CAPITOL
FINANCIERO ARTICLE
Central
America attracts U.S. retirees
The publication Capitol Financiero has an article about the number
of foreigners moving to a Latin American countries.
Here
is an English translation.
Central America wants to transform itself into the favorite residence
of Americans who want to retire. When 65 million American citizens
begin to retire in 2010, the Guatemalan Salim Dahdah will be waiting
for them with the open arms. As CFB Corporacio'n president, they
invested $40 million in Guatemala to develop two neocity-planning
towns or communities so that many will go to live there. But he
is not the only one. Baby boomers, are the generations of Americans
born after World War II, until 1964. They look for sunny paradises
to spend their days of retirement, and it is the gamble of the
real estate industrialists of the region, who develop beautiful
residences built in exclusive resorts with golf courses and views
to the ocean.
Until a few years ago, baby boomers used to buy residences in
Florida or California; but, the high population and the high cost
of real estate have turned their eyes further south, paying attention
to cheaper destinations in Latin America like Mexico, Costa Rica
and Panama, where they can live comfortably with their pension
as retired person. They get 4-5 times the spending power in these
countries, and are attracted by the culture, beaches, music, food
and people.
Mexico has taken advantage of the swelling of wealthy pensioners,
where one fourth of the 4 million Americans who live abroad currently
reside. In places like Rosarito Beach, in Baja California, more
than 15,000 Americans have moved in the last few months. They
already have a newspaper in English they circulate, the Baja California
Times. Nevertheless, countries like Costa Rica and Panama, from
1998 and 2002, and lately Guatemala and Honduras, develop projects
that compete catching the attention of the retirees. "In
the area of Chiriquí and Bocas of the Toro, Panama, real
estate projects have been developed that surpass $400 million",
according to Josep Ros Santasusana, a Spanish consultant who elaborated
a report for the Inter-American Development Bank, I.A.D.B..
The American industrialist, Sam Taliaferro, who put the Panamanian
region on the map of the worlds baby boomers with his project,
Valle Escondido. He believes that there will be investments of
over $700 million in the next few years. Companies like Prima
Panama owned by Taliaferro proliferate, and others such as Boyds
Realty, Panama Options, Panama All in One, Move to Panama, and
the pioneer Panama Relocation Services, founded on 1998. They
offer the pensioners transfers, visas, and real estate, among
other services. Fees start at $ 199. "The plan is by 2018
to have 14,000 constructed houses. The investment in the purchase
of the houses could reach $9,800 million", indicates a study
by Intracorp of the real estate projects. And that's without considering
$1,600 million in maintenance. "Somebody must take care of
them when they age", says Juanita Váldez, a nurse
of the area.
It is estimated that each buyer spends between $200,000 and $500,000
in the acquisition of its residence, and a resident family spends
$24,000 per year in consumption. In Costa Rica the foreign investment
in the real estate sector rose to $176 million in 2004 and $224
million in 2005, in the coastal regions of Guanacaste and Puntarenas,
had the greatest amounts.
The Surf and construction dollars move the economy of Tamarindo
in Guanacaste, where the condominiums near the beach are sold
between $160,000 and $1 million. The arrival of Americans like
Zimmerman, who came 10 years ago to Tamarindo to surf and started
a school (surfing of course) and remained to live. He and as well
as the rest of pensioned foreigners which who come, have increased
the prices of real estate in the zone.
