Costa Rica Info
Joined: 14 Nov 2006
Posts: 17
Home Country: costarica
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 Posted: Wed Nov 15, 2006 4:48 am Post subject: HOUSING IN COSTA RICA / COSTA RICA HOUSING GUIDE |
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HOUSING IN COSTA RICA
GENERAL
The housing options available range from luxurious apartments and condominiums, to mountain cottages. Several areas in Costa Rica host large communities of foreign nationals, particularly Canadians and Americans. Most of Costa Rica’s population lives in the Central Valley. Large concentrations of foreigners are found in areas in and around Esczú, Rohrmoser, Guanacaste and Jacó.
You do not have to be a resident of Costa Rica to buy and own property there. In fact, foreigners have the same rights as Costa Ricans in buying property. The only exception the so-called Terrestrial Maritime Zone. The Maritime Zone law means that all beaches are public property, that is, the first 50 meters (164 ft.) above the mean high tide line is public. With some exceptions, there are no private beaches in Costa Rica. The exceptions refer to landholdings in port areas and old land grants and agreements dating from before 1973. The Maritime Zone legislation further states that the first 150 meters (492 ft.) after the first 50 meters (164 ft.) is called the Maritime Zone. As a foreigner you are required to have a minimum of five years of residency in Costa Rica in order to buy property of which more than 49% is located in the Maritime Zone.
Accommodation prices in Costa Rica are determined by the size and location. This holds for both renting and buying. Accommodation is measured in square meters. The main factor for the price is the infrastructure of the area you plan to live. More remote areas with less access to healthcare, telecommunication, shopping, nightlife, beach, etc. are lower in price than housing located on the beach, in or very near the city or facilities. If you prefer moderate temperatures, consider living at some altitude. The coastal areas and lowlands have higher temperatures.
Another thing to keep in mind is that there are restrictions to the land use in Costa Rica. In order to find out what restrictions apply to the land you are interested in you should contact the various authorities. You can either do this yourself or make use of professionals such as Real Estate Brokers and Engineers.
The authorities you might want to contact are:
* Ministry of Agriculture and Cattle (MAG)
* National Institute of Housing and Development (INVU)
* Ministry of Health
* Ministry of Energy and Environment
* Ministry of Housing and Human Resources (MIVAH)
* Water and Sewage Authority (AyA)
* Ministry of Public Works and Transportation (MOPT)
* Institute of Farming Development (IDA)
* The municipality the property is located at
It is recommended to make use of professionals in Costa Rica. Attorneys are essential for purchasing any property, they can also help you investigate the property. Real estate brokers and civil engineers are needed to file any construction application. Luckily, in Costa Rica several professional groups are required to register at the professional association of their field of expertise. Through these associations and their websites it will be no problem finding the professional you need. Consider asking around and your country’s embassy or consulate in Costa Rica for recommendations.
RENTAL MARKET
The rental market in Costa Rica is regulated and tenants are well protected. Costa Rican authorities do make a difference between vacation rentals and normal rentals.
If you are looking for a place to buy or coming down to Costa Rica to study or work temporarily, you are likely to rent a place. Rental contracts in Costa Rica are generally for the duration of three years. During this period the landlord is not allowed to raise the rent if charged in US Dollars. If the rent is charged in Colones a 15% increase in rent is possible. In practice, 6 month rentals are offered as well. Tenants are supposed to give three months notice to terminate the rental and leave the property in the same state it was when the lease started. If you decide to leave before the rental period is over you will lose your security deposit. A landlord can ask any amount of security deposit he/she thinks is necessary. Make sure you agree clearly on what security deposit will be made.
If the landlord wants to terminate the lease, notice must be given at least 3 months prior to the end of the contract. If the landlord lives in the same building a 30 day notice is sufficient. If notice is not given according to the minimum time required, the lease is automatically renewed. If the tenant is seven days late with payment of the rent, the landlord is allowed to go to court and ask for an eviction. If the tenant does not pay bills that he/she has agreed upon to pay, the landlord can evict the tenant and deduct the costs from the security deposit if the landlord paid the relevant bills. The landlord can also evict tenants if they are involved in illegal activities. The landlord has the right to inspect the premises once a month. Sub-renting/leasing is prohibited.
Another way to find accommodation is though an agency. There are many agencies specializing in short-term rentals in Costa Rica. Many of these agencies have web pages where you can see what is on offer. The advantage of these agencies is that they often have the nicer properties. In addition, they remove lot of the possible legal concerns issues and cut down on the time you might otherwise be looking for a place yourself. On the other hand, you will be charged commissions and usually pay more.
Housing in Costa Rica is offered both furnished and unfurnished. Costa Ricans pay on average US$ 100 to US$ 200 a month. Starting prices for a small apartment/ studio in a more upscale neighborhood are around 250 dollars a month. A luxury house or apartment will start around US$ 900 per month.
HOUSE HUNTING
Looking for a place in Costa Rica will take some time. Although there are abundant real estate agencies and foreign nationals present in Costa Rica, give yourself plenty of time to visit and investigate places, it is much more likely that you get what you are looking for this way.
On arrival in Costa Rica, you may find it necessary to stay in temporary accommodation for a few weeks or months until you can move into your own place. In Costa Rica your options for short-term stay comprise of bed & breakfasts, homestays, hotels, short-term rentals and furnished apartments.
After you find a place to sleep, your search can start. Unless you want to depend on getting lucky, you should consider several options for your housing search. The most important thing is to have a very clear idea of what you are actually looking for, otherwise it is easy to waste your time. The best start is to get familiar with the your new environment by walking around, seeing how transport works and asking other people about different neighbourhoods and areas.
There is a wide range of options when looking for housing. As always in life, the more you are willing to pay (i.e. for an agent), the easier your search will be. For an efficient search, you should be familiar with the basic realty terms in Costa Rica. However, the presence of many foreign nationals also mean that many realtors and other services are offered in English next to Spanish.
The most common places to search for realty are:
* Realtors
* Classifieds
* Announcements
* Word of mouth
Classifieds
If you want to find a place independently your best bet are the local newspapers, universities, Spanish schools and supermarkets. Another option is through classifieds and forums. The best newspapers to start your search are the Tico Times (www.ticotimes.net) and La Nación. The Tico Times is an English language newspaper. Both rentals and properties for sale can be found under the classifieds. La Nación is Costa Rica’s leading Spanish newspaper but is also available in English online, www.nacion.com. La Nación has a good real estate section on Saturdays.
Once you found a classified, the next problem comes up. Classifieds are filled with abbreviations and deciphering might cause serious headaches. Not only is it hard to find the corresponding Spanish words, Costa Rican Spanish vocabulary and housing options might differ from other Spanish speaking nations. Do not worry, you will soon learn how to interpret the numerous abbreviations.
HOUSEHOLD MANAGEMENT & UTILITIES
When you move into your new house you might find a lot of things work differently in Costa Rica than at home!
Property Taxes
Property taxes have to be paid at your local municipality. The property tax is calculated as a percentage over the declared value of your property per year. This percentage is 0.25%. Contact the local office to find how payment should be made.
Utilities
Electricity
The costs of electricity are approximately US$ 0.10/ KW. Your monthly costs will range according to your usage. Calculate around 30 dollars a months on your electricity bill. Electricity supply in Costa Rica is managed by the ICE.
Gas
For cooking gas is often used. Gas tanks are sold at supermarkets and neighborhood suppliers. A security deposits for the tanks has to be paid.
Water
Depending on where you live you will have a water meter. Rural areas are often more dependent on wells although the government is trying to install water supply throughout the country. If you have a water meter, a cubic meter of water will cost around US$ 0.25. Water is regulated by the Acueductos & Alcantarillados, the Ministry of Water and Sewerage.
Telephone
Currently the telephone company in Costa Rica is still state owned. Getting a telephone line installed is very difficult so make sure that a telephone services is already installed and available if possible.
Internet
The options for Internet connections depend on where you live, and include dial-up, ADSL and cable.
Paying Utilities
Utilities can be paid in several ways. You can do so by passing by at the corresponding offices, although is can be very time consuming. However, the most convenient option is paying online. |
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