Introduction and Background
[Richard Bexon]
Good morning, Ben. How are you doing?
[Ben Rutherford]
I’m very good, Richard. How are you?
[Richard Bexon]
Very, very good. I really appreciate you taking the time as I know that you’re very, very busy, if not probably one of the busiest realtors that I know in Costa Rica. So I really appreciate you making the time for us.
You’re very welcome. Great. Well, Ben, I mean, you’ve been in Costa Rica, I mean, you’ve been in Costa Rica for quite some time and you’ve also been in real estate for some time, but I mean, what has really surprised you in the last six months specifically?
Current Market Trends
[Ben Rutherford]
I think, Richard, that’s a good question. I think what has surprised me so far, you know, is I write an article for each issue of Costa Pacifica Living Magazine. And one of the things I’ve touched on a couple of times is that the Costa Rica market trends do follow North America.
And at this time, we don’t see that happening because there has been a little bit of a slowdown and a price reduction in some of the North American markets. That said, we don’t get affected directly by mortgage rates. Say, you know, the mortgage rates increasing in North America aren’t affecting us in Costa Rica because our buyers are coming with cash.
We, they, you know, they can’t, expats don’t have the opportunity really to get mortgages. So it would affect us maybe indirectly if say, you know, a buyer is, was looking forward to getting, you know, $1.2 million on their house and back home. And now they can only get, you know, $1 million.
It’s going to affect their budget of what they can afford in Costa Rica.
Popular Price Points and Market Demand
[Richard Bexon]
Yeah, I mean, a million dollars still goes quite a long way though, right?
[Ben Rutherford]
Yeah, absolutely, absolutely. Yeah, we have, you know, we have some great inventory, but that is the most popular inventory under $1 million. So, you know, that 600 to $800,000 range is very popular and in very high demand, which is creating a shortage in the market.
Regional Market Analysis
[Richard Bexon]
Definitely. Well, I mean, I’ve seen two things which are interesting. A lot of people still looking to move down, you know, and especially the Southern Pacific areas with Vito or Hachal, those kinds of areas where, you know, where your market is.
A lot of people looking to move down. And then secondly is that like, there are quite a few unvaccinated Canadians that still can’t leave Canada yet, you know, from what I’ve seen. So as soon as they can, you know, because I’ve got a couple of clients who are just like, I’m just waiting to get out.
So I think in July, there are actually a lot of them going to be coming down and, you know, that area is very attractive because it still has that, you know, the Northern area of Guanacaste is very dry, you know, and I’d say probably a little bit more Americanized than the Southern areas of like, you know, Dominica or Vito or Hachal, you know, that a little bit more authentic and raw and jungle and beautiful kind of coves and beaches.
The Southern Costa Rica Appeal
[Ben Rutherford]
Yeah, absolutely. I think that’s what, you know, that’s what attracted us nine years ago. And we still have that feeling and, you know, that we’re not, you know, I think the first time we went to Costa Rica on vacation, we went to one of these very busy beach towns and we’re like, wow, pizza hut and subway.
And like, this is not what we expected. And then our next vacation, we went further South. And as we were just driving along the coastline, that Southern Costa Viana, the Wales coast, we were just, you know, wow, this is what we thought we were going to see when we first came here.
And it’s just, yeah, it’s just a beautiful, beautiful region.
Seasonal Market Patterns
[Richard Bexon]
Yeah. So, I mean, just to reiterate, I mean, you’re not seeing any signs of really a call off in your market in the Southern area.
[Ben Rutherford]
No, not at all. Not at all. And, you know, we do have lower seasons.
You know, May is typically a lower season and we try and beef up our inventory at that time so that we’re ready for, you know, July, August is very busy for us. Usually, you know, two of our busiest months of the year. And then, you know, it may slow down a little bit, you know, with buyers coming in in November, but, you know, with our rainy seasons on the Southern coast, you know, starting in May and then running through to December, that’s when the serious buyers are coming because they’ve come down, like I was the same way.
Remote Work Impact on Market
[Ben Rutherford]
Yeah. Most definitely, it does make it a little easier, but you know, it still can be challenging with the rental market because of the pandemic. We, when the country opened back up again, people didn’t care what month it was, they were traveling.
And so many people, you know, and that’s why there’s such a high demand in buyers because people can work from all over the world now. And, you know, so I’ve had, we’ve had friends come stay with us for a week or two, because they can work from anywhere. Some of them not even telling their work that they’re in Costa Rica, you know.
Property Types and Location Preferences
[Richard Bexon]
Very true, very true. I mean, what are the hot markets in your area, Ben? I mean, what’s stuff that just does not stay on the market that long?
[Ben Rutherford]
Well, it’s interesting, you know, that’s an interesting question because it’s not necessarily just about an area. For us, it’s the topography. So we’re the only part of the coastline where, in Costa Rica, where the mountains just rise right up out of the ocean.
So you can get some fantastic elevations for cool evening breezes, you know, where we are at a thousand feet elevation, we’re only, you know, four minutes down to the coastal highway, and then another 10 minutes to town. But, so it’s a very popular area for people who want ocean view villas. And then, you know, because of that topography, but then it’s very popular in the beach areas like Bahia and Matapalo and, you know, where you can be by the beach and walking distance to the beach, very different buyers.
Absolutely. You know, we don’t, I don’t have many clients at all that would say, oh, we want to see both. They’re there for one or the other.
Rental Market Analysis
[Richard Bexon]
Yeah. And I mean, Ben, what would you say about the rentability of one compared to the other? Just because a lot of people that listen to the podcast are also building vacation rentals or looking to make, you know, some form of investment here with a, what I’d like to call a lifestyle return, something they get to enjoy while also getting some returns from it.
You know, I mean, does one rent better than the other, in your opinion?
[Ben Rutherford]
Yeah, ocean view definitely rents better. When you, you know, when you take a poll of friends and say, when you go away on vacation and you have the option when you’re staying at a hotel to have the garden view room or the ocean view room, most people will say, oh, we spend the extra $50 a night for the ocean view room or $100 a night for the ocean view room. And, you know, because they may be coming from, you know, an inland city in North America where they don’t have an ocean view.
Property Management and Returns
[Ben Rutherford]
But, you know, back to your question on rentability. I do tell my clients, you know, don’t expect, you know, or expect to cover your costs if you’re buying a two bedroom home, regardless of it’s, you know, down by the beach or up on the mountain, but don’t expect to be coming down to a full Costa Rican bank account because, you know, you need a property manager, they’re gonna take a, you know, a cut of the monthly fee plus a cut of the gross revenue, you have maintenance, but it is very wise to rent your home in the human climate because as you have people coming and going, you also have a maid service coming in and that’s paid for by your rentals.
Investment Opportunities
[Richard Bexon]
Well, I mean, again, if you were investing for the next five to 10 years in the area, Ben, I mean, what are some of the beach towns you’d be looking at in your area and why?
[Ben Rutherford]
You know, one really interesting area, I think just north of Domenical is Maripalo. Yeah. Just closed on a beautiful, you know, 2,500 square foot lot there.
Walk to the beach titled land. So not just, just back from the concession and you can still hear the ocean waves hitting the beach. Beautiful, long, kilometers long, miles long beach there.
Personal Experience: Tree of Life Cabinas
[Ben Rutherford]
Yeah. Well, we, my husband, Nate, and I, we moved down to Costa Rica in 2013 and we bought some land mountainside and a mountain called Escaleras just above Domenical. And we built our house in three cabinas and we thought in our early forties, we were going to retire there and do that.
And that didn’t, it was just, we were really lucky. It is, you know, it’s called Tree of Life Cabinas and it’s a, it’s just a magical, magical property. And there’s a, you know, a massive mango tree that, that’s why it was Tree of Life Cabinas.
Advice for B&B Owners
[Richard Bexon]
Good for you guys. I mean, I know, you know, I mean, I know running a bed and breakfast sometimes can be demanding, put it that way. And sometimes it can be a lot of work, but I mean, a lot of people listening here and a lot of people I’ve spoken to, you know, have that vision of owning a property and having some small cabins on it or running a B&B.
I mean, what advice would you give to anyone looking to do that?
[Ben Rutherford]
It’s a, it’s a fantastic life. It, you know, for us, it had a shelf life just because I went into real estate and thought this is, this is what I want to do. I mean, I just, I just love sharing, reliving that experience when I get to watch the feeling I got when we got our property and then reliving it every time we do a closing, you know?
Final Investment Advice
[Richard Bexon]
Definitely. Well, my last question for you, Ben, is I think I’ve kept you long enough, and you’re on vacation, so I really appreciate you taking the time on vacation to come on the podcast, but if you inherited $500,000 and had to invest it into a business or real estate in Costa Rica, what would you invest it in? Me?
[Ben Rutherford]
Land. Yeah. Yeah.
There’s a couple of businesses available for sale, but I’ve already got things going on in my life that I don’t want to be working. For maybe someone a little younger, that would be great, but so personally, my stage of life, just land, buy land, either sit on it or just start developing it.
