There is no shortage of opinions about how to go about relocating to another country. Just look on the internet under ‘expatriation’ and you’ll be met with over 5 million related sites. There are magazines, newsletters, personal blogs and electronic bulletin boards all dedicated to answering your questions and disseminating information. Official government web pages and real estate sites abound.

Among the most crucial decisions, and one which is necessarily encountered right away, is a living arrangement. The options are as varied as the micro-climates of Costa Rica. From couch surfing to the major investments of buying land and building a house, and everything in between, these are decisions that should not be taken lightly.

One bit of advice that seems to be universal is that everyone relocating here should rent for a minimum of six months before putting down any permanent roots. Give yourself time to acclimate, learn the language, learn about different parts of the country and different weather patterns which may or may not be to your liking.

So what to do after you’ve been here a while, traveled around the country and found that ideal little niche that is what you’ve always dreamed about?

Advice flows freely in many of the Costa Rica related online forums, most of which is a recitation of someone’s personal experience. Not to say that this is not valid information. It is. It is also situation specific. What one person encounters in a tiny pueblo in Guanacaste may not hold true in Limon. The task for the soon-to-be expat is to cull through and make an educated choice.

Whether to rent or buy is a completely unique decision to each set of circumstances. Just consider all the factors, not just a few. Then make a well-informed decision. Based on some basic and general information, here are some things to consider when deciding between renting and buying.

There are some – not all – factors that are predictable when deciding whether to rent or buy. At first blush, it often seems to be a money-saving idea to buy. After all, a monthly payment often times is closely equal to a rental, right? But that usually compares just the monthly payment versus rental amount. There are a lot of other factors to include.

Start with your yearly real estate taxes, then include your up-front fees such as closing costs and prorations. If you are buying using a mortgage or hipoteca consider application fees (which can be substantial) and homeowners insurance – if you want security for your investment. Then there are title search fees, usually paid to an attorney and possibly home inspection fees (if required by your bank). Don’t forget to factor in utility deposits (for connections in a new name). Combine all these and divide by the number of months you anticipate owning the house. Add those costs to your monthly mortgage loan payment and you have a more accurate idea of what number to compare to a rental.
 
Remember, too, the amount of value on a home you can ‘afford’ to buy is not only the amount of the mortgage you qualify for, but all the additional costs. Add to that the cost of things you don’t have in an apartment; maintenance, grass cutting, minor (or sometimes major) repairs, painting, internet and cable TV service that may or may not be included in a rental. Rentals often include costs you never even consider and the complex owners pay because they cannot risk the problems associated with non-payments, such as monthly water bills and garbage pick-up. Also, if you are in an apartment complex, there is some level of security if nothing more than in sheer numbers, so factor in whether or not you will need to install a security system or bars on the windows with monthly maintenance fees.

And if you use your savings on a down-payment, what interest rates will you have to pay for things that you want to buy but will then have to borrow money for or put on credit cards?
 
Last, but not least, what if the market goes really soft again if you want to sell and you can’t find a buyer at any price. Will you be able to afford to let the place sit vacant or rent at a lower than market rental just to keep it occupied? What if you need to return to your home country for medical or family reasons?

If you have done your due diligence search for answers and make the decision best for you, then you will have the peace of mind to sit back with a cold refresco and enjoy the Pura Vida lifestyle here in Costa Rica!