Tuesday 28
October 2003
Living WELL on Social Security
Most people who visit Costa Rica vow to return and even return to live at least part of the year. This is a result of the spectacular scenery, incredible climates, great food (including the basic food groups; beer, ice cream, and chocolate), and most of all the people.
This is truly a unique culture that has developed over the last 100 + years. Given the above, people want to live here even if it costs about the same as where they are living. A very sad fact for most North Americans and Europeans whose climates are nice a maximum of 4 months per year is; they cannot comprehend how wonderful life can be where the temperature is never below 50F and never above 80F (it does get hotter at the Beaches and the Caribbean).
The good news for us who have discovered this life beyond our best dreams is; most will never find out and make the trip here.
For those (of the Northern world) who enjoy wonderful spring and fall days and dare to think this could exist in a place all year; there are many counties which offer a similar climate to Costa Rica (many are cheaper for living). NONE of them, however, has the infrastructure (education, security, and medical care), and PEACEFUL attitude, that has evolved here.
So, after they imagine such a place, a few may muster enough energy to actually do some research and a few of them will muster enough energy to actually come here. Some make the mistake of going to Mexico (probably because it is closer). I lived and did business in Mexico for 35 years and guarantee; it is HORRIBLE compared to life here.
So, for those fortunate enough to discover Costa Rica; there are many scenarios. A common thread for all, regardless of their financial situation, is they are overpowered by the beauty of the country. Many decide to start looking for a place to buy.
All of us who offer advice to potential buyers recommend: RENT FOR AT LEAST 6 MONTHS before deciding to buy. Nearly everyone who lives here will tell you theirs is the best area. When this occurs ask where else they have lived AND how property values and finished home prices compare (most, including people who claim to be Realtors, really do not know).
For those who want and can afford to live in areas that have essentially all of the amenities of the North, gated and guarded perimeters, and neighbors who speak English, there are many developers and Real Estate people who will show them a vast array of beautiful properties and homes which may seem like bargains compared to the North.
For those of us who have a limited amount of capital to purchase or build a home AND a modest retirement income there is WONDERFUL NEWS. We actually get to live in areas without all the heavy traffic, common crime, and rampant snobbery that pervade the high cost areas. There are unlimited places where one can buy or build a great home with electricity, phone, water, medical services, and quick access to San Jose.
When I first thought of moving here, I decided I wanted to buy an existing house because I was totally unfamiliar with Contractors, Tradesmen, Codes, and Suppliers. I was limited to a total of $60,000 cash to buy a house.
I searched the internet for over one year, corresponded with Realtors, and attended the ARCR Seminar. I found NOTHING I wanted to live in at or below this price. Then I found my present house listed on the internet and went to visit it. The owners had retired from California and described the area as "where you will be hugged not mugged".
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They had joined the Peace Corps after retiring and were assigned to this area. After 2 years working here, they decided to buy a lot and build this house. They used it only 3 months/year for 7 years and then due to health problems, they decided they could not continue the travel and put it up for sale. It was totally engineered, has a great view of the Valley and little town, and has an apartment that I rent out. I bought it for what I knew to be a good price and have never been sorry.
After all of this expense and hard work, I decided there is no one showing us lower income people how to live in this virtual paradise. I started writing articles about our life here and started my Guide service. Now, after 1 ½ years of exploring and meeting people all over the country, I can assure you there are many options for living WELL on a modest income. |
The most important aspects of living to me; CLIMATE & ATTITUDES are free here. All of the services of owning or renting like; electricity, water, gas, phone, Internet, Satellite TV, insurance, taxes, garbage collection, and even health insurance total cost is less than $200 per month. Food costs for super fresh vegetables are embarrassingly low.
Things like eggs, chicken, seafood, hamburger, (most steak and roasts are not worth buying), cereal, and cooking supplies all cost about the same as in the US.
Rents can be as low as $85/month for an unfurnished apartment which is pretty bare up to thousands of dollars per month for Mansions. Remember, we always recommend renting before buying. This allows you to see if you really want to live in the area.
Some people are bothered by crowing chickens, barking dogs, motorcycles, and other trivial, but common sounds. You hear these more because the windows are open year around. You could even be close to a busy highway where you will thrill to the ROARING OF THE TRUCKS AS THEY APPLY THEIR JAKE BRAKE GOING down a hill.
There has been much discussion about Medical Insurance and Medical costs. Our CAJA insurance costs less than $25/month (total for the two of us) and we are REALLY PLEASED with the quality and accessibility of it. We have used the services of private doctors, dentists and Hospitals from time to time and are amazed at the Professionalism AND LOW COST. In every case, we have been able to schedule an appointment within 2 days.
So far this has included a Heart Specialist, an Internal Medicine Specialist, a Dentist, an Ophthalmologist, and a Pain Specialist. A typical visit to one of the above costs less than $50. All of them can write prescriptions on the CAJA Pharmacies so the prescriptions are free. Accessibility to this service is MUCH EASIER here in the rural areas than in the San Jose area.
When you are ready to invest in a home, the question of whether it is better to build or buy an existing home must be answered. The answer is; buy an existing if you can find what you want, where you want at a cost equal to or less than building. There are very few existing houses under $80,000 that are what you would want and where you want. If you are not lucky enough to find an acceptable bargain, NOT TO WORRY.
You can buy a very nice view lot of ¼ acre with all the services, within 1 hour of major shopping, with some Expat neighbors, and with convenient bus service for less than $20,000. You can have a very nice, totally engineered, concrete house built for $25 to $40 per square foot. You can totally furnish this house, including TV, washer and drier for $5,000.
So, you can have a very nice furnished, 2 bedroom, 2 bath, 1,200 square foot house for $61,000. Of course, you can find lower cost homes, which will not be up to Northern standards, or build a smaller house on a less desirable lot for less.
I believe there is a nice opportunity for us who can swing it, to include an apartment or two while building a house. I have found it quite easy to keep our 1 bedroom, 1 bath apartment rented. This one adds $325/month to our income when it is rented and costs nothing when it is not. Another benefit of the apartment is we have met some very interesting people.
There is a whole article available at www.welovecostarica.com with an extensive list of specific item costs. Some small items that I want to mention are a great haircut where he shaves my neck, cuts my eyebrows, and shampoos when he is done costs less than $2.50. A 1 hour full body massage (non-sexual) costs less than $10.
Now you work the numbers to see if you think you can do this.
What a country!!!
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