Why So Many Foreigners Regret Buying the Wrong Property in Costa Rica (And How to Avoid It)

There’s a moment that rarely makes it into the Instagram photos.

It doesn’t happen during sunset cocktails overlooking the Pacific. It doesn’t appear in the glossy listing photos. And it certainly isn’t part of the sales pitch.

It usually happens about eight to twelve months after closing.

A foreign buyer - often American or Canadian - is sitting on the terrace of their Costa Rica property, doing math. HOA fees. Maintenance. Rental income that didn’t quite match projections. Travel costs. Repairs that weren’t anticipated. A location that feels different in rainy season than it did during the dry-season viewing trip.

And quietly, the thought arrives:

Did I buy the right property?

Costa Rica continues to attract record numbers of international buyers in 2025. The stability, the climate, the absence of a standing army, the lifestyle appeal - all remain powerful draws. But alongside the success stories are quieter narratives of regret.

Not because Costa Rica disappoints.

But because expectations and reality weren’t aligned.

Here’s why it happens - and how to avoid becoming part of that statistic.

The Dream Is Emotional. The Purchase Is Financial.

Foreign buyers rarely approach Costa Rica property as a purely financial decision. The purchase is often wrapped in lifestyle aspirations: escape, reinvention, semi-retirement, passive income, family legacy.

Emotion is not the problem.

But when emotion leads and analysis follows, misalignment begins.

Buyers often fall in love with a view, a sunset, or a feeling of exclusivity without asking harder questions:

• What is rental demand in this exact micro-location?

• What are comparable resale timelines?

• How does this area perform in rainy season?

• Who is the typical buyer if I need to resell?

  
  

The result is often a beautiful property that does not match the owner’s long-term strategy.

The “Ocean View” Illusion

In areas of Guanacaste - including communities near Playas del Coco and surrounding coastal developments - the words “ocean view” can mean many things.

It might mean panoramic Pacific sunsets.

Or it might mean a narrow sliver of blue visible between rooftops during dry season - partially obscured by foliage once the rains return.

Buyers who view properties only once, often during peak tourism season, may not experience:

• Seasonal vegetation growth

• Varying humidity conditions

• Changes in access roads during heavy rain

  
  

When expectations are set by perfect-weather showings, real-world conditions can feel like a downgrade - even when nothing was misrepresented.

The regret is rarely about deception. It’s about incomplete context.

Overestimating Rental Income

Short-term rental platforms have transformed Costa Rica’s coastal markets. Many buyers plan to offset ownership costs through vacation rentals. Some succeed impressively.

Others discover that rental income is seasonal, competitive, and management-intensive.

Common assumptions that lead to disappointment:

• Assuming year-round high occupancy

• Underestimating property management fees

• Ignoring furnishing and restocking costs

• Forgetting marketing expenses and platform commissions

  
  

A property purchased primarily for income must be evaluated as a business asset, not a vacation home.

The buyers who regret most often bought something optimized for personal taste - not rental performance.

Buying Too Remote

Privacy is seductive.

Hillside properties with dramatic views and minimal neighbors often feel like the ultimate escape. But remoteness has trade-offs:

• Longer drives to grocery stores and medical services

• Reduced rental demand

• Slower resale liquidity

• Higher infrastructure maintenance

  
  

During the first year, seclusion feels peaceful.

By year three, the same seclusion can feel inconvenient.

Properties near established hubs - even if less dramatic - often retain stronger liquidity and consistent demand.

Convenience, it turns out, ages well.

Underestimating Maintenance

Costa Rica’s tropical climate is both its magic and its maintenance challenge.

Salt air corrodes metal faster than many newcomers expect. Humidity impacts electronics and air conditioning systems. Vegetation grows aggressively. Pools require constant care.

Buyers from colder climates sometimes underestimate the pace of wear in coastal environments.

The regret here is not about expense alone. It’s about time and attention.

Those who hire reliable property management tend to enjoy ownership more. Those who attempt to manage remotely without local oversight often find small issues becoming larger ones.

Following the Crowd Instead of Strategy

In high-demand markets, certain developments become “hot.” Friends buy there. Social media features them. Agents promote them heavily.

Momentum can create pressure.

But what works for a full-time retiree may not work for a remote-working couple. What suits a rental investor may frustrate someone seeking tranquility.

The most common regret voiced privately by foreign owners?

“I bought what everyone else was buying.”

Instead of:

“I bought what fits my life.”

So How Do You Avoid Regret?

The buyers who remain happiest long-term tend to share several habits:

1. They Visit More Than Once

Seeing a property in both dry and rainy seasons changes perspective dramatically.

2. They Analyze Before They Fall in Love

Numbers come before emotions — not after.

3. They Define the Primary Purpose

Is this primarily:

• A lifestyle home?

• An income property?

• A hybrid investment?

• A long-term retirement base?

Blurring those goals leads to compromise.

4. They Budget Beyond the Purchase Price

They assume setup costs. They assume maintenance. They assume variation in rental income.

Prepared owners rarely feel blindsided.

5. They Think About Resale on Day One

Even dream homes benefit from liquidity awareness. Markets change. Life changes.

Buying with exit strategy in mind protects flexibility.

The Truth About Costa Rica Real Estate

Costa Rica remains one of the most stable and foreigner-friendly property markets in Latin America. Ownership rights are strong. The legal system is transparent. Demand continues to grow.

Regret is not the norm.

But misaligned expectations are common.

The difference between satisfaction and frustration rarely lies in the country itself. It lies in clarity at the moment of purchase.

Final Thought

Costa Rica is not just a location. It is a lifestyle environment. Buying property here is less about square footage and more about alignment.

The question is not:

“Is this property beautiful?”

It is:

“Does this property fit how I actually want to live — and invest — over the next five to ten years?”

Buyers who answer that question honestly rarely look back with regret.

And those who don’t?

They often learn the answer after the closing.

Want help finding the best property deals? 

Contact me directly for personalized listings, video walkthroughs, or a free consultation.

sabina@palmrealestatecr.com| WhatsApp Me +506 8713 8080 | Based in Guanacaste, CR