Search Results for: chile

How Chile’s Accord With China Is A Big Win For Viña Del Mar

Viña del mar, Chile
Plus: “Can I Double My Money Using Exchange Rates?”

Prediction: Chile will soon see big dividends paid to its #1 tourist destination thanks to its standing as China’s closest Latin American ally. –L.H.

For many countries 2016 was a disappointing year. Generally speaking, a number of stable democracies showed real signs of instability and uncertainty for the first time in decades.

For Chile, by contrast, 2016 was an encouraging year.

Chile’s 2016 annual growth rate continued despite an earlier threat of a significant slowdown for the first time since the 2010 global recession. Thankfully, growth rates remained stable due to a strong third-quarter performance from the mining and manufacturing sectors, which exceeded market expectations.

Furthermore, newly released economic forecasts show that Chile will very likely meet or exceed these healthy growth rates through the year 2020. Consumer confidence rose to its highest level in nearly two years, and business confidence also ticked up in the closing months of 2016. …

Two Top Sectors In Santiago, Chile

The Property Market In Santiago, Chile

Plus: “I Can Buy Property For Half The Price In The USA!”

Feb. 3, 2015
Santiago, Chile

Us$1=626 Chilean pesos

Dear Overseas Property Alert Reader,

The quality of life you’ll find in Chile is one of the best in the Americas. And while Chile is not the cheapest place to live, the value—what you spend compared to the lifestyle offered—is unsurpassed. It’s also friendly to businesses, startups, and entrepreneurs, offering easy residency and citizenship.

Since my first scouting trip here in 2002, Chile’s been at the top of my list for a lot of reasons. And while I’d like to pretend that I’m here on assignment, I actually came because there’s no place I’d rather be during the South American summer… which says even more for this country.

But the big news right now is the exchange rate. At today’s rate of 626 pesos per U.S. dollar, everything in Chile is an astonishing bargain, from an apartment, to a week at the beach, to a bottle of wine or nice dinner out.

As I write this today, we dollar-holders have 36% more buying power than we did in 2011 and 32% more than we had in 2013.

So if you’ve ever considered Chile for a second-home destination or a retirement venue, now …

A South American “San Francisco” On Chile’s Central Coast

The views from the hills of Valparaíso are unbeatable
Plus: “Let’s Hear More On Some US$50K Properties!”

Jan. 6, 2015
Valparaíso, Chile

US$1=614 Chilean pesos

Dear Overseas Property Alert Reader,

I’m writing again this week from the coast of Chile. The early summer, Pacific-moderated temperatures are just about perfect, as they were two weeks ago when I wrote from nearby Viña del Mar.

But Valparaíso, while just a few minutes away, is nothing like Viña del Mar. This is a full-scale, working city and one of Chile’s largest seaports. A city where people actually live and work all year.

Two aspects of Valparaíso (pronounced val-para-EE-so) will remind you of San Francisco, California.

One is the hills, which can be dramatically steep depending on where you are. But remember (as you envision climbing them) that hills equate to views, which is good for the property-buyer, especially when you’re overlooking the ocean (in this case, a seaport).

Also reminiscent of San Francisco are the cable cars (actually funicular railways), locally called ascensores, which translates to “elevators” in English. Of the 26 functioning ascensores, eight are currently in service. At first I thought that only the laziest of couch potatoes would use these things, but it only took me about a half-day of climbing the hills to appreciate the value of the ascensores. …

Chile’s Gleaming City By The Sea

The high season is just around the corner, but the fine weather is already here
Plus: Ecuador’s Bite Into Your Real Estate Profits

Earlier this afternoon, I was standing at the municipal pier in Viña del Mar, taking photos of the beach and the adjoining condo construction. We’re nearing the peak of high season at Chile’s #1 resort and the crowds are beginning to show up.

It’s not my first visit to this pier…by chance, I have a similar photo taken of the same beach in 2006. In fact, I’ve got a pretty good set of pictures from this area going back a few years.

When you see the way the beachfront has been developing from then until now, it’s obvious that Viña del Mar continues to grow in popularity with second home buyers. Construction companies are working hard to keep pace with the demand, as new projects sprout like wildflowers along the shoreline heading north from the city.

This is an active property market in a sought-after location with lots of opportunity. …

Chile Versus Colombia: Two Top Countries Compared

Beach in Santa Marta, Colombia

Two countries that rise to the top in any conversation about Latin America are Colombia and Chile. They both get high marks for their property markets, economic performance, lifestyles, and geographic diversity.

Colombia and Chile share some common ground, but they’re different in many ways. Let’s compare these top two destinations head-to-head.

The Property Markets

The property markets are solid in both Chile and Colombia, and in general, a quality rental property will generate about the same return in the same type of neighborhood.

The exception is Medellín, Colombia.

I tried comparing Medellín (El Poblado sector) to Chile’s capital Santiago (Las Condes sector), but it didn’t work because Medellín’s properties are so under-valued. Comparing Bogotá to Santiago is a truer comparison, and you’ll find costs are fairly even. Bogotá’s rentals cost about 15% less than Santiago’s…while buying an apartment in Bogotá will cost you about 11% more. …

Ceará, Brazil: Pristine Beaches And Cheap Property Are Just The Beginning

Raft or Jangada, typical sail boat from Brazil Northeast, used for fishing and for tourism in Cumbuco Beach, Ceara, Brazil.

Invest In One Of Brazil’s Most Coveted Tourism Destinations

If you think of Brazil, you probably think of Rio de Janeiro first. This city has been popularized in movies and books over the last 75 years. But Rio’s population has swollen to 13 million people. Sao Paulo is even bigger, with 22 million.

While full of art and history, Rio and Sao Paulo also have the usual issues found in huge cities, including heat, congestion, and crime. Plus, with this population pressure, property prices have risen dramatically.

This doesn’t mean that Brazil is an unaffordable or unattractive place to buy real estate.

Brazil is vast. It’s the 5th largest country in the world, with some of the most amazing beaches and inland real estate opportunities if you know where to look.

The trick is to follow the locals.

Upper- and middle-class Brazilians are vacationing and relocating to the northeastern coast because they are fed up with the sweltering summer conditions in the south. They are lured by a better lifestyle and more affordable real estate.

They are relocating to Fortaleza, capital city of the Ceará state, and the towns and villages in the surrounding area.

A map of BrazilCeará has miles and miles of pristine beaches with consistent breezes that make the area both comfortable and one of the wind-surfing capitals of the world.

But the secret isn’t out yet. That’s what I find most appealing about Fortaleza.

It’s undiscovered by outsiders.

Foreign investors don’t know about the rock-bottom local prices that you can still get fabulous beachfront property for. Property in the city is still quite affordable. The strength of the dollar over the past few years continues to keep prices down. The Brazilian real has lost almost 40% of its value in the last five years.

The best deals on beachfront property can be found when you go 45 to 90 minutes outside of Fortaleza.

You’ll find spectacular beaches, nice towns, and quaint fishing villages that are quieter, uncongested, and safe and welcoming. The area isn’t blighted by mega resorts, but there are plenty of places to eat and all the services you need close by.

Beach properties cost one-tenth what they would cost in the United States. If you want property on the water close to lovely towns, places where you can have a nice dinner for a few bucks, and where you can relax and be inspired… you have come to the right place.

Another advantage of the northeastern coast of Brazil is that you get no hurricanes. They peel north or south and almost never make landfall in the area.

English-speaking locals are friendly, but my friends have found that those who don’t speak English are even friendlier. They go out of their way to help you and are not out to hustle or panhandle you. These are decent, humble people who live how folks lived in the States back in the 1950s.

You don’t need to learn Portuguese to live in Brazil, but learning simple phrases will help you integrate into the local community.

The Brazilian economy has more going for it than just tourism…

Brazil borders every country in South America except Ecuador and Chile, making trade in Latin America easy. Brazil is the 6th most populous country on Earth, with a young population of 210 million people that’s growing fast.

When purchasing power parity is used, the Brazilian economy is the 7th largest in the world with a relative buying power of about US$3 trillion.

Brazil has a diversified economy, with heavy and light industries, huge natural resource reserves, and a rapidly expanding services sector. Brazil has also proven to be insulated from the war in Ukraine.

Brazil’s unemployment rate dropped to 9.8% in May, meaning there are no possibilities of inflationary pressures caused by labor shortages like we are seeing in the United States.

Commodity prices are surging around the globe. This benefits Brazil because it’s a huge producer of global commodities including soy, iron, metal ores, sugar, gas, and corn. Even though Brazil is exposed to the rising costs of oil derivatives and other raw materials, the global price surge in commodities that Brazil produces compensates for the price increases in these few categories.

Brazil had a trade surplus in 2021 of nearly 10 billion. For a developing nation to enjoy such huge surpluses is uncommon, especially after a crisis like COVID-19. It’s a strong indication of the general heath and diversity of their economy.

Ceará’s Real Estate Market

The real estate market in the Fortaleza area has tremendous growth potential. Prices are as little as a tenth of what you would pay for similar properties in Florida or California.

What’s the catch? How can they afford to sell these amazing beachfront homes starting at less than the price of a nice SUV?

I tell my clients that they are asking the wrong question.

The question should be: Why is real estate so overpriced in the United States?

You can buy new homes on the beach in northeastern Brazil for less than US$70,000 because Brazil has a fully integrated economy and lots of labor.

They make everything in Brazil, while America imports everything from China.

There are no import tariffs on home-produced building materials. It’s all sourced and built locally. The steel, concrete, floor tiles, roof tiles, wood, cabinets, granite countertops… everything is locally sourced.

These local supply chains allow savvy developers to build at a better price than anyone else.

There’s lots of prime oceanfront land available along the northeast coast of Brazil, which means developers can find development sites at reasonable prices.

If you are interested in acquiring residency through your investment, you can invest 700,000 reals (roughly US$140,000) in property in northeastern Brazil to be eligible for the Investor Visa. This is a lower threshold than if you were buying in southern Brazil.

The developer we are working with offers several developments within an hour or two of Fortaleza and its international airport. And yet, these developments feel a thousand miles away from congested cities and are on some of the most spectacular beaches in the world.

Our development partner is a boutique building company that has been active in the area for over two decades.

These guys don’t build 30-story concrete condo towers. Their specialty is finding small plots of land on pristine beaches and developing a limited number of boutique villas and bungalows.

They attract a different type of consumer than your typical condo buyer.

Unique to the Fortaleza area is the year-round rental market. This is what makes investing here much more lucrative than elsewhere in Brazil. Most of Brazil caters to the summer vacation rental market (June to August) or the winter vacation market (December to February) and everything else is off-season.

You can reasonably expect anywhere between a 10% and 15% return on your rental investments due to the year-round tourism rental market and the very low entry costs, coupled with the fact that they develop desirable seaside properties.

The rental occupancy rate in this area is an impressive 88%, making this a viable investment opportunity.

Located in Canoa Quebrada (90 minutes from the city of Fortaleza) in the Ceará state, this developer is selling bungalows with their own pool, located on the best stretch of beach in the area.

A beach home in Ceará, Brazil

The bungalows have a living space of 37 square meters (400 square feet), one bedroom, one bathroom, and a private pool. Construction is expected to be completed by August 2024.

This investment has full-service property rental and management available.

The property has a cash price of US$67,000.

Developer financing is available from US$77,000. You’ll put 25% down with interest-free payments for the remaining balance over 24 months.

The development is near one of Ceará’s most popular tourist destinations, with access to great restaurants, supermarkets, shops, and tourist activities such as dune buggy rides, kite surfing, diving, paragliding, ATV tours, fishing, boat trips, and several of Brazil’s most beautiful beaches.

To find out more about this opportunity, click here.

Con Murphy
Editor, Overseas Property Alert

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Brazil’s Economy: The Overlooked Powerhouse Of South America

Copacabana Beach and Ipanema beach in Rio de Janeiro, Brazil

Why Investors Are Flocking To Safe Haven Brazil

I’m not going to wax lyrical about the amazing natural beauty of Brazil, nor bore you with talk of 5,000 miles of coastline and many of the world’s best and most pristine beaches.

I won’t tell you about the rich and diverse culture, the 7 natural and 14 cultural UNESCO World Heritage Sites, or the rich music, cuisine, and exotic peoples either.

Today I’ll be analyzing the Brazilian economy, because Brazil has revealed herself as a safe haven investor’s paradise.

Everywhere else around the globe, markets are in turmoil, governments are panicking, and the world’s attention is turned toward the war in Ukraine.

Brazil doesn’t seem affected by any of this…

Savvy investor money is pouring into Brazil. And it’s easy to see why.

Brazil is the global powerhouse that is often forgotten, even though it’s one of the biggest, strongest, and most diversified economies in …

Hydroponic Agriculture: Our Ticket Out Of A Crisis

Hydroponic tomato gardening

The Mother Of All Invention

One of my favorite Hemingway quotes is:

“How did you go bankrupt?”

“Two ways. Gradually, then suddenly.”

That’s the situation facing America’s oldest industry.

It’s going bankrupt slowly at the moment, but if the industry doesn’t change radically, the foreclosure will come suddenly.

A vital resource is running low… one that takes thousands or millions of years to accumulate.

The United States will run out of domestic supplies within a generation, as will the other major world powers.

Middle Eastern and North African (MENA) nations have 85% of the world’s reserves of it. China has banned its export because it can see a food crisis looming.

Science magazine called this crisis a bigger threat to the planet than climate change, and you know how much they talk about climate catastrophes.

I’m not talking about nuclear waste, or antibiotics, or plastics.

The crisis that no one seems to have heard about is the collapsing stocks of phosphorous, a simple mineral that we use every day.

Pure phosphorous burns on contact with oxygen, is poisonous to us in many forms, and causes the death of aquatic life through algae blooms.

But we need it.

We need phosphorous for making steel and explosives but also the fertilizer with which 50% of the world’s food is currently grown.

The global population is projected to reach nearly 10 billion by 2050, and this will precipitate a 70% surge in global food demand.

The Issue

Fertilizer use has increased 400% in the last 50 years, and its estimated use will double again by 2050.

Fertilizer prices are at their highest point in a decade because we are running out of cheap supplies of phosphorous to use.

It can be extracted from animal bones and offal, animal manure, and sewage for transport to farms far away, but it’s a messy and time-consuming process.

Not enough waste streams exist to be able to supply our current demands for phosphates through recovery processes.

The U.S. phosphorous mines are mainly in Florida and Utah. China and India have large mines, with smaller deposits scattered around the world.

All three countries will run out of domestic phosphate supply in as little as 50 years, and price rises are not going to stop.

Morocco is home to the largest reserves of phosphate, accounting for 85% of the world’s known supply.

Just as other MENA nations controlled the oil supply in decades past, Morocco could control the global fertilizer mining industry a few decades from now.

I will be looking at all the opportunities Morocco has to offer this year.

Other Challenges Facing Conventional Agriculture Production

  • Global water supply will drop 40% by 2030. About 40% of the United States is currently in endemic drought cycles.
  • Currently, 25% of global arable land is degraded, meaning it can no longer produce crops consistently due to bad farming practices and over-fertilization.
  • Pesticide and herbicide use is harming the population. The 9 billion dollars (and counting) currently awarded to Monsanto’s cancer victims bodes badly for agrochemical companies.
  • Gridlocked supply chains highlight the needs for more local food producers.

The solutions are simple.

We need to reduce fertilizer use dramatically and find alternative sources to the ones we have today. Plus, we need to achieve higher crop productivity and rehabilitate degraded soil or learn to farm degraded lands productively.

We need less runoff of chemicals into the environment and less chemical use in general.

We need to stop flying lettuce in from places like Chile in winter and produce food close to where it is consumed.

Lastly, we need to drastically reduce our water consumption.

The good news is that viable solutions are already being implemented quietly around the world. Here’s how to get in on and profit from these world-saving technologies.

The Mother Of All Invention

New agricultural technologies are being brought online and changing things in real time.

With huge advances in robotics, drone technology, and artificial intelligence we are now able to monitor crop conditions exactly, inspect for pests, and harvest crops.

Modern automated greenhouses can shade and cool crops for perfect climate all the time.

One technology above all is being adopted for its impact on long-term food security.


Hydroponics strawberries at greenhouse hydroponics farm
Adobe Stock/DN6

Hydroponics cuts the requirement for fertilizers by 60% instantly.

It’s a modern concept based on a farming method used by the Aztecs over a thousand years ago.

With hydroponics, plants are grown in nutrient rich water but sit in no soil. It doesn’t matter how bad your soil is because you don’t use soil to grow.

The plants don’t have to struggle to extract nutrients; they just drink to their hearts’ content.

Most operations are in automated greenhouses that control climate, with computers and sensors to optimize conditions.

Increased Yields

Because of this nutrient “free-pouring,” the plants can mature up to twice as fast as field crops. This allows for more crop cycles per year. Whereas an industrious conventional farmer might be able to squeeze 3 lettuce crops out of his field in a year in southern California, a well-managed hydroponics greenhouse can produce up to 11 crop cycles.

Yields per plant can increase up to 100% as well, depending on the crop.

And all this is done with 60% less fertilizer than conventional field methods, as the fertilizer doesn’t wash away and contaminate soil and waterways. Plants grown hydroponically can require as little as 10% of the water that is used to irrigate similar field crops.

This is a huge financial and environmental savings.

Hydroponic farming systems are easily designed to produce organic fertilizers on-site, which makes hydroponics adaptable without cheap-mined phosphates.

Hydroponics requires a higher initial investment than simply planting a field crop but is many times more productive per square meter for decades to come.

Profiting From Chaos

It’s not easy to find a way to invest directly in an emerging trend like hydroponics.

But we have found a rare opportunity to partner with a British group with a long track record in the industry.

Their hydroponics operation is growing so fast that the owners are seeking business partners. Investors pay for greenhouses to be built and the British and local team manages everything from there.

Construction, operation, marketing, sales… they handle it all turn-key.

Your partners operate the greenhouse you legally own and take a modest 15% of the profits as a management fee.

It’s in a tropical country, close to a huge market for its high-quality produce. It offers country and asset risk diversification and great returns.

You start seeing returns within two years with a projected IRR of 16.5% over the next 20 years.

In fact, early investors will be collecting their first payments this February.

If you’d like to learn more about this hydroponics investment, find out more here.

Join me next week for more information on how to turn crisis into opportunity.

Con Murphy
Editor, Overseas Property Alert