CAFTA and Costa Rica October 1, 2007
Posted by admin in : Investing , add a commentThis past weekend, over 100,000 Costa Ricans marched in San Jose, to oppose ratification of CAFTA in an upcoming October 7, 2007 referendum vote. That is the equivalent of 7.5 million Americans marching in Washington D.C., the last antiwar march in Washington D.C. drew only 20,000 marchers, so the numbers in San Jose were incredibly large. Yet, CAFTA appears to enjoy a slim majority of support, in the latest polling of Costa Rican’s.
What is at stake in the upcoming vote, as I have written before, is nothing less than the future of Costa Rica. On October 7, 2007, Costa Rican’s will decide between, maintaining a strong middle class, or turning the country over to American corporations.
Why should you, someone who is interested in living or retiring in Costa Rica, be interested in the outcome of the vote? Because it is in your best interest, both financially and socially, that Costa Rica continue to have a strong middle class and diversified economy.
Costa Rica is unique in Central America, most other countries in the region have either a small, or non-existent middle class. The wonders of a middle class, can not be under estimated, and any action that may put it at risk should be avoided.
A strong middle class helps insure democratic government. Provides opportunities for upward mobility. Reduces crime. Creates culture and art. Helps to avert civil wars and revolutions. Reduces poverty. Protects the environment.
Costa Rica has suffered in recent years, from American land speculators, that has had a negative effect on Costa Rica’s environment and society. With the decline in the U.S. Housing Market, currently underway, the pressure on Costa Rica’s environment and society will begin to diminish. Costa Rica will be able to recover. However, if CAFTA passes, then the future for Costa Rica will not be so clear.
Past experience, with NAFTA, suggests that neither Costa Rica’s nor the U.S. middle class, will benefit from CAFTA ratification. Only the C.E.O.’s in both countries will be the winners. Real incomes, and the actual sizes, of the middle classes will decline.
This will have a negative effect, on not only your investment in Costa Rica, but also your quality of life. With the passage of CAFTA, Costa Rica risks a drift down to the economic and social level of Nicaragua, El Salvador, and Honduras.
Costa Rica risks losing, what has made it unique in Central America, and attractive to North Americans.
InvestingEnvironmentalists Killing Monkeys August 20, 2007
Posted by admin in : Real Estate, Investing , add a commentA part of what was once Costa Rica’s first National Park was in the process of being destroyed by men wielding machetes. They were employees of an American owned real estate company, chopping down the jungle, on behalf of an American real estate developer. It was land that had once belonged to Manuel Antonio National park, it was home to the endangered Titi Monkey, land behind my small hotel.
It wasn’t the first time, they had come to clear the forest, and it wouldn’t be the last. I had stopped them before, but this time it appeared that they were preparing a path for the bulldozers. I sent out an urgent call to my environmentalist friend in San Jose, but the men with machetes were doing their job quicker than usual, and I prepared to take action on my own.
One of my employees was an artist, and I had him create a huge plywood sign, that if the bulldozer appeared I would hang on the road- xx Real Estate kills monkeys. It was very graphic, showing a dead monkey with a noose around it’s head, and a knife dripping with blood.
My environmentalist friend appeared on the scene in time, put a halt to the chopping, and I never got to hang the sign. “Good thing you didn’t.” he told me, “you would have been sued or worse.” Mine was only one battle of many being fought to preserve Costa Rica’s environment.
The illegal deforestation of the jungle, is a necessary tactic used by real estate developers, done in order to be able to sell the property. Costa Rica has strict environmental laws on what trees can be chopped down, which land can be developed, and how the land can be used. If they sell you land with monkeys, trees, birds, and butterflies, you may not be able to build. If their are no trees, well then there aren’t any restrictions, and the land is easier to sell and develop.
If you go to the office of xx Costa Rica Real Estate company, or any real estate company in Costa Rica, you are likely to see pictures of monkeys, birds, and beaches. Photos of the places they are destroying. And you are helping them.
Me? “But I’m an environmentalist! I sort my trash, hike the woods on the weekend, and send a $30 check to the Sierra Club every year. I love monkeys, birds, and butterflies. I want to live or retire in Costa Rica to enjoy the nature.”
In many cases, environmentalists (and you may call yourself one), are helping to destroy the environment. Do you want to help or hurt? If you want to help the Costa Rica environment here are some things you can do:
1. Realize that you are part of the problem
Just in the fact that you come to Costa Rica, or decide to live in Costa Rica, you are having a negative impact on the environment. It’s unavoidable. We consume air, water and energy. We need food to eat, water to drink, and electricity and gas to live and move. Your sewage flows into the sea, forests are cleared for crops and cattle, and dams are built for water and electricity. Our very existence has a negative effect on the environment. But exist we do so…
2. Minimize your existence
Also known as sustainable living, small footprint, carbon neutral, and a host of other incomprehensible euphemisms. The point is to try and have the least impact on the enviroment. When it comes to Costa Rica real estate and living, you can minimize your impact by, minimizing your consumption. Things you can do:
- Don’t buy development properties in nature areas. You only encourage illegal deforestation.
- Don’t buy an air-conditioned house. If its too hot for you at the beach - then don’t live at the beach.
- No swimming pools. They consume a tremendous amount of fresh water and require toxic chemicals
- Avoid golf courses. Fertilizers and pesticides are required to keep the greens green.
3. Encourage better land use and evironmental living practices
- Reduce your meat consumption
- Buy organic shade grown coffee
- Shop at your farmers market
- Use the bus instead of the car
These are just a few of the actions you can take to help the environment. If you have others please comment.
Sorting your trash, donating to environmental groups, and kayaking, are all very positive and helpful for the environment. But just understand, that if you come to Costa Rica and buy a four bedroom villa, with a swimming pool, on a golf course - you are probably an environmentalist killing monkeys.
american real estate costa rica real estate environmental laws Investing manuel antonio national park Real Estate real estate developers titi monkeySell America before Buying Costa Rica August 10, 2007
Posted by admin in : Real Estate, Investing , add a commentOn the “About” page of this blog, I started the page by writing:
Are You the Owner?
Every week, without fail, a guest will walk into the lobby and ask “Are you the owner?” “We’re thinking of buying property in Costa Rica. Maybe investing in a business. Retiring in Costa Rica. What do you think about….”
What I didn’t write was my reply, and it has been the same for the past two years, “Do you own property in the United States?” I would ask. The person or couple almost always would answer “yes”, and then I would say “Sell it!”.
Before I would warn them about crooked real estate agents and lawyers, advise them to be careful about purchasing Costa Rica beach property, or suggest where I thought they could find good real estate values, I told them to sell their homes and properties in the U.S.
The reaction of the guests was typically a nervous chuckle followed by a bemused smile. I’m not sure if they listened to anything I had to say after that, nor to be honest did I really care, I could understand why they thought they were dealing with a fool. Sitting barefoot and half-naked, in a cute but otherwise un-impressive hotel in Costa Rica, I did not appear to be someone who could give decent advice on Costa Rica real estate - let alone suggest that they sell their quickly appreciating asset back home. An asset, that they were planning to leverage, to buy their investment or retirement home in Costa Rica.
I wrote the following in a blog post on this site dated March 18, 2007
The Second Scary Reason
The second and scariest reason not to buy Costa Rica beach property - the U.S. economy is about to tank. A painful plunge into recession in the United States is about to occur. Starting with the over inflated values in real estate, and an over valued stock market, the United States may be facing a prolonged recession.
Is this the time to be investing or buying Costa Rica Real Estate?
If the economy in the United States of America is going down, what makes you think, Costa Rica’s is going up? The United States is Costa Rica’s largest trading partner. When the U.S. and World economy tumbles, Costa Rica’s exports will decline. A severe slow down in tourism due to high airline tickets (jet fuel, Iraq war, job anxiety) , which has already begun, will worsen. And finally, if the run-up in real estate values in the United States have to correct, what will happen to real estate values in Costa Rica, where there has been tremendous appreciation in real estate values in the last two years?
In light of the massive foreclosure crisis in the U.S., and the recent stock market corrections, was the post accurate and prophetic? Yes. But I am not writing this post to say “I told you so!”, I don’t know you, nor do I have anything to prove to you. I’m writing this post to say “I’m telling you so!”. The economic situation is much worse than anyone realizes, it goes way past sub-prime mortgages, and strikes at the core of the U.S. economy.
If you are interested in the U.S. economy, what is happening, and where it is going. I suggest that you follow two writers, Paul Craig Roberts and Mark Whitney, their articles appear regularly on counterpunch.com - one of the few websites that produces honest opinion and journalism. Even though the fundamental factors, affecting the economy of the United States are greater than even they realize, these two writers come the closest to understanding the the current problems facing the U.S. economy.
Why am I focusing on the U.S. economy when this is a blog about Costa Rica real estate, retirement and investing? Because it was in Costa Rica where I realized that “No man is an island”. I came to Costa Rica to get away from the United States, to not have to worry about war, politics, and sub-prime mortgages. Many of you may be thinking the same.
Costa Rica is a beautiful country, but it is not an island, protected against the misfortunes of others. What happens in the United States has a direct impact on Costa Rica. The investment into Costa Rica, these last few years, came from the United States. Many people bought homes and land in Costa Rica from the appreciation they had made in U.S. real estate. That is over, finished, kaput. Now, Americans have to worry about holding on to their houses, in the U.S., not about buying property in Costa Rica.
Everyone’s situation is different, for those of you who wish to buy real estate, invest, or live in Costa Rica, it still may be a viable idea. Just be aware of a couple of things, what happens in the U.S. affects you in Costa Rica, and do not expect any substantial appreciation in Costa Rica property values.
More importantly, before you consider buying Costa Rica real estate, SELL your American real estate first. Do it - you don’t have another two years.
costa rica real estate Investing property in costa rica Real Estate real estate agents real estate values recession retiring in costa rica stock marketCAFTA, Big Ass Fans, and Costa Rica’s Future. July 4, 2007
Posted by admin in : Real Estate, Investing, Living, Retirement , 1 comment so farAccording to the U.S. Government, if you are Big Ass Fans, you should be very excited if CAFTA (Central American Free Trade Agreement), gets approved by Costa Ricans this September. But should you?
CAFTA - , or TLC as it is known in Costa Rica, will be approved or disapproved in a referendum vote by Costa Ricans in September. At stake is the future of Costa Rica. This is not another boring trade agreement. Costa Ricans are taking the upcoming elections seriously - and you should be as well.
Pro-CAFTA supporters suggest that passage will benefit Costa Rica by increasing investment into Costa Rica, create more employment, and expand Costa Rican exports. Furthermore, Costa Rica’s state monopolies will be privatized, and Costa Ricans will receive better service and lower costs for tele-communications, banking, and insurance, among other services.
They are correct.
Anti-CAFTA opponents suggest that that passage will destroy Costa Rica’s middle class, it’s treasured environment, and will create greater poverty in Costa Rica.
They are correct.
How can both sides be right? I will try and over simplify.
Investment - More investment will enter Costa Rica. It already has, Wal-Mart now owns all of Costa Rica’s major retail operations, for example. The privatization of the state owned monopolies will also cause a huge influx of investment.
Employment - More low-wage jobs will be created to work the new factories. And call-center jobs, the so called high-tech jobs, will boom. call-centers jobs are nothing more than people who learn english, sit at a computer all day, and harass you to pay your credit card bill.
Exports - will increase as the output of the factories, farms and fish, are shipped north.
Environment - More of Costa Rica’s precious environment will be destroyed as international agri-business takes over Costa Rica’s farming and fishing industries. Creating export farm products, typically environmentally un-suited, and un-friendly.
Tele-communications - More investment will go into communications, mainly to service call-centers, but will also expand the network of cell phones, and high-speed internet. This benefits those that can pay for the higher costs. The rest will be left with inefficient service.
Middle Class - Will shrink and get squeezed. Consolidations in banking, retail, agriculture, tele-communications, and government employment, through the state owned enterprises such as ICE, will cause loss of jobs in those industries.
Poverty - Will increase as the middle class declines and inflation eats away at real incomes. Inflation in Costa Rica is at 12%. Wages do not increase anywhere near that amount. Easy credit (predatory lending) to Costa Ricans the last few years has masked the deficiency.
How does this affect you? The person interested in living, investing and retiring in Costa Rica? Unless you are a multi-national corporation, a wealthy Costa Rican manufacturer, a large farmer, or you own an English Language School, you don’t receive any benefit. What you will get is a worsened environment, higher crime, and Big Ass Fans.
Ramsay
A Fan Company
Lexington, Kentucky 40505
Country of Success: Honduras
This company is a manufacturer of over-sized ceiling fans used to cool factories, warehouses, dairy barns, and other large spaces economically. As a result of U.S. Department of Commerce programs, this SME has had increased success in international markets, such as Europe, Southeast Asia, New Zealand, and South America. Most recently, the Big Ass Fan Company added a new-to-market sale of two fans to a factory in Honduras. Big Ass Fans anticipates additional export sales to follow soon.
Top 5 Costa Rica Real Estate Lines March 24, 2007
Posted by admin in : Real Estate, Investing, Living, Retirement , 2comments
If you hear any of the following lines, coming out of the mouths of real estate agents in Costa Rica, something should go beep-beep in your head.
The Top 5 Costa Rica Real Estate Lines:
#5) Once the highway is built, in about a years time (connecting us with civilization), real estate values in Alto Humongous will Skyrocket! You should, in general, be wary of the word skyrocket.
#4) When the Marina is built, in about a couple of years time, your investment in Jaco Tower 24 is going to instantly double. Add “instantly double”, along with “skyrocket”, to the list.
#3) The New Administration, is going to fix all the roads, get rid of the corrupt and inefficient state monopolies, pass CAFTA - thereby opening up Costa Rica to a flood of American investors, and cure cancer. The New Administration isn’t really that “New” anymore, so I expect to see a decline in it’s usage, but it was and still is very popular.
#2) It looks like secondary forest to me? I’m sure the monkeys, sloths, parrots, toucans would all disagree, it looks like the forest is primary to survival for them.
#1) People have bars on their windows to keep out Raccoons. Yes, while they may be effective in keeping raccoons out of the house, their main purpose is to keep out thieves. The same holds true for the Rottweiler chained to the front door.
Cheers,
Ramsay
Investing Living Real Estate RetirementCosta Rica Beach Evacuation March 21, 2007
Posted by admin in : Real Estate, Investing, Living, Retirement , 3comments
What began a year ago as a trickle, longtime residents leaving Costa Rica’s pacific beach communities, is now a stream. American and foreign residents, are either moving to San Jose, or are leaving Costa Rica entirely. Fed-up with the rampant illegal real estate development, the destruction of not only the environment, but also the destruction of the tranquil beach communities they’ve helped build.
This is a great loss for Costa Rica. Many of these foreign residents, were a part of Costa Rica’s original movement, to protect her environmental treasures. They are foreigners who respect Costa Rica’s land and traditions. Losing these wonderful people makes the effort to preserve Costa Rica more difficult.
There are even some, who have recently purchased Costa Rica beach property, that have become frustrated with lying real estate agents, theiving lawyers, and corrupt municipalities, and have decided to leave after only a short time in Costa Rica.
I will write more about the reasons, and the implications, in future posts.
Ramsay
beach communities costa rica beach real estate agents environmental treasures Investing Living Real Estate real estate development Retirement tranquil beachCosta Rica Real Estate - Part 3 March 20, 2007
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Costa Rica Real Estate Outlook
If you are looking to buy Costa Rica land or real estate on speculation, and your investment time frame is less than five years, you should be thinking of Short-Term Treasuries instead. Of course, you may get lucky and find a real estate nugget in Costa Rica, there are at least a hundred real estate agents in the country who won’t help you find it. And even if you do find a great deal on Costa Rica real estate, will you have anyone to sell it to, in three years when the U.S. economy is still struggling in recession? The likely answer is there will be no one.”So why bother with Costa Rica Real Estate at all?
Why Costa Rica Real Estate?
Why? Because, if your investing time frame is longer than five years, then Costa Rica could be a smart investment. There are still places in Costa Rica, peices of heaven, that have not been seriously damaged. And that are, depending on your particular circumstances, wise investments. In any case, if you are at all interested in investing in Costa Rica real estate, you should come and visit Costa Rica. There is still an abundance of beauty in Costa Rica - and people who are trying to preserve what remains. And as an investor, someone looking to purchase Costa Rica real estate, considering Costa Rica for retirement, or living and working in Costa Rica, visiting will give you a base point that will help you make better decisions in the future.
In the end, if you seek to appreciate Costa Rica, not seek real estate appreciation in Costa Rica, you’ll receive a much better return on your life.
Ramsay
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Common Sense Says…
The American Real Estate investors who originally bought the land, and either subdivided it into lots or built condo high rises, and the agents who sell the land and condos, will take most of the appreciation out of the asset before selling it to you. This makes common sense. If the land developer believes, that their land is going to double in value within a year, why would they sell it to you today?
“Who Knew?”
Real Estate agents get paid when they sell. It is in their best interests for you to buy, they will show you the obvious and deny the reality, and tell you later “who knew?” If you are buying Costa Rica beach property now, you are most probably buying it from a land speculator, at a fully appreciated price. You are a 2nd generation real estate investor. You will not double your money in Costa Rica Real Estate - the land speculator who came before you just did.
“I’ll take a double doble please!”
The Costa Ricans long ago, figured out that Americans coming to Costa Rica, will buy real estate at incredible prices. If an American shows up looking to buy his land? He instantly doubles the price. Bye-Bye appreciation.
The Second Scary Reason
The second and scariest reason not to buy Costa Rica beach property - the U.S. economy is about to tank. A painful plunge into recession in the United States is about to occur. Starting with the over inflated values in real estate, and an over valued stock market, the United States may be facing a prolonged recession.
Is this the time to be investing or buying Costa Rica Real Estate?
If the economy in the United States of America is going down, what makes you think, Costa Rica’s is going up? The United States is Costa Rica’s largest trading partner. When the U.S. and World economy tumbles, Costa Rica’s exports will decline. A severe slow down in tourism due to high airline tickets (jet fuel, Iraq war, job anxiety) , which has already begun, will worsen. And finally, if the run-up in real estate values in the United States have to correct, what will happen to real estate values in Costa Rica, where there has been tremendous appreciation in real estate values in the last two years? Read more in Costa Rica Real Estate Part 3
Read the Tico Times March 18, 2007
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Read the Fine Print in the Tico Times
Before you buy real estate, invest, move or retire to Costa Rica or any foreign country, especially one you are unfamiliar with, you need to research that country as thoroughly as possible. You should be familiar with it’s history, culture, economic system, political situation, and you should be able to make an educated guess about that country’s future. “What are things going to be like in three years, five years, or twenty years?”
“Feeling” Costa Rica
Most potential investors, conduct their Costa Rica research, by visiting Costa Rica. Their visit to Costa Rica usually lasts anywhere, from a week to two weeks, and will involve two or three different locations in Costa Rica. Most are trying to get a “feel” for Costa Rica.
Visit Costa Rica
A one week visit, may be sufficient to determine if you want to continue exploring Costa Rica, or to discover that Costa Rica is not for you. A one week visit to Costa Rica may or may not give you an accurate picture of the country. However, a one week visit to Costa Rica, will definitely not give you enough time or information to make an accurate investment or life changing decision regarding Costa Rica.
You should visit Costa Rica before investing, some people have invested in Costa Rica real estate, or even moved here without first visiting. But before you visit Costa Rica there is something you should do that will be benefit you immensely.
Read the Tico Times
Before I had even visited Costa Rica, I was a subscriber to the Tico Times, Central America’s leading weekly English language newspaper. I took out a six month subscription, and had it delivered to my house in the United States, I prefer the paper edition over the online. You can compare the Tico Times, in quality and depth, to your local hometown newspaper. The cost for a six month subscription is only $34 - incredibly inexpensive for the wealth of information you receive.
Gossip Too!
Read the TicoTimes every week. Read every section of the Tico Times. Even stuff you’re not interested in like sport fishing or the theatre. And especially the classified section of the Tico Times. Read the slick full color ads for real estate developments, even though you’re not interested in them, (as explained in Costa Real Estate) the appreciation has already been taken out. Read the gossip section.
Why do you care about Sport Fishing or the Theatre in Costa Rica?
If you are thinking about buying a condo in Manuel Antonio Costa Rica, because you are gay and love the gay beach so much, but you don’t care about sport fishing - you should.
Gay Sport Fishermen
Because if you read the fishing report in the Tico Times, you might know that, sport fishermen aren’t doing well. Their aren’t as many fish in the sea. They’re blaming el nino, global warming, long lining, the Taiwanese, and they are worried about the future of fishing in Quepos.
“Who cares about Quepos?”
You are about to buy a condo in Manuel Antonio. Quepos is a port town, that serves as the commercial and financial hub for Manuel Antonio. Manuel Antonio National Park is only five minutes from Quepos. Much of Quepos’s fortune is tied to sport fishing. And sport fishermen rent condos in Manuel Antonio. If fishing isn’t doing well? You aren’t either. “But the gay beach was beautiful when I visited and everything seemed fine?” If you’re a sport fisherman why should you care about the theatre in Costa Rica? I’ll let you figure that one out.
Appreciating Slick Real Estate
What do the slick real estate developer ads in Costa Rica tell you? If you are an interested real estate investor in Costa Rica -it tells you where not to invest. Again, the appreciation has been removed. Beyond that, and beyond the development, the surrounding land and property has over appreciated. As a value investor you are not interested.
The Exciting Classifieds
The most exciting part of the Tico Times is the Classified Section. If you are interested in retiring or living in Costa Rica, then the classified section of the Tico Times, is a must read. Everything from the obvious, properties, apartment rentals, cost of a used car in Costa Rica, help wanted, washing machines, pets, and much more. It is a wealth of data that you can track, with your subscription to the Tico Times, over a long period of time. To the not so obvious, why are their a lot more rental listings for Escazu, than three months ago? And why are rental prices going up in Heredia? The reason is home invasion robberies. Read the Tico Times.
Ramsay
buy real estate costa rica real estate exploring costa rica history culture Investing Living political situation Real Estate real estate invest Retirement sport fishing ticotimes tico timesMango Fever Paralyzes Costa Rica March 12, 2007
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Students stop Studenting
There is no official start date for mango season in Costa Rica. At first, small crowds will gather under mango trees alongside country roads, until when the fruit ripens in about 3 weeks, the whole nation will become paralyzed with Mango Fever. Workers stop working, teachers stop teaching, and students stop studenting. Risking their lives climbing Mango trees, and literally going out on a limb, for this succulent fruit.
Orotina is the capital of the Mango Nation
Located 1.5 hours southwest of San Jose, and 45 minutes from Costa Rica’s Pacific beaches in Jaco - and surfing in Hermosa. The town is the site of the well known Mango Festival, when bus loads of people come to worship, and then eat the Mango.Not a Truck Stop
Orotina lies on a main highway intersection connecting San Jose and the Central Pacific beach towns. Although not a particularly attractive town, Orotina does have the services, a town it’s size would imply. Banks, grocery stores, vets, clinics, doctors etc., are all available in Orotina.
Reasonable Real Estate
The climate around Orotina consists of hot dry summers and mild winters. Perfect Mango growing weather. Orotina does provide distant ocean views from some parts of the area. But the best views are of hidden valleys located off the main road. Land and real estate prices are more reasonable in Orotina, than in Atenas (higher up the mountain and closer to San Jose). And definitely a much better Costa Rica real estate value than the beach towns.
Anyone want to be a Mango Farmer?
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