Why Does it Make Perfect Sense to Invest in Rental Property in an upcoming Destination?

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Buying rental property in Costa Rica is a wise investment. It is an upcoming destination and the property prices are still very attractive, and it allows using the space in different ways than just renting it out. With its vast natural beauty and a typical laid back lifestyle that provides endless opportunities for refreshment and recreation, Costa Rica is like a breath of fresh air. It is ideal for vacations and draws tourists besides being a perfect retirement destination. The destination is attractive for investment for those who already own rental properties in other countries of the USA and Europe to diversify the portfolio of their rental properties. For real estate investors, Costa Rica opens up new avenues for earning good returns on rental properties. So the sooner you do it better it would be because the rates that are gradually rising.

Make a good investment

Many people have profited from investing in real estate in Costa Rica for the past few years. The Costa Rican government has taken several encouraging steps to attract investors and tourists alike. Vacation rentals provide a good return on investment, and owners can even treat it as their second homes. Those who are young and want to invest for the future, Costa Rica provides ample opportunities for investing in real estate. The property can ultimately become their retirement home someday. The tourist attraction of the country allows investors to recover their investment through rentals until the time they either move to the place after retirement or sell it off, depending on the circumstances.

An amazing country

The property of your dreams awaits you in the beautiful Central American country of Costa Rica with coastlines on the Caribbean’s and the Pacific. The country offers a vast attraction to enjoy a peaceful life by spending time on the tropical beaches or enjoying the wonders of nature amid the enormous expanse of biodiversity of forests and volcanoes. The cultural attraction is also a reason to visit Costa Rica that is fast becoming one of the top travel destinations for people across the world, especially from America and Europe. According to BWPCR real estate, a leading real estate firm in Costa Rica, the political stability of the place promises a peaceful life free from the tensions of urban living. And since permanent residency is not necessary to buy property, investors find it extremely attractive to invest in real estate.

Expected return on investment

As Costa Rica is growing in tourist attraction, the investment opportunities in rental properties are also increasing. Going by the seasons of the country there are high chances of renting out a property to tourists for almost 65% of the year with an annual net return between 4% and 6% on an average. Depending on the features of the property, the occupancy rate of rental properties can vary according to the seasons that peak between December and April with 100% occupancy. Between May and July, it is between 50% and 75% and only 10% to 25% during September, October, and November. During October, there are hardly any tourists, and the best occupancy rate could touch only 10%.

Best months to rent out property

Like many other tourist places across the world, Christmas and New Year has the largest gathering of tourists in Costa Rica. At this time, rental prices shoot up, and it is the best time for property owners to make money. Although tourist flow continues for 6-9 months of the year, its flow increases during festivals like Easter celebrated as Semana Santa goes up. The last weekend of February attracts lots of tourists who want to enjoy celebrating of the local culture in the form of Envision festival followed by Whale’s and Dolphin’s Festival during the first two weekends of September.

The rental income doubles during the peak tourist seasons and property owners earn a premium on their rental properties that more than makeup for the lean tourist seasons. December to April is summertime in Costa Rica when the Northern hemisphere experiences the coldest seasons of the year which is why tourists from those regions flock to Costa Rica. And rental property owners wait for this time to do good business.

For enjoying the ideal tropical climate when the warm environment cools down with periodical showers of the rainy season, one must visit the country between May and November. After a hot day, it is very refreshing when it rains in the afternoons and evenings. Although the beauty of the season is quite enjoyable, rains are often deterrent for tourists who prefer milder temperatures that allow spending more time outdoors, sightseeing wild animals and enjoying plenty of fruits and vegetables.

Traits of rental properties

When you invest in rental properties in Costa Rica, you must be aware of the features of the property to look for so that it attracts visitors. Typically beach properties or those that have great ocean view are prime properties for rental. Since Coat Rica has very rich bio-diversity, there are other places no less attractive to tourists. In South Pacific Costa Rica, the jungles create a world-class attraction for spending time amid a peaceful and tranquil environment in the laps of nature may be close to a waterfall or river that nature and animal lovers would like very much. Besides, properties located close to the highway with proper security arrangements and those that are clean, comfortable, and affordable are most in demand. Explain your goals of owning rental property to your real estate agent who will help you to choose the most preferred location that promises a better return on investment.

Peace and tranquility together with the attractions of jungles and wildlife as well as the pristine beaches along 800 miles coastline make Costa Rica most attractive for tourists from the US and Europe mainly. Once they visit the country, they discover the immense potential of investing in real estate. Whether you want to set up your vacation home or the place to spend your time after retirement, renting out the property allows recovery of the investment with lucrative earning that no one would like to miss out.