We have advised and guided a lot of people in a variety of different investments in Costa Rica from luxury Tourism Projects to vacation homes. Using our years of experience and access to data we help you make the right investment choices for you.
There are a variety of ways you can invest in Costa Rica without having to buy a property outright. Following are some of such ways:
Real Estate Funds:
Costa Rica has a limited offering when it comes to Real Estate Funds or REIT’s. The only US-accredited fund that operates here is the Costa Rica REIT which focuses on vacation rental investments, offering clients the opportunity to invest in the properties at a discount.
The Costa Rica REIT fund offers investors a preferential return of 6%-15% ROI and also discounted use of the vacation rentals. This fund is managed by Real Estate and Tourism professionals in Costa Rica.
There are commercial funds offered through various local institutions, although they are not US accredited.
Invest in a hotel or tourism project:
One way to have exposure and enjoy the upside of Costa Rican real estate and especially the tourism market is to invest in or joint venture with tourism projects which are looking for investors, either as shareholders or by providing secured debt.
There are a variety of tourism investment instruments that we are able to offer from convertible bonds with usage rights to straight equity investments. Using our knowledge and data of tourism projects we know which ones have a high and low risk based on the project.
Currently Arenas del Mar Hotel in Manuel Antonio, a luxury beachfront resort is offering a limited number of convertible bonds with a return of 4% annually plus 2 weeks stay (10% proforma return) and the ability to convert the bond to equity ownership. A great option for someone wanting to invest and own a part piece of one of Costa Rica’s most iconic beachfront resorts.
Fractional or Shared Ownership: this is where you part own or share ownership in real estate. This can be done by jointly owning with a group of friends or via shared ownership with other people. This allows you the opportunity to invest in real estate but, as there are many owners, you won’t have as much control as if you owned the property outright.
Villa Buena Onda, a luxury 8 bedroom vacation rental in Papagayo, Costa Rica is offering 1/10 ownership for $225,000, with an estimated yearly return of 8% plus discounted usage rights.
Land Investment: a relatively easy method to invest in real estate in Costa Rica is to purchase a plot of land and hold it. To get your returns, you would need to have good information on areas which will see growth in the coming years. There are areas such as Nosara, Flamingo, Dominical where if you had bought 10 years ago you would have doubled your money, however, there are other areas where prices have stagnated.
There is also a Costa Rican Land Bank Fund available which is a Costa Rican held company that invests in raw land, lightly developing it throughout the developing and high growth areas of Costa Rica.
If buying land is of interest, we suggest using our impartial, objective Real Estate Consulting services to get an expert opinion on the best areas to invest.
In Costa Rica the price of real estate does go up and down as it does in most western countries. However, typically you will see a steady increase in property prices year over year, and this is usually in single digits.
Costa Rica is a great country to invest in as a Wealth Preservation strategy as it’s a secure investment due to its economic and political stability.
If you would like to know more please do not hesitate to contact us.
*It should be understood that Costa Rican Vacations are not part of this fund and takes no responsibility for the funds’ performance or legality. You should consult a lawyer before investing.
Fill out the form below and one our consultants will be in contact with you or call 1-800-599-0330.