The Pure Life
It was easy for Troy and Samantha Duffield to fall in love with Costa Rica – or, more precisely, the area around Dominical, a small town on the country’s less-travelled southern Pacific coast. Their introduction to the country came in 2002 when they serendipitously signed up for surf lessons in the area.
What began as a whimsical getaway for the young American couple turned into a long-term commitment to Costa Rica. Their jobs teaching in international American schools mean they live in far-flung places, from Ivory Coast to Peru and, currently, in New Delhi, India. But in 2004 they bought two acres of land near Dominical for $55,000.
The Duffields instantly connected with the friendly locals and Costa Rica’s unofficial motto of “pura vida” or “pure life”. Dominical and the surrounding area boast solitary beaches, nature reserves, mountains covered with lush rainforests, an abundance of wildlife and the warm, rolling waves of the Pacific Ocean. With its single gravel road, collection of small restaurants and shops and solitary soccer field, Dominical is decidedly laid-back.
The Duffields’ parcel of untouched jungle, 3km south of Dominical, commands stunning ocean views and includes a section of a small river. During their summer break this year they plan to start building a deck for what will eventually be their home. Though they are only in their mid-30s and have two young daughters, the couple imagine that they will retire there. Grand plans are already under way to build a modern, eco-friendly yurt whose electricity will be powered by their river.
As well as providing an idyllic setting, the land has also been a good investment. The Duffields bought it at $8 per sq metre six years ago but since then the price has risen to $55 per sq meter, says Troy.
The Duffields are just two of many foreigners who have bought property in Costa Rica. The country, wedged on the Central American isthmus between Nicaragua and Panama, is known as a haven for retirees, mostly from the US and some from Canada, and is becoming an increasingly popular destination for second-home buyers.
It is not hard to see the attraction. Costa Rica is one of the wealthiest countries in Latin America and enjoys a good quality of life under a stable government. Yet it is more affordable than other snowbird destinations such as Hawaii and Florida. This small country of 4.1m people is safe, easy to navigate and has good amenities and infrastructure – with the exception of its roads.
San José, the capital, is a three-hour flight from Florida and the country is made up of a variety of stunning landscapes, from rugged mountains to pristine beaches. Outdoor activities abound, including surfing, snorkeling, hiking and horseriding. For those shivering through grey winters, average temperatures of around 28°C in Dominical are especially attractive. And on the 2010 Environmental Performance Index published by Yale University and Columbia University last month Costa Rica ranked third out of 163 countries.
Unspoilt beaches line the Pacific coast south of Dominical and are accessible by what is now an easy drive down a two-lane highway. On a recent January afternoon a picturesque beach called Playa Ventanas – a favorite with locals – was empty except for one family playing soccer and a few people in hammocks hung amid palm groves.
Many homebuyers are introduced to the country while on holiday. Tourism is Costa Rica’s largest source of foreign exchange, bringing in more than the coffee and banana industries combined. Two million visitors arrived in the county in 2008, nearly half of whom were from the US and Canada. As a result, US dollars are accepted alongside the local currency, the colón.
In recent years homebuyers have flocked to Costa Rica’s northern Pacific coast near the city of Liberia, which has an international airport, and around the picturesque Manuel Antonio National Park. These areas have a commercial feel, with resorts and hotels crowded close to the beach. The southern Pacific coast, however, has remained undeveloped because of difficult access and geographical constraints.
Roads between smaller cities outside of San José are notoriously potholed due to the rough pounding from the summer rains, as well as lack of maintenance. Many routes are not paved at all, such as the 45km two-lane road between Dominical and Quepos, the nearest big city north of Dominical.
Infamous for muddy roads, shaky bridges and bone-jarring gravel, the treacherous drive from Quepos to Dominical until recently took more than an hour. A taxi ride from Quepos’ airport costs $80-$100 – more than the $65 air fare for a 20-minute flight in a propeller plane from San José.
For years plans to pave the Quepos-Dominical road seemed a distant dream, but as of early this year 75 per cent of the road had been paved. The drive now takes about 40 minutes and should be shortened further when the road is completed this year.
In addition, a new four-lane highway is being built from San José to Quepos and is expected to be finished this year. The highway will cut travel times between the cities from four hours to about two hours and 45 minutes. There is even talk of a new international airport by 2013 in Palmar Sur, just over an hour south of Dominical.
Will the new roads bring unwanted changes and cloying commercialism? Mathijs Decoz, an agent at Land Assurance, an estate agency in Dominical, says the area should preserve its unspoilt feel. There is little flat land around Dominical suited to large-scale building, and according to Costa Rican law, the first 50 meters off the ocean are public land and the next 150 meters belong to the municipality. “There is no space to grow here. That makes the land expensive and the area unique,” he says.
However, relative to US holiday destinations, property here is affordable, though prices depend on location, proximity to the beach, flat versus sloped land and whether the property has an ocean view.
Daveed Hollander, principal at Coldwell Banker Vesta Realty in Dominical, says that one acre of land in the area can cost between $75,000 and $150,000. Larger, premium plots can cost as much as $400,000. Most people buy land and then build homes but some buy existing houses. Prices for low- to mid-range homes range from $180,000 to $700,000 and from $1.4m to $2.8m at the high end, says Hollander.
In the aftermath of the global economic downturn, home sales have slowed, say both Land Assurance and Coldwell Banker Vesta. But in some cases prices have fallen as much as 50 per cent from their highs in late 2007 and there are bargains to be found, claims Land Assurance.
One can buy a two-bedroom, one-bathroom house with a pool and an ocean view for about $190,000, notes Decoz. Better accessibility and amenities are making the area attractive to retirees, families and people who want to live there full time.
Decoz, who moved to Costa Rica from Holland in 1999, remembers when there was practically nothing on the road near Uvita, a town about 20 minutes’ drive south of Dominical. Now there are several large supermarkets, banks and petrol stations.
Another plus is several new hospitals in the area. Duffield recalls there was no doctor at all in Dominical in 2002. High-speed internet also arrived in Dominical last year, making it easier for people to work and live in the area year-round.
Buying land is straightforward for foreigners and there are no titling issues; far more difficult is building the actual home. Contractors vary widely in service, quality and efficiency. “You have to be here to oversee construction,” says Decoz. Schools for expatriate children are also far from stellar.
The south Pacific coast’s more rustic feel is not for everyone but for people like the Duffields the absence of commercialism is just right. “It’s our dream to live there full-time when the girls are in college,” says Troy. In Dominical they have found their kind of “pura vida”.
