Costa Rica and Your 2011 Plans for Vacation, Investment, and Retirement

Costa Rica is rebounding in 2011, ahead of the global curve, due to its unique global appeal to visitors, investors, and retirees. This year seems to be the right time to visit and explore your options, if Costa Rica has ever been on your mind for vacation, real estate investment, and individual retirement. Costa Rica has a rare combination of 1) natural beauty and temperate tropical weather, 2) a growing, diversified, and globalized economy, 3) status as one of the world’s top real estate investment destinations for high net worth individuals, and 4) an overall welcoming attitude to foreigners and government policies designed to attract retirees. The focus of activity and interest has been the on the country’s North Pacific coast with emerging coastal centers like Tamarindo and Flamingo, in the Guanacaste Province - Costa Rica's newest frontier for tourism and development.

Traditionally, the "high season" for travelers to Guanacaste and its dry, warm weather has coincided with winter in North America and Europe. Now, tourists, investors, and retirees have learned that the “Green Season” from the end of May to September offers equally pleasant weather, showers that are no more frequent than in the Midwest of the US in summer and turn the country into a lush paradise, and reduced rates for accommodations, tours, rental cars, etc. The Green Season has been a “best kept secret” that is leaking out as travelers discover it as a new summer vacation alternative.

Costa Rica has been on the minds of traveler’s for the last decade and it is rare to find someone who has not visited, not known someone who has, or is not dreaming to be able to go soon. Costa Rica regularly shares first place with Hawaii in global tourism surveys concerning the world’s most desirable vacation destinations. Both offer equivalent natural beauty, features like volcanoes, ocean sports headlined by surfing, and a climate that is very appealing for most months of the year. However, Costa Rica has a unique advantage in its closer proximity to North America and Europe, which in many cases saves several hours of travel time. Further, after arrival at its new international airport at Liberia, Costa Rica (LIR), its most popular tourist destinations (Arenal Volcano, Tamarindo beaches and surfing, and Ecotours) are within 1-3 hours by car.

The economy of the country has been increasingly diversified by the government’s encouragement of the relocation of high-tech industries, medical equipment producers, software companies, and distribution and call center services, among others. The number one export from Costa Rica is now Intel microchips, instead of a single agricultural product. Tourism is also back to setting new annual records for visitor volume, partially based on new interest in medical vacations and ecotourism.

Investors continue to favor Costa Rica real estate for all the above travel reasons, and the competitive aspects of low property tax rates (1/2 of 1% of value, per year) and the ability of foreigners to legally own 100% of properties, corporations, and other assets. The value of Costa Rica real estate has tracked with the rest of the world over the last 3-4 years, but it did not fall as far, and is already rebounding. Real estate prices in 2011 have actually started to trend upward in certain instances, and sellers who are enjoying higher rental incomes from higher visitor traffic, are starting to resist low offers. Investors, who may be holding back for “the moment” to return to the Costa Rica market, should consider visiting in the next few months before the prospects for a successful 2012 high season emboldens sellers any further.

Costa Rica is also in the process of introducing The Costa Rica MLS – the first truly national MLS system, which is being managed by the Costa Rica Global Association of Realtors (CRGAR). All CRGAR members are also members of NAR in the United States and ascribe to its Code of Ethics and Professional Practice. The real estate market is diversified and sophisticated with many options in homes, condos, view lots, development land, resorts, ranches, and even fractional ownership.

Retirees are being welcomed with increasingly open arms, as a recent national policy directive to encourage their relocation to Costa Rica, evolves into actual practice. Costa Rica estimates that each new foreign retiree generates 4 new permanent jobs in the national economy, which is a strong incentive to fashion policies to be more competitive with Florida, Mexico, Texas, and Arizona. Immigration and residency rules, in particular, favor any foreigner who may come to Costa Rica while receiving a pension from outside the country. Further, anyone investing at least $200,000 in Costa Rica real estate (retirement home?), can now use that investment as their application basis for permanent residency.

So, if you are a global vacationer, investor, and/or retiree, then you should strongly consider looking at Costa Rica in 2011. It is the moment to get involved, particularly if your interest may involve adding Costa Rica to your life for investment or retirement.

Send your questions…..

Allen Lungo

Mother's Day Moments from Costa Rica

Many countries of the world are celebrating Mother's Day this weekend, and even though Costa Rica does not until August, we are offering these pictures of Central America's serenity to share with yours. From our blessed land of beauty and peace, we honor mothers close to you.

Bring her to see us. Experience this firsthand....

The sunset was yesterday (Fri) and the morning scene below was earlier today (Sat).

Costa Rica Realtor Association Sets Professional Priorities for 2011-2012 The Costa Rica Global Association of Realtors (CRGAR) has reaffirmed its longstanding goal to become the most sophisticated professional platform available to Costa Rica’s realtors, and to support the government’s efforts to pass legal licensing legislation. Costa Rica’s real estate market is returning to life after the global financial meltdown, and CRGAR continues to shape the professional environment for the benefit of investors, developers, and realtors.

At its most recent Annual General Assembly, newly-elected 2011 CRGAR President, Allen Lungo, remarked that “an exciting professional future lies ahead for the evolution of Costa Rica’s real estate industry”, as the Board led members through the discussion and adoption of the following initiatives:

1) CRGAR will continue to implement the new national multiple (property) listing system (MLS), known as The Costa Rica MLS. The new MLS, based on the Proxio global platform, has its worldwide introduction slated for early May, 2011, and is targeting an audience of 3 million realtors.

2) CRGAR will continue to work with allied associations in a variety of projects designed to a) promote Costa Rica’s real estate to global investors, b) improve the educational standards for professional training, c) encourage ethical conduct among professionals, and d) pressure the government to maintain its momentum toward legal licensing.

3) CRGAR will initiate the first-ever national research into brand compliance among all professionals offering real estate services in Costa Rica - to confirm the accuracy of credentials and affiliations displayed in the market. This effort has the full support of the National Association of Realtors (NAR) in the United States, and the International Consortium of Real Estate Associations (ICREA) worldwide.

4) CRGAR will work to maintain its leadership role as the only realtor association in Costa Rica offering professional and affiliate membership, peer-licensing, education, NAR membership, ICREA membership, access to The Costa Rica MLS, ethical enforcement, global marketing, governmental liaison, and a commitment to the growth of the country - all within one volunteer organization.

Investors and professionals interested in the Costa Rica real estate market and CRGAR’s professional program, including the upcoming introduction of The Costa Rica MLS, should send their questions and desire for future updates to info@crgar.com.

Global MLS Platform Comes to Costa Rica

On Tuesday, February 1, 2011, The Costa Rica MLS, will begin serving Costa Rica's realtors and connecting them to over 1.3 million real estate professionals who are part of the Proxio system worldwide. The Proxio MLS platform is quickly becoming the global standard for national, state, and regional real estate database systems. Globalization of the real estate business is well underway, and connecting worldwide realtors to Costa Rica's very desirable properties is a major goal of The Costa Rica MLS.

The impetus for selecting Proxio came from CRGAR, The Costa Rica Global Association of Realtors. CRGAR then invited its sister organization, CCCBR, Camara Costarricense de Corredores Bienes Raices to join in offering the Costa Rica MLS as the one true Multiple Listing Service for the country. Members of both organizations comprise the most well-trained, and ethically bound real estate professionals in Costa Rica.

Costa Rica is again showing its leadership in the region by being the first Central or Latin American country to adopt a global MLS platform for its real estate profession. Most recently, the decision to select Proxio was also made by the realtor association representing 90% of the realtors in France.

Allen Lungo, CRGAR Board Member, Coordinator of its MLS software selection process, and Broker/Owner of Costa Rica Real Estate Store, said "Using the global platform metaphor, we see ourselves as building a 21st Century professional platform for Costa Rica's realtors, and adding the Proxio-based MLS is an important step. We are proud to do our part to assert that Costa Rica has truly become a "first world" nation - ready for global business."

The Costa Rica MLS will be available to the entire internet-connected population of the world on March 1, 2011, through its primary public portal, The Costa Rica MLS. Participating realtors may also offer access to the entire Costa Rica MLS from their individual websites. Look for the link on their own website homepages or in the directory of The Costa Rica MLS starting in March.

Costa Rica Sets “National Priority” to Attract Baby Boomers

Earlier this year, the national government of Costa Rica declared it had a “national priority” to attract Baby Boomers to retire in the country. The order was signed by former President Arias, and it directs certain ministries to take action to implement this priority. The government understands that each new retiree brings an income stream and activity to Costa Rica, and is responsible for the creation of 4 new jobs. The first policy changes will help make it easier to relocate to Costa Rica.

Already, Immigration processing is being streamlined. If a foreign retiree can prove that they will have at least $1000.00 (USD) coming into Costa Rica each month and can pass other immigration screenings (mostly centered on past police records in their home country), then they can receive their approved “Pensionada/Pensionado” residency status within 6 months of application. Such status allows a retiree to stay within Costa Rica for an unlimited period of time, and possibly work under certain circumstances. The latter aspect will be clarified when the rules and regulations related to the new Immigration Law are published and implemented.

Costa Rica is already attractive to foreign investors and one of the principal reasons is that it allows them to take 100% control of real estate and business investments. (http://tinyurl.com/2ahgd4s) There is no requirement for local participation in asset ownership, with the exception of certain property zones in coastal areas. It also is a low tax environment, as the average property tax rate is ½ of 1% of recorded value, per year. Foreign retirees can add these investment advantages to easing immigration rules, as they consider Costa Rica.

The government estimates that 10,000 foreign retirees will make Costa Rica their home in 2010 and will increase national income by over $300 million (USD). This economic activity will come in many forms including house payments, food, medicine and recreation, and also from the wages of the new jobs that will be created. The capacity of the country to accept these new retirees each year is also the focus of the new national priority.
Future installments will address more dimensions of Costa Rica’s new national priority to attract Baby Boomers to make the country their new home. For perpsectives on adding Costa Rica to your life: http://www.yoursummerlandhome.com.

Costa Rica - 5 Star Fractional Value for $149,000

Add Costa Rica To Your Life!

Dear Costa Rica Real Estate bloggers, and those of you considering adding a foreign country to your life,

I am pleased to be a new source of experience and information about Costa Rica Real Estate Investment, especially for its newest zone of interest - The North Pacific Gold Coast of the Guanacaste Province. This entire region is accessible within one hour of landing on your international flight at Liberia, Costa Rica - the newest international airport in Central America.

I decided to move here 7 years ago and actually did it 6 years ago. I moved for a long-term life change that could include retirement someday. Costa Rica welcomed me with open arms and great karma. I have established a full life here, including real estate and business investments, and have a personal commitment to pass the good karma along to those that follow. Perhaps you?

In addition to all the good investment reasons to consider it, the weather, the beaches, the sunsets, and the casual lifestyle are exactly what I was looking for in my new life. When I used to live in Chicago, I dismissed people from tropical zones who were cold at 70 degrees. Now, I have become one!...and very glad for it.

I promise to add regular features about real estate investment and life in Costa rica - and lots of pictures. I am uploading a video next with all the first reasons you can come to Costa Rica - usually for a vacation. It doesn't take long after arrival to feel the spiritual connection, if you ever will, and then you will ask yourself if Costa Rica could be right for you.

And, if you already have made up your mind, post your questions, and check opportunities at http://www.costaricarealestatestore.com.

Allen