Nov. 20, 2009
Medellin, Colombia
PLUS:
- Belize And Panama--Two Top Eco-Friendly Choices...
- "Your Comments About Platinum And Gold Astounded Me"...
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Dear Live and Invest Overseas Reader,
"I don't live in Panama, but my business takes me there often," writes new Correspondent and offshore banking consultant Peter Macfarlane (
www.QWealthReport.com). In fact, I've spent time in the majority of Latin American countries. Yet there was
Colombia, just next door to Panama, where I visit so often, but seemingly a different world. I'd heard many good things about it (from both living and investing points of view), but I'd never managed to come up with an excuse to make the trip.
"Finally, a friend, a European expat who had been living in Panama, moved to Medellin and invited me over to stay with him. I hopped on a plane as quick as I could.
"Medellin was built in a deep valley surrounded by tall, pine-covered mountains. The domestic airport sits almost downtown. However, my one-hour direct flight from Panama landed at the larger international airport, situated on higher ground, about an hour's drive from the city. The trip in to town makes for an exceptional first impression.
"Medellin has a distinctly European feel. It is clean and more orderly than charmingly chaotic Panama. The people are friendly and polite and more reserved than the typical Central American or Mexican. Another difference is that the locals are not used to big numbers of expats or tourists among them. You need at least some Spanish to get by day-to-day.
"Medellin may feel like Europe, but it differs drastically from that part of the world when you look at the cost of living and, especially, the cost of real estate. My friend lives near the Parque Lleras. This is probably the best address in downtown Medellin, an attractive plaza of cafes and restaurants where people go to see and be seen. My friend had bought a studio apartment here for US$25,000 a few months before my visit, which, following a basic remodeling, he reckoned was worth at least double. Not one to waste time, after the first purchase, my friend began buying up other apartments on the same block.
"My friend works mainly on the Internet and has an excellent fiber optic connection. You'll find lots of free wi-fi in the city, including at
Juan Valdez Café, the Colombian version of Starbucks with branches all over the city and the region.
"Colombia is just opening up for foreign investment, and intrepid bargain-hunters will find good deals, particularly when it comes to real estate. It is relatively easy to obtain a retirement residence visa.
"However, there are exchange controls and other bureaucratic restrictions in place, and taxes are high. As an early expat in Colombia, you would need to be prepared to navigate the system a little. I attempted to open a bank account, for example, which proved almost impossible. I think my friend has the right idea. He is basing his business and banking in Panama but enjoying the lower cost of living and the fun lifestyle in Medellin--all the while investing pocket money in real estate that I believe should grow in value over the medium to long term. When he needs to visit his business, it's a short flight to Panama.
"Of course, everybody's big question related to Colombia has to do with security. Is this country unsafe?
"The answer is no. Safety is not a problem anymore. As in any big city, there are areas where you wouldn't want to go, especially alone, especially after sundown. But I felt very safe wandering around, even late at night. Colombia is working hard these days to attract tourists, investing millions in advertising abroad using the catch phrase, 'The only risk is wanting to stay.' I'd say the slogan rings true once you've spent any time here.
"Some facilities in Medellin are spectacular. The El Tesoro shopping mall, for example, is the most impressive mall I have seen anywhere in the world. It's a five-minute cab ride up the hill from Parque Lleras. Their website (
www.eltesoro.com.co/en) shows a great panoramic photo of the city (the same view you see from the mall).
"I'm already making plans for my return sometime early in 2010."
Kathleen Peddicord
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"Kathleen, thanks for your great newsletter. It has a whole lot of useful info.
"I have not seen undeveloped lots discussed much in your newsleter, and I am wondering about this. I plan to invest in an
eco-village project. Would you know of any lots available that might be suitable for developing a small, off-the-grid, eco-efficient community?"
-- Reinaldo M., United States
Two current opportunities come to mind, one in Belize, one in Panama.
In
Belize, longtime friend Phil Hahn is right now at work in the western Cayo District of this country, in the fertile Belize River Valley, breaking ground on his new
Carmelita project. Phil is developing 450 acres with more than a mile of riverfront and a spectacular view of the Maya Mountains into an off-the-grid community that will preserve 150 acres of rainforest while incorporating a new village with plenty of room for organic gardens, micro-farms, and other agricultural undertakings. Home sites are priced from US$13,000 to US$55,000, depending on size and location. You can purchase a small off-the-grid Garden Cottage for less than US$100,000.
More details here.
Perhaps you're looking for something bigger. I know of another current opportunity that could work for what you describe in the
Santa Fe region of
Panama, where an 18-hectare piece of riverfront property just outside Santa Fe town is on the market for US$640,000. This piece could easily be turned into an eco village with small houses or townhouses with the river in front and natural forest all around. You could walk or bike to town from the property and live comfortably off the grid with solar.
By way of full disclosure, this beautiful piece of land nearby the charming country town of Santa Fe belongs to my husband, Lief Simon, and two friends. Coincidentally, Lief mentioned earlier this week that he and his partners have decided to list it for sale. No kidding, it'd be ideal for the kind of eco-undertaking you describe.
Take a look here.
"Kathleen, I enjoy your newsletters. You have an error in your last one concerning
platinum.
Platinum is more expensive than
gold. You can check metals prices real time at
www.kitco.com.
"I also concur with the
recommendation of Torre De Alba. Much nicer and less expensive than the hooker-filled Veneto across the street."
-- David B., United States
"Kathleen, I am a loyal subscriber and have vast respect for your knowledge of international real estate and related issues, but your comment about
platinum being a lower-priced precious metal than
gold astounded me. Platinum is the most expensive precious metal. The closing price for 1 ounce of gold today (Nov. 19, 2009) is 1,145.60. For 1 ounce of platinum it is 1,447.00. As you can see, platinum is more than $300 more expensive per ounce than gold.
"Perhaps you meant to say that palladium (a derivative of platinum used in catalytic converts) is a lower-cost precious metal. At any rate, based on this comment and your analysis of the current gold market, I could tell that your knowledge of the precious metals market is limited. I realize you are quoting Vivian Lewis, but the views of Lewis are apparently similar to your own, and you both seem to have little knowledge of precious metals.
"Lewis sounds like Dave Kansas, who recently wrote an article titled, 'Gold Is Still A Lousy Investment.' This in spite of the fact that since 2001 gold has appreciated about 21% a year."
-- Patrick G., United States
I'm glad to discover we have such precious metals enthusiasts among our readership.
Vivian's reference, as I quoted it, wasn't as clear as it should have been. The point she (and I) meant to make was not that platinum is cheaper than gold in ounces, but rather that platinum is cheaper than gold in that its value has not appreciated lately as dramatically as the value of gold (as Patrick G. explains).
.
