“The only wrong time to purchase a property is- later,” – Steven Bolton.
From saving taxes to additional sources of income, property investments can help you reap numerous benefits. But before you can avail of the benefits, you need to go through the hassle of purchasing a property. Especially if it’s your first time buying a property.
Now the burning question is- What are these hassles? Well, the list starts with a budget. First of all, you need to decide- how much money you can afford to spend? Yes! You can take help from financial institutions and get a loan. Still, you need to collect some percentage of the property value.
Nonetheless, several other factors are involved with the budget. You need to decide the location and type of property. It will help in determining the amount you need to borrow.
Perhaps, for the location, you must be considering Costa Rica. That’s why you are reading this article, Right? And now you need to decide the property type. So, let’s help you out from this hassle.
Condo are also known as Condominiums. They are like private residential property within a larger building. It is a mix of an apartment and a house. They are great for single or small families. However, purchasing a condo in a place like Costa Rica is not less than any luxury.
- Security: As the condo is surrounded by other properties, the level of security is high. If you are going to live alone, you don’t have to worry about anything as there will be gated entries and professional guards in the building. Even if you go out, you need not worry about the home break-in.
Furthermore, there will be other people residing around you. It will help in creating social connections with other people. You’ll get to share some amenities like a swimming pool and garden, which will help you bond with the neighbors and create good memories.
- Affordable: As compared to a house, a condo is much more affordable. So, if you have a low budget but want to enjoy more amenities, you can select a condo. Additionally, you don’t have to worry about regular repair and maintenance of the exteriors. As some amenities are shared by all the other residents, the maintenance of the property is generally done by the society itself.
Nonetheless, more people are preferring single-family homes. Therefore, the market value of the condo is expected to appreciate in the near future.
- Rental income: Costa Rica is famous for its beaches and tourism. There is a wide variety of flora and fauna and numerous activities that a person can enjoy. So, if you are interested in earning rental income, then Costa Rica Real Estate offers a great investment option. You can easily find a nice and affordable property that you can use to earn great ROI.
Moreover, you can also use the condo as a vacation home if you ever plan to retire or enjoy a vacation here. So, it’s a win-win.
- Proximity: Most of the condos are situated at the prime location of the city. So, you can easily connect with your everyday needs. Public transportation, restaurants, grocery stores, malls, etc., will be in your vicinity. Thus, you might avoid getting stuck in traffic during busy hours. Besides, you’ll also get to enjoy the vibrant city life.
Another option that you have for investment is a house. Here you have two options here:
- Invest in a lot/land and construct, or
- Purchase an already existing home.
Suppose you take into consideration the first option. In that case, you need to search for good land, whose price will get appreciated in the upcoming years. As you will be investing in land, you have numerous options to use it for.
You can build a house and stay there, or you may also use it as a vacation rental. Nonetheless, one thing is sure that it will be a bit more expensive than purchasing a condo or a house.
If you consider purchasing an existing house. There will be the following pros:
- Privacy: If you don’t want to get involved with many neighbors or share any amenities, then buying a house is a good option. It will offer you proper privacy. Moreover, some homes even have guest house facilities. It will ensure that your guests are comfortable and enjoy their time with you.
- Customize: You can enjoy the ownership of the house by decorating and maintaining it the way you like. It allows you to express yourself with it. You can work outdoors- add lighting, your favorite plants, and even furniture of your choice. It is a limitation that most condo owners face. Moreover, you can also create an outdoor space to connect with nature.
- Ample space: Unlike the condos, you can get more than 2 rooms in a house. It is great if you have a growing family. Every person will have their own space. It will also convert extra rooms into special areas such as music studios or art and craft rooms. In addition to this, you can also rent a spare room and enjoy the extra income.
- Property tax: Owning real estate in Costa Rica, whether a condominium or a house, can offer you immense tax advantages. The annual property tax rate of the country is only 0.25% of the recorded property value. For instance, if you purchase a property of $300,000, you need to pay only $750 tax.
You might be wondering- Who records the market value of the property? Well, the answer is a local municipality. Furthermore, it generally records the value below the actual market value. And tax is calculated on this value only. So, you will save a lot of dollars.
To sum it all up!
For purchasing a property in Costa Rica, both the options, i.e., Condo and House are great. It entirely depends on your needs and requirements. If you want privacy and grandeur in your life, then a house near the beaches of Costa Rica is advisable. On the other hand, if you need affordable housing near the city, you should get a condo.