Costa Rica - Housing, Finding & Purchasing Retirement Real Estate
Building A Home

In Costa Rica you can build your retirement dream house since land, labor and materials are inexpensive. However, think twice about undertaking such a project because you could be flirting with disaster. Many foreigners who have built homes complain that it sounds easier than it really is. They would not do it again because of costly delays, unreliable labor, fussy building inspectors, different laws and building codes and many other unforeseen problems. Be sure to talk with foreigners who have built homes to see what obstacles they encountered. Costs depend on location, materials and the size of the home you want to build. You generally pay $500 to $1,000 a square meter or $45 to $90 a square foot.

One common mistake some newcomers make is to hurry to build their dream home while they are still on their honeymoon with the country. Many have been shocked by substantial cost overruns. Months or years later, they realize too much of their capital has been spent on their new home.

If you do decide to build a home on your land, there are several steps required. First, conduct a preliminary study, which should be completed before you buy the land. Also, be sure to see if your lot has access to water, drainage, electricity and telephone services.

The law says you have to hire an architect or civil engineer to file all of your construction permits.

A building permit must be obtained from the municipality where you plan to build. An architect can usually handle building permits and work jointly with the contractor to supervise the construction. It may take a couple of months or longer to get all of the permits in order. A reliable contractor will also have to be hired. You should get several bids and ask for references. Expect to visit the construction site almost everyday to ensure things are getting done. If you cannot be there, have a reliable person inspect the construction site for you on a daily basis.

According to one local realtor, this is how you can lose money while building a home:

1. Give money to a real nice and friendly contractor and then leave the country and tell him you will be back in a couple of months.
2. Take the first bid you get because it seems so incredibly cheap, far cheaper than anyone else's. Halfway through, when the real price emerges, it is nearly impossible to get a second contractor to come in and finish what the first one started. So, you are stuck with him and have to pay the real price to build, but now you are working with someone you do not trust.
3. Pay no attention to the amount of cinder-blocks delivered to your construction site.
4. Live in the city while building in the country and only drive out on weekends.
5. Give the power of attorney to almost anyone. There is a special trick here for people getting your deed number (escritura), and suddenly you don't own the property anymore.
6. Ignore the advice of experienced people because the taxi driver and the guy on the bar stool are locals and must give good advice.

In short, I buy my materials directly through local hardware stores (ferreterías), get receipts, place orders by phone and live on the land while building on it. Some people do it by contract. I pay the workers once a week, pay my building supplies once a month and use a hardware store I know and trust. The contractor supervising the project gets a bonus of about 10 percent of the total building cost.

If you want more information contact Costa Rica real estate and retirement properties or call toll free 1 888 581 1786.