Costa Rica is a very small country, but yet still represents 5% of the bio diversity of the planet. Places like Corcorvado park is a haven for back packers, jet setters and those looking for eco-adventure. Being conscious about your carbon footprint is crucial to the success of sustainable tourism. The local community needs to be encouraged to take care of the environment and preserve nature.

By Victor Loza and Sharon Heafey

Contributing writers to Latinworld.com

Tourism is not new to Baja California or the Rosarito area. The first tourists to visit Rosarito arrived around 1874 to hunt and fish, but it was another 52 years, in 1926, that the Rosarito Beach Hotel was founded. The opening of this historic Hotel is generally credited with the beginning of the tourist period and was very much the forerunner in the development of the area.

During the 1940’s Rosarito became a haven for the Hollywood set welcoming Rita Hayworth and her husband Prince Aly Khan as regular patrons as well as other Hollywood visitors such as Orson Wells, Mickey Rooney, Ava Gardner, Spencer Tracy, Katherine Hepburn, Frank Sinatra, John Wayne, Gregory Peck, Kim Novak, Clark Gable, Lana Turner and the legendary beauty Marilyn Monroe. In fact, Marilyn Monroe loved the ambience of Rosarito so much; she had furniture made for her first and only home in Brentwood, California, which included the bed where she died.

Frank Sinatra and the “Rat Pack” were also frequent visitors to Rosarito, spending many long hours at the Rosarito Beach Hotel’s bar. It was not unusual to have an impromptu concert in the wee hours of the morning by Frank, Dino, and Sammy, which brought in staff members who worked in the hotel. It has been said that some waiters got as much as a $1,000 tip just to cater to Frank and his buddies.

John Wayne, who was always attracted to Latin women, would visit Rosarito to surround himself with the culture and to woo an occasional beauty or two. Ava Gardner would visit the Tijuana bull fights and then come to Rosarito Beach where she knew she would be unnoticed.

Clark Gable, one of Hollywood’s “man’s man” loved to visit Rosarito for deep sea fishing; while Gregory Peck loved to stroll on the beach and Lana Turner cherished having local cobblers custom make shoes for her. Spencer Tracy and Katherine Hepburn also frequented Rosarito which allowed them to spend some quality time alone and away from the prying eyes of the press.

James Cameroon, fell in love with the city and brought Rosarito and the Hollywood Connection to the spotlight once again with the construction of Fox Studios, Baja. Built specifically for the Academy Award winning film, Titanic, the studio boasts the biggest indoor water tank in the world. A mock up of the ship was constructed on the grounds, and the sinking of the mighty Titanic was filmed in the water tank.

Cameroon spent years of research and huge amounts of money to make sure that every detail in the movie was as close to the original Titanic as humanly possible. You can now tour the set and see the china used during the filming with the Titanic logo, playing cards with the same logo, visit the room where Rose took the ax and freed Jack, see the boiler room, or take a picture on the same replica deck where Jack proclaimed, “I’m the King of the World.”

Johnny Depp in Rosarito during the filming of Pirates of the Caribbean

Following Titanic, Fox used the studio to film other movies including Master and Commander with Russell Crowe; 007’s Quantum of Solace and Tomorrow Never Dies, and Pirates of the Caribbean, just to name a few. During the filming of these movies it was not unusual to see Russell Crowe walking down Benito Juarez, or Johnny Depp and Laurence Fishbourne having dinner at a local restaurant and eating with locals as if they were old friends. Once again Rosarito became “the Hollywood Connection.”

Some of the recent visitors that have been seen leisurely walking the streets of Rosarito include stars like Jessica Simpson, Sandra Bullock, Jesse James, and Cuba Gooding Jr. In fact, Cuba Gooding Sr. loves the city so much that he now lives in the Calafia Condos Resort and Villas.  Follow his performance at a local hotel by clicking here

It is no doubt that Rosarito has continued throughout the years to be the best kept secret in Hollywood. Even the Hollywood superstar’s cannot deny the beauty of walking under the stars in this wonderful piece of paradise. And that’s why we call it “The Hollywood Connection.”

Victor Loza and Sharon Heafey are co-founders of Your Baja Connection. YBC provides real estate and relocation services for buyers in Mexico.

Yes, you can have a good experience purchasing property in Mexico. You want to make sure that you have a knowledgeable, experienced, and ethical agent. When you are ready to make an offer there are a myriad of additional considerations and concerns, but if you have selected the right agent, you will have the right person to guide and protect you.

At Your Baja Connection we understand all these issues and we have purchased and gone through the process ourselves. We want to be Your Baja Connection and are ready to assist you in a worry-free purchase of your new retirement or vacation home or condo in Mexico. YBC can be reached at 858.748.5870, via email at YBC@YourBajaConnection.com, or at http://www.Your BajaConnection.com.

internal photo #2 provided by Stuck in Customs at http://www.flickr.com/photos/stuckincustoms/3026078169/

By Patrick Connelly

In the United States, timekeeping and punctuality are extremely important. In Costa Rica, on time is thirty minutes late.

This single cultural difference is the cause of incalculable headaches, marital verbal jousts (usually in public), and the occasional complete gringo psychological meltdown. For the uninitiated, the manner in which life progresses in Costa Rica can be a quite a shock. Life is slower, catered to be savored.

Costa Rica is unique in that its culture has been carved and crafted by so many different nationalities. Geography is the culprit here. The country lies in a peculiar spot on the Central American isthmus that allows for cultural invasions to occur freely; most notably, because it lacks a major indigenous population. A whopping ninety-four percent of Ticos classify themselves as white or mestizo, while less than four percent are Afro-Caribbean or indigenous. Consequently, Costa Rica is an anomaly on the isthmus in that there is not the prevalent indigenous culture or the indigenous versus white dynamic as seen in Guatemala or Belize, nor the visible social ills that often accompany it.

To make up for the lack of indigenous civilizations, Costa Rica became a land of immigrants, much like the United States. Perhaps this is why people from the U.S. find the country so appealing; indeed, the idea of the American dream is alive and well here. Europeans and Chinese immigrants arrived en mass at the turn of the twentieth century, bringing with them their respective cultures; more recently, North Americans have added to the cultural dynamic. As far as Latin American countries go, it is a real melting pot.

Which is not to say that San Jose is like Rome or New York. This is, after all, a Latin American country, and with it comes the standard-bearers of Latin cultures. For instance, driving. The first time a highway built for two lanes becomes a makeshift four lane monster – with motorbikes weaving between cars and trucks – one realizes they are definitely not in Kansas anymore. As in much of the Latin world, the siesta has gone the way of the dodo, replaced by the need to improve the bottom line; however, in the more rural and mestizo parts of the country a post-lunch nap is still enjoyed. As with the first point on punctuality, make a mental note: businesses – sometimes all businesses in a town – may be closed for a few hours in the afternoon. Find a nice hammock, a good book, and relax.

While the Central American staple of beans and rice – comida típica ­- is ubiquitous throughout the country, Costa Rican food is as diverse as its people. As a result of the large immigrant population, tourism, and the McWorld which we now live in, everything from fast food to filet mignon can be found quite readily, even in remote locales. One will definitely not go hungry in Costa Rica, nor will one end up eating fried ants and monkey stew.

Like people from the U.S., Ticos have forged their own culture and identity from their unique geographic position and diverse racial makeup. They are incredibly proud of their country’s achievements, particularly the fact that Costa Rica has not collapsed into civil war or ethnic slaughter like so many of its neighbors. “More teachers than soldiers” is a popular claim to fame. A certain mean between the extremes is the goal of most Ticos; in other words, proud but humble.

While they may be humble, machismo still exists among Costa Ricans, albeit not to the extent of other Latin countries. In the Meseta Central and along the coasts machismo has been replaced with modern day liberalism, and the old vestiges seemingly only exists within the taxi and bus driver community. However, in more rural areas with large mestizo populations women may occasionally receive inappropriate catcalls (dubbed piropos); ninety-nine times out of a hundred these are innocent, merely males asserting their masculinity to their nearby amigos. Ignoring the calls and whistles usually does the trick.

Back to the first point. We estadounidenses often forget that our culture is one of the most work-driven and fast moving in the world. Not always being punctual does not mean that Ticos are lazy or inefficient; in fact, they are very industrious…when its deemed necessary. A business meeting at five thirty starts at five thirty; similarly, a bank will open its doors promptly at the same time every morning. To exemplify the achievements of their country, Costa Ricans will go out of their way to make foreigners feel at ease, trying their best to impress. Additionally, altitude defines attitude. In the urban mountain ranges things are generally a bit more punctual, a bit more scheduled, a bit more…U.S.. Along the coasts and in the rainforests life moves slower; manaña is said to be the national answer to everything. But this is part of Costa Rica’s charm, the ability to live life at the perfect pace. It is truly pura vida.

Picture provided by barnabywasson on flickr

As retirees struggle to find a solid economy that provides a safe place to invest in, Mexico stands out as one of the most advantageous countries south of the border in which to do so. Out of a list of things that makes real estate investment in Mexico a very attractive option, property taxes may be by far the greatest of all advantages.

The property tax rate in Mexico may range from 0.275% to 1.350%, depending on the location of the property and it is payable annually. Regardless the property location, property taxes are lower than those in the US.

Average real estate taxes in Mexico

When compared to the United States real estate market, Mexico´s property taxes are almost 50% less than those of the US. A property of around $450,000 located in Sayulita can have an annual property tax of just $150. Similarly, the owner of a property of around $200,000 will normally not exceed $130.00 per year.

Why are property taxes in Mexico so cheap?

Mexico´s priority is to encourage investing, so instead of having property taxes as a source of big revenue, the government prefers to attract investment and promote homeownership by making the real estate market an attractive and profitable investment for foreign real estate buyers.

The cost of property ownership tax (Impuesto predial) in Mexico is pretty reasonable. After the owner receives the bill via mail they can pay it at a local bank where a receipt will be issued. Bear in mind that these paid receipts are a key document for the sale of the property in the future.

Photo used for this entry was kindly provided by Flickr user blmurch

In this interview Scott Bower highlights the must see sights in and around San Jose, Costa Rica. He also gives his take on the environmental impact that new real estate developments are having on the coastal areas. Scott owns a travel company, Package Costa Rica, and has been living in the country since 2001.

Download the mp3 file by clicking the right button of your mouse and selecting “Save Link As…”

Jisel Parilla

Contributing writer to Latinworld.com

Due to its pleasant, spring-like weather and healthy real estate scene, Boquete is becoming one of Panama’s most popular retirement spots among foreigners. I spoke to Boquete real estate agent Maky Cedeño, who runs the Boquete office of Panama Real Estate Pros (www.panamarealestatepros.com/) about the ins and outs of buying property in Boquete.

LW: What’s the average cost of a home in Boquete, from budget to luxury accomodations?

The variety of housing options in Boquete are infinite, ranging from a modest home starting at $150,000 to $1 million homes. So there are options for every budget.

Obviously, if you want to live in a gated community, you’re going to spend at least $250k, because of the existing infrastructure and amenities. You also have to consider the monthly maintenance fees that exist in planned communities.

My advice is to evaluate all the different options, but most of all, decide what kind of investment you’re looking to make. Do you want to buy a house as an investment to rent, as a vacation home, or are you seriously considering moving to Panama permanently? If the person can make this decision before buying, they are guaranteed to make the best decision about what to buy.

Another piece of advice we give future buyers is for them to seriously consider [the implications of] building their own home. They need to seriously consider that they are in another country where Spanish is spoken (although English is widely spoken) and where different building materials are used than in their country of origin. We recommend you remain in the country while your home is being built. That’s why planned communities are so popular: because there is generally someone directly supervising the construction of the project.

LW: If someone is interested in buying property in Boquete, what is the first step they should take?

Establish communication with a licensed real estate agent. That way, you’ll be talking with a qualified person certified with the Asociacion de Bienes Raices (Real estate agency). This way, he or she will show you properties that have already been appropriately evaluated [and inspected].

LW: What should you ask your realtor when buying Boquete property?

The first thing you want to ask is if the property is “titled property,” since this assures the future buyer that he’ll have a title over his future property. Next, ask if the property (house or condo) meets the criteria for the 20-year [property tax] break. This is one of the biggest confusions right now. Not all homes necesasarily meet the [criteria] for the 20-year tax break. You’ll need to submit the documents and permits to the pertinent entity for approval.

Another important aspect is the financing [available to] foreigners in Panama. Due to the global economic crisis, Panamanian banks are being more cautious when evaluating home mortgage [loans]. The individual should bring a series of requirements from his country of origin, such as an income tax report for the last two years, among others. These documents are then evaluated by the bank board.

LW: How many foreigners live in Boquete?

It’s difficult to know exactly how many foreigners live in Boquete. Some of them only come for part of the year, others for longer periods of time and others year round. Many of them are no longer considered foreigners; you find them at banks and local restaurants and they become just another local. The statistics are not exact, but I can tell you that the foreign population has doubled in the last few years, and more foreigners are visiting Boquete.

LW: What are some of the perks and benefits available to foreigners living in Boquete?

Boquete is cosidered one of the best places in the world for foreigners to retire and visit. The main reason is Panama’s security and economic growth, despite the [economic] crisis.

There are also other important factors, such as the fact that there’s an airport only one hour away [in David]. Also, there are hospitals and malls located in David, the second largest city in the country. The beach is just a few hours away, and there’s the possibility of open water fishing. And I haven’t yet mentioned the lower cost of life or the different visa options that allow foreigners to enjoy substantial benefits such as discounts on medications, air flights, restaurants and hotels, among others.

1. Legal guidance – Buyers should use a real estate company or their own attorney to guide them through the legal process. Costa Rica’s legal system varies from most countries. Buyers must contract a trusted attorney to do the due diligence necessary. Make sure there is no impending tax burdens on the property, zoning, among other things that could affect title or future construction.

2. Get familiar with Costa Rica – Don’t get swallowed up by the beauty. Often times tourists fall in love with the incredible scenery and charming people, but forget that real life is not a permanent vacation. Don’t forget about bills, work, cultural differences. It is a good idea to live in an area before you make a purchase, even if it is for a couple weeks or a month.

3. Research the area thoroughly – Think about your needs. Do you want modern conveniences like Internet, cable TV and air conditioning? Or would you prefer to live in the middle of rain forest with wild animals looking in your window? Costa Rica has a wide variety of climates, from the more dry “pampas” of Guanacaste to the alpine forests of Heredia. Don’t forget about the tropical Caribbean coast. Once you decide the type of climate you like make sure you can find a place that has what’s important to you. Do you like to surf or shop in large malls? Is there a grocery store nearby? What about a bank? If you are looking to go into full immersion, maybe living in a place with very few foreigners is a good idea?

4. Compare and contrast – Once you’ve seen numerous properties, make a check list of the pros and cons of each one. Carefully consider all factors like the quality of the construction and surrounding neighborhoods.Make a list of must have things and other things that you desire, but can live without.

5. Once you’ve made a purchase, get involved with the culture – One of the most important aspects of living in another country is immersing yourself in the culture. Costa Ricans are generally very welcoming and like to teach others about their local culture and expressions. Spend time learning Spanish. It will help you a great deal. Live like a Tico!

Click on the link to view thousands of properties in Costa Rica

I have exchanged a few emails with Bret Dudl, property developer in Costa Rica. He recently gave me some insight into the tax ramifications when buying Costa Rica property.
Here is what he writes:

The advantages of buying property in a corporation in Costa Rica are many, but it’s very important to use the right kind of corporation and to know what the tax ramifications are for each.

• When you buy property in a corporation and subsequently sell it you can avoid the transfer tax

• Corporations in Costa Rica don’t pay income tax.  This can be a major advantage if the corporation is going to retain profits for a future investment

• There is a big difference between a SRL (similar to a U.S. LLC.) and a SA (similar to a C-Corporation).  You use a SRL if you are a US Citizen and want to receive the benefits of pass through losses to offset gains.  You use the SA if you have more than one officer of the corporation and want to sell shares of stock to others.

Ok, I’m glad I got your attention. I had the pleasure of chatting with Ben Vaughn, real estate professional and author of Guys in the Zone, a very insightful Costa Rica real estate blog.

This was a really fun interview. The sound quality is not the best, but I enjoyed speaking with him. We covered a lot…from the most common misconceptions people have about buying Costa Rica real estate to how the real estate market there is being affected by the economic slow down around the world. Listen to the interview and find out why you should be yodeling naked on the pacific coast of Costa Rica! (the answer is about 5 minutes in)

picture provided by jeepeenyc on on flickr    http://www.flickr.com/photos/jeepeenyc/974730475/

Sammy Wolcovinsky, a native of Panama owns a real estate company, Flat Free Realty in Panama. Prior to founding the company, his family worked as financial advisors of Charles Schwab in Panama where they managed over 150 millions dollars and in 2006 sold the company.

This an interview I had with Sammy.

LW: How do you get real estate financing in Panama?

Most people in Panama finance properties through Panamanian private banks. Due to the increased demand of mortgage from foreigners, other Latin Americans or those from the United States some banks and private companies from the US started to come to Panama and offer mortgages, but now with the financial crisis in the states all these companies stopped giving out mortgages. Basically right now if you need to get a mortgage you will have to do it through a Panamanian bank. Usually what happens here in Panama, there are two things…if you are going to buy a resale property you will have to pay a deposit to the seller so he holds the property for you and you will then have to get a mortgage, but if you are going to buy a property that is not done yet (pre-construction) you will have to pay 30 percent to the developer and when the building is ready you will pay the remaining 70 percent. At that time is when you will need to get a mortgage and normally it is through a Panamanian bank.

LW: What kind of interest rates are we looking at?

In Panama, interest rates are not fixed by the government. They fluctuate depending on many economic factors. Over the last 20 years the rates have fallen from 12 percent and right now the market rate is between 7 to 7.5 percent.

LW: Is that a fixed rate or adjustable rate?

In Panama most of the banks do not offer fixed rate mortgages, but rather adjustable rate mortgages, usually fixed for the first year and after that they adjust every 3-6 months. Most of the mortgages are 30 year adjustable rates.

LW: What dictates the fluctuation of the rates after the fixed term?

The banks adjust the rate based on LIBOR or London Interbank Offered Rate.

LW: What kind of documentation do foreign investors need to get a loan in Panama?

Thanks to the increased demand the process of obtaining a mortgage loan for foreigners has been simplified over the years. The actual process of applying for a mortgage requires that a client provides documents proving who they are, their credit status and the total income and assets that they have. But every bank will have a specific list of requirements, but basically the more you show the banks the easier it is for them to understand the risk involved. The basic documentation that you need if you live outside of panama is:

• Legible copies of your passport
• Letter from your employer if you are not self employed
• The last two years of tax returns
• Bank reference letters
• Bank statements from all existing accounts for the last six months
• Government issued I.D.
• Business and personal reference letters
• Purchase contract
• Completed and signed application form

Banks in Panama are very conservative and they ask you for a lot of things in order to give out a mortgage. With all the things that are happening in the world, things are starting to slow down in Panama, but I don’t think that we are going to suffer like the the US because there has been more controls and regulation.

LW: Do people use title insurance in Panama?

That’s a good questions…Yes, people use title insurance, right now they do, but four years ago title insurance did not exist. Let me explain, Panama has a very sophisticated public registry with a specific department that oversees the registration of all the properties in all the 9 provinces in Panama so when you are going to buy a property everyone usually uses a lawyer to certify that the property has a clean title. However, when more Americans and people from Venezuela started investing in Panama they wanted an extra layer of security so at that time insurance brokers got together with insurance companies and now you can buy title insurance in Panama. But if you ask me if the majority of people buy title insurance I would say no, most people in Panama don’t use title insurance. Panamanian law is set up to protect foreign and local investors, however if you want to have more piece of mind title policy costs are minimal and you can buy them through any national and international insurance company in Panama.

LW: What kind of due diligence is important when buying property in Panama?

What I recommend first is that you hire a lawyer so they can go to the public registry and see if the property you are buying has a clean title, most people know that. In Panama you can buy property with title or property without title. If you buy a property that doesn’t have a title there is a process with the government where they will give you the title, but it could take 6-12 months. I always recommend that if you are going to come down to pamana that you only buy properties with title.

LW: What other tips do you have for people considering buying real estate in Panama?

Panama has a lot of advantages, it is a safe country and we operate on the dollar. Since 2005 prices has increased substantially some properties have gone up in value 40-50%. So if you are going to come down and buy real estate either you are going to buy real estate to live or buy and resell. You have to be very careful where you are buying and first you should find a well known broker in Panama. Since Panama is a hot market people are buying properties all over the country and sometimes they buy properties and they pay too much for them. For example in La Avenida Balboa four years ago you could buy a property for 900 USD per square meter now you are going to find properties in Avenida Balboa which is ocean front starting at 3,500 USD per square meter so you have to be aware of where you are buying.