just the housing cost which is just nuts... but the cost of food, utilities and other necessities reaches the point where Costa Rica is NOT so desirable?

Costs are up far more than is being reported by the government that uses a market basket approach that does not apply to most foreigners. My cost of living has more than doubled since I arrived, and it gets worse every day.

So when they realize that it is not all that much less to live here... then what?

Just throwing this out for you experts to debate... TG

I agree 100% with that assestment. The overwhelming majority of the 77 million baby-boomers are working-middle class. Many of them are seeking a retirement area with a lower cost of living out of neccesity.

I don't know how long before the cost of living will reach US pricing (if ever). But a good example is in Panama where the cost of living is much higher than in Costa Rica. That did not happen over night and they use the US dollar which inherently drives up costs. But I agree, the cost of living increases will lower the demand from the working class retirees.

The sticker shock of houses is a strange concept. Someone from California or New York may look at a spectacular $350K 4000SF home in Costa Rica and say "What a Bargain!". At the same time, a wealthy doctor from Mississippi may be shocked at such a high cost for a home in Costa Rica. Everything is relative to the eye of the beholder. Some may scoff at these prices and vow to never pay that much in a Third World Country.

That comment bugs me the most. I ask them how many third world countries have great public health care, a higher life expectancy than the USA, a literacy rate of 97%, clean public water, cell phones in the hands of nearly every young adult, high speed internet available almost everywhere, public transportation to rival any country, and all the rest.

North Americans require good infrastructure (electric, internet, clean water, etc..) to be comfortable. If some of that comes at a higher cost (which is still well below what they are used to), they will still gladly pay it. The real savings for these retirees are in the cost of food, hired help, health care, taxes, insurance, and many other areas. Although these costs are rising - they do still remain attractively low.

Also, if expats are willing to live a simple life, there are many live-able Tico homes in the country that can be found for around $50K. With another $5K - $10K you can add many of the ammenities that you are used to.

We live in a new Tico style home with on-demand hotwater in the shower only. The shower is located in the only bathroom in the house. We do not have a dryer for our clothes - we hang them up like the Ticos. We do not have a dishwasher, AC, and we rely on only one car (a luxury here, but a huge change for our active family). Our simple life allows us (family of 4 w/ one more one the way) to live for about $1000 - $1200 per month.

Pura Vida!

TG,

You yourself have made the point many times; you need to separate what is happening in the resort areas from everything else.

For the Guanacastle coast, I believe that the die is cast and there is no turning back. With the ongoing intensive development, that area will attract a growing number of people that aren’t going to be as price sensitive as the group of value oriented retirees that you describe.

The same is probably true Jaco/Quepos/Manuel Antonio.

As long as the road south from MA remains unpaved, Dominical and destinations south are probably insulated for the time being. That said, there is a lot of development in those areas too.

This is not that unusual, very few retirees can afford to retire in the coastal areas in the states either.

It seems to me that the economy of the Central Valley is pretty well insulated from the hyper development that is going on in the Resort Developments. Yes there is some inflation here in the CV, but there is inflation in the States as well.

In the end if things get so expensive here that the Value Oriented Retirees are scared away, it only means that there are other individuals that have come here that are less value oriented and are willing to pay more for the same service/real estate/commodity. There was a time when people would move to Hawaii to retire. No longer, retirees have been priced out of the market and the more affluent have taken their place.

Hawaii struggles with all of these same issues, only they are about 40 years further along in the process.. The Locals in Hawaii maintain a standard of living that is roughly on par with the Ticos here in Costa Rica, in spite of insanely higher prices for everything. The big advantage here in Costa Rica is that the CV is relatively isolated from all the resort development on the coast. In the long run, I think there is a good chance that the language barrier and physical separation from the resort areas, will keep the CV economy from heating up the way it has in Hawaii. But who knows? It is pretty nice here in the CV too. Enjoy it now.

NOTE: 2 reasons why thing will never be a crazy here as Hawaii

1) Climate. Because of prevailing trade winds, each island has a wet side and a dry side. It is no fluke that the resorts are all on the dry side where inhabitants enjoy 350 days a year of near perfect weather. The trade winds also serve to keep both tempratures and humidity at moderate levels. The climate in Hawaii is just about perfect all year round. Slow season in Hawaii is Nov 27 to Dec 15.

2) Proximity to Japan. Japan visitors spend on average double what American visitors spend on vacation. It was also the Japanese investors that ran up the real estate prices in Hawaii during the mid and late 80s.

Hi you all,

I'm a newbe here and just read most of the comments and what I wanted to share with you all is this; You are forgetting that Costa Rica is not only the Pacific, which yes is not so inexpensive anymore. I myself have chosen the Caribbean side. I must tell you, there is a huge prejudise in this country towards the black community and therefore the Caribbean. When I arrived to Costa Rica everyone was telling me don't go to the Caribbean, that it is dangerous! Buuuu! So I went to the Caribbean side and let me tell you all, it is a little paradise. People are wonderful. There is a very strong sense of community and I still can't understand how it hasn't yet been invaded and so virgin. Some of the most beautiful beaches I have seen are here in the Caribbean. To comment on the level of security, in my house I don't have glass in the windows only mosquito screens, which means that it would be very easy to brake in. Well I have been here for quite some time and still haven't had a brake in. My property doesn't even have a gate.
All this to say that there is also the Caribbean and living costs here are much lower. If you have your house and don't pay rent you can live on $600 /month easily. My electric bill (with washer, dryer, hot water in three sinks and two showers + garden lights) - $50/ month. Without the dryer it would be around $20/month. We have been experiencing an upsurge in single family homes purchasing and the real estate market has been going up steadily since several years
. On average 25-30% up every year, which is a much healthier growth than what you see on the Pacific. And the construction prices are lower! If anyone is interrested in the Caribbean, I purchased my property with a local agency in Cocles; Sunrise Coast Realty Very competent people. You can also check out prices on their web site; www.sunrisecoastrealty.com

Have a nice day you all!

Give it 18mo. and we will be able to by a nice $500k condo for $175k. But who would want to live there?

It does appear that the central Pacific region is cooling but at the same time, the southern region is heating up. We have had record sales in the past year and business continues to sizzle. A major difference is what we sell, homesites and custom homes, not condos and high rise apartments. We aren't building spec condos or high rises and many people have now realized that the southern region (south of dominical) [b]has a three story height restriction throughout the province.

I think the folks who are disturbed with the amount of "high rise" construction going into the central region and now even into the middle of Manuel Antonio (Los Altos) are looking for a more environmentally appealing type of development (that's why we come to Costa Rica in the first place). Once one has visited to the southern region and headed down the Costernera from say Dominical to Palmar and seen the type of development going on in places like Uvita and Ojochal, they no longer want to be in areas dotted with high rises and the crime and bad smells that this type of density brings along with it. Gringos are opting for the south because it offers a chance to live amoung higher end single family neighborhoods and international communities. Now with the recent ribbon cutting by Oscar Arias on the site of the new southern zone International Airport, all those who said the airport would never get built are now scrambling to buy some property in the south, knowing that the airport will continue to make this the hottest market in Costa Rica. The lower cost of land in the southern region will soon be a thing of the past. We expect that land in the south will eventually be the most expensive since the local government here was smart enough to set good zoning practices before the onslaught of developers overran the area with high rises.

Steve Linder
Steve@PacificLots.com

I think that Jaco is done. Now it's the Nicoya Peninsula.

Nice pitch (no offence), but who are you kidding?

Los Altos II is coming your way soon. Exactly what is stopping it? Manuel Antonio has zoning too. So what? The Manuel Antonio Road is protected by the exact same environmental laws. So what? Don't kid yourself. Economic forces rule in CR, period. It is very difficult to stop local officials out in those areas away from San Jose from lining their pockets. Trees get cut down in the middle of the night. It happens all the time. Environmental laws are only loosely followed in Costa Rica.

You really don't think that the Costa Rican government is putting in a new airport so that gringos can move down there and live in single-family dwellings? Not on your life!!!

Get ready. Oso peninsula is open for business. The "hottest market" indeed. Sorry to say, but it is Gringo Real Estate people that are screwing up this country.

Maybe! Lets see how many of these projects get started, much less completed.

Kahuna,
What do you feel drives the government to build the new airport?
Avery

Costa Rica has only one legitimate growth engine for its economy, that is tourism. Like it or not. Increased tourism in an area leads to more real estate development. That is the way it works everywhere. As soon as new tourism infrustructure comes into an area, the real estate guys come in with them. It is a natural cycle, just like the tide.

This is the first that I have heard that the southern airport is committed to. There is also talk of a new road from San Jose to Jaco. Talk, Talk. There is a new marina going into to Quepos. That is the only one of these projects that actually been started as far as I know.

The road to Domenical from Quepos was paid for 4 times over the years from what I have been told. I have herd that they have finally started that. But that may be a rumor too.

The advent of affordable financing in CR has opened up the speculative housing market for the last several years. With ScotiaBank, HSBC and now CitiBank purchasing Costa Rican financial institutions the competition will drive the market to its limit. The limit is difficult to envision however for many years the Costa Rican market did not offer mortgage financing and now it's booming. A downturn or correction as it's referred to in the USA is an inevitable part of life. I have been inspecting land development projects in Guanacaste this week from Samara all the way north to Papagayo and in every community that I have been in the major hotels are FULL. This surprises me as we are now in the low season and before you had your pick of where you wanted to stay and at very low rates. As long as the banks stay healthy this market will continue to grow and these large financial institutions are just beginning to compete and offer their money for housing purchases.

I was in Tamarindo a month or so ago and it was like a ghost town. Not much going on at all for a so called party town.

Four Seasons in Papagayo is doing well, but you can not compare it to anything else in Costa Rica. Four Seasons appeals to a completely different kind of market than virtually any other hotel in Costa Rica, namely well healed international set.

Just came back from Manuel Antonio and the same hotel we always stay in was booked full... of course they only have 30 rooms..
I laughed out loud when they said they were building another airport... they have been building a highway to the beach for 30+ years and the Juan Santa Maria airport here in San Jose how long has the expansion sat doing nothing...

The advent of affordable financing in CR has opened up the housing market for the last several years. With ScotiaBank, HSBC and now CitiBank purchasing Costa Rican financial institutions the competition will drive the market to its limit. The limit is difficult to envision however for many years the Costa Rican market did not offer mortgage financing and now it's booming. A downturn or correction as it's referred to in the USA is an inevitable part of life. As long as the banks stay healthy this market will continue to grow and these large financial institutions are just beginning to compete and offer their loans at lower rates. Remember what it was like to get your first new car and borrow the money from the bank. I for one was very honored to be accepted into the adult financial world. Over the last few years the Tico's have been offered financing for cars, homes, etc at affordable rates. This economy is like any other and is driven by financial investment and borrowing power. With these new banks just now beginning to do business here the local economy is just getting started.

I just got back from Santa Teresa and even there things slowed down a little bit. Still pretty active though. But nothing like 2 months ago.

Here is a video from CNBC

http://506properties.com/?p=36

They call Costa Rica the hottest real estate market on planet earth.

Mike

Hello, just wondering...........as the sub-prime and credit crisis continues to unravel in the the US, has there been any change in the CR real estate market recently? Change as in prices going down, leveling off, or still rising? We are looking at investing in retirement land in the CV. Thanks for any insight. xpat

The Costa Rican real estate market has stopped moving for the last year. Just as in the US 2 years ago. As I have said for the last 2 years, Jaco will crash and hard. The rest of Costa Rica will follow the US real estate markets. The B&Bs will be replaced [as a % of market share and tt $ from end users] with hotels and hostles. A new airport down south in the next 10 years, give me a brake, 20 years 50/50. There are good real estate investments anywhere, you just have to look.

I must disagree with that statement. Panama is not higher than Costa Rica, it is cheaper. Almost everything is cheaper in Panama, at least in the north-western part where I went, and from what I have read on other forums, Panama is cheaper all over. (I'm talking cost of living, not real estate. I think the real estate in Panama is about the same if not higher. But the cost of living is much lower.)

But yes, I agree that if the cost of living in CR begins to approach the cost of living in the USA then Costa Rica will be less attractive as a destination for boomers.




So this is proof then that Costa Rica is NOT approaching - at least not yet! - the cost of living of the USA. A family of 4 simply cannot live well at all in the USA on $1000-1200 a month. So even if the cost of living in CR goes up, say, 33%, it will still be attractive to boomers who cannot afford to retire well in the USA.

You do make a good point though, that if one lives like a well to do American and has a maid, a gardener, a pool and washer dryer and central air and 2 new cars and so on and so forth, then yes, it will cost nearly as much to live in CR as it does to live in the USA. The difference is 2 things:
1) if you are willing to live as you say you do, "like a Tico" (though I'm sure that's an exaggeration, I'm sure even on $1200/month you live much better than most of the Ticos around you!), you CAN live much cheaper than in the USA. And:
2) one can still buy property and homes in Costa Rica MUCH cheaper than a similar property and home in the USA in a decent area. For example, I know that a nice home in the Central Valley can be bought for $100k. Once that home is paid for, the family can then live in it for - like you say - $1000-1200 a month. In the USA one cannot generally buy a "nice home" for that price, nor can one live well on $1000-1200/month.

When is the last time you were in the states? While costs are rising in Costa Rica, I guarantee you they are rising way faster right now in the USA!

Which all goes to say that in my opinion, I still think CR is a bargain in real estate and homes, and so the boomers will continue to choose it to retire.

As to tourism, yes it is still as strong as ever. The problem is that everyone and his brother has gone down with the idea of having a hotel or restaurant or bar, and there is only so much to go around, especially in the green season. Simply put, there are now too many hotels and restaurants for tourism to support.

Just my 2 colones.

My main concern impeding the idea of house purchase in CR is squatters issue.
I am planning to be only part-timer in CR and the risk and cost of hiring a caretaker are discouraging.
Maybe, this matter is better in Panama?
I've also read crime volume is lower in Panama due to American force presence?

Didn't the Americans forces leave Panama...?
You would really have to have a caretaker there as well.

In the "nicer"/smaller latin american countries, you will find the types of crime for the most part about the same. According to the CIA country profile Costa Rica is more safe. I have spent time in every country in North and Central America as well as most in the south. There are very few places I feel unsafe unless I'm doing something stupid. IE: You don't spend time down town in citys late at night. You don't go out drinking alone. Keep an eye on your stuff. Don't leave a lot of money/valuables in your hotel safe. Keep your time in tourist areas to a minimum. And yes Panama is cheaper.

I don't think the issue of someone using your house while you are not there is substantially worse in either country.

I think the thing to do would be to rent the house out, have an attorney draw up a lease, and go down and check on it twice a year. Ideally you should have someone there you can trust to watch over it, at least look in on it once a month or so.

Depending on whether you're buying something out in the boonies or where other gringos live, the issue of squatting may be much less than you think. You could just ask a neighbor to look after it... call you if anything funny goes on...

But the bottom line re Panama vs. Costa Rica is this:
You HAVE TO GO THERE and live for a month or more, preferably 3 months or more, and find out which you like better, and narrow it down to which area you want to live in, not only which country, but which state and which town or nearby town... Even the town makes a big difference... One town may have a lot more crime than another... One area might get a lot more rain and wind than another...

I was VERY interested in Panama until I went there. I did not like it one bit. That's just MY opinion. I know some love it there. But the places I went and people I met there turned me off to it. (I don't mean to imply that all the people were bad - in fact I met some very nice ones, too. But in general I just like Costa Rica a LOT better!

Good affordable land in a nice area will always go up in value - up to a point, at least.

Look how high prices went in the Arenal area! And it's windy and cold and rainy up there!

My prediction is that as more and more boomers come to Costa Rica, more and more will begin to buy retirement homes or land for homes, there. As to prices, no one can predict, but I can't see them coming down too much in most areas unless they've already gone up way too high (such as Arenal)...