Saturday, April 10, 2010
Dear Reader,
This week's news started with the loonie. On Tuesday, the Loonie achieved parity with the US dollar for the first time since July 2008. Economists expect the Canadian currency to hover around parity for a while. The loonie's strength is down to global investors preferring the currencies of countries with low debt, political stability, and central banks focused on keeping a tight rein on inflation. Canada scores highly on all three points.
Canada also scores highly on cold winters, snow shovels and tire chains...which is why so many Canadians are buying a second home in more tropical destinations. The dollar parity is good news if you're Canadian (or have Canadian dollars to spend). Your Canadian dollar now buys you more in countries like Costa Rica, Uruguay, and Nicaragua, where property prices are in dollars...and the currency in Panama and Ecuador is the dollar. On Monday, we showed you a beach home that's almost too good to be true on Ecuador's Pacific coast for $105,000 ...or C$105,450.
The economic news focused on one country--Brazil. As one of the four BRIC nations, Brazil hosts the second BRIC summit on April 15th. International financial reform, and the world economy, are two topics on the agenda for discussion.
The strength of Brazil's own economy continues growing the wealth and numbers of Brazil's middle-classes. They like spending their newfound wealth on nicer city homes, and condos on the beach--fuelling the country's housing market, and pushing property prices up. They go on more vacations, mainly in Fortaleza, the country's #1 domestic tourist destination--and want somewhere swish to stay when they're there. That's why we're so bullish on buying property in Fortaleza--the city offers good appreciation potential and rental yield, thanks to a combination of increased demand, a lack of developable land in prime boardwalk locations, and a shortage of quality short-term rentals.
Cars are another luxury item on the must-buy list of the Brazilian middle classes, and figures out this week show a surge in new car sales. In the first quarter of 2010, sales rose 17.9%, to a record 788,000 units. Soaring car sales indicate that Brazil's economy is on track for predicted growth of 5-6% this year, which bodes well for those middle-classes, and, in turn, the real estate market.
Costa Rica's Caribbean coast received a welcome boost this week from the New York Times. Described as the "Untamed Coast", the article centered on the laid-back surfer towns of Puerto Viejo and Manzanillo.
Two years back, Pathfinder started telling you that Costa Rica's Caribbean coast was up-and-coming. We called it the Forgotten Coast. We'd heard about a billion-dollar gentrification scheme that would place this coast firmly back on the tourist radar. President Arias kick-started the program last October with an $80m investment from the government in the port city of Limón, for the restoration of cultural buildings and tourism infrastructure.
Cruise ship arrivals should hit 500 a year here in the next two years. Tour companies Wildland Adventures and Disney Adventures now offer trips to the Caribbean coast, covering national parks like Tortuguero and Braulio Carrillo. The first luxury boutique hotel, Le Caméléon, opened last year, catering to the increasing numbers of more sophisticated travelers. It all means one thing: more tourists, and more tourists who'll want to own a piece of this coast for themselves.
The Caribbean coast doesn't currently have much choice when it comes to developments, although a planned marina resort development is on the cards. One exception is Grand View Estates, set in the Talamanca Mountains, a thirty-minute drive from the coast on paved roads. The property boasts ocean views, fresh ocean breezes, five rivers, two waterfalls, abundant wildlife, and virgin rainforest...and lots from $40,000. Developer William Ogen is so sure that you'll love this forgotten coast, he's happy to let you stay at Grand View (in his own house, no less) for two nights--for free.
That gives you enough time to wander the 640 acres of tropical paradise known as Grand View Estates, and explore the Caribbean coast...try it on for size, and see if it's what you're looking for. Spaces are limited, and I'd hate for you to miss out. Click here to find out more or book your free stay.
Margaret Summerfield
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