Introduction
[Richard Bexon] Good morning, Sarah Elena. How you doing?
[Sarah Elena] I’m doing good. How are you doing? I’m happy to be here.
[Richard Bexon] Yeah. It’s a pleasure to have you on here. It’s. I’m not sure if summer’s finally here, but it’s been kind of raining a little bit as well, so I hope it gets here quickly.
[Sarah Elena] Well, we’re in December, so should be here any. Any minute. I feel the winds, the winds are starting to pick up. So it’s a good thing the winds.
[Richard Bexon] Are here, that’s for sure. I got a flight tomorrow to arena now and then one Antonio, so hopefully those winds don’t make my flight too, too interesting.
[Sarah Elena] Yeah.
Market Overview: Post-Election Trends in U.S.
[Richard Bexon] Well, Sarah Elena, I mean, with recent North American, you know, and world political instability, I would say would be a word that I use. I mean, how. How has this impacted your work? Like kind of since, since the US.
[Sarah Elena] Election, I would say it’s had a huge impact. So I guess before we started recording here, I let you know, I felt like I was running around like a chicken with my head. And it’s, it’s been late nights, many phone calls all day, every day. I’ve been dealing with a lot, a lot of people. It’s huge, huge increase. Will everyone come and stay forever? Will everyone even come? But at least the interest of I want out is. Has been the big time.
[Richard Bexon] Yeah, I mean, people looking to get out like a hundred percent or they just want kind of like a second option, Plan B.
[Sarah Elena] The most of the people that I deal with are pretty 100. They want to be here full time. I’ll occasionally have a snowbird or someone who just wants to come back and forth for investment, but most people are full time. I’m out. Their plan B may be that they’re going to rent out their home in their home country, selling it, and they will have kind of a backup plan, which I do suggest that they have in some cases. Yeah.
2025 Costa Rica Market Predictions
[Richard Bexon] Awesome. What do you think is going to happen in Costa Rica in 2025? I mean, you know, the past couple of years has been pretty crazy. What do you think is going to happen in 2025?
[Sarah Elena] Well, I think we could see definitely a steady increase. So the other last big boom that I recall was during 2020. So you had election paired up with COVID Huge boom. I don’t know, maybe you felt that. Yep, I would say after. Okay, so 2020, once the borders were open, huge boom. 2021, huge. I think by 2022, 2023, 2024, things started to kind of taper off and level out a little bit more. Again, you let me know what you felt. But now I’m feeling that big boom again. And my assumption is that 2025 may be another big year and then it’ll start to level out again. Perhaps we just go through these kind of cycles.
[Richard Bexon] Yeah, I mean, that’s definitely the cycle that we saw. You know, 2020, kind of when the, you know, the end of the year it kind of opened up, you know, was bounce back in. Tourism was nuts. You know, the bounce back in real estate was. And investing as well. You know, I’m gonna do a podcast at some point, just kind of of a wrap up of 2024 with kind of data and then what we think is going to happen in 2025. But I think we are starting to see a bit of a shift to a buyer’s market from a seller’s market. I think 2021, 22, 23 was kind of a seller’s market, whereas now I think there’s been some stability in 2024 with some price settling. And I think 2025 we might start and especially in like non key, you know, I’m starting to kind of see that. But I mean, it’s going to be an interesting 2025 for sure. As if 2024 wasn’t as interesting enough, you know, I’m sure 2025 will be the same.
[Sarah Elena] Who knows? I know it’s like every year it’s a new thing and we’ll have to see what comes.
[Richard Bexon] I think, as I always say with Costa Rica, just surf the wave, right?
[Sarah Elena] Yep.
Costa Rica Relocation Planning Essentials
[Richard Bexon] Oh, yeah, whatever. Whatever comes at you. I mean, how easy is it to relocate to Costa Rica, Sarah Elena? Because, you know, when people are looking at Costa Rica, a lot of the time they’re also looking at other destinations as well. But how easy is it to relocate to Costa Rica?
[Sarah Elena] Well, I wouldn’t say it’s. It’s manageable. And I think if you have a proper plan in case in place, you have the proper education, you’ve thought about your logistics in advance, you’ve made sure that you know what you don’t know and you’re going to the right places for information, I think it can be definitely very manageable. Some curveballs are still going to pop up. You’re going to have to still be very adaptable, very kind of crafty in your way of thinking and also just be able to deal with big changes and maybe unexpected things happening. So I would say with us, we look at a situation and we have a systematic way of doing it. So we’re like, oh, this is easy, you just got to do X, Y, you know, put the pieces here. But I understand to someone else it needs to, it can, as long as it’s done correctly. It, it’s, and you’re working with the right people again, as you probably know, it’s about having the right kind of contacts down there. It can be very manageable and an enjoyable experience. But also even happy changes in life can be stressful. So it’s about managing that, that part of it too.
[Richard Bexon] Yeah, I agree with you. I mean, I think as I just said before, surf the wave. I think you just have to do that with everything in Costa Rica and like sometimes you’re going to be told no. And that no is really not a no. It’s just like you just have to find another way to do everything. You know, it’s. Yeah, you know, Yeah. I mean it’s, it’s no different than any other country, I suppose.
[Sarah Elena] Absolutely.
Cultural Adaptation
[Richard Bexon] What do you think people should understand about living in Costa Rica?
[Sarah Elena] Well, one is what be the big cultural difference. So when someone starts researching Costa Rica, they’re going to read the Pura Vida. What it, what is it, what does it mean? Maybe someone listening to this has probably already heard that term before. And I think people need to understand it’s not just a word, it is a way of life down here. And I think some people when they move, really start to understand that and they’ll see how that does affect their day to day life. Which it can be in a really good way because I feel like, well, it’s about slowing down things moving at a slower pace, which can be nice because it actually takes the pressure off of you as a, as a person. If you came down here to slow down, live at a slower pace, you can definitely accomplish that. But also people do need to culturally adapt and understand that Costa Rica is not going to, the systems aren’t going to work the way that they work, where they’re coming from. And I know that that can be really frustrating for some people. I find some things highly inefficient here, but that’s okay, that’s the way it is. But I also find some things that are much Better and much more efficient here. So I think people need to understand that, just really remind themselves they are moving to another country and they have to respect that the culture is different, the way of doing things is different and they need to be patient with themselves and others as they’re learning how to live life differently. You know, literally paying your bills is going to be different. Like every little kind of thing that you’re used to doing, especially after moving, is going to be different. So just having that patience and also adapting, embracing it.
[Richard Bexon] Yeah, I think patience definitely is the word here on a lot of stuff.
[Sarah Elena] So.
Cost of Living Realities
[Richard Bexon] So yeah, what about when it comes to the cost of living here? Because I think people think, oh, Latin America must all be pretty cheap. Whereas that’s not always the case in Costa Rica, right?
[Sarah Elena] No, honestly, Costa Rica is expensive and I will let people know that. However, I think there are ways to like live in a cheaper way. So you have to learn how to shop down here. So I’ll talk about, okay, don’t buy Tide, the Tide brand that you look right next to it, same ingredients, same thing, grab that instead. So I think when you learn how to live and how to shop properly and some things are more expensive like cars, you know, you hear that people, oh my gosh, can’t believe how expensive cars are. But I feel that the things maybe to take care of your day to day, getting a haircut, getting your nails done or getting a massage, there’s certain things to take care of your body. Medical care can be a lot less expensive, veterinary care. So yes, there are things that are more expensive which are going to be your name brands or imported goods, cars, things like that. But then also you have things that are going to be more affordable that you might use on a day to day too.
[Richard Bexon] Yeah, I mean, I think it’s, you know, from my experiences that you know, you know, you need to somewhat simplify your life in Costa Rica as well. And it’s great because like, you know, you can’t just jump on Amazon and order something in two seconds. It’s, you know, it’s here. I mean it’s getting a lot easier, don’t get me wrong, to get some of that stuff down here. But it’s not like, you know, it used to, where it was just, you know, an absolute pain to get that stuff down here. But I think as you said, it’s just, you know, there are certain ways like going to the farmer’s market instead of just going to Automaticado, you know, the country’s most, probably most expensive, you know, supermarket Finding the butchers, like doing it the old way. It used to be like where you go to the grocers and you go to the, you know the, yeah, the meat guys and the fish guys and you have all these individuals guys. But it’s all fresh if that makes sense rather than just being mass produced kind of Walmart style stuff.
[Sarah Elena] Exactly, exactly.
[Richard Bexon] You know, says the guy building the pundo in Playa de.
[Sarah Elena] Isn’t today the opening?
[Richard Bexon] I, you know, I have no idea Sarah Elena. We’ve project managed that thing from the beginning. We project manage all of them in Costa Rica and I, I never know, they just kind of, there is no date, they just open up.
[Sarah Elena] Oh, I heard it opens today and I was going to go this Saturday so that’s exciting.
[Richard Bexon] Will be open by Saturday I believe as well by then for sure. But yeah, it’s definitely a change to the area.
[Sarah Elena] Oh yeah, that intersection is already a bit of a mess so it’ll be great. But we’re very excited, we’re very excited about it.
Relocation Success Rates
[Richard Bexon] Awesome. What percentage of people that relocate here do you think last more than two to three years in your opinion? Because you often hear about people that come down here and then kind of don’t make it. And I mean what percentage we say that is and why do you think people don’t make it?
[Sarah Elena] Well, I think I have two different kind of demographics. Well I have my data from people that work with us and I think we, the percentage is much higher of the people that stay that end up working with us because we really do drill into them kind of what to expect, make sure they don’t have their rose coloured glasses on, let them know kind of ahead of time what their challenges are going to be. So by the time they start facing some of those things that are just kind of inevitable. Inevitable they’re like oh okay, yeah, we, we knew to expect this, we got this and we do a lot of that before pre education, before they even get here and making sure that they actually know it’s the right thing for them. But I think, I don’t know, maybe 60 to 70% will still be here after two to three years. And I think some of them end up leaving because well maybe they did come into the country with different expectations but also just changes in life. So I’ve seen people, oh well we just had grandchildren, now we want to go back or change in employment or maybe Costa Rica was more expensive than what they thought change in health conditions. So maybe something happened health wise that they wanted to go back to their Home country. So those are kind of the main ones that I see. Maybe change in a family dynamic or health or income or some people just come and say, I want to do this just for a year anyways. They say, I just want a new experience of life. And they know that they’re going to return anyways because I don’t know, they don’t plan out a country for the rest of their lives.
Real Estate Decision Framework
[Richard Bexon] But so, I mean, based on that, what is your opinion? Because I’m sure you get this quite a lot of whether people should buy or they should rent when first moving here.
[Sarah Elena] I think they should absolutely rent. If anyone’s watched any of my materials, I’m a huge proponent. Proponent on that. I do will work with people and they’re still adults and they can make their own decisions. So if someone is hell bent on I want to, I want to buy, I’m like, all right, well, let’s do it safely. But I absolutely say rent, rent, rent. Because I have seen it even with our own clients that they come. And again, I have one that came, they really wanted to buy. I don’t think they ended up buying. But then they moved back a year later and they weren’t buying in a tourist area. You know, they’re. They’re buying kind of in a more mountainous rural area. They wanted to buy in a more mountainous rural area. So I thought, well, gosh, you know, how much of a pain would that have been to sell that property as, you know, it doesn’t always sell as. As fast.
[Richard Bexon] Yeah. So you’d mentioned that by the right way. Can you explain that a little bit just so that, you know, listeners understand that.
Legal Protection for Buyers
[Sarah Elena] Well, using, making sure that you are, you need a superstar lawyer. And on your side, that’s what I always tell people. You need a superstar lawyer. Because sure, you can come and some people use real estate agents. But you need, you need the superstar lawyer on your side because that’s who’s going to keep you out of trouble. Because maybe you move here, you’re renting, your landlord’s cousin Jose has got this amazing property down the road and you fall in love with it. You know, who’s going to protect you in that case? Your lawyer. Your lawyer is going to be the one to say, actually, we have a client going through this right now. There’s something going on with a trust or there’s just some kind of legal things, a lawyer saying, hey, if you want to buy this, you can, but you’re going to have to sign a legal release that you know Saying that I’m, we’re not going to be responsible if anything happens after your purchase. And the client came to me and I said, you know what, don’t do it. I said these work with lawyers that are very black and white. They don’t. I try to work with people that don’t do any grey areas. They’re going to advise you in the best way to not have any risk and make sure that the sale. Because as you know it can be big problems and you don’t want to come over and have big problems and spend hundreds of thousands of dollars and you know, have, have legal issues.
[Richard Bexon] Well, I mean I think if you carry that risk and have those legal issues just reselling, it becomes even more difficult. And I mean as you mentioned there, if it’s not in a core destination, it gets even more difficult, you know.
[Sarah Elena] Totally.
Limited Buyer Pool
[Richard Bexon] So it’s, yeah, it’s, you know, it’s an interesting one buying real estate in this country depending on, you know, what, you know, what you’re doing it for. But I think people just need to understand of like financing is not readily available. So the number of buyers is not huge like it is in like North America. So everyone here is a cash buyer which you know, takes, I don’t know, the population from 50% down to like 2%, you know, of people that can do it and. Yeah. And if it’s in a non key area, like unless someone wants to live in the middle of nowhere, like you’ve gone down to 0.1% of people. So yeah, you know, I agree rent before you buy because when you buy here, reselling, depending on where it is can be a nightmare.
[Sarah Elena] Totally. Like I, I built a home. I built two homes. One to live in, one to sell. Three minutes from the beach, brand new house, furnished. It still took nine months to sell it. It’s a great, great property, but it’s still, you’re right. Kind of wait around for that cash buyer because financing isn’t always, you know, as available. Absolutely.
[Richard Bexon] And you’re three minutes from the beach. So imagine if you were 15, 20 minutes from the beach up in the mountains, you know, I mean maybe helps if you have an ocean view, but still 15, 20 minutes up in the mountains if there’s no community around you, like. Yeah, I think you just need to. Yeah, you’ve got to be very careful.
[Sarah Elena] Exactly.
[Richard Bexon] I always say, I remember doing law at school and there was a saying, caveat EMP door buy ever where which is always, you know, here because once you buy it there is no Recourse, really?
[Sarah Elena] Exactly.
[Richard Bexon] Very little recourse.
[Sarah Elena] Exactly. So make sure it’s worth taking your time to due diligence, making sure everything’s done correctly. Get the home inspection, get, do everything in the due diligence so that when you buy, when you spend that money, you know it’s going to be okay.
Location Selection Strategy
[Richard Bexon] Sarah Elena, what’s the question that a lot of people ask that maybe I haven’t asked here, that you, you think people should know about, you know, kind of relocating and moving to Costa Rica?
[Sarah Elena] Well, when one thing that I like to talk, really talk to people about is choosing the right area.
[Richard Bexon] Yep.
[Sarah Elena] Because I think if you fall, I’ll, I’ll see people start their journey of maybe looking for real estate. They’re looking at a house. Oh, this house is so amazing. This is a great property. But what area is it in? So I, I just think it’s so important for people to really dig into their own lifestyle. So that’s what we, that’s what we do. That’s why I ask people, what is your daily life like now? What are your hobbies? What’s important to you? What amenities do you need to have around you? How close do you want to be to medical? What about climate? So I think people really need to sit down and ask themselves some of those questions. And I know a lot of people are moving for a lifestyle change or also maybe they’re retiring. So for someone who’s retiring, they’re going from working, working to now, they’re going to have all this free time. Like I would just encourage people to really structure what are they going to do with their time down here and really get a clear focus of what lifestyle changes they want to make and then making sure that they’re choosing an area that’s going to be a match to that because if they’re not, you’re going to be miserable. That’s why, that’s why you don’t want to just buy a property either, just because of the property. It can really change your experience if you pick the wrong area. And that’s what I’ve seen a lot of people make mistakes into. So I think that would be something that’s always really important to cover and make sure there’s no big relocation deal breakers. Make sure medically and insurance wise, you’re super covered and you’re comfortable with the coverage. That’s another mistake that I see. And knowing the expensive cars before you come down, so you choose an area that you don’t need a car if you know that you can’t afford one.
[Richard Bexon] Yeah, yeah. I mean, it’s. There’s so many different microclimates and locations here as well, as you mentioned there, depending on, you know, what it is that you want from. Know we say the Central Valley here. You know, I love the Central Valley because it’s like 65, 85 all year round. You know, we have all the comforts. I live in a red here in the mountains. It’s kind of nice that. But in 10 minutes, you know, I can be at the airport or I can be down in the city. Yeah, but I agree. And that’s why you shouldn’t just buy. You as soon as you jump in, you should rent. And, you know, I mean, again, I think if they’re. Someone’s goal is like, no, no, I’m going to buy a house as like a vacation home and then rent it. That’s different than, hey, I’m moving here. You know, one is more of a. I would say more of an investment style, you know, business. The other one’s more of a lifestyle thing, which are two very separate conversations.
[Sarah Elena] Totally. Absolutely.
How Would You Invest $500,000 Inheritance in Costa Rica?
[Richard Bexon] Well, awesome, Sarah Elena, this has been great. My last question for you, though, is if you inherited $500,000 and you had to invest it into a business or real estate in Costa Rica, what would you invest it in and why?
[Sarah Elena] That’s such a good question. Okay, I would probably invest it into making. I don’t know if that’d be enough. I’d want to make a few rental units, some apartments. That’s what I would do with it.
[Richard Bexon] Where would you do it?
[Sarah Elena] Closer to the beach, but probably closer to where I live. And some would probably be long term, maybe I try some others short term. That might be a bigger project than $500,000, but I would definitely make some rental units for sure.
[Richard Bexon] Well, I mean, look, I mean, I think with some of this prefab stuff, we’ve looked at a lot of kind of more prefabricated stuff that can be built in like, you know, two or three months and kind of just wheeled and landed on it. Depends what you want to do, you know, I mean, those units can be, you know, 70, $80,000. I mean, you have to put the infrastructure in and maybe a pool and stuff. So, I mean, it can be done. It just depends on how big a project, you know, you’re looking to do. But yeah, it sounds like you would. I mean, it makes sense to do it in Playa Hermosa where you are. I mean, good demand, close to the city and Yeah, I mean, you know, great location.
[Sarah Elena] Yeah. And I would say it’s not something that I would say, okay, I’m gonna make these units and live off of it for the rest of my life, either, because, as you know, that would be more of, oh, here’s extra cash coming in still.
Conclusion
[Richard Bexon] Well, cool. Sarah Elena, it’s been an absolute pleasure having you here on the podcast. Anyone that wants to get in contact with you, I’ll put all your details down in the description, but very much appreciate you taking the time to chat with us today.
[Sarah Elena] All right, well, thank you for having me. I appreciate it.
[Richard Bexon] Thanks very much.
