Why the Most Popular Beach Town Is Not Always the Best Place to Buy in Costa Rica (and What to Look at Instead)

In your dream to own a Costa Rica vacation home, maybe you've looked at a few towns, and they all look great online. So you find yourself asking the same question over and over again: what if I pick the wrong one?

It's a fair worry. Search "best place to buy a vacation home in Costa Rica" and the same few towns keep showing up, like Tamarindo, Santa Teresa, and Jacó. Plenty of buyers choose them, and for good reasons. But "popular" doesn't tell you if a town or region is right for you. It doesn't tell you what a property will earn, what it will cost, or whether it fits the way you want to use it.

Popular Doesn't Mean Wrong. It Just May Not Be Right for You. 

A popular town can be a great choice. It often has the airport access, services, and rental demand buyers want. But popularity doesn't know your goal. The best town for rental income can be the wrong one based on what's most important to you.  Also, popular areas tend to cost more, with more rentals competing for the same guests.

So start with what you want the home to do and compare locations based on these five factors.

5 Factors to Consider

1. Rental demand through the year. When you're looking at rental properties in a town, ask for occupancy rates by month for an entire year, not just the busiest weeks. Costa Rica has a busy dry season and a quieter green season, and how much demand holds up in the quieter months varies by area. In Investing in Costa Rica for Beginners, I suggest planning on 60 to 70 percent occupancy, not 100.

2. How you get there. Look at the drive from the nearest international airport and the condition of the roads. A remote spot can be part of the appeal or part of the hassle for guests. Just know what the arrival is like and how your guests will feel about it.

3. The everyday basics. Reliable water, power, and internet matter more than most buyers expect. Guests assume they will work, but they don’t always work equally well in every area. Read the guest reviews for several rental homes in the area to get a sense of these everyday issues.  

4. What your money buys. Compare what you get for the price, such as the size, the land, and the condition. The listing price alone doesn't tell you the whole story. I've previously broken down some factors to consider for your vacation home investment.  

5. What the local rules allow. Zoning and municipal rules for vacation rentals vary by area. Confirm that the property can be rented before you fall for it. (This is one of the checks I covered in the legal side of buying.)

Where People Get This Wrong

The most common mistake is choosing a town after one trip during the best week of the year. Visit in a quieter month before you commit, and see what it looks like when the crowds are gone.

The second mistake is relying on advice from someone who sells property in that town. Ask anyone who recommends a place what they gain if you buy there. A good answer is a straight one.

A Note on My Own Stake

I own Villas Espavel in Samara, so I have a stake in one town. I've written about Samara and several other towns before. This post is different because it’s about how to compare any place, including mine, so you can decide for yourself. That's the kind of thinking I walk people through in my Masterclass.

Where to Go From Here

If you've been stuck on which town is the right one, I hope this gave you a way to start narrowing it down. You don't need to have the answer yet. If you want to see how I match specific towns to different goals, start with my post on Costa Rica's best beaches.

Join my email list to get new posts like this one, written for exactly this stage of the process.

And if you're deciding between specific areas, email me directly at [email protected] and tell me which ones. Your answer might shape the next post I write.