How much does it cost to own a condo in Costa Rica?
Current listings of condos for sale starts with a simple studio unit for $35,000 and ascends to a 4 bedroom ocean view penthouse with roof top deck for $699,000. In between, you’ll find more than 100 offerings in a variety of sizes, styles, and prices. The point is, you’ll always find a condo available that fits your needs no matter what your taste or budget.
In addition, owning a condo offers numerous advantages. It’s a great investment. Year in and year out, Costa Rica real estate is one of the soundest investments you can make. The government and economy are stable, and property values continue to increase at a reasonable rate. Another bonus is that when you own your own condo, you can decorate it to your taste and use it whenever you want. That’s not the case when you rent. And finally, you can rent your condo out for extra income. Which brings us to the next question.
How much money can I make renting out my condo?
A weekly condo rental in a gated community with a pool in Playas del Coco is currently priced between $900 (1 bedroom/1 bath) and $1400 (3 bedroom/2 bath). Those prices go up about 50% during holidays such as Christmas and Easter. However, there are many variables that can affect the price including location, amenities, furnishings, security, season, and many other factors. The occupancy rate of a rental properties is another factor that determines your return on investment, and it too is variable. One real estate website estimates that yearly occupancy rates average 65%. So, is it worth it to rent your condo out? If you are looking for the maximum return on investment, you may be better off to put your money elsewhere. But if you consider that you can enjoy a vacation home that practically pays for itself through rentals, the option becomes much more appealing.
What are the typical costs to maintain a condo?
One of the advantages of owning a condo in Costa Rica is that someone else maintains the property. The disadvantage is that you have to pay for those maintenance services. How much should you expect to pay to the homeowner’s association for security, maintenance, landscaping of common areas, pool care, and road repairs? HOA fees can be as low as $100 per month in developments with fewer amenities and public areas. On the other hand, monthly HOA costs can reach as high as $500 or more in complexes that have more employees and more common areas to maintain. Additional expenses are property taxes (a low 0.25% of the appraised value annually), utilities, and insurance on the contents of the condo. Insurance on the structure is usually included in the HOA fees but not always, it depends on the condo association and what the owners have decided upon.
Do condo owners use Airbnb or other means to rent condos?
Airbnb currently lists hundreds of condos, apartments, and townhomes for rent in the region that encompasses Playas del Coco, Playa Hermosa, and Playa Panama. Booking.com lists at least 100 more. Some condo owners list their properties on these websites and then manage the reservations themselves. Others entrust that duty to a host who lives locally and perhaps manages multiple properties. Another option is to hire a property management company to care for everything and send you regular financial reports. It’s a tradeoff between personal involvement and cost that each owner must decide.
What if I need to sell my condo?
I am here to help you buy your condo, and I will be here for you if you need to sell it. Whether you decide to use me or someone else, always look for a SUGEF registered real estate agent with experience and a good reputation. I know the market as well as the legal requirements for real estate transactions. Just let me know what you would like to do.
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