The Pathfinder Alert

Why I’m Investing in Ecuador’s Pacific Coast

2009-11-06T06:02:29+00:00

Bahía is a popular vacation destination for people from Quito and Guayaquil

Dear Reader,

Ecuador has 1,400 miles of coastline. The most under-developed section of coast lies between Atacames and San Vicente. Semi-dry forest covers the hills. Pristine beaches extend along the coast.

This has been the least accessible stretch of Ecuador’s coast.

This is set to change. Access to this stretch of coast should improve dramatically. This area is set to become the closest beach area to Quito and its new international airport. Construction on a new highway from Quito to Pedernales is well advanced. It is due for completion in January 2010.

Work is also progressing on schedule on the bridge from Bahía De Caráquez to San Vicente. Today it is 45% complete. It will be the longest bridge in Ecuador. According to Ecuador’s President, Rafael Correa, this project is second only to Quito’s new airport in importance for Ecuador’s tourism industry.

Recently, Ecuador’s Aerogal airline announced that it will reintroduce 737 flights to San Vicente/ Bahía with a 4 day per week service.

Buy land here, and wait for the infrastructure to get to this stretch of coast, and you could do well…very well.

I know a guy who has already done that…serial developer and investor Carl Wescott. I have known Carl for three years. I have watched with interest the progress with his project in Vilcabamba in Ecuador’s highlands. In Vilcabamba, he did what he promised…and then some. Carl spends most of his time on the road…scouting new investment locations.

He has bought large tracts of land in Ecuador, Uruguay, Guatemala, Nicaragua and Panama. He’s a value-driven kinda guy. Everything doesn’t have to happen today. He’s in it for the long haul.

Carl is a developer, invested in this area, so of course he has a vested interest in talking it up. He’s worth listening to, though. He could have taken his money, time and expertise, and invested it anywhere—but he has chosen to invest here. I’ve asked Carl to write a note about his investment strategy in Ecuador and his thoughts on the Bahía area.

Gary Scott in his guest essay on Monday mentioned demographics and immigration. Carl has done the same. This is going to be one of the major drivers of the real estate market in Ecuador, as boomers retire, or look for a new life overseas.

Ronan McMahon

Why I’m Investing in Bahía

As a real estate developer and environmentalist, I usually purchase property for investment or for preservation. Ecuador is currently one of my three favorite countries in the world in which to invest.

Ecuador has one of the lowest costs of living in Latin America. It’s a beautiful country, rich in natural resources, with a very interesting culture, and friendly people. The infrastructure is generally good. Foreigners can own fee simple titled land, supported by deeds, a public registry and the ability to purchase title insurance. Ecuador also offers an easy visa program for immigrants with benefits for investors and seniors.

Ecuador has incredible geographical diversity. It’s composed of three main areas - the coast, the Andes, and the Amazon. In the higher elevations on the equator, Ecuador sees some of the best weather in the world, making for pleasant living, and supporting an agricultural bounty. It is a wonderful place to grow a wide variety of crops, and the mild weather also leads to a healthy lifestyle. Houses are designed to integrate indoor and outdoor living.

Ecuador has entrenched democratic traditions. It’s less regulated than most countries. This is a land where personal freedom is cherished.

As a result of all these benefits, Ecuador is attracting widespread immigration, a trend that bodes well for many industries—including real estate.

Some current, though temporary, challenges for Ecuador include the political situation, where a left-leaning coalition government has created some financial issues, including a recent default on its sovereign debt.

Overall though, I think the positives far outweigh the negatives.

I first came to Ecuador to visit the legendary and sacred Valley of Longevity, where Joe Simonetta and I created two developments, Hacienda San Joaquin and Sunrise.

More recently, I have been investing on Ecuador’s Pacific coast, one of the few desirable areas of the world where beachfront and ocean view land is still affordable.

Many people enjoy the towns of Manta and Salinas as great places for beachfront living. I prefer to be a little more ahead of the curve, with better beaches, fewer people, lower densities, larger properties, and bigger investment upsides.

My favorite spot on the coast for visiting and investing is the area around Bahía de Caráquez. Bahía is a town of 25,000 residents, located on the south side of the Rio Chone river, where it meets the Pacific Ocean. Bahía features good restaurants, clean, paved roads, and a museum of archeology and art.

The environmentalist in me appreciates Bahía’s eco-city status. The city is committed to recycling and organic farming where possible. Many of the local taxis are eco-taxis, or pedicabs (they are incredibly inexpensive, too).

Passenger ferries and a car ferry cross the river frequently to Bahía’s sister town of San Vicente, on the north side of the river. San Vicente is noisier, and more bustling, and features a local daily market and the famous Santa Rosa church.

In my opinion, Bahía is much nicer and cleaner than San Vicente. Bahía supports a vibrant fishing industry, and some local and international tourism. It is 8km south of Canoa, a popular surf town. Canoa’s ocean breezes also attract hang-gliding and windsurfing enthusiasts.

The current downside to the Bahía area is that it lacks infrastructure. It’s not easy or convenient to travel to Bahía, or the area around it. The San Vicente airport gets very little airport traffic, while the Manta and Portoviejo airports are more than an hour from town.

However, the federal government is investing in local infrastructure, including a $100 million project for a bridge to cross the river. This will connect Bahía and San Vicente.

The government is paving many roads in the area and expanding some of them to four lane highways, cutting drive times by 30-40%...or more.

Last month, Bahía’s most upscale hotel to date was launched, Casa Ceibo. The emphasis is on the best of local products, combined with top-notch service. The hotel furniture was handcrafted locally; the restaurant features gourmet regional cuisine. This luxurious boutique hotel raises the bar for accommodation in Bahía.

Many people, including increasing numbers of North Americans and Europeans, are moving to the area. As a result, real estate prices, while remaining relatively low, are starting to rise rapidly.

My prediction for the years ahead is that the San Vicente airport will open to regular commercial flights, and that the Bahía area will continue to grow and flourish.

Carl Wescott

A Hidden Paradise in the World’s Top Retirement Haven

2009-11-05T16:52:44+00:00

Ecuador

A Hidden Paradise in the World's Top Retirement Haven

Vilcabamba has been popular with expats since the 1960s

Dear Reader,

Ecuador's Vilcabamba has long been well-known to backpackers, who stop here on their way to Peru following the Inca Trail. It's also home to a small, bohemian mix of pioneers from around the world who, since the '60s, have been willing to leave First World comforts behind in order to move to paradise. And little Vilcabamba continues to draw the focus of scientists who are studying why such a large part of the population lives to be over 100 years of age.

I've brought many readers on tours of Ecuador, and Vilcabamba is where the majority of the people decide they want to buy. But two problems kept cropping up. One was the small inventory...you could only see one or two houses in your price range at any given time. The other problem was that if you don't want to live in Vilcabamba full time, you'd have to hire a caretaker to look after and maintain your property while you're not around...someone to remove a fallen tree, or pay your electric bill and taxes.

Now there is a new option, allowing you to take pleasure in one of the most naturally beautiful valleys in the world...while still enjoying most of the amenities that make life pleasant.

Just over three miles outside Vilcabamba village on the banks of the Vilcabamba River, lies Hacienda San Joaquin. Importantly, the infrastructure is already complete. This is the best-run project I've seen--and I've seen dozens throughout Latin America and the Caribbean. It's well planned, well executed, well managed, and imaginative.

I'm writing to you today because Hacienda San Joaquín--almost sold out--now has three newly-created home sites. These sites are around one third of an acre in size.

Originally intended for model homes, the pace of development (39 lots sold, and X homes constructed by owners to date) meant that the lots were no longer needed for that purpose...so they were placed on market for sale. At $40-43,000, I don't expect they'll stay there for long.

Click here to find out more...or read below to find out why I believe this will be perfect for many of you who wanted to settle in Vilcabamba, but were unable to find the right property.

You want the world's best climate...the healthiest lifestyle, dramatic mountain scenery.

You want to live well for less than you could imagine. You'll find it all at
Hacienda San Joaquín

Comfortable, active living in the Valley of Longevity

Dear Reader,

Finally, a property that makes the most of Vilcabamba.

For years, Vilcabamba has been the most popular destination in Ecuador for the potential expat. The majority of those who make it this far down the Inca trail want to remain and be a part of this enchanted valley.

Until now, they've had few options with respect to quality property, and very little available. Today, that's changed, with Hacienda San Joaquín.

"Hacienda San Joaquin is everything I hoped it would be, and more. The scenery is stunning...the weather is great. There is a feeling of calm here that exists in very few places. To say there is a magical feel to the place is perhaps a cliché, but it applies to Hacienda San Joaquin. I am looking forward to becoming a part of the international community forming here."
Dave Holm, Sunnyvale, CA

The developer carved a limited number of exquisite properties from the original Hacienda, surrounded by vast tracts of natural vegetation, hiking trails, and spectacular Andean scenery.

Now you can live in one of the world's most prized locations without having to do it alone. You're part of a community of individuals who appreciate the active, healthy lifestyle, and the tranquil atmosphere, of Vilcabamba.

If you don't want to live here year-round, you can leave your home at the hacienda, secure in the knowledge that it will be safe and sound when you return.

The hacienda is the only property of its kind in Ecuador.

Ecuador: the world's top retirement haven

Ecuador is one of the most beautiful, diverse and exotic countries you'll ever find. From the Amazon rainforest to the peaks of the Andes...from the miles of Pacific shoreline to the Galapagos Islands...your own sense of adventure is your only limit.

In addition, Ecuador makes obtaining permanent residency easy, allows free importation of your household goods, and has a great retiree program that even includes half-priced airfares. And the people? Ecuadorians, warm and appreciative, are friendly, helpful and polite. They smile easily, look you in the eye, shake hands and kiss on the cheek when greeting and parting.

Ecuador also offers a low cost of living, and quality healthcare.

For all these reasons, Ecuador topped International Living's Annual Retirement Index in 2009.

One of the world's truly premium locations

Vilcabamba sits at a perfect 5,000-foot altitude--near the equator--enjoying warm balmy days and cool nights all year. There's no need for heat or air conditioning. Nature has set the temperature on perfect. The air is crystal-clear, the water pure, the food organic, and the lifestyle laid-back and healthy.

Due to the unique mix of healthful conditions, Vilcabamba has the highest percentage in the world of people over 100 years of age.

Vilcabamba has the highest concentration of English speakers in Ecuador, too.
One can live well here on less than $1,000 per month.

Perhaps it's the small village's colonial charm, the beautiful square, quaint restaurants, spectacular views or the valley's perfect climate; maybe it's the low cost of living...but those who make it this far down the Inca Trail have trouble tearing themselves away. Actually, it's a combination of all these factors.

You need a great site to make a great community

Andean peaks surround Hacienda San Joaquín on three sides, stretching to the horizon. On the fourth side is the refreshing Vilcabamba River, tumbling its way from the cloud forest in Podocarpus National Park to the Pacific Ocean.

The hacienda starts where a small village road ends. There's no through traffic. The home sites utilize half of the 663 acres. The remainder is riding trails, and hiking paths, in some of the most dramatic mountains, canyons, and valleys you'll ever see.

You'll enjoy the River Park and the Equestrian and Hiking Center, gathering places for residents. At the Center are two large stables, a horse grooming area, and an Organic Ranch Store and Outdoor Café with wonderful views of the Andes. Those with horses are welcome to board them at home or at the hacienda's stables.

A property style for everyone

Properties currently available range from around one-third of an acre to more than four acres. Mountain lots and riverfront estates, each unique, with combinations of size, seclusion and mind-boggling views provide a diverse menu of wonderful home site choices. High-quality construction with high-end finishes costs about $60 per square foot. Turnkey professional legal, design and construction support is available.

The three newly-created home sites are also the lowest-priced, from only $40,000.

An established community

You're not gambling on the infrastructure: it's already in place, from asphalt roads and water to electricity and internet. More than 25 homes have been built or are under construction, and there are 22 residents living here. The Equestrian and Hiking Center, Organic Store, and Café aren't just renderings on a master plan...they're finished, and in use.

The Hacienda's Sunrise Hotel is under construction, and a Health Spa is next on the schedule.

Hacienda San Joaquín is an established community, of like-minded individuals, enjoying first-world comforts in a unique setting.

One of the owners searched the world for twenty years. When he visited Hacienda San Joaquín, he knew within fifteen minutes he had found the home site and community he was looking for.

If you'd like to know more,

To learn more about the project, or arrange for a visit, please contact the developer, Joe Simonetta, here.

Sincerely,

Lee Harrison

Discover Sea, Sand, Sunshine (and Second Homes) in Brazil’s Maceió

2009-11-04T07:34:22+00:00

Maceió’s endless-summer feel makes it an ideal second-home destination

Dear Reader,

I scheduled this stop on my Brazilian coastal trip at the last minute. But I’m glad I made the time, because I’ve discovered a place that I’m sure will prove to be of broad interest to expats. That place is Maceió, in the Brazilian state of Alagoas. It’s a city that has the amenities of Recife’s Boa Viagem district, without the sharks.

Surprisingly, Maceió is not well-known outside of Brazil. Yet it has all the qualities you need for a second home location: year-round sunshine, good infrastructure, big-city conveniences, and beautiful beaches. Now that Brazil’s coast is attracting increasing numbers of North American buyers, I don’t think Maceió will remain unknown for much longer.

Maceió has that endless-summer feel. The light sand of the city beach hugs the bay. The jade colored water sparkles in the sunshine, while surfers effortlessly maneuver the rolling white-capped waves.

The boardwalk runs alongside the beach, and gives you the chance to admire the bay and the gleaming condo buildings on the other side of the road.

Maceió has all the conveniences you need, from shopping malls to large supermarkets to modern hospitals and clinics. This is a family-friendly place. Sections of the boardwalk close to traffic on weekends so children can cycle with their parents, or stroll in groups.

Stages are sometimes set up for live music (a classical band played while I was here), and many of the boardwalk cafes and restaurants offer live music in the evenings. You can buy newspapers, juice drinks, fresh coconut water, traditional tapioca pancakes and ice cream from the boardwalk kiosks.

Maceió doesn’t have much in the way of historic or cultural attractions. It’s the capital city of Alagoas, a state sandwiched between the states of Pernambuco and Sergipe. The economy of Alagoas has gradually switched from sugar to service industries over the years.

Nowadays, the focus is the beach. In the last twenty years, increasing numbers of tourists have changed Maceió from a sleepy port town to the Miami-style destination it is today.

The city has a choice of beaches. Jatiúca has an upscale feel, and a nicer stretch of sand than Ponta Verde (Ponta Verde is where most of the tourist hotels are located). If you travel a little further outside the city, you’ll find less crowded beaches, shaded by coconut palms, and tiny fishing villages.

There’s a luxurious feel to the ocean-view buildings facing the boardwalk, and price tags to match. Most apartments are the larger sizes favored by Brazilian families, ranging from 250-500 square meters (2700 to 5400 square feet). These prime apartments can cost up to 3 million reals ($1.73 million) which works out to around 6000 reals per square meter ($3460). That’s comparable to the 5000-7000 reals you’d pay in Recife’s Boa Viagem district.
Go a block or so back from the beach though, and prices drop dramatically.

I viewed one development, already halfway constructed, on an elevated site in the city. Even from the ground floor, the view was incredible. The city lay at my feet, stretching to the beach and the emerald ocean. Pricing started at 211,545 reals ($122,210). That’s $1438 per square meter.

One interesting concept was Jatiúca Trade Residences, a complex of residential apartments, commercial properties and a spacious leisure area. Situated directly opposite the boardwalk, unit sizes ranged from 73 to 113 square meters (785 to 1200 square feet), and price points from 199,192 reals ($114,280). The average per square meter price is $1750—this development is centrally-located. The developer is a major Brazilian house builder in partnership with a local constructor.

Another development one block from the beach, already under construction, had units averaging 43 square meters (463 square feet), with prices from 116,500 reals ($66,500). That’s $1546 per square meter. It’s not as central as Jatiúca Trade Residences, but it is still very close to the boardwalk and beach.

A re-sale apartment just off the boardwalk was 280,000 reals ($159,829) for 130 square meters…just $1229 per square meter. This to me was a real bargain. The spacious apartment boasted a near-perfect location, next to the boardwalk and a small upscale resort hotel, and within walking distance of shopping, restaurants, nightlife…and only a couple of minutes from the beach.

While today, Maceió is still relatively unknown outside of the domestic tourist market, it looks as if Maceió’s city plan will include more tourist amenities in the future. I noticed that some major Brazilian development companies had several large tracts of beachfront land bordering Jatiúca, on the city’s outskirts. I will investigate and see whether their plans are short-term land banking or resort-style development.

Maceió is an ideal location for a second home, for a beach-lover or water-worshiper. For many, it would also be a great place for retirement. If you’re interested in any of these properties, or others in Maceió, email info@pathfinderinternational.net.

Margaret Summerfield

PS: Speaking of retirement, I found a great location that many will find just perfect. I’ll have a report ready by next week.

Editor’s note: The prices in this report are based on an exchange rate of R$1.73 Brazilian reals per US dollar.

Ecuador’s Best Little Mountain Town

2009-11-02T21:00:39+00:00

Gary and Merri’s hotel in the heart of Cotacachi. Profits are donated to their charitable foundation

Dear Reader,

Earlier this year, I spent three days in Cotacachi, Ecuador. I stayed with Gary and Merri Scott at their hotel in the heart of the village. I had the pleasure of the company of International Living’s Dan Prescher and Suzan Haskins. We were there to check out our new penthouse suites in this historic village. We weren’t disappointed.

Every morning after breakfast, we took the five-minute stroll through the village to our condo building. Workers were busy putting the finishing touches to our units. Gardeners were creating a botanical masterpiece around the condo building. Surrounded by towering volcanoes, my generous terrace has views to the town square. The build quality is top-notch.

We paid $46,000 for our penthouse suites. The real estate values in Ecuador are that good. The cost of living is the lowest I have seen anywhere. We met expats who lived well there on $600 per month. Plus, we always felt safe.

Gary and Merri have been investing and spending much of their time in Cotacachi for many years. They contribute to the local community through their charitable foundation. In his guest essay (below) Gary shares some of his insights on this part of Ecuador and the demographic drivers that mean that Cotacachi should be on your radar.

Ronan McMahon

Cotacachi Potential

Ecuador real estate potential is enhanced by increased inflation and this is why Ecuador real estate investing makes sense now…especially in Cotacachi and areas nearby.

When the US dollar falls, this increases the value of real estate denominated in US dollars. This also forces middle class Americans to move to less expensive areas.

Ecuador real estate benefits in two ways. Real estate there (the US dollar is Ecuador’s currency) becomes less expensive in the short term as the dollar falls. Plus, this becomes a more ideal place for Americans to move.

Sixty million baby boomers will begin to retire in just a few years. Many of their pensions and social security will be severely squeezed by inflation, leaving these people with one of five options:
#1: Keep working #2: Move to less expensive areas within the US #3: Export their retirement #4: Live in near poverty #5: Die

Imagine this. Sixty million boomers will retire over the next 20 years. We boomers are the most spoiled group of consumers as a demographic class that has ever existed on earth.

We were promised the world.

We were given the world. Now the magic is about to disappear.

Assume that 10% of these will decide to move to less expensive countries. That’s six million people.

Ecuador, three hours and forty-five minutes from the US, will benefit as a nation with a full infrastructure and really low cost of living.

If Ecuador gets just 10% of these six million Americans this is more than a 5% increase in Ecuador’s population of eleven million.

According to the CIA World Fact Book, Ecuador has a Gross Domestic Income of $4,300 per annum per person. That makes a total GDP of $47,300,000,000.

Imagine what happens if the 600,000 gringos have an average income of $18,000 a year per person. That adds up to $10,800,000,000. This is an annual income that almost equals 20% of the entire national GDP!

A recent article in Barron’s magazine suggests that even more than ten percent of Americans may move abroad.

The author of this article conducted a survey with over 115,000 respondents and found that 1.6 million households have already made the decision to relocate. 1.8 million households are seriously considering relocating and 7.7 million households are somewhat seriously considering relocating. That survey suggests that in total, an astounding 10% of American households are considering relocating abroad and another 10% are considering owning a home to either vacation or live part time abroad. More surprisingly, the largest group making these plans were not boomers but are aged 25 to 34.

Why Cotacachi

Merri and I researched and travelled all of Ecuador for seven years before we began to buy…and the majority of our purchases have been in the village of Cotacachi, including a Cotacachi hotel.

There are many reasons why we like this village. One big advantage is the new Quito airport. This new airport creates a special opportunity because it will be forty-five minutes further from Quito—and forty-five minutes closer to Cotacachi.

There is a historical feature that makes Cotacachi special as well. There was a unique confederation of tribes in this northern part of the Andes that were highly independent with a well-developed astronomical knowledge.

They did not take kindly to the “new” ideas brought by invaders from the south (the Incas) and they seriously resisted assimilation.

They offered the greatest resistance in Incan history, and because of the Spanish conquests, the influence of the Incas is not as strong in Cotacachi. Despite this, the people in this area are known to be different, more energetic, successful on a global scale and friendlier than in southern parts of Ecuador. They drive brand-new cars, and new suburban homes, yet they maintain their local dress, their language and their culture.

The indigenous mayor of Cotacachi, economist Auki Tituana Males, ran the city for a decade with special democratic programs that helped the village evolve into a clean, safe haven.

Cotacachi re-invented itself and became one of the most successful rural metropolitan governments, not just in Ecuador but the entire Andean region.

The area boasts a focus on being multi-ethnic and hosts a population that is 35% mestizo, 5% black, and 60% indigenous. The canton’s motto is that of the indigenous community. For a worthy, productive and solid Cotacachi, the main duty and responsibility is “AMA QUILLA, AMA LLULLA, AMA SHUA” “Don’t be lazy, don’t lie and don’t steal.”

How refreshing! Don’t we wish all nations lived by this code?

In November 2000, the United Nations granted Cotacachi the International Prize for “Best Practices”. In November 2001, the Inter-American Forum for the Rights of Childhood and Youth granted Cotacachi the national Prize “The Dreamer Goblin”, for work with the Cotacachean youth. In March 2002, UNESCO granted Cotacachi the International Prize for “Cities for Peace”, for its democratic work and its intercultural dialogue in search of peace.

Cotacachi is the kind of place where the people are energetic, hard working and sweet!

This is an ideal haven of safety to enjoy while parts of the world fall apart. Children play and hike the streets, laughing without a care. Young girls walk alone on their way to and from school.

Mornings and evenings, Merri and I stroll down cobblestone walks, greeting, smiling and feeling welcomed and at home.

Cotacachi is known as Ecuador’s musical capital and is famous for making high quality, inexpensive leather goods.

Cotacachi is near Otavalo, the largest Native American market in perhaps the world.

The area surrounding Cotacachi has innumerable lakes for fishing and adventure sports. In fact, this area is called the Province of the Lakes. The Lakes of Piñan, at an altitude of 12,000 feet, are ideal for fishing as are the Mojanda Lakes: Caricocha, Huamicocha, and Yanacocha.

For rowing and sailing, there is San Pablo Lake, surrounded by indigenous villages, rushes, green fields, and haciendas, and Lake Yahuarcocha is well-known for the racetrack that surrounds it and the Formula Three races held there each year.

The pleasantly dry climate with an average temperature of 65 degrees Fahrenheit makes outdoor life possible year-round.

The Cotacachi-Cayapas Ecological Reserve is a 750,000 acre protected area with a tremendous range of biological zones. One of the reserve’s main features, about twenty minutes from Cotacachi, is the large crater lake, Cuicocha. Motorboat trips around the two small islands in the middle of this breathtaking lake give the visitor the opportunity to get a glimpse of the local flora and fauna.

Intag Cloud Forest is just down the road…and there is bird watching, hiking, cycling, rafting, horseback riding , nature tours and so much more. This reserve has a rich biodiversity, alive with rushing white-water streams and rivers, and small towns and villages.

All of these features combined with low prices makes the Cotacachi area good for investing.

Gary Scott

Editor’s Note: You can read more about Gary Scott and Cotacachi by clicking here.

The Only Beachfront Condo I’d Buy Right Now

2009-11-02T15:03:25+00:00

Rancho Santana

I’ve seen a dozen seafront communities on this section of Pacific coast…
But I’d only buy at one

A premium-quality project that offers excellent financing…and a deep pre-launch discount…available for a limited-time only

Dear Reader,

Lee Harrison
Latin America’s
Roving Editor

My job is enviable.

As a freelance writer, I can pick and choose what to write about. I select the countries that I find most appealing and go where the opportunities lead. And after traveling to the best overseas locations, I’ll focus in on what I believe to be of most value to people like me and you…who are looking for a top-quality lifestyle at a fair price.

And one big advantage is that I can spend virtually-unlimited time scouting properties…comparing one region to another, and one project to another.

In any given market, I come away with a very definite opinion of where I’d put my own money…and why.

And the dramatic Southern Pacific coast of Nicaragua is no exception. I’ve been combing this coastline and watching the region evolve since 2004. Some good projects have come along during that time.

But late-2009 is unlike any time this market has seen before. As we look toward 2010, being a "good project" is not enough. The world’s economic situation demands that we evaluate properties with an unprecedented critical eye.

In today’s economic environment, that translates to looking for value. And here’s what good value means to me:

A high-end, prestigious home…set in a solid, amenity-rich community;

Amenities that are complete, instead of promised...that are high-spec, diverse, and unmatched in the marketplace;

A project that has an existing community of tasteful homes;

A large site, of high intrinsic value, with pristine beaches and abundant natural beauty;

A developer that’s rock-solid…and able to meet all commitments and quality standards without depending on current property sales.

In other words, today’s market demands high standards…quality construction and project amenities…and an upscale community that’s already in place.

A project where you can see and experience your rich new lifestyle...instead of using your imagination with a sales brochure. A project that leaves no room for doubt.

So right now, in late 2009, that adds up to one clear, best option.

The Seagate Condominium
at Rancho Santana

Today’s troubled times are loaded with real estate opportunity...but tough times call for sticking to the best in class.

And that’s Seagate...a project that should hold its value and status through the ups and downs of today’s world economy.

Why? Because Seagate is a part of Rancho Santana, the "best in class" beachside community in Nicaragua.

That makes Seagate an exclusive, premium property, in a premium location. And when economies falter, the best properties in the best locations are usually the least affected…sometimes they’re not affected at all.

And what’s even better, Site Manager Marc Brown is making special financing and pre-launch pricing available to Pathfinder Alert readers.

But inventory is limited at Seagate. The developer built a total of just 24 condominiums…and as of this writing only 12 remain. They could easily sell out before the official launch date of January 15th.

That’s why I’m writing to you today.

Seagate offers luxury, turnkey, carefree living on the Pacific Ocean…at affordable prices

The world’s most elegant properties all begin with an exclusive setting

Let’s face it…we’re all different.

My definition of a truly stylish setting…a rich and elegant lifestyle…may differ from yours. So I’m going to show you exactly why Seagate Condominium appeals to discriminating buyers.

I’ve long been enthusiastic about Nicaragua, and you should be too
I mentioned above that I’ve been keeping pace with this section of coastline since 2004, and there are two reasons for that.

First is that Nicaragua’s Pacific coast has been a true hotspot for second-homebuyers, retirees, and investors since 1998, so I’ve had a professional reason to be there.

But frankly…and more importantly…I simply like it. Each time I’ve traveled to Nicaragua, I’ve planned a week or two of free time around the trip. I’ve explored the country from one end to the other. Not because of any assignment, but just because I like being there.

And to be honest, I find Nicaragua’s appeal hard to explain.

It’s true that the weather’s always balmy…and the ocean is always warm and inviting. The landscape is dramatic and exciting. The country’s colonial architecture is second to none. The cost of living is dramatically low, and the properties are one of the hemisphere’s best bargains.

But the real reason I come to Nicaragua is because I’m comfortable here. The people are warm and welcoming, and it always feels like home.

In fact, after my third visit, I bought a property on which to put a future home.

A premium project starts with a premium site
The Seagate Condominium is nestled in front of the beautiful beach known as Playa Santana; the favorite surfing, swimming and fishing destination for residents and guests. The site occupies an exclusive corner of Rancho Santana’s 3,000 sprawling acres.

Beginning at your doorstep, you can view a magnificent sunset from the tall hills, or explore the lush valleys.

Or you can settle down on one of five exclusive beaches, each with its own special character. From the wild beauty of Seagate’s Playa Santana…to the pink sands of Playa Rosada…to the private feel of the hidden Playa Escondida, there’s sure to be a beach that feels just right for your mood.

And if you’d enjoy a long walk, Playa Los Perros is the start of four miles of uninterrupted, virtually-private beach.

These natural surroundings have top priority here. Morning brings a symphony of tropical birdsong, blended with the sound of the waves crashing to shore. Off in the distance, you’ll sometimes hear the lion-like roar of Howler monkeys calling back and forth as they forage in the nearby forests. Hawks sail over head.

Seagate is the newest addition to Rancho Santana, which has long been the premier residential setting on Nicaragua’s southern coast. I often refer to Rancho Santana as "the Grande Dame of Nicaragua’s beachfront communities", and I stand by this today.

You’ll feel wonderfully isolated…but when it comes to life’s luxuries, you’re not

Announcement
Glenn Martin, Rancho Santana owner and fine artist, is holding an art reception on Friday, November 28 from 4:00 to 9:00 at the Clubhouse. On display at the reception will be a collection of original art, fine prints, and more…

This recent notice shows us that even in these wild and natural surroundings, Rancho Santana residents have not forgotten the finer things in life.

In fact, you’ve got all of the creature comforts you could want…most likely, more than you’d imagine possible in such a pristine setting.

You’ll dine in seaside luxury at the Sea Garden restaurant, offering cuisine that’s unmatched in the area;

Enjoy sunset cocktails, listen to live music, or watch the big screen at the oceanside Saddle Back Bar and Grille;

Take pleasure in a relaxing massage or rejuvenating skin treatment at the Santana Beach Club & Spa

Get in a good workout at the modern exercise facility

Enjoy a warm Pacific swim at one of five, private pristine beaches…or two swimming pools

And for the outdoor enthusiast, there’s even more

You can surf some of the best waves the Pacific has to offer—without the crowds;

Explore miles of groomed nature trails in the unspoiled 600-acre preserve;

Enjoy a game of tennis or basketball on the newly-refurbished courts;

Ride the community’s horses down the shore to watch the sunset, or spend hours exploring this wild and natural setting;

Fish the waters here at Rancho Santana for the Pacific’s best game fish;

"Rancho Santana is simply stunning"
Forbes 2009 Retirement Guide

But underneath the modern luxuries, lies a solid, dependable infrastructure

The underground utilities keep the landscape clean and uncluttered;

Santana’s own, on-site water plant guarantees your supply of fresh water;

A modern, emergency power plant will keep the community humming in the event of a local power interruption;

And the high-speed internet service and wireless phone signal will keep you connected to the outside world.

And one critical attribute separates Seagate’s impressive amenities from all of the competition

They’re completed.

Unlike the promises you’ll find most everywhere else, Seagate’s amenities are complete…in service…and enjoyed by our active and vibrant community.

Best of all, you’re becoming part of a community…not just buying a lot in a development

There’s one thing you’ll notice as soon as you set foot on the property…the "feel" of the community that’s taken root here. Listen to those who may soon be your neighbors:

"I consider myself very lucky to be part of Rancho Santana", says Jonathan Juurlink. "The landscape is quiet and beautiful, the people are great, and the beaches are awesome."

Maria Elena Barrows says "It is very difficult to describe the joy I feel being here. I feel privileged to own a piece of paradise, in a first class resort, where the people are the BEST."

And Jean and William Vahey said "After exploratory trips to Mexico, Belize, Costa Rica and Panama, we visited Rancho Santana. It was quickly clear to us that this was the paradise we had been searching for these past years."

According to Agnes and Edward Brady, "There are many reasons why we like Rancho Santana, but the primary reason is the people."

And these are just a few of the 60 families that have carved out a piece of paradise here. Michael and Dina like the peacefulness and tranquility…and the food at the restaurant. Anthony was shocked by the "unexpected beauty and the infrastructure". Carol loves to walk along the beach and among the tidal pools while watching the resident surfers…Glenn loves to paint…Jim’s passion is surfing…

I could go on, but there’s really no need. Once you get there, you’ll meet everyone…and see for yourself how it feels to be here.

The Seagate condominium brings the ultimate in comfort and convenience to this established community

Seagate began in order to satisfy the growing need for luxury, turnkey, carefree living on this magnificent stretch of Pacific Ocean.

Each unit enjoys a direct ocean view, and provides private seating for the day’s spectacular sunset…from your spacious private veranda, as well as the large master bedroom suite.

The finishings are high-spec, from the quality ceramic tiles…to the imported fixtures…to the beautiful tropical hardwoods…to the old-fashioned clay-tile roofs.

The condominium is low density, private, and exclusive. The stylish two-story buildings are tastefully arranged, with only four spacious units per building…for a total of just 24 in the entire project.

Seagate simply offers elegant living at affordable prices.

Seagate condominiums provide a good opportunity for rental income…

You’ll enjoy a home here at a fraction of what you’d pay in the US, Europe, or the Caribbean. Even in nearby Costa Rica—just 50 miles away—the prices for similar properties are now more than double the prices at Seagate.

According to The Guardian, President Daniel Ortega has stated his intention of using tourism to bring prosperity to Nicaragua. And in seven years, tourism has grown 70% nationwide, to become the second-largest industry in the country.

So as tourism continues its rapid growth, the demand for both rentals and sales should continue to rise in this area…enhancing the value for early buyers.

The Seagate Condominium is built and backed by a rock-solid developer

And accordingly, construction progress is not dependent on ongoing property sales. In fact, construction on the Seagate Condominium is well underway…with the first units already being delivered.

The developers of Seagate are the principal stakeholders of Agora Publishing. And they’ve used this successful corporation’s financial power to back Seagate 100%.

And the project is highly exclusive for a reason. The primary investors of Agora originally founded Rancho Santana as their own personal retreat…in one of the world’s most beautiful locations. Later, they made some properties available to their close friends and a few select buyers.

But the original founders—including Bill Bonner and Michael Masterson—still have their own homes here. This helps to explain the high standards and exclusivity you’ll find today.

The ongoing cost of ownership is far less than you’ll pay in most of the world’s markets

Many of Rancho Santana’s current residents employ a full-time maid for cooking and cleaning, which costs just $150 per month. Car liability insurance starts at $100 per year, and health care plans begin at just $12 per month.

Monthly condo fees at Seagate are only $158…including free high-speed internet service. This is an unparalleled value for the impressive list of amenities on this property.

Property taxes are negligible, at less than $200 per year.

And as I write this, nonstop flights from Miami to Managua (Nicaragua’s capital) start at just $250. From New York they’re $380…Los Angeles is $444. So even the cost of flying here from the States is reasonable.

At Seagate, you’re not only making a wise property investment, but also one that won’t cost you a fortune to enjoy.

Here’s what makes Seagate different from every one of its competitors

We all know that economic times are uncertain as 2009 comes to a close.

And again, experienced property investors know that when economies falter, it’s the premium properties in premium locations that usually hold their value long-term.

So in my book, if you’re in the market for an upscale oceanfront project…there’s only one, unique property on Nicaragua’s pristine Pacific coast that fits the bill. Seagate Condominium at Rancho Santana. Here’s why:

Seagate is a high-end property in Nicaragua’s undisputed premier community;

Seagate is part of an active, vibrant community, with over 60 homes already completed;

It’s the only property in the market that comes with its entire slate of luxury amenities completed.

In today’s economy, now is not the time to take chances. Don’t even consider buying a property of average quality…on an average site…or with a developer who’s just getting by.

It’s the time to stick to the time-tested practice of buying the best property in the best area.

But most importantly, Seagate stands in the forefront by treating you to a lifestyle that few in the world will ever experience.

Become an owner at Seagate Condominium for low money down…and easy 5.9% financing

Remember, all of the Seagate condos have beautiful ocean views, and they enjoy one of the world’s most-magnificent sunsets.

These brand new units are available with either two or three bedrooms (each with two baths), in sizes of 1585 and 1726 square feet.

And every Seagate owner is entitled to all of the amenities, facilities and benefits that Rancho Santana offers.

Homes in the Seagate Condominium normally start at $274,550. And they go up to $369,000.

But I’d like to tell you about a special pre-launch offer for Pathfinder Alert readers

"...forward thinking investors can find some of the greatest deals on earth in this country"
The World’s Best Kept Retirement Secret, MSN Money

The developers at Seagate are offering you a 15% discount during this pre-completion stage. This brings the starting price down to $233,368.

And as a further benefit for getting in early, you can secure your unit for just 25% down, with the remainder financed at a fixed rate of 5.9%, and carried for the next seven years.

Closing costs are low; between 2.5% and 3.5%.

I encourage you to come take a pre-launch inspection visit. Marc Brown has organized such a visit to take place from December 9 to 13, 2009. The purpose is to give you a chance to experience the lifestyle of a homeowner at Seagate. There will be no sales presentations or high-pressure sales pitches during this time. To read details of the inspection visit and associated tours, click here.

That’s what you call affordable luxury: A good price, low money down, and a great financing package in a development with a rock-solid track record.

You won’t find anything like Seagate ... anywhere in Pacific Central America

I’ll be honest. When I first heard about Rancho Santana I was skeptical. Frankly, it sounded too good to be true.

Then I came and stayed for a while…and two things really hit home.

One was that the infrastructure was finished. It was the only project I saw on the coast where the developer had already fulfilled all of his promises. What you see is what you get.

But what really sold me on this property was meeting the homeowners at Rancho Santana. Day after day, I was impressed by how much the residents thoroughly enjoyed their community and its benefits. From horseback riding…to surfing…to enjoying a sunset cocktail together at the seaside bar…people were simply having a good time.

Rancho Santana has a ‘community’ feel and a positive energy that is unlike any place I’d been…and I go to dozens of projects like this every year.

As an owner at Seagate, this will be your biggest benefit of all.

So don’t delay. Remember, of the 24 condominiums, only 12 remain. Arrange for your inspection visit today. I can honestly tell you that I believe this to be the best buy on Nicaragua’s coast.

Sincerely,

Lee Harrison
Latin America Roving Editor

PS: Remember, when the official launch occurs on January 15, 2010, the discounted price and financing package will expire. But please don’t delay…the project will most likely sell out before the launch.

Now is the best opportunity you’ll have. Take advantage of the inspection trip, pay a visit, and see if the Seagate lifestyle is for you.

Don’t Take the Basics for Granted

2009-10-31T13:37:47+00:00

Dear Reader,

In the past weeks in her "Twelve Things you Need to Know to Do...and Then Do" series, Margaret strongly recommended that you:

1. Engage your own independent legal advice,
2. Buy the right title insurance,
3. Check which items to look out for in your sale contract,
4. Check your title deed carefully,
5. And check permits and approvals.

This week she gives you two tips. You should always make sure that you can get to your property... and that you get the infrastructure you need. Over to Margaret...

Tip # 6: Check Access How do you get to your property? If it is via a right-of-way through someone else's property, that needs to be stated in the deed. Similarly, does anyone else have right of way through your property? Your attorney can check both of these scenarios.

Tip #7: Check Infrastructure Essentials These are the basics that you can't live without, and you should ask the seller as many questions about them as you need to ask to feel comfortable before proceeding with the sale.

Water:

Is there a source of potable water on the property?
What's the water pressure?
What's the purity?
If there isn't a mains supply, who will drill a well? If it is you, how deep will you have to drill--and how much will that cost?
How is waste treatment being handled?--and does it comply with local regulations?
Will there be a municipal system, a system put in place by the developer, or will you need to put in a septic tank?
If a septic tank, check local regulations to see how much you will have to spend (some environmentally-sensitive areas require a very high-tech, and very expensive, tank).

Electricity:

Is it in place...if not, what timeframe are you looking at?
Will it be overground or underground?

Roads:

Are roads and pavements already in place?
If not, when will they be...and what standard will they be? Remember, developers often leave roads until last, as road surfaces can be damaged by heavy construction equipment.

If high-speed internet is an absolute necessity for your job or your business, check that it is available in your area (preferably with a service provider). Ask what the speed is in MB (megabytes). High speed or broadband internet in some countries I have visited is as slow as dial-up back in parts of the UK.

You can try to cover yourself by ensuring that your contract has firm timelines, standards and commitments for the infrastructure essentials. Some sellers and developers will allow you to escrow a portion of the purchase price until they are completed."

Don't think that your due diligence process is just boring paperwork. I always recommend that you visit before you buy. This is a central part of your due diligence. It's also fun. This is where Pathfinder Chill Weekends come in.

A Chill Weekend is nothing more than an opportunity to enjoy a short vacation in exchange for allowing a developer the opportunity to showcase a property or development he is promoting. No strings, no high-pressure sales tactics, no hard sell, just a chance to investigate some real estate opportunities (and check out the beach, of course!).

Best of all: the developers pick up some of the tab.

This December, our friends on Ambergris Caye, Belize will host a Chill Weekend.

December 4th-6th, 2009: Fashionable resorts and million-dollar oceanfront houses haven't changed the fact that Ambergris is a beautiful tropical island where anyone can stroll on white-sand beaches or dive into clear azure waters. It's still a gorgeous, charming, completely captivating island--just like it was decades ago.

You'll find quaint restaurants, cyber cafés, and friendly mom-and-pop shops of nearly every variety...and packed-sand streets where golf carts are the principal means of transportation.

The Grand Baymen chill weekend gives you the chance to check out what could be the most affordable luxury property in all of Ambergris Caye, with condos from $99,999. The trip costs $299 per person, and covers your accommodation, airport transfers, and meals. Book your Weekend in Paradise here.

Ronan McMahon

How to Profile Yourself as a Real Estate Investor

2009-10-30T06:00:26+00:00

Dear Reader,

Buying real estate overseas is fun and glamorous. It can also be very profitable but you need to be clear from the start what you want to get out of the property—and how much you are willing to put in.

First, you need to decide if you are purchasing as an investment or buying a second/retirement home.

You need to take out a piece of paper and ruthlessly profile yourself.

If you are buying purely for investment, your real estate choices should depend on your financial objectives, your existing portfolio (real estate, stocks, bonds, etc.), your tolerance for risk, and simply the reasons you’re in the game. In other words, it depends on what kind of investor you are. That’s the first decision you need to make when entering the global real estate investment market.

At first, determining what type of real estate investor you are might seem like a simple task…one that hardly deserves more than a few moments of your time. This is far from the truth. In the end, the type of investor you are will go a long way toward determining the type of properties you look at, and the type of property you’ll eventually buy.

Although there are hundreds of factors that will eventually go into your final decision figuring out the basics below will help you get started:

• Your reasons for making the investment
• Your tolerance for risk, and how much you have to invest
• How you intend to finance the property
• The needs of your existing portfolio
• Your level of experience in the market
• The level of involvement you want to have managing the property

Let’s look at these one at a time.

Why are you making the investment?

There are many reasons for making an investment overseas, and with most people there are several factors at work. I like to think of an investor’s motivation as falling along an investment continuum.

At one end of the continuum, there’s the buyer who wants to use and enjoy the property, hold it for an indefinite period, and eventually pass it along to his heirs.

Eventual resale of the property is not an issue for this buyer. Arguably, this may not even qualify as an “investment” in the financial sense, but more of a long-term investment for the family. I’ve included it here as a point of reference for comparison purposes.

At the other end of the scale, there’s the purchaser who only cares about the investment potential of the property. It’s not important what type of property it is, where it is, or what it’s for, as long as the potential for a good return is high. Some of these investors never even see their properties. Most RETA members who recently bought preconstruction in Brazil are only in it for the investment upside potential.

Of course, there is an infinite number of gradients between the two. Many of you will fall somewhere in the middle: you want to buy a property you like in a place you enjoy visiting, with a reasonable potential for capital appreciation or income from rental returns.
Why does this matter? If you’re on the far left of the scale and you’ve always dreamed of being a rancher with a big spread, you may be interested in buying 100 acres of rolling ranchland in the pampas of Uruguay at $750 per acre. It will probably appreciate only modestly over time—and you’ll never rent it—but that’s not why you bought it. If you’re on the far right side of the scale, this property would not be for you.

Your tolerance for risk?

You need to ask yourself the question “How much money do I have to invest, and how much am I willing to put at risk?” These are important questions, since greater risks can generally reap higher rewards…and of course, can incur greater losses.

To answer the question, you need to consider several factors. Among these are the percentage of your overall assets required for a potential investment, how close you are to needing the money for retirement or another financial commitment (people five years from retirement will generally assume a lower risk than people twenty years away), and perhaps most importantly, your overall comfort level with financial risk.

Why is comfort level important? One obvious thing is that you’ll be anxious about the investment if you’ve exceeded your comfort zone. But much more important than your loss of sleep—at least from a financial perspective—is that being uncomfortable with an investment can cause you to make hasty or rash decisions if the market fluctuates in the future.

How does this relate to buying an investment property? Actually, in the same way that it relates to any investment. You choose an investment that matches your risk profile.

Due to their relative instability and lack of regulation, investing in developing countries is generally riskier than in First World, developed countries. The same goes for developing neighborhoods, which carry a higher risk than established, developed neighborhoods, and infrastructure that’s “on the way” as opposed to properties with an existing up-to-date infrastructure.

Of course, risk wouldn’t be an issue if it weren’t for the fact that greater risks have the potential of producing higher gains. Think carefully and honestly about your tolerance for financial risk, and factor this into your overall real estate investment strategy.

Your options for financing

How you categorize yourself as a real estate investor has much to do with how you intend to finance the purchase. If you’re a cash buyer with no desire to leverage your position through financing, the process will be simple for you. Otherwise, the options you have for financing depend largely on which country you’re buying in.

Your financing options will, to some extent, influence what kind of properties you will be in the market for. For example, if you have cash to spend, you can really invest in anything. On the other hand, if you need finance and don’t own property to use to secure a loan back home, you may want to focus your attention on projects where developer financing is available, on teaming up with other investors, or on “off-plan” investments where you don’t need all of the money up front.

Don’t forget that financing becomes even more attractive when borrowing in currencies which are expected to fall in value against the dollar, since you’ll be paying the loan back with the equivalent of fewer dollars.

What fits well in your existing portfolio?

To be well-balanced, your investment portfolio should have a range of assets that includes real estate, and your real estate portfolio should have a mix of properties, too.

Within real estate holdings, many investors like to create a mix similar to that of their overall portfolio. That is, they mix aggressive investments of a higher risk with longer-term steady-growth investments. For example, if you’re twenty years from retirement—or otherwise needing the capital—then your investment mix would include a higher percentage of aggressive real estate investments focused on growth and capital gain.

On the other hand, if you’re close to retirement, your real estate investments should lean closer to more conservative, steady-growth, income-producing properties.

Investment in undeveloped raw beachfront in Nicaragua a few years back is a good example of an aggressive investment. I’ve seen owners make 38% in less than one year when the electricity came by…but that’s because the electricity was not a “sure” thing.

Crisis investing in Argentina a few years ago is another good example of an aggressive-style investment.

On the other hand, an apartment in a prime location in a European city would be considered a more conservative buy.

Your level of experience in the market
The level of experience of an investor should match the type of investments they are making. New investors will be best suited to—and more comfortable with—some of the less complex investments.

For example, undertaking a development project on your own in a far-flung corner of the developing world may be fine if you have some experience in the country, know the language, and have participated in this type of investment before, but may not be right for your first overseas experience.

Managed vacation rentals like Sian Ka’an are a relatively safe and easy investment, as are investments in businesses in which you have significant experience —like a B&B—although a B&B requires your personal involvement.

Your desired level of involvement

Much like investing in the financial markets, the level of participation you can apply to the venture tells you something about the type of investment you should be making. There are investments that require minimum personal involvement, and others that require a lot of your attention.

To give an example of low involvement, you might consider investing in a vacation rental in a choice resort location. If you buy a quality property and arrange for a trustworthy property manager, you can afford to be quite “hands-off.” The property manager will keep it rented for you, take care of any maintenance, and in many cases do the advertising that keeps the renters coming in. You could enjoy the property yourself from time to time, and otherwise relax and collect your share of the rental income.

As we move up the scale of involvement, we see that those who want to buy a property and “flip” it when the price rises, require a little more active participation, as they need to monitor the market at least occasionally and be ready to sell when the time is right.

Requiring even more of your attention are restoration projects, developing your own property, or managing your own business. These are not necessarily difficult— depending on your experience—but you have to be able to devote the appropriate amount of time to make the investment work.

Before you buy, think carefully about the time you can spend monitoring or managing your investment.

Determining what kind of real estate investor you are takes into account many factors. You should rate and profile yourself. When you have a better idea of what kind of global real estate investor you are, you’ll have an easier time narrowing down your many options.

Happy, healthy and successful investing. Enjoy the journey.

Ronan McMahon

Paradise…except for the violence, the crime, and the shark attacks

2009-10-28T06:11:29+00:00

Boa Viagem is Brazil’s longest urbanized beach

Dear Reader,

I approach every destination with an open mind, regardless of whatever stereotypes may be out there. And I report on every destination, whether my findings were good or bad. I came across two facts repeatedly when I researched Recife: neither of which was good. Recife, it appears, suffers from a high crime rate…and sharks. But undaunted, I went anyway to live there for over a month.

Recife is one of Brazil’s largest cities, and the capital of the state of Pernambuco. Gleaming condo blocks line the fashionable boardwalk in Boa Viagem. Property prices here run between 5000 and 7000 reals per meter ($2915-$4081). Boa Viagem’s condo owners drive around in top of the line cars, dressed in designer clothes. Reports of the crime rate and the sharks have not deterred them from making Recife their home.

There are a number of reasons for Recife’s popularity. Recife is a growing city. There are two ports: the city port, and the expanding Suape port which houses a Petrobras refinery and a large shipbuilding company. Suape port moves 8.4 million tons of cargo yearly. New warehouses and storage facilities are under construction in the port area.

Recife is the foremost business center in the state of Pernambuco, with more than 85,000 business enterprises in the metropolitan area. It’s a center for medicine (second only to São Paulo in importance), with 417 hospitals and clinics, drawing patients from neighboring states. There’s an area called Porto Digital (Digital Port), specializing in software manufacturing, and home to businesses like Samsung and Sun Microsystems. The regional headquarters of IBM and Microsoft are in Porto Digital, too.

All of these industries attract blue-collar workers and middle-class professionals, who prefer homes close to where they work.

Many tourists stay in Recife while visiting Olinda, one of the best-preserved colonial cities in Brazil. It’s a UNESCO World Heritage Site, and hosts one of the best Carnival celebrations outside Rio. Olinda’s plazas are fun for spending the day, shopping at the handcraft market or dining in one of the family-run restaurants. The views of historic buildings, the ocean, and the Recife skyline from the hilly streets of Olinda make for perfect photos, too.

And Recife is also popular for its beaches. The beach at Boa Viagem is the longest stretch of urban beach in Brazil, at five miles. It’s busy most days, particularly on weekends.

And if Recife’s city beach is not enough, the nearby town of Porto de Galinhas offers natural pools, and upscale resorts and hotels. It’s 60 km (37 miles) south of Recife, and regularly voted Brazil’s top beach.

Recife also boasts a cultural center, museums, a theater, a giant water park, nature reserves and parks. You’ll see the city’s affluence in the designer stores in Boa Viagem. The supermarkets here stock more imported gourmet luxuries than the average Brazilian supermarket.

That combination of industry and business, and a good tourist infrastructure, is why Recife prospers… despite the crime and the sharks.

A look at Recife’s property market

Prime boardwalk properties fetch premium prices, and there’s a shortage of development land in the boardwalk area. One name you’ll notice on many of the buildings is MD, Moura Dubeux, the developers of Beach Class Colonial in Fortaleza. Recife is MD’s home base, and where they have constructed most of their eighty projects to date.

I went to see Pier Maurício de Nassau, two towers in an up-and-coming area of the city. The ocean views from the front units were awesome, the traffic on the road below reduced to dots, from the 35th floor. Unit prices here increased an unbelievable 233% in the three years during the construction period. The apartments are large, at 247 square meters (2650 square feet). As you can see, Brazilian families prefer larger apartments.

Much to my surprise, something else Brazilians favor is apartments close to shopping centers. Back in Ireland or the UK, up-market buyers definitely don’t want to live beside a giant shopping mall. I saw one development, close to Brazil’s largest shopping mall. The show unit was designer heaven, a vision of luxuriously elegant living spaces…and most units have already sold.

Moura Dubeux’s Beach Class Suites in Recife are an example of a perfect short-term rental, averaging 86% occupancy year-round. A hotel group, Atlantica Hotels, manages the rental of Beach Class units. Beach Class’s smaller unit sizes and hotel-style amenities successfully cater to Recife’s high numbers of business travelers. Two more Beach Class projects are underway.

There are fewer foreign buyers in Recife than in Fortaleza, where foreign buyers only average 2% of total buyers. Locals buy apartments as homes in Recife, and families from the interior of the state looking for a weekend home on the beach, also buy here. Investors buy pre-construction apartments as an investment. The price increases to date during construction have rewarded buyers handsomely.

There are investment opportunities in social housing in Recife that looked interesting. And commercial property also looked appealing. Exame, Brazil’s equivalent of The Economist ranks Suape port as a prime investment spot. There are opportunities with pre-construction industrial warehouse space, and raw land acquisitions that would appeal to investors.

The view from on the ground

My first impressions were not good. Arriving late afternoon on a Sunday, the beach at Boa Viagem (one of the city’s best features) was emptying of sunbathers…and filled with their garbage.

Then I noticed the signs…

I’ve never seen signs on a beach advising you not to swim, or that ban surfing. The signs emphasized these points with a graphic depiction of a shark, as if to remove any lingering doubts you might have.

I investigated the crime rate, and you can’t argue with the statistics. Recife is one of Brazil’s most violent cities, ranked worse than Rio or São Paulo.

And you can’t argue with the sharks, either. There were forty-seven recorded shark attacks since 1992, sixteen of which were fatal.

I e-mailed a colleague that night, saying he was right…I hated Recife already.

Yet a million foreign tourists visit Recife every year, and properties in the trendiest locations remain in demand, even with the relatively high prices.

As it turned out, I loved spending time in Recife…and it gave me some interesting insights into Brazil’s property market. But I wouldn’t buy residential property here. Firstly, I simply didn’t feel safe enough outside Boa Viagem’s boardwalk area. And my husband resented being on a great beach, but not being able to swim. Combined with the high property prices, I’d give Recife a “miss”, unless I were relocating here for work.

Next week, I’m traveling to a promising location. I believe it has Boa Viagem’s style…with lower prices, and without the sharks. Stay tuned.

Margaret Summerfield

Editor’s note: The prices in this report are based on an exchange rate of R$1.715 Brazilian reals per US dollar

Four Reasons Why Belize is the Best Buy in the Caribbean

2009-10-26T17:36:01+00:00

Dear Reader,

On my last trip to Belize, after a long day, my driver invited me to join him and his neighbors in their local bar. Bottled Guinness was the drink of choice. The group warmly shared stories of their heritage: a slave, a pirate and even a pirate of Irish ancestry. (I believed the story of his Irish ancestry from the fondness he showed for the black stuff). My driver had welcomed me into his world as a new friend. He wasn’t looking for a bigger tip. In fact, he wouldn’t accept a tip and insisted on buying me a drink. This is just one of the many reasons why I love Belize.

In fact, it’s the first reason why Belize should be on your radar. The people here are amazing. Belize is a melting pot of descendants of pirates, slaves, and conquistadores. There’s a quirkiness and edge to the people. They draw on a diverse ancestry for unique traditions of music and storytelling. In Belize, you won’t be looking in on these traditions from the outside. You will be invited in.

To truly experience a local culture, you need to speak the language. The most successful and happiest expats immerse themselves in the local community. As a former British colony, Belize is English speaking. There is no language barrier. You can hit the ground running.

Belize is a country of amazing natural beauty. From its Caribbean shores to its jungle interior, Belize is a nature-lovers paradise. Belize’s barrier reef is second only in size to Australia’s Great Barrier Reef. On the mainland, unspoiled coast is backed by lush tropical forests and Mayan ruins. All this in a country of less than 9,000 square miles and 320,000 inhabitants. As with the people, the landscape has an edge (sometimes rough) to it. It isn’t sterile like the posh parts of the Caribbean. Belize feels real…the type of place you would come for more than a one-week all- inclusive vacation.

The best real estate values in the Caribbean are in Belize. You can buy a casita in Orchid Bay (a high-end master planned waterfront community) for $159,000. How about a condo for less than $100,000 on Ambergris?

Belize is my #1 Caribbean buy. For the next six weeks, the developer at Orchid Bay has agreed to offer Pathfinder readers a $10,000 voucher towards a casita at Orchid Bay. This brings the price of one of these little homes down from $159,000 to $149,000. This offer is valid until December 13th. Request your voucher here.

Ronan McMahon

Has Your Developer Got the Green Light?

2009-10-24T11:24:53+00:00

Dear Reader,

In the past few weeks as Tip #1, Tip#2, Tip#3 and Tip#4 of her “Twelve Things you Need to Know to Do…and Then Do” series, Margaret strongly recommended that you:

1. Engage your own independent legal advice,
2. Buy the right title insurance,
3. Check which items to look out for in your sale contract,
4. And check your title deed carefully.

This week she tells you about permits and approvals.
Over to Margaret…
“Step #5: Check the Permits and Approvals Permits and approvals are becoming more difficult to get, and more expensive. There’s quite a range of them, and they vary from country to country. The standard ones are environmental permits, water permits, construction permits, and municipal permits. Permits and approvals vary from state to state, too; some states in Mexico require a sales permit, for example. Have your in-country attorney check to make sure that your seller/developer has all the permits and approvals he needs to comply with current regulations.

Many countries require developments to have developmental and environmental pre-approval before they can legally market or sell a property. That all takes time and money, up to two years in some cases. Until the developer has pre-approval, he cannot start selling—and he also cannot start construction or the infrastructure.

You could say that you are happy to wait for one last permit to be granted to a developer or seller —but make sure that your money is escrowed if so, and by escrow I mean with an established company like First American Title Insurance—an approved escrow. Otherwise, you could find that the development does not get the green light and you may find it tough to get your money back.

In some countries, you can see houses for sale that have either never applied for planning approval, or had initial approval but subsequently added an extra unapproved bedroom, or garage. This is particularly true in rural areas. Sometimes you only need to pay a fine or tax to get retrospective approval. Have your attorney check for you, and ideally get the seller to legalize the property before you buy it.”

Don’t think that your due diligence process is just boring paperwork. I always recommend that you visit before you buy. This is a central part of your due diligence. It’s also fun. This is where Pathfinder Chill Weekends come in.

A Chill Weekend is nothing more than an opportunity to enjoy a short vacation in exchange for allowing a developer the opportunity to showcase a property or development he is promoting.

No strings, no high-pressure sales tactics, no hard sell, just a chance to investigate some real estate opportunities (and check out the beach, of course!). Best of all: the developers pick up some of the tab.

This December, our friends in Nicaragua will host Chill Weekends.

December 9th-13th, 2009: If you’ve ever fantasized about living in a tropical paradise, then why not make plans to join us on December 9th to 13th for a chill weekend at Rancho Santana. All you have to do is show up at Managua airport—and we’ll take care of the rest. You’ll get a taste of colonial Granada, and have the chance to explore Rancho Santana…relaxing on one of the five sandy beaches…snorkeling, surfing, horseback riding…or simply swinging in a hammock rocked by cool Pacific breezes.

Better yet, you’ll discover how you can cash in on an amazing undervalued Pacific Coast real estate opportunity—with home sites from $47,900.

The trip costs $299 per person, and covers your accommodation, airport transfers, and meals. Book your Weekend in Paradise here.

Ronan McMahon