Columbus, Balboa, Magellan, Dias...they may have been the first "foreigners" to discover the opportunities of Latin America...but they're certainly not the last. Now, it's your turn! Millions of baby boomers are now starting to retire …and their search for new retirement havens is taking them to non-traditional destinations. In truth, most retirement destinations just don't spring up out of nowhere. They evolve from vacation destinations, and in today’s world, many tourists have enjoyed visiting Latin America. If you’re familiar with International Living, you know that we’ve been writing about Latin America for some time now. We’ve been exploring Mexico, Central and South America on your behalf for many, many years. We’ve found the best opportunities here and we want to share them with you.
The time is now for Latin America. We believe so strongly in the future of this part of the western hemisphere that we’re investing there ourselves. Our International Living correspondents and staff members live and own property in Mexico, Nicaragua, Honduras, Panama, Ecuador, Argentina, Uruguay…and the list is growing. Bill Bonner, the executive publisher of our parent company, Agora, Inc., just returned from Argentina where he picked up a little souvenir -- a 100,000 acre cattle and llama ranch with 20 houses on it. Prices in that part of the world are just too good and he couldn’t help himself, he tells us. The cost? "Less than a large apartment in central London," was the reply. His may have been an impulse purchase, but it’s also a wise investment. They say that the U.S. housing market is going south. And we’ve literally gone south …into Latin America … in search of opportunities. Just below the US, there’s a whole continent and a half waiting to be snapped up, with everything from white beaches to rainforests. And so far, the property markets there haven’t bubbled out of control. Be warned, though: buying a house overseas is not always plain sailing. Take Venezuela. It boasts a long Caribbean coastline and the stunning 1,000-meter drop of Angel Falls. The currency exchange rate makes buying properties there a tremendous bargain – but there are risks you need to be aware of, including laws recently introduced by President Chavez.
Latin America Insider is to keep you informed. One country that used to be out of bounds is Nicaragua, but in recent years, hardy investors have seen some extraordinary returns. The country is still fighting its political stigma, but tourism is up 31% in Nicaragua this year and increasing numbers of people are settling there. As the infrastructure improves, so do the prices. A plot with 270-degree views could set you back $100,000, but if you remember that "the cost of living is low" and the quality of life high -- with arguably the best beaches in the region. But things change – and out job at Panama, 150 miles southeast, has the same impressive coast line, but fewer of the perception problems Nicaragua is now overcoming. For starters, currency is not a problem (it uses the US dollar) and foreigners have the same property rights as Panamanians. For less than $250,000 you can get a sea-front property next to Panama’s largest coral reefs. That might not sound cheap, and these properties are already up from $100,000 12 months ago, but you are paying for the fact that Panama is one of the region’s safest, most business-friendly and accessible markets. And Brazil? Its stock market has risen by about 37% this year and the country is benefiting from renewed strength in domestic demand. This has been fueling house prices, as seaside holiday homes are back in vogue for Brazilians. There are still lots of great properties. An ocean-front lot can be had for just $25,000 and with construction costs so low (from around $20 per square foot), you could find yourself listening to the surf from the veranda of a four-bedroom house for a total of about $65,000. Better still, Brazil is becoming increasingly easy to get to. More and more airline carriers are now flying to many different destinations in Brazil. While it is highly cyclical, Latin America tends to peak at different times from those in the U.S., Canada and Europe. We may be at the end of our upswing, but they’re moving up now. According to the IMF, the Latin American and Caribbean region should see overall output GDP growth of 3.8% in 2006 -- compared to its forecast for the US of 3.4% and the E.U. at 2%. And Argentina is roaring ahead, with a predicted GDP growth of 4.2%. No wonder many investors reckon it’s the best place to head to right now. Although property prices have recovered somewhat since the currency crisis three and a half years ago, Argentina is still cheap by our standards. An apartment in downtown Buenos Aires costs around a tenth of the same property in New York or London -- and comes with all the luxuries one might expect, including a swimming pool and secure parking. As soon as you get to the countryside, prices start to look unbelievable. For $28,500 you can buy 12.5 acres, with two houses, although one of them needs "renovation". At the other end of the scale, you could buy two properties with a swimming pool, tennis court, gym, secure garaging for six cars and -- as if that’s not enough, a Jacuzzi in the master-bedroom suite -- for $500,000. That’s not peanuts, but compared to the U.S., it’s eye-openingly cheap.
International Living survey, Panama topped the list for countries to retire to for the fifth year in a row. Its incredible benefits include being able to retire from the age of 18, as long as you can prove a monthly "pension" of $500, in return for which you get perks ranging from 50% off entertainment to 20% off medical consultations. Chile and Argentina both ranked in the top 15, just ahead of Ecuador, which scored 100% for climate -- it ranges from tropical on the coast to cooler in the mountains. All three were well ahead of the US and UK, which both scored 10% for property, compared to 75% for Argentina and 87% for Ecuador. Argentina, Brazil and Panama should all have further upside to their property prices, but even more ... they are nice places to live and spend time.In the end, it comes down to where you want to be and where you think your dollar will go farthest. Looking for a place with a low cost of living? Want to live near a beautiful beach? Want to disappear into an exotic culture where telephones barely exist? Or maybe you're the sophisticated city type. You can find it all in Latin America … and Latin America Insider will tell you exactly where in Latin America to find the new life, new location and improved opportunities you're looking for. | |||||||||
