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Hey all,
I am a 27 year old single male from NY who relocated to Costa Rica about 6 months ago. I have had an amazing experience and am considering taking the next step and buying a place. I am not what you would call a real estate investor, this property would be primarily to live in. As I am sure most of you know, the real estate prices in and around NYC are astronomical and for a man in my position buying property is seriously difficult. This is where I want to get a start and actually own something. I have funds for a down payment (I don’t know how specific to be with numbers). I live and work in San Jose in San Pedro and would like a place on the East Side of San Jose. I have a car as well so traveling isn’t difficult…I guess my main question is, what advice would you have for someone in my position who wants to buy in San Jose?I am happy to hear that you have had an amazing experience living in San Jose so far Cacevedo222 and can only assume that it has been very positive if you are planning on buying real estate.
Do you feel that you know the area well enough to decide which are good and which are not so good neigbourhoods?
Are you here permanently? Or is there a possibility that you would move back to NYC in a year or two?
Have you already looked into financing? Because that might be a little ‘tricky’ if you can only show six months work experience?
And you are working here legally right? You have residency? Otherwise financing gets even more complicated?
Scott Oliver – Founder
WeLoveCostaRica.comI appreciate the quick reply. It has been a positive experience. I do know the neighborhoods and I have Tico friends who are helping me choose something as well. In terms of permanence, I would say that I am not moving back to NY in a year or two. Really, it just seems that Costa Rica is a good place to buy my first piece of real estate. It is an investment but more something that I can call mine. In terms of work. I work for an internet company based in Japan, I technically don’t work here legally. I also do not have residency. I would like to start to process. I was under the impression that it wouldn’t be too difficult to get financing considering the fact that many retirees have second homes and don’t technically have residency.
Retirees have long credit histories and consistent, proveable retirement income, you are a 27 year old man working illegally in Costa Rica. Sorry but I tell it like it is…
It may be easier for your Tico friends to buy a property but non-residents do have a tougher time.
You may want to discuss this with our Costa Rica mortgage experts because they may be able to help you with a mortgage from the US… You can find them at [ https://www.welovecostarica.com/public/1829.cfm ]
I am not saying that your dream of investing in San Jose real estate here can’t be fulfilled, but it will certainly be more complicated for you based on these facts.
Scott Oliver – Founder
WeLoveCostaRica.comScott,
Thank you for your honesty. This is why I am asking these questions on the forum. I understand everything that you are saying and will proceed accordingly.Gracias mil,
CarlosI suggest you contact an attorney (Scott lists several very reputable ones) and set up an S.A. (Corporation) and buy the property in the name of the S.A. That would avoid any residency issues and it would limit your liability too. Figure it is going to cost you between $400-$650 to set-up and take up to 3 months. This will also allow you to open a bank account, however, some banks will require an electric bill that matches the address of the S.A., which is typically the attorney’s address and a letter of recommendation from a Costa Rican (also attorney).
If you are working for an employer outside of Costa Rica, and the money is coming from another country, how can that be illegal? According to the legal advice I’ve been given you shouldn’t need work permit for this situation, but that advice could be wrong of course…
I would ask a lawyer.Many lawyer offer ‘shelf’ SA’s, which means they are usable, more or less immediately. Carlos, realize too, that to apply for your residency, you will need to deposit $60,000.
That could take a big bite of your saving/intended investment.
If you can been hired then brought to Costa Rica to work for this particular company, I think you would get a work visa for one year, which can be extended if want/needed. If, he got the job here, it is considered to be taking the employment from a local or legal resident.See if your company will submit a work permit application for you with the appropriate government agency. The costs for this are low and reasonable; however, you will have to obtain a number of documents for this (birth certificate, police record, etc.).
I understand that getting the application approved can take years, but as soon as the application is submitted you have the legal right to live and work here pending approval/denial of the application.
This would help you immensely obtaining financing from local banks and also you wouldn’t have to leave the country every 90 days (I assume you are here on a tourist visa). Your company is probably paying or subsidizing your costs of leaving the country every 90 days, so should be easy to convince them to request a work permit on your behalf (unless the oompany is flying under the radar and this would have tax liability consequences).
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