There have been an increasing number of Canadian real estate investment companies buying land in Costa Rica to construct eco-developments. Otanez says this type of investment is more suited to those who are more interested in buy-and-holds than flipping.
“The best returns are in the long run, especially as the country is set to continue enjoying increasing tourist and snowbird numbers,” he adds.
With more foreigners moving into Costa Rica, demand for high end property has risen in key areas, such as San José.
Costa Rica’s tenancy laws are still very much pro-tenant. Rents can initially be freely negotiated between landlord and tenant and the minimum lease term is three years, but the tenant can cancel it by serving a three-month notice period.
If the rent has been agreed in any foreign currency, no yearly increases are allowed. Increases are only permitted if transactions are agreed and paid in the Costa Rican currency (the colones), while unpaid rent can be very difficult to collect.
This article was published in the October 2013 issue of CREW magazine.
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