The Case for Costa Rica - Why Baby Boomers Retire Here and Invest in Tropical Real Estate
By Barry Strudwich

In 2006 the first Baby Boomers turned 60. Behind this first wave is a virtual tsunami of graying, affluent soon-to-be-retirees desperately seeking some affordable sunshine. And it’s not only Americans. Swedes, Germans, Brits, Canadians, and others are all looking to escape cold weather, dark skies and their dreary, over-regulated, under-performing economies.

So where are you (and your global counterparts) going to land? Have you priced real estate in Arizona, Florida, or Southern California lately? Do you want to risk building your dream home on the Gulf Coast only to have it flattened by Hurricane Katrina’s uglier, meaner sister? Look around the rest of the investment landscape and you can be just as depressed. Even Wall Street’s deep thinkers will tell you that we’re most likely in for decades of tepid, single-digit returns in stocks. Don’t even think about living off your fixed-income investments either.

A savvy, soon to retire investor with a few bucks tucked away might look at it this way:

• The dollar is weak and will continue to fall; wars, record deficits and more will keep the pressure on
• The US governments will be staring at a colossal tax increase in just a few years to fund social security and Medicaid benefits for the flood of retirees
• U.S.real estate is massively over-priced and any rise in interest rates couldpop the bubble
• Diversifying out of a falling currency and into hard assets outside the U.S just mightbe the only way to protect your hard-earned wealth—and enjoy the lifestyle you want.

Is there an investment way to profit from these irreversible waves? Consider your options, run the numbers, and think about everything you’ll need: an ideal climate, accessibility, advanced infrastructure, excellent healthcare, and so on. Over and over again—Costa Rica is the brightest blip on the radar.

The Rush to Paradise is Just Beginning

But great vacations are only part of the story. The real secret of Costa Rica today is how easy it is to live and work there. The next wave is for retiring boomers to move “way South” for at least part of the year. Telecom is much better than people realize. With a laptop, cell phone, VPN (virtual private network) and the latest VOIP (voice-over Internet protocol) phone services, you can stay in touch more cheaply than ever. Costa Rica is easily reachable from major U.S. airports. Health care is superior. The people are friendly and welcoming. English is widely spoken. The Costa Rican government has made a major commitment to protecting and enhancing its spectacular natural environment.

Barry's Top-10 Reasons Why You’ll Love Costa Rica

1. The people are welcoming and friendly
2. Surfing and fishing are both spectacular
3. Costa Rica is not a Banana Republic. Intel makes all its Pentium chips here
4. Costa Rica is easy to get to with non-stops daily from 22 US cities
5. Costa Rica abolished their Army in 1949
6. Cell phones are only $10 a month and long distance calls to the U.S. are less than $0.20 a minute. New VOIP rates are less than a nickel a minute
7. 80% OF THE people live in San Jose which means the beautiful coasts are deserted
8. The Pacific Coast is protected from hurricanes by the mountains
9. Prime real estate is still affordable
10. It's the last place in the world they still like Americans

The Perfect Wave is Heading for the Central Pacific Coast
Costa Rica Central Pacific Coast is pristine and unspoiled. You’ll find the most spectacular scenery, the best surfing, superb sport fishing, endless empty beaches, and as much privacy as you want. Even better, it’s getting easier and easier to reach this slice of heaven A new toll road means that you can drive from San Jose to Esterillos Este in just one and a half hours. Without question, over the next five years the Pacific Coast of Costa Rica will be the sweet spot for investors.

Using the analogy of a commercial center, the Central Pacific region of Costa Rica is anchored by the Marriott Los Suenos Resort and 40 miles to the south by Costa Rica's crown jewel, the Manuel Antonio National Park. Both of these anchors are geographically constrained and the logical path of future growth is towards the center.
From a practical perspective, this will be in the area of Esterillos Este as it is thelast high ground between the two anchors. Our reputation for successful development in the area as well as our extensive local ties has created numerous opportunities with local land holders who wish to sell land. In the past several years we have acquired over 2000 acres in this prime growth corridor.

The Del Pacifico at Esterillos Story

Our investment recommendations for Costa Rica aren’t just theories. We’ve made a substantial bet on the soon to boom Central Pacific Coast with the master-planned community of Del Pacifico and our private land banking partnership.

Del Pacifico is 1,000 acres with one-half mile of private beachfront. All residents will have access to the golf course and the Beach Club and Wellness Center. The starting point for the area’s finest eco-tourism is the Equestrian and Ecology Center.

No matter where you are on the property, it’s an easy walk to the shops and restaurants of La Prada Town Center. Every aspect of our community is designed to meet the highest expectations of sophisticated North American and European investors and vacationers. The 18-hole championship golf course will feature a beachfront nine and a mountain nine. The course is designed by Billy Casper Golf.

There are several ownership and rental options from one-bedroom Town Square condominiums ideal for the fisherman, golfer, or the adventure-loving couple to larger, detached condo-cottages designed for the traveling family. Luxury condominiums and villa sites are available for people who expect to spend extended periods in residence. To learn more about investment opportunities contact: Central Pacific and Jaco Beach Real Estate in Costa Rica toll free 1-888-581-1786.

How to Become a Costa Rican Land Baron (or Baroness)

The first way is also the easiest because you don't even have to leave the country. You do this by purchasing shares in a “private land bank”. Similar to a mutual fund, this is a professionally managed diversified portfolio of undeveloped land and investments in resort developments. Owning shares in a land bank allows you to participate in locking up large tracts of cheap land today to sell in a few years when the North American "gringo" developers start showing up in force. Look for a 5 to 7 year investment horizon and a minimum investment of only $50,000 with a well structured partnership. Your shares can also be purchased with your IRA account. Private land partnerships are only available to “accredited investors” and of course you’ll want to check out the track record of the general partner.

Or you can buy your property outright and use it as you see fit. In fact, investing can be almost as easy as purchasing a mutual fund or a stock. Here’s why: When you purchase a condo or even a beach front lot, the title for the real estate is usually registered in the name of a private company which actually owns the real estate. By purchasing 100% of the private company shares, you acquire the real estate while avoiding paying real estate transfer taxes twice.

The IRA option is especially powerful here. When you purchase real estate structured as stock transactions, you can purchase the shares inside your IRA account with pre-tax dollars. This also means, when the time comes to cash out at a profit, you can sell tax free as well.

Del Pacifico has been pre-approved by specialty IRA custodians. Current IRA approved investment opportunities include ocean view and golf course condominiums at “pre-construction” prices as well as some spectacular “ocean view” single family lots. Currently, comparable condos at the nearby Marriott Los Suenos resort command rental rates of $700/day, not to mention a resale price of over $1.3 million. Condo prices have been escalating rapidly and will continue to do so as the baby boomers march to retirement.

Check Out This Tropical Eden Before It’s Too Late

If you want a fun way to perform your “due diligence”, join us for a long weekend. This way you can experience Costa Rica’s amazing natural beauty and to learn about this delightful country’s people and culture first hand. Experience a zipline, go horseback riding or take a stroll on the beach—and at the end of the day sip a cool drink and watch one more spectacular sunset. Investing doesn’t get any better than this. Give Chris Howard a call and he’ll help arrange your itinerary.

Barry Strudwick is the developer of The Del Pacifico Surf & Golf Resort and several land banking partnerships holding over 2,000 acres of land in Costa Rica. He serves an international client base from his offices in Maryland and Costa Rica.

If you want more information about the best real estate affordable, please contact Costa Rica real estate and retirement properties or call toll free 1 888 581 1786.

"Baby boomers are redefining retirement - and leading the move to a new generation of dream countries"

AARP Magazine

Christopher Howard's The New Golden Door to Retirement and Living in Cost Rica, is important when doing research about moving to Costa Rica.

By Hillary Chura
New York Times
July 30, 2005