Taxi Fares are on the Rise

The Regulation Authority of Public Service, announced this week that once again taxi fares are increasing, and not because of the increased price of petroleum.

Local taxi’s, the red (and yellow in Jaco) will go up about 3.35 percent. The initial kilometer will go from c530 to c550 $1.07 to $1.11) and the same rates and increases apply to additional kilometers.

The rural rates have the same base fare, but the additional k’s go from c690 to c710 ($1.40 to $1.44)

Airport taxi’s (Orange) will increase from c785 for the initial kilometer to c810. ($1.59 to $1.64)

Keep in mind that the passenger is also responsible for any tolls, which will be added at the end of the trip. The regulating authority says the new rates do not reflect the increase in gas inflation, so we should expect another rise in the not so distant future. Make sure when you get in any taxi in CR, that the meter is being used, this is the only way to insure you’re getting actual local prices, and not an undisclosed tourist rate.

Liberia's International Airport Plans a $27 million Expansion

The Daniel Oduber Quiros International Airport in Liberia is planning a $27 million expansion, due to open in November of this year. The current terminal just hasn’t been able to handle the large number of tourists flooding Costa Rica. Currently the terminal has the capacity for about 900 passengers, and with many more than that coming through, the result has been long lines, and cramped waiting areas. The new facility will be able to handle 1500 passengers, and will include a food court, several new gates, and a new sports bar.

Currently there are 8 non-stop routes from Canada and the United States to the Liberia airport. Delta, United, US airways, American Airlines, Frontier and Continental all have flights into this Guanacaste airport. Liberia is the gateway to many of Costa Rica’s more northern Pacific beaches, as well as the National park, Rincon de la Vieja, a unique park filled with endless waterfalls, rivers, and of course their famous hot springs.

While they authorities hope to have the new facility open by November, don’t hold your breath, often “tico time” prevails, and while everyone’s intentions are good, well, lets just say, things tend to take a little longer. Pura Vida!

Reforestation of Central America

The Union for Conservation of Nature, launched their new project on April 6^th. A campaign called Reforestando Centroamerica, is being headed up by the youth Costa Rica, Guatemala, Honduras, El Salvador and Nicaragua. The young people will be not only planting, but monitoring the growth of some 5 million trees in Central America. Here in Costa Rica, there are plans to plant 5000 trees in mangrove areas and also in some coastal towns.

Only Native species are used in an effort to replicate that which nature itself intended to do.To date some 150 trees have already been planted by students onto the property of a university professor. Their efforts will continue until all of the 5000 trees have found a new home.

2011 was declared the Year of the Forest recently by the United Nations general Assembly. Hopes are that planting trees becomes a habit, in an effort to undo some of the damage we and our ancestors have done. It requires a small amount of time and effort and yet the results are amazing,

The Legalization of Marijuana in Costa Rica

On April 20^th a group of people will stage a protest in the Plaza de Democracia in San Jose, for the legalization of marijuana. A facebook group, “si a la legalizacion de la majihuana en Costa Rica” has been started to promote the event and the movement. They have 4728 members as of this time, and have 3500 people who have committed to attending the protest on 4/20. Similar protests are being held in Venezuela, the Netherlands, and the US.

Former US President Richard Nixon, started the “war on drugs” 40 years ago, and the group argues that it has been inefficient, a waste of funds and manpower, and that it has actually made the situation much, much worse. The group here in CR, is trying to create awareness that if CR follows the US example, it will create the same volatile situation that Mexico has.

The human rights situation in Mexico has been effected by the United States control policies, established to prevent the trafficking of drugs through Mexico and diminish, or even eliminate the powers of the cartels. The military and police in Mexico have been accused of serious human rights violations, including rape, torture, illegal arrest and the fabrication of evidence. US authorities are reporting an increased number of kidnappings, home invasions and murders, linked to the increasingly powerful drug cartels.

For more information on the planned protest join the group on face book. They have a similar event also planned for May 7^th.

Children Unearth Treasures from the past in the new Archeology room at the Museo de Ninos (Children’s Museum)

Some third graders from a school in Pavas, were the first to be archeologists for a day, uncovering fragments of indigenous wares, from a 7 meter deep pool of sand, in the new room, “lets play archeologist” at the Children’s museum in San Jose.

The 30 children had the opportunity to use actual tools used by archeologists to unearth, replicas of remains, as well as fragments of actual clay pieces and jewelry. The museum has 2 sand “pools” each which represent archeological sites, where the children are able to simulate actual digs.

Far from emulating the feel of tomb raiders, the room teaches of the tedious work of a scientist in the environment reminiscent of pre Columbian era in Costa Rica.

The room has a rancho with interactive games, such as puzzles, and a stamp station, where children can stamp themselves with the figures of pre-Columbian figures.

The children’s museum is a wonderful museum, and a must visit, if you’re traveling with children, a wonderful and educational way to spend an afternoon.

Museo de Los Ninos, San Jose Costa Rica

Calle 4, north of Avenida 9, San Jose

Open Hours: 9a-Noon, 2p-5p, Tu-Su

Renting vs Owning in response to We Love Costa Rica Article

I thought my readers might enjoy some insight from my broker, Mr. Scott Cutter, and some of his insight in owning rather than renting. In his words...

I recently read an article in the We Love Costa Rica forum which encouraged all investors to rent prior to purchasing here in paradise. As a firm dedicated to a cautious process, integrity in our transactions and a patient approach to helping our clients find the right investments here, there are certainly many situations and many clients for whom renting prior to purchasing is absolutely a great idea. That said, opportunity abounds in todays market and a diligent and professional real estate firm can and should help you make educated and insightful decisions that allow you to take advantage of the opportunities, without exposing yourself to blind risk. Like most decisions in life, there is no black and white rule in regards to renting or not renting before purchasing… that said, I think it is important for buyers to understand that renting for an extended period of time before buying might not always be the best decision.. here are 10 reasons to consider purchasing without having previously rented for a longer period of tiem.

1. Recklessly purchasing is never a good idea, but in this market A PROFESSIONAL REALTOR (THIS IS THE IMPORTANT FACTOR) can and will show you purchase opportunities unlike any we have seen in the past decade, and many are being sold at a solid pace. While I am not of the opinion that the market recovery is so strong that all deals will be gone overnight, it is clear that in the current buyer’s market, now is the time to achieve the best strategic pricing both for personal use, and of course, long term appreciation.
2. With rental contracts by law in Costa Rica stipulating a 3 year term, you are committing yourself to 3 years in a rental home or apartment, therefore, setting yourself up to buy in a much different market. While many rentals are done on shorter terms, in many cases, if you leave prior to a year time, you could stand to lose your deposit, which while not necessarily big money is a consideration.
3. Lost equity – Buyers looking in the luxury or premier markets (for example in Escazu, Manuel Antonio, and some areas of Jaco) will likely pay between $4000 - $5000 per month for a luxury rental, thus dropping somewhere in the range of $180,000 during the course of their three year lease term in the home. While trial runs and being careful are important, the cost of higher end rentals leaves huge equity losses for the client which with more aggressive purchase strategies could translate directly into returns on the total investment.
4. Inventory cycles – With most of the bleeding inventory already off the market, and fewer and fewer REAL DEALS on the market place, the inventory to be found in a few years is likely not only to be more expensive, but also adjusted both with inflationary inclusions, as well as less motivated sellers.
5. By renting, you don’t experience the ‘pride of ownership’ and it’s difficult to really take hold of the experience and to feel a real part of the area. This makes it more difficult to fully immerse yourself in the experience, cultivate your property, garden, relationship with neighbors, etc. It is also important that as a renter you will like be here on a tourist visa, requiring that you leave the country every 90 days. With a purchase, you can oftentimes start the residency process as an investor which can be an added plus.
6. Rent, in C.R., for most nicer houses is relatively expensive. I think a lot of folks make the mistake of trying to ‘rent first’ with a reduced rental budget, inevitably get locked into a property or neighborhood that does sit well with them and hence walk away thinking “C.R. is not for me” when they were simply in wrong micro area due to rental options available at their desired rental budget. Just like finding the right place to buy is of incredible importance and is a part of any good realtors dialogue with their clients, where you rent can greatly affect the experience and outlook on the country.. Take it from someone who has lived in both cheap dives and luxury homes, that your experience and future vision of Costa Rica can be heavily impacted by your rental budget.
7. Of course, relatively high rent is not a bad thing if you’re the landlord, and is another good advantage of ownership.. Every month you pay rent is a month you could be collected a return on your investment.
8. Everyone, including our experienced team of long time residents here goes through an adaptation curve. Culture shock, linguistic challenges, local customs, etc are learned over time and don’t become fluent in a short period. Working through these points makes your experience in C.R. more rich and rewarding, but as a renter it’s often too easy to ‘pull the rip cord’ and not give yourself the chance fully enjoy your new experience in a foreign country and everything it has to offer. I have been an exchange student and lived in many countries and often times those first 3-6 months are challenging as you adapt.. while blinding committing is irresponsible, like most things in life, the full richness and rewards are usually harvested over time and far too many renters confuse adaptation and adjustment to dislike.
9. Many investors, if not the majority of purchasers in Costa Rica are not necessary looking for full time retirement or living. While purchasing a full time residence or retirement home can and should require a much more diligent experiential study of lifestyles, culture, etc. there are large numbers of clients who are purchasing here to diversify their investment portfolio, enjoy a second vacation home, corporate incentive, etc. For these clients, renting for long periods of time won’t make financial sense due to the rental premiums on the coast and equity sacrifices by missing purchase opportunities in today’s buyers market. If the purchase if for a second home or investment, renting for long periods of time will not necessary provide any additional insight.
10. Making it your OWN!! In this world full of stress, there is an incalculable value of owning a piece of paradise, and having the opportunity to personalize, remodel, redecorate and enjoy your own piece of the world. While knowing you can go on vacation and pay to stay in a hotel room or rent someone else’s space in the world is nice, it simply doesn’t compare to the experience of owning a special property in a country like Costa Rica. Whether your goals are portfolio diversification, health, vacation or investment..there is something to be said about the value of securing your property and its ownership. It is tough to quantify, but for those investors who have closed on some of the spectacular deals we are securing in the past 6 months, the smiles on their faces and in their financial statements speak volumes as to why purchasing makes a lot of sense.

Again, this article is not meant to be a condemnation of renting. For many it can be and is the smartest solution for their goals. That said, beware, some of the greatest investments in all areas have been made by well educated and insightful professionals who while far from reckless, are also decisive and understand that taking more time than is necessary to examine opportunities oftentimes means that those very doors close while they are pondering. Our team of professional is here to help you look at rentals, markets and guide each client on their very personal decision making journey. No two scenarios are alike and as a firm we are dedicated to learning about YOUR goals and making recommendations that will insure your happiness and successful investments.. Our only rule is do what is best for the client and never sacrifice integrity.