While Costa Rica property investment remains popular many investors are turning their attention to other markets such as Panama, Nicaragua and Honduras, thinking upside may be better, as these are emerging markets.
The fact remains that Costa Rica property offers the best Making Tax Digital risk reward and you can still make triple digit gains, here's why.
1. It's a mature market
Many people like markets that are merging or taking off but as we know with most new property "hot spots" they don't. While you can make big gains losses can be substantial.
By all means be a pioneer some got rich but keep in mind most got arrows!
Costa Rica is mature there is a trend of growth consider this:
A $30,000 property bought just 15 years ago is worth as much as $750,000 today. People have predicted an end to big gains but their wrong.
Quite simply, property trends can last 20, 30, 50 years or more.
A trend inspires confidence and attracts more money.
Also, as a community develops so does the infrastructure, to provide all the comforts at home, attracting more investment.
This point is critical.
If you want poor infrastructure, street kids, beggars and crime, some of the new emerging markets offer this - A low quality of life and this is why most don't emerge.
By buying a trend, you are keeping the risk low, but what about upside?
This of course is the key. You need to be careful about where you buy but that's true of any property investment.
Buy at or near expanding resort areas and take advantage of buying near expanding infrastructure new roads marina's etc which will guarantee a rise in property values.
If you do this you will still be able to target 30 - 100% annual gains also keep in mind a mature market gives you something else:
Excellent rental income and Costa Rica has one where you can get a great second rental income - this is very often not true in many emerging markets.
The law and stability
Costa Rica property investment gives you the opportunity to enjoy the same rights as residents, an easy buying process and tax advantages.
Furthermore, it's a stable country (compare to Nicaragua where the Sandinistas still loom large) and serious crime is rare.
Yes you can take large risks on emerging markets but if Making Tax Digitalyou want low downside risk and great capital growth potential Costa Rica is hard to beat.
Great Capital growth potential & low risk
With property prices for beach front still 70% below those in the Southern US the property boom still has many years to run and you not only get great growth potential, you also get low risk, which is an important consideration for most property investors.