Editor’s Note: Today’s issue is the second installment in Chief Income Strategist Marc Lichtenfeld’s two-part series on investing in international real estate.
To read the first one (which came out on Tuesday), click here.
– James Ogletree, Senior Managing Editor
In the 1990s, my wife and I went on a weeklong summer trip to the Canadian Rockies.
We stayed in a small town on a gorgeous lake. One day, strolling by a local real estate office, we looked at the listings in the window and were shocked by how inexpensive the homes were.
The American dollar was very strong against the Canadian dollar at the time. A modest home could be had for around $50,000. We started to dream of escaping the rat race and settling down in this charming Canadian town.
And then I found out it gets down to minus 30 degrees “only a few times a year.”
Dealbreaker.
But ever since then, when we travel, if we really love a location, we’ll look at real estate listings and sometimes go out with a realtor. And we’ve even bought a couple of places.
We recently had another one of those experiences in Costa Rica.
I’d been there before – once for an Oxford Club conference many years ago and then again in 2024 on vacation. It’s simply one of my favorite countries I’ve ever visited.
The natural beauty is stunning, and we love that it is very protected.
While there is development going on, there are strict rules in order to preserve the environment, wildlife, and scenery. That’s also good from an investment perspective, as it won’t ever get overdeveloped.
Costa Rica is also known for its people.
Nearly everyone I met spoke English. They are among the warmest and friendliest in the world. I’m not just talking about the waiter at the luxury hotel. I mean the construction worker in the street and the locals watching soccer at the neighborhood field.
Speaking of waiters, though, the food is outrageously good. You can get gourmet meals at incredibly beautiful restaurants – or very tasty (but cheap) eats at local establishments called “sodas.”
A friend took this picture of my wife and I toasting as we watched the sunset from an amazing restaurant in Las Catalinas…
We like to be outside, so Costa Rica is perfect for us. The hiking, the beaches, the water… it’s all there to enjoy.
This was us after a morning hike where the trail ended on the beach.
You can probably tell that I’ve fallen in love with Costa Rica. But when it comes to money, I use my head, not my heart.
That’s another reason why Costa Rica is so attractive to me.
I’m looking to buy a place in Guanacaste, which is on the Pacific side of the country. I plan on renting it out when I’m not using it.
I also expect prices to rise significantly there.
Costa Rica is a democracy and one of the most stable governments in Latin America.
Luxury hotels and homes are being built, more flights are being added to Liberia airport, and the area is attracting more tourists.
There’s a definite buzz about Costa Rica these days, and while it’s hardly undiscovered, it still feels like I’ll be on the early side of things.
My hope is that in the near future, in addition to my family having more vacations down there, you’ll be reading a column that I wrote while eating fish tacos at the local “soda” – after which I’ll take a stroll on the beach, go for a quick swim, and return home to watch the sunset from my balcony.
Pura vida!