Making the decision to buy real estate is always exciting, especially if you are doing so in a foreign country for the first time. There are many aspects to take into consideration before you decide to invest in real estate, this applies for any country in the world, but if you are buying real estate in Costa Rica there are some particular pitfalls you should be aware of before you take the first step.

Many expats fall in love with Costa Rica the very first time they visit, and it is not uncommon for the first thought which come to mind to be “I want to live here!” or “I want to get a place here”.

Whether you have decided to relocate to Costa Rica for work or are interested in buying a vacation home in this country, the most important advice that we can give you is: DO NOT act impulsively. If you are careful about where and how you invest your money back in your country then you should be twice as careful when purchasing real estate in a foreign country.

Costa Rica is a beautiful country where buying real estate can be a really good investment, usually, property sells for a fraction of what it would cost you in the United States for something similar; property taxes are reasonable and whether you live here permanently or vacation occasionally the country has a lot to offer, not just in terms of beauty and excellent weather. When It comes to the every day life Costa Rica has a lot of pluses such as economic and political stability, friendly people, good options for work and education, good health services, and it is considered the best place in the world to retire abroad. So yes, buying real estate can be a good idea, as long as you go about it the right way.

We list below some of the pitfalls of buying real estate in Costa Rica that you need to watch out for:

Finding a place on your own: Don’t make the mistake of going into a real estate deal blind. Sure, you may save a commission, but you are risking a lot more than what you’d be saving. Request the help of an area expert. When you are in a foreign country the rules are different, the culture is different and it is better to work through someone that has experience dealing with the market and understands its peculiarities. Don’t settle for the first sign of a real estate office you see on the road, go online, make a couple of phone calls, check different portfolios, ask questions, be clear on how they work and choose a real estate agent that you feel comfortable with and understands what you are looking for. This is the right time to be very picky. The second step involves getting a reputable real estate attorney. Don’t EVER use the seller’s attorney. Get advice from expat sites like us at The Costa Rica Star or the American Embassy to choose a reputable lawyer or firm. There are many legal aspects that could affect a property, and you want to make sure that everything is clear and in order before you proceed with the purchase. Having a realtor and a separate attorney will give you security and two expert opinions that should help you make the right choices and feel confident and safe in your decision.

Don’t let your impulses take over: Perhaps you spent an amazing vacation in an area of Costa Rica, you found a house in that location that you loved and you have made your decision in the spur of the moment … very romantic. We are not saying it won’t work out, in some cases it works out just fine, but in many other cases it ends up being a horrible decision that you end up regretting. Just like in a romantic relationship, you want to take your time to really learn as much as you can about the country. Visit different areas of the country, to make sure you are happy with the location you are selecting; evaluate different projects, compare; establish a realistic budget and make a list of what you MUST have, once you have a clear plan then you can tell your real estate agent about your requirements and let them find the perfect options for you.

Long-Term Plan: It is often that buyers consider their immediate needs and don’t think about the future. : “When you are investing in real estate you are making a long-term commitment, so it is not a decision that should be taken lightly. I always sit down with my clients and discuss their needs, their intentions, their short and long-term plans, because this will determine the type of house that is convenient for them”; for instance, if you are buying a second home in Costa Rica and will only be spending a limited amount of time in the country, then a gated community and a property management option are necessary.

Questionable Developers: Sometimes investors believe that dealing with a developer directly is the solution, and that way they don’t need a real estate agent or an attorney, saving money is always tempting, but you must be careful,that there are many questionable developers in Costa Rica, some projects never see the light, others end up being just the shadow of what the brochures promised.

Poor Construction : Check the house you are buying several times and thoroughly, if possible, take an home inspector, engineer and/or architect with you, visit during the day and at night, if its possible while it is raining. Pay attention to all the details, request to see the blueprints, ask about drainage systems, electric system, etc. Look beyond the fresh paint. Ask about guarantees. If it’s a pre-owned house ask to see the last electricity and water bills. Costa Rica is a country that receives a lot of rain and almost EVERY roof leaks, there are also earthquakes and volcano eruptions; if you buy at the beach, the heat and the sun can take their toll on a construction. The best Idea would be to hire a home inspector to ensure that they get to the bottom of any potential problems that the house could or currently has.

If you require additional information, check out our Guide to Buying Real Estate in Costa Rica, our Guide to Construction Guarantees and Consumer Protection Laws in Costa Rica and when it comes to a real estate buying agent we highly recommended  a personalized service in relocation and real estate.