How about financing property in Costa Rica? That’s the question on the minds of many who would like to own a piece of paradise. They’ve visited this beautiful tropical Shangri-la, fallen in love with it, and now want to start a life together. But how do you buy a property if you don’t have the cash? Financing seems the obvious answer. But is financing property in Costa Rica an option? There’s good news and bad news. Let’s get the bad news out of the way first.
Getting a Costa Rica Mortgage
Obtaining a mortgage from a Costa Rican lending institution is a long shot. If you’re not a Costa Rican citizen or legal resident, your chances of being approved for a loan are next to nothing. If you become a legal resident, it’s possible to get a loan, but the odds are still against you. You may have an excellent credit score in your home country, but it may not satisfy the Costa Rican banks. They may have no way to verify your financial information–income, assets, liabilities, and credit history—because all the financial records are kept in another country where they have no access. For that reason, the local credit unions are reluctant to lend.
Even if you do qualify for financing, you may choose not to borrow from a Costa Rican bank. The interest rates are notoriously high, often double the mortgage interest rates in North America. And to make matters worse, you’ll have to fill out a mountain of paperwork.
Does that mean that you should give up on the hope of financing property in Costa Rica? Not at all. The good news is that there are many other options.
Owner Financing
Some buyers have taken advantage of owner financing to purchase a home or land in Costa Rica. It’s an option worth investigating if the seller is a reputable developer. As always, be sure to enlist the services of a trustworthy real estate agent and lawyer. Some sellers are willing to carry the note for qualified buyers for many years. Other owners might offer a payment plan for a few years with a balloon payment scheduled at the end. The latter arrangement allows time for the buyer to sell another property or take the proceeds from another investment in order to make the large final payment. Well-established escrow companies can protect your interests until the purchase is finalized.
Home Equity Loan
A second viable option, if you still own your home in North America, is a home equity loan or home equity line of credit. If you’ve built equity in your residence over the years, you have a great source of cash at your fingertips. How much will lenders allow you to borrow? Depending on your income and credit status, as much as 75-90 percent of your available equity. And interest rates are often favorable since your original home serves as collateral.
Retirement Fund
A retirement fund is another useful resource. You may be able to withdraw enough to invest in property in Costa Rica. If you’re from the United States, your 401k or IRA (individual retirement account) can be converted into a self-directed IRA which, in turn, can be used to make your purchase. However, the rules are restrictive, so be sure to consult an expert if you’re considering this option. I can offer companies for you to contact if this is an avenue you want to pursue. I personally have helped over 30 people use a self-directed IRA to purchase property in Costa Rica.
Be sure to watch this video about using a self-directed IRA to purchase real estate in Costa Rica.
Private Lenders
A less common but still workable alternative is to borrow from a private lender. Each lender has its own list of requirements, and the interest rate may be higher than that charged by traditional lending institutions. But if it makes the difference between getting the home of your dreams and missing out, it’s worth considering.
Just remember one thing, 95% of the time there is a solution to any roadblock, financing the purchase of a property in Costa Rica is possible. Contact me to learn more. These are just some of the many options for financing property in Costa Rica. So what are you waiting for?
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Here in Playa Hermosa ex-pats who have made Costa Rica their home are helping families that depend on tourism for sustenance. Helping everyone from fishing and diving tour operators to cooks and maids in the hotels. From restaurants to landscapers, to tour guides and the list goes on. Helping the community is a good thing, so I am asking you to open your hearts and your wallets.
With the borders closed to foreigners from March 18th until at least May 15, 2020, many of the local families of Playa Hermosa are suffering as there are no people coming to the area to enjoy all the wonderful things that Costa Rica has to offer. These are my neighbors, my friends. I know many of these families. It is terrible to know that some children may be going to bed hungry with nothing in their bellies. Join me in helping Playa Hermosa.
Some may say, “well that’s great Joe, but what about you”. Well below is the confirmation from my bank of the funds that I sent from my business for the first drive to help the community of Playa Hermosa.
Below is the email I received from Pamela Lewis and Bernal Mata, detailing how the efforts to help the community of Playa Hermosa is going and requesting your support as well.
Many of you have donated money and/or food — Thank you very much! We need to keep this up for many more weeks. Please continue to donate. Our next food distribution is April 30, 2020. Without additional food donations, we would not have been able to accommodate everybody yesterday, but we did. Continue to add to the bin in Super Luperon Hermosa, this is very important.
On Tuesday, April 14, we planned to feed 50 families with comprehensive packages of dry goods, a few personal care items, eggs & fresh vegetables. Instead of 50 families, we actually provided food for 87 families – All in Hermosa. These are housekeepers, fishermen, massage therapists, gardeners, etc. On that note, we also implemented an application and screening process. We are asking important questions: do you live in Hermosa, are you working, is anybody else in your house receiving aid, etc. If you own a hotel, restaurant, or business in Hermosa and are feeding your staff, please let us know, so we can review names on our list. Our process is thorough and organized and will be even more-so for April 30.
The cost to feed a family of four is c25,000 – or basically $50.00 USD. What was distributed on Tuesday the 14th, is sufficient for two weeks, the next Food Distribution is April 30, Escuela Hermosa. PLEASE FORWARD THIS TO YOUR FRIENDS, NEIGHBORS, RELATIVES ANYONE THAT WOULD CONSIDER HELPING OUT!
So I always tell these folk that it is best if you have not been to Costa Rica, or any of the other countries on your list, get moving and check them out, but come to Costa Rica first, don’t stay in a resort, rent a home or a condo and live like an expat would. Make Costa Rica your stating basis point to work from. Go grocery shopping, go to a store to buy a new bathing suit, interact with the locals. I also recommend that when they travel to the potential expat location, talk to as many expats as possible. There will be good and negative responses. The negative ones, not matter what country you visit, are usually from those that did not do their homework first. Based on the amount of people that have taken my advice and wanted to live full time in Costa Rica, almost 85% are becoming an expat moving to Costa Rica.
Panama: Very similar to Costa Rica, closest I found. Panama dose have better tax incentives for moving and becoming an expat, and the government is not as bureaucratic as Costa Rica. However, there is more to living that just taxes, I found Panama City to be a city just like any big city in the world, hence why I live in Guanacaste a bit more remote but still have all the services that I need to live a very comfortable life, and trust me I have some high standards. However, you get outside of Panama City, like being in Guanacaste as an example, and the quality of living goes way down, and the crime goes way up! Then there is the number of COVID-19 cases, as of writing this Panama has 5,166 cases and 146 deaths. Costa Rica on the other hand has 689 confirmed cases and only 6 deaths. MAJOR difference! Most people that were thinking of being an expat and moving to Panama, well they came to Costa Rica.
Nicaragua: Beautiful country, beautiful people, I really liked it. However, I would not drop a dime in that country because of the government situation there. It is close to a communist back dictatorship. I won’t go into the uprising that accord last year and the amount of people that were killed. I will say as of 2 weeks ago the government was basically still saying COVID-19 it does not exist and was encouraging mass gatherings. Cost Rica closed it northern boarders to prevent any people coning and spreading the virous.
Mexico: Another beautiful county and beautiful people, and what’s not to love about the food!! There are many first world cities in Mexico, while being a world player in the global economy, but many locations are over populated and pollution is an issue. My biggest concern was the growing number of drug wars and the growth of the drug cartels. I would rather not have to ware a flack jacket everyday or be concerned of being kidnaped and held for ransom, which does happen. When it comes to COVID-19 results, Mexico has over 11,000 confirmed cases and over 1000 deaths, that is 15 times more than Costa Rica.
Colombia: A huge country and quite beautiful as well. The 2 main cities in my travel were Bogota and Medellin, both first world cities and for the most part clean. But still a city. Personally, I did not get the warm and fuzzy feeling of being welcomed from the locals as I did in Costa Rica. Colombia as well, has seen it share of drug cartel issues, this scared me away as well as the long travel time from the US. Again, it’s current COVID-19 is over 4,500 infected and 215 deaths. I certainly do not want to go there.
Every nation on earth has its version of a hearty stew-like soup. The Italians have their Minestrone, the French the Pot-au-feu, the Russians Borscht. Costa Rica is no exception. Here it is called Olla de Carne (literally pot of beef). But it is much more than just a simple pot of beef! Olla de Carne is a tasty broth chock full of healthy and filling root vegetables and tender meat.
For many years, Olla de Carne was prepared at least once a week in Tico homes, often for Sunday’s lunch. It is practically impossible to prepare in small quantities due to the variety of vegetables called for. It seems to multiply like the proverbial loaves and fishes. So the dish is perfect to share with members of one’s immediate and extended family, and neighbors. If the cook is worried about running short, she (or he) can just add a little more water to the broth and some seasoning and off you go!
Olla de Carne can be ordered in most sodas (cafes) around the country. Often there is a sign outside advertising the hearty soup. Often, it is served on Saturdays but some sodas have it available every day. I have tried many in the Guanacaste area, and in the San Jose area as well. Hands down, and take this from a retired chef, Soda dos Pelones right here in Playa Del Coco has the best I ever ate.
The assortment of root vegetables and it varies from cook to cook can include yuca, tiquisque, camote, chayote, and ayote sazon, a real belly filler. There is also always a piece of corn on the cob as well. It is not the tender sweet corn you eat all summer in North America. It more closely resembles field corn, you know the type they feed livestock, so don’t be disappointed when you try it.
Serves 4-6 persons
Olla de Carne is usually served in a large bowl, I mean large enough to hold everything with the broth, meat, and vegetables. Rice is served on the side to be added as desired.
I first came to Costa Rica in 1999, as a tourist, as many people do. Something kept drawing me back like a bad cocaine habit. I could not get enough. When I look back, I can confirm that I was in Costa Rica at least three times a year, and some years four times. I just loved it here.
Back in 2007 when I was returning home from Costa Rica I had an interesting chance meeting with the broker-owner of the RE/MAX Tamarindo office. I had just purchased my 4th property, this time in Playa Hermosa Guanacaste where I still live. The guy didn’t tell me he was the Owner/Broker of a RE/MAX office – he just told me his name, Chris Simmons. We were sitting next to each other on a plane heading north and we struck up a conversation. At first, it was just general stuff. But, based on some of the questions this gentleman was asking me, I felt like I was being interviewed. It was a bit weird, but Ok I will go along with it. What the harm? We talked the entire flight, upon hearing the DING sound and the flight attendant doing their usual, notification for approach and landing, Chris reached in his shirt pocket and handed me his business card. When I glanced down and saw RE/MAX I said thanks but as I mentioned I prefer the 
98% of the time I am still in love with this country. Of all the countries I have visited in my life ( at last count 25) there is no other place I would rather be. Yes, there can be things that make you want to pull your hair out, like standing in line at the bank when there are 20 people waiting for only 2 windows open but you see another 5-8 employees walking around talking and 3 windows closed. “Come on! get to work! I have things to do!”. Or one of my favorite pet peeves is when I go grocery shopping. It sounds like a pretty easy task, right? You get what you need and go to the checkout line, pay and leave. That’s when it starts. 80% of the time there is a person in front of you right? Well, that is normally not a problem. When this person in front of you stops putting items on the conveyor and leaves the line and disappears back into the isles looking for things, then comes back and say excuse me I forgot this, that is when my patience starts to get thin. If it only happens once, OK. But when the same person leaves and goes back for another item – it is enough to make me want to scream.
Now, these are just a few of the many reasons I decided living in Costa Rica was right for me. It can be for you are well. Especially now with this crazy 
If you don’t try it you have not experienced the true culture of Costa Rica. What is Gallo pinto you ask? Well, it is one of the most cooked and served dishes in Costa Rica. But what is it? Why the title Spotted Rooster? Let me put your mind at ease, you won’t be eating a rooster, although rooster is pretty tasty when roasted on an open fire. Gallo Pinto is one of the national dishes of Costa Rica. There is a small feud between Costa Rica and Nicaragua about who invented Gallo Pinto, but that’s another story.
Luis returned with my breakfast, placed the plate in front of me and said “Provecho”. I was thinking “this looks pretty good, but where is the Gallo, or at least what I thought would be chicken”? The eggs looked perfect, softly scrambled and fluffy. The plantains cut on a slant and fried to perfection; the tortillas looked to have been a pre-bought variety but they were tossed on the grill to add marks and heated up as well. The cheese, I assume was local, so I would for sure try it . And, there was a small cup of a white substance, I thought it may be mayonnaise until I tasted it ( natilla is sour cream). Then there was this mound of a dark looking rice mixture, with black beans, green and red peppers, onions and what looked like chopped cilantro. Is this Gallo Pinto? It must be!
The first thing I did was grab my fork and dive straight into the rice mixture. I have to tell you, I never tasted anything like it before. No lie, it was delicious. The rice was soft but a little crispy as well, the beans cooked to perfection still holding their shape and not hard. The addition of the peppers onion and cilantro really married well with the rest, but there was a taste I could not quite put my finger on. I ate everything, the plate was so clean it looked like it had been licked by a dog.
At this point, you could tell Luis was very proud to share the secret ingredient. He said “try it first before I tell you, dip your fork in it”, and of course I did! What a wonderful surprise, a burst of flavor across my lips and on my tongue and there was a soft, somewhat curry flavor. I did not hesitate one second, I took the small cup and proceeded to pour what was in it on the Gallo Pinto, just a few drops at first, of course, I did not want to ruin it. As I looked up Luis was gone but I could see him close to the kitchen with a bottle in his hand. As he returned, he showed me the magic juice. Salsa Lizano, the Costa Rican condiment of choice.
Last week I personally took it upon myself to help out seven local families that have become friends and welcomed me into their lives with open arms. Knowing that all my friends had lost their jobs due to this, I went grocery shopping to buy supplies like soap, diapers, beans, rice, can tuna, toothpaste, and of course the proverbial “toilet paper”. Thank God that the good people of Costa Rica are not going crazy like other places hoarding things. I also purchased from the Super Luperon grocery store 25 pre-filled bags of necessities for those that would need them in the coming weeks. The store has set up a special location for these donations. Just purchase the bag and they will distribute when needed. If you would Like to help out, please email me at JOSEPHEMANUELLI@REMAX.NET and you and I can work out some way for you to assist.
I am really impressed with some of the local grocery markets that are open. The local Super Luperon mentioned above, a family-owned and operated store that I shop at has a handwashing station at the door before you enter. They restrict the number of people going in, again social distancing, and they have placed an employee at the front door to make sure people follow the rules. They even sanitize every cart before you use it and then again when you’re done. All the employees are wearing masks and disposable gloves and when checking out there are guidelines in place to keep a distance. They even offer home delivery so people stay home. Hats off to the owners of Super Luperon!!