We tell ourselves all sorts of things, and make all sorts of excuses to justify doing the things we want. But, when it comes to investing in real estate abroad, you really don’t need to make any justifications: The proof is in the facts. And the facts are pretty compelling:
- Access a Different Lifestyle
Let’s start off with something you can’t quantify: A better life. Purchasing a home in Costa Rica, and then living in it, gives you access to an entirely new life experience. It’s like living two lives in a single lifespan. And how many people can say they’ve done that?
Just think of all the new people you’ll meet, the new foods you’ll try, the new views you’ll enjoy. New friends. New hobbies. New everything. All the new experiences your second life will afford. That’s pretty convincing, in and of itself.
- Diversify Your Portfolio
A domestic “diversified” portfolio is not really diversified: you still have all your eggs in one basket, attached to one currency. Purchasing Costa Rica real estate affords true portfolio diversification – of asset type, currency, market, etc. So, if the bubble pops on one market, or asset type, or currency, your Costa Rica real estate portfolio will have you covered.
- You Can Earn 100% Passive Income
Did you know that, given the right Costa Rica property, you can earn a steady (and hefty) passive income? Here’s the deal: If you purchase a second home, in a location with vacation/tourism appeal, and in a community that offers a rental program, then your luxury home can pay for itself.
Even better, if your community has an established vacation rental program, it’s completely hands-off: They’ll take care of everything, from maintenance, to guest check-in, to property advertisement, to depositing your profits into your bank account.
- You’re Ready for Retirement
If you’ve ever thought about retiring in Costa Rica, then purchasing real estate, right now, while you’re still decades away from retiring, can be an excellent investment. By the time you’re ready to retire, not only can your property have paid for itself (in full), but your investment has appreciated and a vibrant community has developed around you.
- Real Estate Paves the Path to Legal Residency
In Costa Rica, real estate investment can be an easy and direct path to residency. When you purchase property valued at $200,000+, you qualify for inversionista residency. And with residency, comes an open door to Costa Rican banking, medical care (via the Caja, or CCSS), and many other advantages of residency.
- There Are Tax Benefits
Not only does foreign-held real estate grant you financial privacy (yes, legally), but there are tax advantages, too. To begin, if you hold your property in your name (not a trust, LLC, etc.), then it’s not reportable in the U.S. Additionally, certain property-related expenses – for example, travel to Costa Rica to make improvements to your second home – may be tax deductible. Ask your tax professional for more information .
- Amass Your Fortune
Okay, “fortune” is a relative term. But if you choose the right home, in the right market, in the right location, then you can definitely amass something close to a fortune.
It all comes down to one simple fact: land is immutable. They’re not making any more of it. And that means that an ocean-view or oceanfront home in a tropical paradise, or a city-center apartment in a growing city, or any other unique real estate – it’s only going up from here.
Real estate bubbles come and go. (And come back again.) But historically, land and real estate have been the assets most resistant to inflation and market turmoil. That’s because real estate is a hard asset. Bottom line: From a trending point of view, prices are lower than they’ll ever be again. So, buy now and sell whenever. Whether it’s 5, 10, or 50 years down the road, you’re likely to make bank.