In a couple of previous articles I talked about renting versus buying in Costa Rica. The is another alternative to these two options. Many foreigners who move to or retire in Costa Rica end up building a home. There are several advantages to advantages of owning a home: (1) The money you put into your property stays there, if you own it long enough the value will increase. (2) When you own a home you can do what you like with it, within the bounds of local rules and regulation. Here are more reasons why you might want to build your own home: It’s cheaper, you’ll get exactly what you want, and, in some places, it’s the only way to own a decent house, as there is literally nothing on the market. But building a home does have its disadvantages. If you don’t find the right people to work for you, building can be a pain in the butt. Also, your idea of a dream home is probably unique. Perhaps you want a Jacuzzi in the living room – most people don’t. This isn’t a problem if you live in your dream home for the rest of your life, but if for whatever reason you have to sell, it can be more difficult. Here are a few things to consider before you build a home in Costa Rica. Building your own home is more expensive, in the short-term, than renting. But, like buying a home, you can think of it as an investment if you plan to live in it for long enough. In addition, usually building a home is even a better investment than buying a home that is already built because it costs less: When you purchase in a development, between 15% and 25% of the sales price is profit for the developer. The lower overall cost of building versus buying means your investment will gain market value more quickly, and is therefore a bit safer in the medium term. However, building can be hard to finance , because you’ll need more cash to begin with, so this may prove to be an obstacle for many people. Some retirees build their own home in Costa Rica simply because there aren’t any homes they like for sale in the area of their choice. Despite the building boom, many popular areas still don’t have enough product from which to chose. Building a house is a huge job something for which most people have neither the time nor desire. Many things can go wrong and you can end up having a miserable time. Or, on the other side of the coin, you could end up in the home of your dreams. Building your own home gives you complete control over design, which may be just what you want. Nevertheless, your taste may not be what other people are looking for, thus making it hard to sell. If time is important for you, building will not be the best option. In addition to looking for land, you have to obtain the correct permits, find a contractor, supervise the building of the home, and then get all of the utilities connected. To do it right all of this often takes up to two years. It is tough to predict the completion date as well, making planning difficult. Obviously you can rent during this time, but that means additional expenses to what you’ll spend on the construction. However, if you’re getting a good deal on the construction, all of the aforementioned might just be worth you while. If you choose to build your own home, you take on significantly more risk: The risk of the cost of materials rising during the project, the risk that you’ll get involved with a legal dispute, the possibility that your home will not come out the way you want it to. However, the money you save from building instead of buying may make this option more attractive to some retirees. Briefly here are the advantages and disadvantages to building the retirement home of your dreams in Costa Rica. Advantages: You choose the design of your home: Unlike buying or renting an existing home, building your own place allows you to truly live in the home of your dreams, since you’ll design it. Savings: Building a home generally costs less than buying an existing one because the cost doesn’t include a money for the developer. This will make building your home a much better investment. Location: By building your own home, you will have the freedom to live virtually any place where turn-key houses and rental properties may not be available. Disadvantages: Risk: You run the risk of an increase in the cost of building materials in addition to the typical investment risk that goes with buying real estate in a developing country. Time: Building takes time, and the process is unpredictable. If you’re in a hurry to get settle in, the turn-key properties and rentals will be better bet. Peace of mind: Building anywhere in the world can be a pain in the rear end and Costa Rica is no exception. Related: Advantages of Building or not building a home in Myrtle Beach Retirement Communities