| Building A Home
In
Costa
Rica you can build your retirement dream house since
land, labor and materials are inexpensive. However, think
twice about undertaking such a project because you could be
flirting with disaster. Many foreigners who have built homes
complain that it sounds easier than it really is. They would
not do it again because of costly delays, unreliable labor,
fussy building inspectors, different laws and building codes
and many other unforeseen problems. Be sure to talk with foreigners
who have built homes to see what obstacles they encountered.
Costs depend on location, materials and the size of the home
you want to build. You generally pay $500 to $1,000 a square
meter or $45 to $90 a square foot.
One common mistake some newcomers make is to hurry to build
their dream home while they are still on their honeymoon with
the country. Many have been shocked by substantial cost overruns.
Months or years later, they realize too much of their capital
has been spent on their new home.
If you do decide to build a home on your land, there are
several steps required. First, conduct a preliminary study,
which should be completed before you buy the land. Also, be
sure to see if your lot has access to water, drainage, electricity
and telephone services.
The law says you have to hire an architect or civil engineer
to file all of your construction permits.
A building permit must be obtained from the municipality
where you plan to build. An architect can usually handle building
permits and work jointly with the contractor to supervise
the construction. It may take a couple of months or longer
to get all of the permits in order. A reliable contractor
will also have to be hired. You should get several bids and
ask for references. Expect to visit the construction site
almost everyday to ensure things are getting done. If you
cannot be there, have a reliable person inspect the construction
site for you on a daily basis.
According to one local realtor, this is how you can lose
money while building a home:
- Give money to a real nice and friendly contractor and then leave the country
and tell him you will be back in a couple of months.
- Take the first bid you get because it seems so incredibly cheap, far cheaper
than anyone else's. Halfway through, when the real price
emerges, it is nearly impossible to get a second contractor
to come in and finish what the first one started. So, you
are stuck with him and have to pay the real price to build,
but now you are working with someone you do not trust.
- Pay no attention to the amount of cinder-blocks delivered to your construction
site.
- Live in the city while building in the country and only drive out on weekends.
- Give the power of attorney to almost anyone. There is a special trick here for
people getting your deed number (escritura), and
suddenly you don't own the property anymore.
- Ignore the advice of experienced people because the taxi driver and the guy on
the bar stool are locals and must give good advice.
In short, I buy my materials directly through local hardware
stores (ferreterías), get receipts, place orders
by phone and live on the land while building on it. Some people
do it by contract. I pay the workers once a week, pay my building
supplies once a month and use a hardware store I know and
trust. The contractor supervising the project gets a bonus
of about 10 percent of the total building cost.
If you want more information contact Costa
Rica real estate and retirement properties or call
toll free 1 888 581 1786.
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