The Costa Rican government has announced that its economy will not suffer a downturn from the U.S. slump. For the first time in 50 years the Costa Rican government was left with a $174million budget surplus. It is expected that the U.S. slump will do no more than limit Costa Rica's growth to 3.8%, down from 6.8% last year. Costa Rica has long been one of the best developed Latin American countries, because of forward thinking leadership.
Disbanding the military in the 70s freed up millions of dollars to develop the country's health and education sectors as well as the infrastructure. Thanks to that move, Costa Rica has a 95% literacy rate and one of the best educated populations in the Southern Hemisphere.
From starting life as a banana republic reliant on Banana and coffee exports, Costa Rica now has flourishing hi-tech and medical manufacture and export sectors, and services sector, on top of a rapidly growing tourism sector and successfully diversified agricultural export sector.
The hi-tech sector has attracted companies like Panasonic and Intel, the latter having invested some $800million into Costa Rica's coughers, with plans to invest a further $90million this year. 11,000 Costa Ricans are employed in the hi-tech industry, and hi tech exports were valued at over $2million in 2005. The fact that Intel has invested so heavily and continues to invest shows that it is still a growth sector. Working from developing countries like Costa Rica keeps costs down and profits up -- a portion of which is then reinvested in said developing country thus keeping the growth cycle going.
The agriculture sector has had to diversify because of regional competition and a changing global economy, but Costa Rica's agricultural industry has stayed strong by changing with the market. Costa Rica has complimented its original coffee and banana exports with pineapples, watermelons, papaya and tropical flowers, as well as diversifying agricultural methods to capitalise on new fair-trade exports, and luxury organic produce.
Costa Rica's perhaps less talked about industry is its flourishing services sector, with companies like Western Union, Microsoft, Unisys and Oracle operating call centres in the country.
Tourism to Costa Rica grew by 10.6% 2006-2007, receiving over 1.6 million visitors last year. Costa Rica has also been clever enough to diversify its tourism industry to keep up with demand, and is now offering eco-tourism holidays and medical tourism (plastic surgery) holidays.
This ability to adapt to changes in the global economy makes the outlook for Costa Rica's economy bright, and a property investment there even brighter.
Find out more about Costa Rica investment property at: http://www.davidstanleyredfern.com/investment-property/costa-rica/
About David Stanley Redfern
David Stanley Redfern Ltd is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed. Experienced, professional staff and membership to the overseas property market's regulatory body: the Association for International Property Professionals, as well as their stringent due diligence procedures gives buyers the confidence that any purchase with David Stanley Redfern is a safe one.
Media enquiries should be directed to Liam Bailey: media@davidstanleyredfern.com
Showing posts with label overseas. Show all posts
Showing posts with label overseas. Show all posts
Monday, 7 April 2008
Sunday, 23 March 2008
Hunt for the Next Spain Part II: Costa Rica
Costa Rica made it into my list of top ten destinations in the world to make a property investment in, and is certainly a contender for the country to become as popular and as successful for property investors as Spain is and has been respectively.
Ok, the property isn't the cheapest but there is massive potential for profit. Costa Rica is a gorgeous place -- positively vibrant. It has both a Caribbean and Pacific coastline, which not only gives it fantastic beaches, but also allows visitors and property investors a choice of climate, humid heat or dry heat -- it is cool in the centre.
Lush vegetation, jungles, tropical plant-life, and awe-inspiring volcanoes, as well as sun, sea and surf are all attracting tourists and property investors. On top of its aesthetic benefits Costa Rica is one of the most secure and stable of all the Central American countries. It also has a really good infrastructure.
In fact, the stage is set for Costa Rica to enjoy massive and sustainable growth for the foreseeable future -- in every industry. Costa Rica just signed the CAFTA, Central America Free Trade Agreement, its major export: micro-processors is a growth industry, on top of all other famous South American export goods like Coffee and Cocoa, and that is before we even mention tourism.
Like I said Costa Rica can easily rival Spain, the popular Caribbean resorts already rival Spain, but they are out of most people's price ranges. Costa Rica's emerging state means living costs are low so it provides an excellent low-cost Caribbean holiday. Little wonder that rental yields are very rarely under 12%.
Dominican Republic offers the cheapest Caribbean holiday, and the cheapest property, but for the extra money Costa Rica surpasses because of its infrastructure and stability. Costa Rica also has a very competitive taxation system; the first $2,698 earned from rental is exempt from taxation, after that it is taxed progressively between 10% and 25%. Capital Gains tax is not charged unless it is from a recurring (habitual) transaction, inheritance and gift tax is only 1-2%, and total round-trip transaction costs are a moderate 8.58 - 13.58%.
In short Costa Rica is doing everything right to ensure it sees continued growth, in its export industry in foreign direct investment and GDP growth, making it well worth considering as a destination for an overseas property investment.
Find out more about Costa Rican investment property at: http://www.davidstanleyredfern.com/investment-property/costa-rica/
About David Stanley Redfern
David Stanley Redfern Ltd is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed. Experienced, professional staff and membership to the overseas property market's regulatory body: the Association for International Property Professionals, as well as their stringent due diligence procedures gives buyers the confidence that any purchase with David Stanley Redfern is a safe one.
Media enquiries should be directed to Liam Bailey: media@davidstanleyredfern.com
Ok, the property isn't the cheapest but there is massive potential for profit. Costa Rica is a gorgeous place -- positively vibrant. It has both a Caribbean and Pacific coastline, which not only gives it fantastic beaches, but also allows visitors and property investors a choice of climate, humid heat or dry heat -- it is cool in the centre.
Lush vegetation, jungles, tropical plant-life, and awe-inspiring volcanoes, as well as sun, sea and surf are all attracting tourists and property investors. On top of its aesthetic benefits Costa Rica is one of the most secure and stable of all the Central American countries. It also has a really good infrastructure.
In fact, the stage is set for Costa Rica to enjoy massive and sustainable growth for the foreseeable future -- in every industry. Costa Rica just signed the CAFTA, Central America Free Trade Agreement, its major export: micro-processors is a growth industry, on top of all other famous South American export goods like Coffee and Cocoa, and that is before we even mention tourism.
Like I said Costa Rica can easily rival Spain, the popular Caribbean resorts already rival Spain, but they are out of most people's price ranges. Costa Rica's emerging state means living costs are low so it provides an excellent low-cost Caribbean holiday. Little wonder that rental yields are very rarely under 12%.
Dominican Republic offers the cheapest Caribbean holiday, and the cheapest property, but for the extra money Costa Rica surpasses because of its infrastructure and stability. Costa Rica also has a very competitive taxation system; the first $2,698 earned from rental is exempt from taxation, after that it is taxed progressively between 10% and 25%. Capital Gains tax is not charged unless it is from a recurring (habitual) transaction, inheritance and gift tax is only 1-2%, and total round-trip transaction costs are a moderate 8.58 - 13.58%.
In short Costa Rica is doing everything right to ensure it sees continued growth, in its export industry in foreign direct investment and GDP growth, making it well worth considering as a destination for an overseas property investment.
Find out more about Costa Rican investment property at: http://www.davidstanleyredfern.com/investment-property/costa-rica/
About David Stanley Redfern
David Stanley Redfern Ltd is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed. Experienced, professional staff and membership to the overseas property market's regulatory body: the Association for International Property Professionals, as well as their stringent due diligence procedures gives buyers the confidence that any purchase with David Stanley Redfern is a safe one.
Media enquiries should be directed to Liam Bailey: media@davidstanleyredfern.com
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