Monday morning Rox suffered her first asthma attack in over six months, here in Escazu, a suburb of the capital city of San Jose. We had just come back from vacationing in moist, hot weather in Bocas del Toro, Panama to rainy, chilly weather in San Jose. Where we live, in Guanacaste, the weather is hot but dry, so asthma problems had been history.

Anyway, it´s seven in the morning, Rox can´t breathe, and off we go to a “doc in a box” provided free by the Costa Rica state run health care system. Only problem is, the doctor won´t be in until 10:30, according to the nurse on duty. Wait. And the traffic to San Jose will take at least half an hour, maybe much more. Instead, we drive five minutes to CIMA hospital, an outstanding private hospital in Escazu affiliated with Baylor. They run the credit card, make us wait less than three minutes, and begin treatment with oxygen and an inhaler filled with something that clears up the bronchial tubes. Four treatments of this, and we are out before 9:00 a.m. Total bill for private medical care, provided by going to the emergency room, $46.64. That included an 8% discount by presenting our PriceSmart wholesale club card.

So, we get back to the bed and breakfast where we are staying, I turn on CNBC, and there is Barack Obama with his speech on reforming the U.S. health care system. Hmmmm. Time will tell. Hope so.

In our case, we had a choice between free government run health care (wait 3 1/2 hours, but the price is right), or outstanding private care for under $50.

Do any of you in Canada or the U.S. have similar stories? How does our experience compare?

Costa Rica, like many other countries, requires folks who are here on a tourist visa to leave the country every 90 days, for at least 72 hours. Back in the day, there never was a question, really. I was working hard, marketing mostly to Canadians and Americans, and my travel was predestined. Now, with The Oaks over 80% sold out and leisure time on my hands, where to go? First stop: San Jose for the 70 something birthday celebration of an old friend at our favorite Italian resturant, Ólivo in La Sabana.

Wow. Culture shock. Cows on the road passes for a traffic jam outside Tamarindo, in Guanacaste. On arriving in Escazu, we found a traffic jam worthy of LA. What the heck!? It was even on Channel 7 news! Seems that the new highway from San Jose to the Pacific coast had advanced sufficiently so that the Authorities decided to raise the toll  from 75 colones to 310 colones. This jump ( highway robbery!!) caused everyone and his cousin to exit the highway onto the old road in Escazu, just before the toll plaza. Result: a traffic jam of newsworthy proportions. So far, neither the Authorities nor the public appears willing to give way. This could go on for a loong time. (For perspective, the toll jump in dollar terms is from $0.13 to $0.54.) The good news was that on coming back to Escazu  it made for a nice, empty toll road.

Ah, but where to go for 72 hours? Our first trip to Bocas del Toro, Panama, of course. An easy one hour Nature Air flight from San Jose, Bocas is in a time warp. Sort of a cross between the Bahamas and Key West, or how I imagine Key West on food stamps. Laid back, the people a little more aggressive than in Paradise, but with our own private holiday rental condo on stilts over the bay, ten minutes away from everything by boat, solar for electricity, waves lapping under the floor, and total, I mean total, silence. You can check out our genial host at www.bocasvillas.com. Lovely.

A couple of cool things happened today. First, I was driving from The Oaks to my finca in San Juanillo about an hour south and picked up a random hitchiker. Turned out it was Steven from Colorado, he´s been coming to Costa Rica for about a year and manages the Buddha Bar in San Juanillo. Small world.

Came back and had an unbelievable Costa Rica lunch made by Rox! Two small corn tortillas, open face, lettuce, ground black beans, a slice of tomato,a slice of avocado and a very small portion of white tuna. 215 calories each, 14 grams of protein, low fat. Delicious! Karma, I guess. Also makes a great vegetarian lunch minus the tuna.

Costa Rica Yoga Vacation Week

The Oaks has chosen these weeks in Costa Rica for your personal growth because they cover the period of “little summer”, during which the nation enjoys sunshine and fresh skies similar to the fantastic weather from December through April, but with the benefit of fresher temperatures and better surfing.

Each week includes the use of a brand new two bedroom, two bath condominium at The Oaks Tamarindo, the beautiful and magical surroundings of Costa Rica, for the low price of only $650 per person, based on two persons in a condominium. If two couples or a family of three or four share a condominium, the price per person is even lower.

Make Little Summer in Costa Rica the best week or weeks of your life with Kristen Atkinson of Montezuma, Costa Rica, San Francisco, and The Oaks. Kristen’s classes focus on strength building and flexibility while encouraging her students to go deep within themselves. Her classes will leave you feeling refreshed, rejuvenated and ready to take on your next challenge. She also shares a passion for surfing and loves the way yoga and surfing naturally compliment each other. This wellness week is not just a physical workout, it’s a lifestyle enhancer. You’ll deepen your yoga practice, connect with your spirit, learn about nutrition and begin living your life in the present moment.

The leatherback turtle, which can weigh 2,000 pounds and be up to 9 feet long, travels up to 6,000 miles to lay her eggs on the beaches of Costa Rica — swimming perhaps all the way from the Galapagos. Just minutes from The Oaks, Playa Grande is one of the Leatherback’s protected sanctuaries.

Leatherback Turtle Hatchling on its way to the Pacific

Among all the business of real estate comes joy. We finished our resort condominium, The Oaks Tamarindo, just in time for Christmas. And lo and behold, just last week, we got to celebrate our first engagement! One of our new owners, Sherie, from England, arrived in Costa Rica with her boyfriend, and left with her fiance! Yes, the same lucky guy, Lawrence. Check out the rock!

Sherie is a dealer in antique jewelry, and Lawrence runs a business in the neighboring county. So, Sussex and Kent unite in Paradise! Congratulations!

Engaging Costa Rica

Found a great new Italian restaurant Luna Rossa, just outside Brasilito. Went last night with my novia (girlfriend) Rox, Ken from Vancouver Island, Kris from Red Deer, Peter and Theresa from Toronto. Under a full moon in Costa Rica. great flaming strawberry crepes, pink lights. Definite return visit, the most romantic restaurant near Tamarindo.

Full Moon

HOW HAVE TWO COSTA RICA REAL ESTATE INVESTMENTS COMPARED WITH THE TORONTO STOCK EXCHANGE?

By Robert J. Irvin

I have been writing for over two years now, arguing that a carefully researched investment in Costa Rica real estate adds both safety and return to a Canadian´s or American´s investment portfolio.

This time, instead of providing arguments why an investment in Costa Rica real estate lowers risk and increases return, I am going to document the experiences of two Canadian investors in The Oaks condominiums, www.theoakstamarindo.com.

These are real stories, with only the names changed to protect the buyer´s privacy. Each investor bought a two bedroom and two bath condominium with about 900 square feet of construction area. The condominiums are now fully built to excellent North American standards, in an ecologically planned development with 24 hour security.

Cam signed a contract in September 2006 to buy a 2d floor unit for its list price of U.S. $109,000. He made progress payments over the following year and a half, completing his purchase Easter 2008. At the time Cam signed his contract, the Canadian dollar was trading at about $0.89 to the U.S. dollar. Over the term of Cam´s payments, the exchange rate fluctuated between $0.84 and $1.07 to the U.S. dollar, with Cam´s average remittance of funds to Costa Rica coming in at around $0.94 to the U.S. dollar. So, in Canadian dollars, Cam invested about $116,000.

Today, a comparable second floor unit is listed for sale at U.S. $188,000. The Canadian dollar closed last Friday, October 24, at $0.7825 to the U.S. dollar, making the sale price in Canadian dollars about $240,000. After deducting estimated closing costs and commissions of 6%, Cam will realize $225,600.This is a gain of almost $117,000, over a 100% return over two years.

Now let´s do a simple comparison. Let´s say that at the same time Cam invested in Costa Rica, he had $109,000 invested in Canadian stocks, the performance of which tracked the TSE Composite Index. In September 2006, the TSE stood at 11,581. This past Friday the TSE closed at 9,294.

Therefore, Cam´s stock portfolio that began at $109,000 currently is worth $87,475. However, combined with his Costa Rica real estate investment, Cam´s initial diversified portfolio of $218,000 is worth $313,000.

Had Cam chosen not to diversify, his initial portfolio of $218,000 invested in the TSE would be worth only $175,000 now, not $313,000. Ouch.

Kristen signed a contract a year later, in September 2007, to buy a ground floor unit for its list price of U.S. $139,500. She made progress payments over the following year, completing her purchase in September 2008. At the time Kristen signed her contract, the Canadian dollar was trading at par. Over the term of Kristen´s payments, the exchange rate varied from $1.07 to $0.97 to the U.S. dollar, with Kristen´s average remittance of funds to Costa Rica coming in at around $1.02. So, in Canadian dollars, Kristen invested about $137,000.

Today, there are no comparable ground floor condos offered for sale (they sold out). However, using the second floor comparable of U.S. $188,000, for a Canadian dollar sale price of $240,000 and a price after commissions and closing costs of $225,600, Kristen has a gain of $88,800, over a 65% return over one year.

Now let´s do a second comparison. Let´s say that at the same time, Kristen had $137,000 invested in Canadian stocks, the performance of which tracked the TSE Composite Index. In September 2007, the TSE stood at 13,940. This past Friday, the TSE closed at 9,294, so that Kristen´s $137,000 stock portfolio currently is worth $91,340. Combined with her real estate investment in Costa Rica, Kristen´s initial diversified portfolio of $274,000 is worth about $317,000.

Had Kristen chosen not to diversify, her initial portfolio of $274,000 wholly invested in the TSE would be worth $183,000 now, not $317,000. Double Ouch.

How can an investor keep track of these moving pieces? Well, maybe it´s not necessary. Remember two things: 1. Diversified is better than nondiversified. 2. Diversified outside Canada is even better.

Why did Cam´s and Kristen´s investments work out so well?

One, Costa Rica offers a stable, safe democracy and a sunny, peaceful place to spend the winter. With a large ageing population (except for you) wanting a convenient and beautiful place in the sun, demand is going up. Location matters.

Two, Cam and Kristen chose a development that was financed wholly by the developer´s equity. No loans. Contrast that with a development funded by a mortgage loan. In that case, if the lender stops lending (sound familiar?), the developer might have to stop construction, leaving buyers holding the proverbial bag. I am not saying that would ever happen, especially to you, but look around.

If you still want a safe investment in an attractive, growing market, look no further than The Oaks. Ask us about phase three.