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Now we’ve gone full circle… from Costa Rica’s financial policy all the way to the delightful smell of camp ground toilets! You have to love this site! LOL
Sad to say the later might not be too far off topic… if things keep going as they are there will be TONS of people living in camp grounds, and I can’t help but guess the bathrooms won’t be smelling much better!
A couple of months ago AARP magazine had an article about folks living in their cars, and how local governments were dealing with it. Right down to having designated male and female parking lots for overnight stays with some security and bathrooms. It also covered how these homeless folks were keeping their gym memberships so that they had a place to shower and store some clothing. I know the local camp grounds and parks in NY have seen a large increase in the homeless living there fulltime.
About a year ago I had to deal with a fellow that had rented a storage locker at one of those rental stores and had moved in!!! He had quite the set up… he had wired the light in the locker to a power strip and had a TV, heater, and toaster oven in his little cubby… along with a ton of stuff… the true meaning of “down sizing!”
There’s going to be a lot of folks with waterfront concession properties in for a big wake up. I guess the CR government has figured out that the most attractive and “taxable” properties are those which they have the ability to take for none payment. The folks running things have just figured out what ocean front property is worth for those willing to pay the price. The cost in years gone by was far too low… but the increases are quite unreasonable.
In prior years you had a set and fixed rate of exchange that was slowly adjusted by the CR government. We watched as the colon/dollar rate went from 300/1 to about 500/1, adjusted at a fixed rate each day. Then they came up with this exchange rate band system we see today. It’s sort of still being figured out as we go forward. The change over the last two months of 2008 was quite a bit. I had thought there might be some games being play, and perhaps there was some manipulation, but the Christmas bonus idea does make some sense. I guess we’ll have to wait and see what happens this year! That is if we make it to Christmas!
PS. Scott… we’ll have to work on the exchange rate between tuna and the pink stuff you’re eating! All part of the new world order! LOL
Edited on Feb 09, 2009 14:01
Perhaps the folks in CR see that the dollar is headed for a fall and are looking to get out early… like a player in a ponzi scheme that KNOWS the real deal and jumps ship before the house of cards comes crashing down!!
I have to agree however that the recent rise in the dollar makes NO sense at all. Perhaps it’s just the fact that the world economy is in such a mess that even with all the bad moves made (and being made) in the US that the world is looking to the US as the safest/last to fall, hence the flow and confidence. Be that the case… the world should have run a credit report on Uncle Sam before making that move! Who knows!
Many years ago when a company was dropping employees it was bad news and the stock got hammered. In the 90’s/early 2000’s when a company announced a major lay-off the stock went up! That whole “lean and mean” attitude for failing companies! It all makes no sense. As Scott pointed out, there’s so many different views/opinions these days that the only true test of the integrity of these positions is a rear view mirror look at who was right… but by then it’s too late if you’ve followed the wrong path!
Ignorance is bliss they say… and thankfully there’s a whole world out there that’s quite blissful (be they a bit unsettled and getting worse by the day)… otherwise there would be widespread panic! Something I see as a REAL possibility in the next year or two. (There’s my opinion! LOL)
As to the new immigration proposals… perhaps the new $2000 requirement is intended to address the future reality that this amount will have the same buying power as $600 does today! Pretty scary world, a stockpile of canned tuna is looking better and better!
Edited on Feb 09, 2009 08:46
grifz77… Thanks for the GREAT links to those Youtube clips! I wonder if all those “experts” are laughing at Peter now? I think anyone who follows those guys should have to watch those clips over and over and see how they were laughing at Peter and saying HE was the crazy one… it looks like he was RIGHT on target! Even Ben Stein looks pretty foolish saying things are all good and that the market is strong and that sub-primes are a “very small” problem! All that while the stock ticker shows a 13,000+ dow on the screen…Oh, the “good” old days! I have to wonder how many of these guys are laughing now!
Edited on Feb 07, 2009 21:57
Sprite… interesting that you mention a survival garden… this month’s AARP magazine has a great article on growing your own food! No doubt they see what’s coming and are attempting to get folks moving towards being a bit more able to provide for themselves!
As for the whole 401k mess (or should we be calling them 201k’s now!!)… there was a MASSIVE amount of wealth lost… be it “paper” wealth… but the sad part is that this all happens just as the baby boomers are entering retirement. We all knew this would be a VERY difficult time with the shifting demographics… but now… it’s a total disaster!!! People unable to retire, no jobs, half a nest egg that was much too small to start with, health care out of reach, and the cost of everything getting out of control!
There’s some BIG pain coming… much more then we’ve seen already! These bailouts, which must be settled up at some point in the future, will keep the US and most of the world in a depressed state for some time to come! There’s a good reason most people are not in favor of these packages! They know now that at some point you have to pay up, as they’ve painfully discovered, and with the TRILLIONS of dollars being thrown around, it’s a debt from which the US may very well never recover! Once Uncle Sam’s credit is no longer the gold standard in the world, and our trading “partners” that have been milking us dry but have kept us on life support (by buying our debt) in order to harvest our organs stop doing so…. what then?
I was luck enough to have moved all my funds to cash equivalents at the start of last year and missed the big fall, in part thanks to reading articles and reviewing information from sources such as this site (thanks Scott) and many others. I’m no smarter then the average bear, I just focused the 10% of the brain we all use towards what was important. But now… even sitting on my intact nest egg, holding good investments, carrying a low debt load, and having a great pension and medical coverage I worked very hard for… it’s a very scary world. I’ve made a number of purchases in CR and feel they will not only provide the lifeboat for my family, but will also have a much better chance of surviving this storm, even if a good part of the world doesn’t! Even those of us sitting on a solid footing that have missed the carnage are concerned… and that’s not a good sign at all!
Forget currency…. I vote we dump “money” and start trading in canned tuna! The toughest part will be making change!
I’m not even sure metals are the place to be these days… just too high… and when it comes down to it… you can’t eat them!
Edited on Feb 05, 2009 21:37
I think I’m in love! She was not only a joy to listen to, she was funny! What a great interview! I have to guess she hasn’t learned too much spanish hearing here limited spanish however.
You mean the LATEST $900,000,000,000 “bailout package” they’re taking out of my pocket isn’t going to fix everything? Good thing they don’t have to actually print money anymore for these deals… we’d have a shortage of cotton and linen!
When the total cost of all these moves is calculated (I think it’s near 3 trillion now) and people realize how much has been lost into this giant black hole… they’ll flip! By then it will be too late… and the US dollar will be worth NOTHING!
The cost of those flashy websites, slick sales flyers, 10 million high pressure sales phone calls, and threats of legal action
to anyone that challenged them must have really added up! Roads and utilities be damned! LOLI agree David…. the end is in sight!
Edited on Feb 03, 2009 13:26
I wouldn’t count on it!
One would have to ask…. with 2,509 out of 2,600 lots sold (that’s 96% sold folks!)…. why have they not yet put in the infrastructure at most of these projects? Seems with that kind of influx of cash that they’d
be able to have the roads and utilities in now, would it not? Perhaps a little too much was spent on marketing and not enough on cement, electrical wire, and water pipe at these projects? And if what Bill said is true…“Gale said his company only makes money when it begins construction. He also said that under contract his company is obligated to produce homes for property owners for $60 to $90 a square foot.”
It would seem rather unreasonable at that cost per foot that he’ll be able to make the improvements(roads, utilities, club houses), build a house for you, and turn a profit.
Let’s just be realistic about this! If they couldn’t pull off this fantasy in a great market… there’s not a chance it will happen now…. be it 60 days from now or EVER!
It’s starting to look an awful lot like more dirt roads to nowhere… I do however enjoy the drive through these “projects” looking to see if I can spot the numbers on the lots through the overgrown grass! LOL
Just my 2 cents!
Edited on Feb 03, 2009 10:46
I think the price is quite good for a remote location with site work (leveling) aready completed and a killer view! But to each his own! I’m very much enjoying the series and the pictures as well as the ongoing tab on expenses. And hats off to Scott for using the local hardware store…. even if the price is a bit higher!
Keep the pictures coming!!!
It’s a love/hate relationship sometimes. Many of the same Ticos being impacted by rising prices that are unable to buy a home are the same ones that are making more money then they ever did because they’re employed in construction and related fields. And remember, it’s their fellow countrymen selling their property at these inflated prices that are enjoying the financial gain, and yet pricing the market out of the reach of their neighbors. With the slow down in real estate worldwide (and a likely drop here) I guess many of the Tico buyers will have a chance to jump in with the money they’ve made fueling this market.
I’ve had the same conversation with some of my Tico friends… from all walks of life. Most see the big picture and see both sides of the argument. And it seems there is (and hopefully will always be) an “alternate” real estate market for Ticos selling to Ticos. There’s the Gringo price, and the Tico price… just as there is with cars and many other things you’ll see the “SE VENDE” sign on!!
Edited on Jan 31, 2009 19:14
I’d have to agree that there are many people in the real estate business here in CR that were (or are) in denial about the market. Just like any other salesman… you have to understand their motivation… and make your own call on value. We all know that what’s happening in the US and around the world is having an effect here in CR. Prices in CR may be a bit “sticky” in that many sellers (and MANY more Ticos) are not in a tight spot… don’t need to sell NOW… and are waiting for that rich Gringo with a bag of cash to fall in love with their property. Unlike the US and other markets where people are way overextended… and have to get what they can… or in many cases are just walking away from properties, further pushing prices down.
The big plus that I see is that folks that have bought here in CR that are not normally the type that are sitting on primary homes with sub-prime/Alt-A financing. Don’t get me wrong… some are…. as well as some developers. Most are people that have taken the time to research CR and have made the move much more educated and aware of the market. Much more conservative investors will be fine here. Those caught up in the hype and fast money will not!
Just like with any “hot” market… there are your flippers and timers… and just like with the stock market there will be those that get burned.
