Tripping El Salvador

Investing in real estate in El Salvador is a great opportunity due to inflation, decreasing prices in properties and the buying pressure in some areas in the United States created by wealthy people outside which make some US cities out of the budget of the average man.

Another thing to have in consideration is the fall of the dollar which reduces its real value thus decreasing the value of US real estate creating another source of pressure from overseas buyers forcing middle class families to go to less expensive areas within the US.

Loss of purchasing power of retirement income is forcing many people to seek less expensive opportunities to move to small communities and abroad for places with abundant water. They are quite, peaceful, scenic and with all the technological advantages of an urban area allowing families run their businesses from home via the internet.

Take Apaneca in El Salvador, for example, living cost are really cheap, you can even grow your own food if you want. Median house price rounds from $40,000 to $90,000. The cost of living is obviously very low for such a pleasant area.

Buying pressure from oveseas buyers is so high due to the demise of the dollar that Americans are no longer able to compete for coastal land since forcing prices for property there are scalating above normal levels.

You can see this phenomenon in places like Naples where the rich come from all parts of the world and drive prices beyond the ability of middle class home owners. London is another great example of this. A modest house in London costs $750,000 or more! In central London, prices begin in the millions. This is because every person from the Commonwealth of many nations who has a little extra cash wants a London Pied a Terre. Middle class English cannot afford to live in central London!

So here you will learn about low cost living and good value real estate in El Salvador.

The situation unveiled with the collapse of the US economy will have a serious impact in the pockets of every american unless each invidual do something to minimize its effects. People who are witnessnig the loss of real value of their money invested in retirement plans and social security due to inflation will face the following options:

1.- Keep working
2.- Move to inexpensive countries
3.- Export their retirement
4.- Live in near poverty (wath video - tents in CA)
5.- Die

This is why I also believe in El Salvador. Imagine this. 60 million boomers will retire over the next 20 years. We boomers are the most spoiled group of consumers as a demographic class that has ever existed on earth. We were promised the world. We were given the world. Now the magic is about to disappear.

Assume that 10% of these will decide to move to less expensive countries. That’s 6 million people. Where is the most likely place to go? Eastern Europe offers great potential but are long distances from the US.

Canada is out too expensive and too cold. Most people will head south.

Mexico stands to be #1, but prices there are rising quickly and there is a lot of anti-gringo sentiment. After all there have been numerous Mexican-American wars. The building of a fence across the border will not help either. Yet it’s still probably the place that will benefit the most due to location.

Cuba. By then will be ripe and good as well. A great place to buy when you can assuming no negative political circumstances. The low end Caribbean is also good except for those darn hurricanes that will put lots of people off…plus many water and transportation problems and the fact that few of the islands have a real infrastructure.

Panama is good...lots of English spoken, many yanks already there, but weather is lousy if you want to be in town (hot and humid) and prices are no longer low. Ditto for Costa Rica. Colombia is the first nation with a progressive economy and full infrastructure after Panama and Mexico. This is a wonderful place but security will stop most from going there. If the security/drug/crime issues are resolved and image cleans up...go buy in Colombia. This will be a great opportunity.

However for now El Salvador, 1 hours and 45 minutes from the US will benefit as the first nation with a full infrastructure and really low cost of living. Argentina, especially Buenos Aries should do well also. It’s further away but BA has a very European feel.

If El Salvador gets just 1% of these 6 million Americans that leave the US, imagine what this means to this nation of 6 million. First this is more than a 1% increase in population. However look at what it means in dollars!

According to the IMF World Economic Outlook Database, El Salvador has a Gross Domestic Income of $3,154 per annum per person. That makes a total GDP of $18,924,000,000.

Imagine what happens if the 60,000 gringos have an average income of $18,000 a year per person. That adds $1,080,000,000. This is an annual income that almost equals 5.7% of the entire national GDP! This is one reason why you should Latin equities in your investment portfolio and start buying more and more real estate in El Salvador.

Every cloud has a silver lining and two clouds casting shade on the greenback’s value are liberal money supply and political interference to support presidential elections. The silver lining comes in the form of profits made in places where fed up Americans and Canadians decide to go when they leave home.

This is why you should buy real estate in El Salvador