Financial ties with CR and the USA?

[Chariotdriver]

Wondering how the troubles in the USA will affect living in CR?
Would the problems in the USA spill over into CR to the point where there would be issues or problems that far away.
Would Colones be affected if the US dollar should falter?
Any other input as far as what to expect as regards “things changing” as things progress here in the USA?

Thanks,
Phil

[ShawnLorenzoYork]

I’m no economist so this is just a guess from a regular Joe…

I think that CR suffers commensurate with the USA UP TO A POINT. If there is a complete collapse of the US dollar, CR will come out smelling like a rose long term… IF it can stay away from CAFTA and the AMERO.

http://www.youtube.com/watch?v=ge2J2lNusJs

Costa Rica has the resources to completely sustain itself in the event of a complete global meltdown. I have no idea if that will actually happen but I am a whole lot more suspicious after these recent 3 weeks. Costa Rica’s sovereignty is the crown jewel of the Americas.

I just returned from a 10 day trip looking at real estate. I’ll be back in a month to keep looking.

Edited on Oct 07, 2008 10:36

[crhomebuilder]

Apparently one large private firm feels confident in the future of Costa Rica. The Overseas Private Investment Corporation (OPIC) is providing $105 million for two projects that will assist first-time home buyers and small to medium-sized enterprises. http://www.opic.gov/news/pressreleases/2007/pr100108.asp

More good news is that foreign trade is boosting the outlook for Latin America amidst the worldwide economic crisis. Latin American exports to the US increased by 18.1 percent and trade with Asia and Europe is growing at a faster pace than with the United States, providing new markets to offset any potential U.S. decline.

Additionally, Hilton Hotels Company is planning to quadruple its presence in the Caribbean and Latin America over the next five years. The company’s growth is expected in all of the region’s capitals, as well as secondary markets such as Liberia, Costa Rica; David, Panama; and Leon, Nicaragua. This will be complemented by active pursuit of opportunities in the principal resort destinations of Guanacaste, Costa Rica; Antigua, Guatemala; Atlantic coast of Honduras and Belize; and Pacific coast of El Salvador, Nicaragua, and Panama. The company recently debuted three hotels and resorts in Costa Rica and has six approved deals in the Central America pipeline. Opened in January 2008, the company welcomed three hotels to Costa Rica: Hilton Papagayo Costa Rica Resort & Spa; Doubletree Resort by Hilton Costa Rica – Puntarenas; and Doubletree Cariari by Hilton San Jose. Six recently approved transactions include: Conrad Los Micos in Tela Bay, Honduras; Hilton San Jose, Costa Rica; Hilton Panama; Doubletree by Hilton Panama; Embassy Suites by Hilton San Jose, Costa Rica; Embassy Suites by Hilton Panama City, Panama; and Hilton Garden Inn Liberia Airport, Costa Rica which opens later this year. http://www.hotel-online.com/News/PR2008_3rd/Sept08_HiltonLatinAmerica.html

Moreover, U.S. based energy and technology conglomerate Emerson is growing strongly in Latin America, where its sales increased more than the total growth of the entire company. Emerson Latin America President Leo Rodriguez said, “This is an excellent time to be in Latin America.”

[ANDREWFORCR]

I think Costa Rica may feel some impact from the world economic crisis however those of us living here are still seeing baby boomers/retirees continuing to visit here, purchase real estate and start new lives. There have been many stories about a tanking real estate market here but you need to look at where it is coming from. When you raise prices for properties such that they approximate U.S. prices (such as in some beach communities) and continue to recklessly add inventory, you’re bound to crash at some point. We’ve found here in the San Ramon area that if you follow basic business principles: provide a high quality product at a reasonable price, you can still do well. In the midst of the crisis in the U.S. in particular, retirees are still looking to Costa Rica as one option for living and investment; it’s just a matter of meeting their needs and not going overboard thinking your development or home has more value than is reasonable.

Edited on Oct 10, 2008 16:27

Edited on Oct 10, 2008 16:27

[crhomebuilder]

Retirees and baby-boomers continue to find CR attractive for living
and investing, and this year inspections of land and housing for foreign
purchasers has doubled from last year. It seems as the economy in
industrialized countries becomes unbearable, folks with money realize
that the stock market and certainly the real estate market in their own
countries no longer are safe investments. Smart investors look for new
emerging markets to invest their money.

With the availability of on-line discussion groups like WLCR, investors
are kept abreast of housing and land development projects, providing
accountability for the average person that previously was not available.

[Andrew]

Please see new thread related to the overall financial crisis entitled: ARE YOU NOT YET SCREAMING HYSTERICALLY ANGRY! at [ https://www.welovecostarica.com/members/forum/openthread.cfm?forum=1&ThreadID=2474 ] I would love to hear your feedback, especially from our American friends.

I can tell you quite bluntly that I am most definitely screaming bloody angry about it!

Scott Oliver – Founder
WeLoveCostaRica.com

[Author]

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