Now that they've reached this important phase of development, the developer is planning a price increase. I'm writing today to let you know that I have talked them into postponing this for Live and Invest Overseas readers. I believe this is one of the best agri-land investment opportunities you'll find right now, and I want to be sure you have a chance to get in on the ground floor, so to speak. I also, as you know, recommend that you buy what you see...meaning you should, if you can, come see this organic mango plantation for yourself. The developer is offering a tour of the property in September and have agreed to hold current pricing for Live and Invest Overseas readers through the dates of that tour. One key risk in any agricultural project is implementation. In this case, at this stage, this risk has been minimized significantly. With planting underway, you can have a higher degree of confidence that your trees will be planted according to the contractual timeline. Another risk for any agricultural project is water, as I've mentioned. Farmers in California are having a rough time right now thanks to the prolonged drought. Panama is in the tropics and enjoys significant rainfall every year. Nevertheless, the developer here chose for his mango plantation land with several rivers running through it, including a river that runs year-round, even through the dry season. They have the rights to take as much water from it as they need. Market risk is something else to consider with any turnkey project. With an agricultural project, this translates to: Who is going to buy your product? Mangos are the most eaten tree fruit in the world. The market is large. That said, the tropical fruit markets in the United States and Europe could be considered in their infancy...but expanding big time. The USDA's figures for mango consumption between 1980 and 2012 show an increase of a staggering 896% (from 0.25 pounds per person to 2.49 pounds per person, on average), and the demand continues to grow. In 2013, mangos made up 39% of this market. Not all mangos are created equal. The agricultural partner of the developer behind the plantation in Panama has created a variety of the fruit that has more meat and is naturally sweeter than most any other mango you'll find. A quality product and a big and growing demand aren't a guarantee that you'll be able to sell your inventory, right? You have to have access to buyers. In this case, the developer already has a 350-hectare mango plantation in production and is selling those mangos to juice companies in Panama. These same outlets have said they'll take as many additional mangos as the developer can produce. Right now those juice companies have to import the vast majority of their mangos for processing, which is far more costly than buying locally grown fruit. While having that ready-made outlet available is great, it's not the most profitable strategy. Therefore, the developer is in discussion with several groups in the United States, from dried fruit wholesalers to grocery stores, lining up contracts for selling your mangos directly into the U.S. marketplace where they would be able to charge substantially more than the local Panama juice companies are paying. Selling directly into U.S. markets would mean a more profitable operation; however, the financial projections the developer has put together are based on selling at local Panama prices. In other words, the projections are conservative. Using those numbers, the projected annualized yield (or IRR) through 15 years (although the project will produce for 60 to 80 years) is 16.52% at the current investment price. The mango trees don't start producing until year four, but, when they do, the annual cash flow is very healthy. By year five, when the trees are fully producing, the yield on your original investment is projected at 30% per year. The investment price is US$33,500 per hectare right now. The developer hasn't finalized the plan for the coming price increase, but it will be at least 10%. As he's sold out phase one already and has started selling phase two, it's been a tough conversation to persuade him to hold the original launch price for a couple of months more for Live and Invest Overseas readers. But, as I said, he has agreed. If you're interested in an agricultural investment and like the idea of mangos or Panama, now is the time to take action. You can find out more here. Lief Simon
And so is ours. We will start construction of our Founder's Lodge this month. This will be a Spanish colonial-style clubhouse for owners and visitors, with a great room, a dining room, four guest suites, a pool, and a bar-b-que area. In just a couple of weeks, Kathleen and I, along with our children and some friends, will gather with the local mayor, our architects, our contractor, Gary, and his crew to throw the first shovelfuls of dirt and to drink a toast to commemorate this turning point for Los Islotes.
Indeed, Los Islotes is entering a next phase of development. We have moved beyond drawings and plans to infrastructure and construction. Which means it's time to raise prices.
All prices for ocean-view lots will go up starting March 15. If you've dreamt of waking up each morning to Pacific Ocean views enjoyed from the comfort of your own home in a private beach community, then Los Islotes could be calling your name. I’m hardly unbiased, I realize, but I have to say: This is the most beautiful stretch of coast I’ve seen anywhere in the world in all these many years of scouting.
And this is the last time you’ll have the chance to become part of the community we’re developing on this beautiful coast at current Phase 1 prices.
Reserve a lot before March 15, and you can lock in the current price. You'll then have 30 days from the date of your reservation to visit the property if you'd like before completing a purchase agreement. That timing works well if you’d like to join us for our next tour out, which is scheduled for April 12-13.
You can also still avail for a limited time of developer financing, which allows you to buy with 20% down and 0% interest, with the balance paid over 36 months.
Los Islotes Sales Director James Archer and his team are standing by to tell you more and answer your questions. You can reach them here.
P.S. We took some photos while we were out there last weekend. Take a look.
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Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group. With more than 25 years experience covering this beat, Kathleen reports daily on current opportunities for living, retiring, and investing overseas in her free e-letter.
Her book, How To Retire Overseas—Everything You Need To Know To Live Well Abroad For Less, was recently released by Penguin Books.
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