International real state is on the rise, growing faster than before. It may be due to the increased accessibility of international property markets, and global businesses. You’ll be happy to know that foreign real state offers an investor a true way to diversify; somehow, it has become a way to ensure you have a more solid balance of investments.
This kind of investment, like any other, requires a thoughtful decision because it affects long-term profits.
Get your finances straight
First of all, discuss with a finance expert what you’re willing to invest on this new adventure. Analyze how much are you able and willing to pay at the beginning, on a monthly basis and how much should you borrow? Budgeting will definitely help you tune your search.
Choose your property wisely
Choosing your property wisely is key, remember this is a long-term investment and you will live with this decision for quite some time.
By the way, Costa Rica has very favorable conditions for investment, as it is one of those places in the world that´s still being discovered by the buyers. The land prices of several parts around the country are lower than prices in North America and Europe, and those who already have a property in the country are pleased to see the increase in land value.
We can conclude it is a good time to invest in Costa Rica; the prices are still affordable, but they have been rising steadily in addition to affordable construction prices, below those in industrialized countries.
When you decide to invest on a foreign market you have to be patient and watch your investment make sense over time. That’s why your decision should be accompanied with a deep knowledge of the international property market and, mainly, of the destination you’ve chosen. This includes several cultural-cross issues, so it will be favorable to have the advice of a local expert with a deep understanding of the market.
Know the law
When we talk about taxes, it’s important to know that you should declare your rental income both in the country where you live in, and in the one where your new property is located.
In Costa Rica, the current property tax is a mere 0.25% of the recorded value of the property in the local municipality.
Remember, foreign real state is not only a great investment, but it’s a great lifestyle enhancer and that is what makes it priceless!