Lake Arenal Real Estate

Ten years ago, Robert and Mary first visited Costa Rica. We visited Nuevo Arenal and spent some time at Agua Inn B&B. So when we saw some land here in Costa Rica this past January we didn’t hesitate – and now we are proud owners of property in Nuevo Arenal, Costa Rica. Over the coming year we will design a house, break ground, and, in 18 months, move to Costa Rica and have a new place to live. When it’s done, we plan to spend most of the winter in Costa Rica and parts of summer as well while spending Spring and Fall back with family in the States. And so begins the story at Javier ’s ( * ) suggestion, I’m going to write a blog (not as often as Tico Nuevo!) about how we go from “dreaming” about Costa Rica to living in a new home. This is the first installment. What I want to talk about here is really the decision making process – whatwe were thinking; what problems we saw; that sort of thing. I’m not a great story teller, but maybe this will help others who are thinking similar thoughts. So … the obvious first question is: why Costa Rica? After all, the first thing you might ask is “why not Arizona?” Or Nicaragua? Or one of the Caribbean Islands? Etc. Etc. Etc. Why did we choose Costa Rica to buy property? And once we chose Costa Rica, why Nuevo Arenal? The truth is that when you factored in all of the things we wanted in a second home, it was a pretty easy choice – almost “obvious” to pick Costa Rica. And yes Lake Arenal, its temperature, 75 F year around, water view without being at the beach, property lake view, the Arenal volcano and the kindest – happiest people in the world. After the obvious reasons to live in Nuevo Arenal we thought : First, we wanted to live somewhere that was relatively near to our home on the East Coast of the US. We still have family in the US with grandchildren, children, brothers, nieces and nephews etc. who we wanted to be relatively near to. We more or less wanted someplace that no more than 5 hours away by plane with direct connections to our home. So that cut down the scope of where we could go pretty dramatically. Europe was out; so was Asia; and so was most of South America. If not for this requirement, we might well have bought a home in New Zealand (which is a wonderful place) or Vietnam (another great place) but both of them take 24-48 hours to get to. That was too far for us, so we had only North America, the Caribbean and Central America to consider. Then, of course, since this was going to be a winter home, it had to be someplace warm. No point in having a winter home that was too cold – so there went Canada out the window. And it had to be a place where we could get good “bang for the buck” – a place where our American dollar would be fairly strong and useful in purchasing services. We aren’t poor people, but we didn’t want to be living in a place where we felt we were scraping by. So that, pretty much, excluded all of the southern United States. The next factor we considered was one that was, perhaps, more unique to our own predilections. We wanted to live somewhere with a culture that was different from our own; and also one that had a real, local culture that was not overwhelmed by tourists and snow-bird visitors. We’d been on many Caribbean islands and our general sense was that too many of them were flooded by non-local culture and too dependent on tourism. We also both have always enjoyed Latin/Spanish culture – the food; the music; and the language. In short, we wanted a place that felt like a different, but recognizable community – so that meant somewhere in Lake Arenal area. Add two more factors – we wanted to be safe (so there went Mexico because of the cartels and some of the other more dangerous countries) and we wanted to be someplace with a strong rule of law. We were afraid that if we invested our hard earned cash in land and a house then some disruption in the civil justice system would wind up threatening that investment. In our worst nightmares we imagined being sued by some local over a slight and having our house expropriated. We wanted someplace where that wouldn’t happen. And in the end, if you do your due diligence, there really are maybe two places that meet all these requirements – Costa Rica and Panama. And we fell in love with Costa Rica – the friendliness of the people and their welcoming nature made it an easy choice – we didn’t even go and look at Panama. (*) Javier is the only licensed architect around Lake Arenal, he also is a member of Team Realty Lake Arenal.

In this article, we will discuss what you need to know about purchasing a property in Costa Rica. We also cover ownership and the Registro Nacional. Deciding to purchase real estate in a foreign country can be intimidating at first, but we will cover the main topics so that you understand that the Costa Rican government welcomes foreign investors and makes it very easy and accessible helping to put you at ease. It’s very possible to safely buy property here in Costa Rica with the assistance of a reputable realtor and attorney like the ones we offer at Team Realty. Not only is it safe but it’s also considerably quicker and easier than in North America. Under the Costa Rican Constitution, foreign investors have the same property ownership rights as nationals. At Team Realty, we often recommend purchasing in the name of a corporation that you represent, but you can also purchase property in your personal name if you so choose. Ownership within a corporation allows for couple advantages: it allows ease of ownership between multiple people within a family or partnerships. It also avoids the probate process should there be a passing of one of the owners. The actual process of setting up a corporation is very simple, but it does require an attorney to make sure everything is set up properly and it only cost a few hundred dollars. The Public Registry of properties or the Registro Nacional as it is called here is where all properties must be registered. Most properties in Costa Rica are registered as either fee simple title or maritime concession. Those which are not registered you really just need to stay away from. A lawyer would be able to confirm that the property is legally fit to be purchased and that the title will be free and clear of any claims liens or encumbrances by performing a detailed title search at the Registro Nacional. We hope this has helped you understand ownership and the Registro Nacional in Costa Rica. Allow us to help you find your “Pura Vida” property in Costa Rica!

Here are my 5 main reasons to move to gorgeous Lake Arenal: 1. The Climate In the last years Atenas has been labeled as the ‘Best Climate in the World” but frankly Arenal does have great weather and temperatures year around. It get its share of hot days and rain but for the most part the weather year-round in the area can be described as “spring-like.” Comfortable daytime temperatures in the 80s…cooling off at night. Most people here do not use air conditioning. Instead they open windows and sliding doors to bring in fresh air and cooling breezes. The good weather means a lot of living and entertaining is done outdoors—in tropically-landscaped gardens, terraces, or back porches. Most everyone here eat meals outside, enjoying that first cup of coffee in the morning overlooking the lake, and watching the sunset over a glass of wine. There can be heavy rains here at times. This is the tropics. But most people welcome the water because it nourishes the vegetation and really brings out the different shades of green in all the trees and other plants. 2. An Unique Tropical Landscape The centerpiece of the Arenal region is the lake. Gently sloping green hills, the Tilleran Mountain range, is dotted with homes and trees down to the water. The region is still quite rural, with plenty of wild areas and green space, including a large section of Volcano National Park. The lake is pristine. The shoreline is mostly undeveloped. In fact, regulations restrict any building or development on the water’s edge. As a result you get unspoiled views and no shore side condo buildings, big resorts, or busy marinas. And that’s NOT GOING TO CHANGE any time soon. Created by flooding a river valley in the 1970s, for a hydroelectric plant—unseen by the way—at the east end used to provide most of Costa Rica’s electricity. It’s been joined by other forms of renewable energy. You can boat on the lake. There are boat ramps in a few spots and small marinas with floating docks at some developments. Fisherman stalk the guapote, or rainbow bass. And pleasure cruisers also play the waters. But for the most part it’s quiet, without much boat traffic. On any given day there might a dozen craft on the water. Kayaking is also popular, as is windsurfing on the northwest end, which has steady winds from October to May. 3. Pura Vida-Friendly Locals and everything you need The people in Arenal are another factor that makes this place special. As with the rest of Arenal Lake , locals are warm and friendly, welcoming of their new neighbors. And the relatively small expat community is tight-knit. But most expats gather in the homes of friends for informal get-togethers, books clubs, card games, and other activities. In many ways, it’s the type of community where everybody knows everybody and newcomers are welcomed into the fold with open arms. In Arenal you will find everything you need to have a pura vida life. This little town offers 3 grocery stores, banks, places for entertainment after a long week, schools, there are very good restaurants around , including Gingerbread, Las Delicias, Moyas and Platillos Voladores which offers Italian- family-style food, the best italian food you can get. Also, you will find beautiful local B&B’s to stay, among those beautiful B&B’s in Lake Arenal Area is Agua inn, ( www.aguainn.com ) this hidden gem is just about 5 minutes from town, surrounded by tropical forest gardens with the Cote River that wraps around the property, an unique experience that will help you sleep pleasantly every night. 4. Best Real Estate Deals Though Arenal is increasingly popular among retirees and other expats, buying or renting a home remains affordable, especially considering the inspiring lake views and quiet rural setting. Several gated communities can be found along the narrow two-lane road that circumnavigates the lake. But individual home sites can also be found. Homes with views of the lake and surrounding countryside are the most desirable. But you can also find homes in the jungle and lots in remote areas with waterfalls, private hot springs, and more. Many homes are designed to maximize an outdoor lifestyle, with large covered patios and smaller interior living areas. And large windows facing the lake are also popular. One recent listing featured a four-bedroom lake-view home on 2 ¼ acres for $189,000. A fully-furnished two-bedroom home on the lake , with community amenities like boat storage and floating dock, tennis courts, horse stables, and pool is available for $215,000. And there are some extremely low-priced properties, like a one-bedroom cottage for just $49,000. If you’re interested in acreage, there are many large properties available. About 15 minutes from the lake there is a 215-acre parcel in the jungle with river, springs, and primary rain forest for $250,000. It has access to utilities and has access to a main road. It could be a great site for development …or your own eco-lodge. On the rental side, there are plenty of options that allow you to try out life on the lake with a long- or short-term lease arrangement’s . A furnished two-bedroom near the town of Nuevo Arenal rents for $850 a month—that includes all utilities. Another two-bedroom, with a lake view, will run you $650—and you can walk to the lake. 5. Low Cost of Living In Costa Rica, expat couples report being able to live on $2,000 or less per month, including transportation and housing costs. Affordable properties are a big factor in the lower cost of living in the Arenal community in particular. Not having to use air conditioning cuts down on electric bills and water rates are low, just as the rest of the country. High speed Internet, cable TV (including premium channels like HBO), runs about $60 to $80 per month, depending on the Internet speed and cable package you choose. Many channels and shows are in English. A major way to cut down on

My list was specific: lots of nature, trees galore, gaudy tropical blooms, on or within walking distance of clean, swimmable water, a babbling brook on the property, plenty of potable water, a jungly environment and a narrow temperature range in the 70s and low 80s. When researching Costa Rica real estate I was encouraged by photos of lush, green forests and the number of Costa Rican properties with brooks, streams, rivers and waterfalls. I began my search in the Central Valley because of the spring-like temperatures. There was a lot to like, but I didn’t fall in love until I followed those spring-like temperatures up to the Lake Arenal region. I was able to tick off all the items on my list. There were a few extra perks I hadn’t thought of: stunning views of Lake Arenal, the Arenal Volcano and the Tilaran Mountains; a lively ex-pat community which offered a plethora of activities and volunteer opportunities; friendly, welcoming and helpful Costa Rican community; and an impressive selection of very-good-to-excellent restaurants. And there was still quite a range of available lots and other Lake Arenal properties. I felt like I had found the pot of gold at the end of the rainbows that are common visions in the Arenal skies: a beautiful, affordable, livable area that was still relatively pristine and undiscovered. With every intention of following the advice to rent first, I looked at the Lake Arenal vacation homes that were available, as well as the rental homes in the Lake Arenal region. Prices were good, the property managers were very helpful, and I had quite a selection to pick from. It was at an ex-pat luncheon that I learned of an exceptional Lake Arenal property for sale; one visit to this magical property with its mature fruit trees, tropical heliconias, flowering gingers, and amazing views and I was smitten. From my slice of paradise I enjoy 75 F temperature, gentle breezes, organic fruits and veggies from my garden, and the songs of over 100 species of birds. By Suzy B. Susy has been living in Arenal area for more than  7 years, she is a very active person in the Arenal comunity.

If you build your own home in Lake Arenal, you won’t have to adjust to Tico housing styles, which may include low ceilings, no lawns, and odd ideas about finish work. In your own place, you can put the outlets where you want them, install North American-style hot water heaters and window screens, and lay down floors of tropical hardwoods. You can orient the house toward the best view (many Tico houses look inward rather than outward). You can put in a lush lawn or landscape to your heart’s content with native trees and flowering shrubs. “You don’t really have to plant things here,” one gardener told me. “You just stick something in the ground, or you wait (not long) for your yard to be invaded.” Getting construction permits In Costa Rica, before getting any construction permits you must have (ask your real estate agent from www.teamrealtycr.com) 2 very important documents: 1-Survey plan with the stamps on from the local Municipality and the Costarican National Property Registration ( Registro de la Propiedad) 2- Water letter provided by the AyA or the local ASADA ( city water department) Before you buy land that you intend to build on, you need to do a little research. First, make sure the lot has basic services such as water, electricity, telephone, and drainage. If it lacks any of these, get estimates for how much it will cost to install those services. Next, make sure there are no restrictions on the lot that might cause you to be denied a construction permit. Begin by checking with the Public Registry (Registro Nacional), stop in at the Permit Reception Office (Oficina Receptora de Permisos de Construcción) in San José, and consult the municipality (municipalidad) where the property is located. Next you are ready to hire your architect to design your dream house, by law the CFIA allows the architect to charge a minimum of 10.5 % on the total construction cost. This percentage includes structural and electrical design and some site inspections. Also the professional will determinate what other paper work or test has to be done in order to get construction permits. After the client and the professional agree about the final design of the house, the construction plans have to be submitted to the CFIA ( the costarican architect board) to be approved and get stamped before the local municipal inspector approves the construction plans, based on the site visit/inspection and payment of the insurance ( INS- liability insurance). The fees and time on getting construction permits is cheap and faster than it used to be, the costs and time to get the permits on its different stages are: 1-Professional fee 10.5% OF CONSTRUCTION COSTS -minimum – 2-CFIA stamps 0.26% of construction costs – 3 days- 3- Municipality 1% – 8 days 4-Insurance 1.35% of construction costs 1day Make sure to ask your real estate agent to provide o recommend a licensed architect, most of the real estate agents in Lake Arenal recommend civil engineers, even though they can help you get the construction permits, they are not designers, so you are not going to be happy the final result. Those who got the house they wanted tended to be on-site as much as possible, overseeing every little detail. In short, you can build the house of your dreams for considerably less than you’d have to pay up north. But it won’t be dirt cheap, and it will take a lot of sweat and patience. You will need to be scrupulous about paying your workers the minimum wage which is about ¢1100( $ 2) per hour, which is far lower than it would be in the United States, plus their health benefits. And most people who’ve been through the experience say that you really need to speak Spanish, know something about construction, and be confident you can effectively oversee workers. Those who got the house they wanted tended to be on-site as much as possible, overseeing every little detail.  Building Costs In general, materials costs in Costa Rica are roughly equivalent to those in North America, while labor costs will be significantly less. Total building costs vary a great deal depending on materials used and salaries paid, with estimates ranging from US$65 square foot for simple construction to up to US$120 square foot for a luxurious house. Building in remote areas is often more expensive, since you have to factor in delivery costs of materials. Construction costs around Lake Arenal is aprox. $ 90 square foot for standard American conctruction . Javier Ruiz Diaz Team Realty Lake Arenal www.architectorange.com

Roger and Brenda Smith had a good life in Southern California. They were retired and had a nice house with friends and family around. It was all very nice, “but we wanted to have more of an adventure while we still can,”said. Roger Smith “Our health is good and so we thought ‘why not?’” The couple made a short list of international places they might like to retire, including Costa Rica, Panama, Ecuador and Uruguay. “We did one of those retirement tours in Costa Rica, and we were so convinced after that tour that we didn’t go to those other places,” said Smith . Costa Rica, Ecuador, Panama and Mexico are all top five best places in the world to retire, according to the 2015 International Living Retirement Index. “Everywhere your eye falls it is so beautiful,” Smiths explained as to why they set their sights on Costa Rica. “The weather is great. The people are the friendliest of anywhere in the world. It has a good stable economy for us to buy a house.” The Smiths first looked around the country and then found their new retirement home in Nuevo Arenal , Costa Rica in November 2014. “We found this home here in around Lake Arenal through Olman Sandoval ( of team Realty I) and bought it,” commented Smith . “Nuevo Arenal is a neat little town with a lot of nice shops, We also chose Lake Arenal because if in the future we decide we want to use our home as a vacation rental, or even if we decide to sell, we know we can get much better prices in Nuevo Arenal than in many other areas nearby.” For Ed and Rebecca Price , of Virginia, when they chose Arenal Lake Costa Rica as their retirement destination, they opted to build their dream custom home. “We learned quickly that real estate in Costa Rica is not like the United States with its regulations, but we found a few realtors in Costa Rica who were the most professional, in our opinion, and who worked with a code of ethics,” commented Ed Price . Team Realty Lake Arenal “found us exactly what we were specifically looking for. They listened to what we wanted and didn’t waste our time, which is rare. Within 24 hours of seeing properties, we knew we wanted to build our home. We were very impressed with Team Realty ’ builder and the high quality of construction.” The couple, who had both visited Costa Rica before, cited the country’s family-based culture as to what appealed to them most, and great location for why they chose Nuevo Arenal . “We love the people here. It is a very respectful country and the people are so kind. It reminds us of how the United States was when we were growing up, very family based,” explained Price . “In Nuevo Arenal , we love that we are so close to great health care and close to the Liberia airport. It is a small town atmosphere but is very close to everything that we need.” “I chose Nuevo Arenal after traveling around the country, and I just loved the feeling here. It felt like home,” said Costa Rica realtor Olman Sandoval originally Canada, Team Realty member ,“We always say that we’re not selling houses or properties; we sell dreams. I’m living my dream and I want to share this piece of paradise with others

Roger and Brenda Smith had a good life in Southern California. They were retired and had a nice house with friends and family around. It was all very nice, “but we wanted to have more of an adventure while we still can,”said. Roger Smith “Our health is good and so we thought ‘why not?’” The couple made a short list of international places they might like to retire, including Costa Rica, Panama, Ecuador and Uruguay. “We did one of those retirement tours in Costa Rica, and we were so convinced after that tour that we didn’t go to those other places,” said Smith . Costa Rica, Ecuador, Panama and Mexico are all top five best places in the world to retire, according to the 2015 International Living Retirement Index. “Everywhere your eye falls it is so beautiful,” Smiths explained as to why they set their sights on Costa Rica. “The weather is great. The people are the friendliest of anywhere in the world. It has a good stable economy for us to buy a house.” The Smiths first looked around the country and then found their new retirement home in Nuevo Arenal , Costa Rica in November 2014. “We found this home here in around Lake Arenal through Olman Sandoval ( of team Realty I) and bought it,” commented Smith . “Nuevo Arenal is a neat little town with a lot of nice shops, We also chose Lake Arenal because if in the future we decide we want to use our home as a vacation rental, or even if we decide to sell, we know we can get much better prices in Nuevo Arenal than in many other areas nearby.” For Ed and Rebecca Price , of Virginia, when they chose Arenal Lake Costa Rica as their retirement destination, they opted to build their dream custom home. “We learned quickly that real estate in Costa Rica is not like the United States with its regulations, but we found a few realtors in Costa Rica who were the most professional, in our opinion, and who worked with a code of ethics,” commented Ed Price . Team Realty Lake Arenal “found us exactly what we were specifically looking for. They listened to what we wanted and didn’t waste our time, which is rare. Within 24 hours of seeing properties, we knew we wanted to build our home. We were very impressed with Team Realty ’ builder and the high quality of construction.” The couple, who had both visited Costa Rica before, cited the country’s family-based culture as to what appealed to them most, and great location for why they chose Nuevo Arenal . “We love the people here. It is a very respectful country and the people are so kind. It reminds us of how the United States was when we were growing up, very family based,” explained Price . “In Nuevo Arenal , we love that we are so close to great health care and close to the Liberia airport. It is a small town atmosphere but is very close to everything that we need.” “I chose Nuevo Arenal after traveling around the country, and I just loved the feeling here. It felt like home,” said Costa Rica realtor Olman Sandoval originally Canada, Team Realty member ,“We always say that we’re not selling houses or properties; we sell dreams. I’m living my dream and I want to share this piece of paradise with others