Costa Rica Power Team

As a member of the Costa Rica Power Team and a lover of all things Costa Rica I am asked, “What about the health care?” when I am gushing about the attributes of one of my favorite countries in the world!

Well, in 2001, the World Health Organization ranked the tiny Central American nation 36th of 191 countries for health system performance.  Oh, and this was above the ranking of the United States!  This ranking comes as a result of reforms in the Costa Rican system and dramatically improved primary health care.  Since the countrya abolished its military in the 1940’s it can invest in its social sector what other countries spend on weapons and military funding.

One of the most successful elements of reform was the introduction of Basic Health attention Teams (EBAIS)responsible for a community’s physical and socail needs.  The system was divided into 20 hospital providers and 90 health zones.  Each zone was further divided into 10 EBAIS.

A national health plan was approved and investments were restructured, allocating resources where they were most needed.  The autonomy of healthcare providers increased with a greater control over their finances and the power to implement organizational changes.  Incentives for achieving goals were raised because 10% of a hospital’s budget was withhel and rewarded later for good performance.

Over the past decade investments from global development finance institutions such as World Bank and Inter American Development bank has exceeded US$  1 billion.  In the past several years the Costa Rican government has contributed about US$200 million to strengthen primary health care costs.

There is continual system of improvement and modernization.  Definitely, Costa Rica could teach the US a few things about health care!

Don’t forget to check out our website www.deededparadise.com for up to date information on all things Costa Rica!

Data collected from World Health Organization

Traditional bueyes get ready to welcome Christmas

By the A.M. Costa Rica staff Sunday marks the official start of the Christmas season in San José. The kickoff will be highlighted by the traditional Entrada de Santos y Boyeros, which is a procession of carretas pulled by bueyes with santos aboard. Boyeros are the men who care for and lead oxen, and the bueyes are the oxen,  giants who lumber without complaint. It has been traditional for the ox cart drivers to assemble the Saturday before at Parque La Sabana for the Festival Campesino, where the rural celebrations of songs, dances and food take hold. The public is invited to this, too. The ox carts provided the transportation from the Central Valley and elsewhere to the Pacific port of Puntarenas for the golden grain that thrust Costa Rica into the international marketplace. The coffee grains travel in more modern fashion now, but the carreta or ox cart lingers on with some use in muddy rural fincas. The boyeros may look rural as they lead their beasts up Paseo Colón and Avenida 2, but under those wide-brimmed hats there may be a lawyer or a physician or some other professional. Keeping hungry bueyes can be an expensive hobby. The brightly painted ox cart is a Costa Rican icon but most of the fancy work did not appear until the early days of the 20th century when an Italian in Escazú began to imitate the carts of his native country. The santos or saints are the wooden representations of holy men, the Virgin Mary and Jesus Christ. A life-size San José, the municipality’s patron, usually takes the lead cart. The morning procession of ox carts is a show stopper and a photographic must for tourists. Costa Ricans take their ox carts seriously, and so does the U.N. Educational, Scientific and Cultural Organization, which dubbed the oxen and carts as intangible cultural heritage. Another tradition begins Dec. 8. This is the  avenidazo or celebrations along Avenida Central and the pedestrian boulevard in downtown San José in conjunction with the Compañía Nacional de Fuerza y Luz. The Noches Culturales Navideñas include musical groups and the tradition of throwing confetti at passers-by, a

A.M Costa Rica file photo A statue of San José with the child Jesus usually leads the procession. This is a 2006 shot. practice the municipality is trying to end. Dec. 13 is the traditional parade of lights dedicated this year to María José Castillo, the Latin American Idol runnerup. Hundreds of thousands of people (The city says a million) will line the parade route to see elaborate floats, called carrozas in Spanish, bands and other entertainers. Oh, yeah, the chubby guy in the red suit, too. The show starts in La Sabana at 6 p.m. with fireworks. Then marchers go up Paseo Colón and Avenida 2. Dec. 25, Christmas Day, begins the Fiesta de San José at the Zapote fairgrounds. This carnival runs until Jan. 4 this year. Here is where Ticos and Ticas show off their bravery by getting in the ring with a 1,200-pound fighting bull. The Cruz Roja and first aid experts will be in attendance. The Tope Nacional, the celebration of horsemanship, takes place the day after Christmas as the capital is flooded with thousands of horses and riders who also occupy a traditional role in this mostly agricultural country.

NatureAir - the world’s first certified carbon neutral airline announced today that Costa Rica is showing dynamic growth rates despite a challenging economy. According to the Instituto Costarricense de Turismo (ICT) -  Costa Rica Tourism Institute -  tourism to Costa Rica is holding strong at an 8 to 9% growth rate. The ICT says 2008’s average world tourism growth is 2%, which is why Costa Rica is celebrating the fact that its 2008 economic outlook may surpass the world average by nearly four times. “In 2007 tourism was up 11%, so the economic crisis has still affected Costa Rica, but as other countries are seeing a larger decline in tourism dollars the Latin American region is seeing an overall increase in tourism arrivals and foreign revenue,” said Gonzalo Vargas, president of the Cámara Nacional de Turismo (Canatur) - National Tourist Board. “August’s domestic regional passengers rose by 4%, while international traffic has been up more than 9%, year-over-year.” With these statistics showing strength the countries largest airline, by revenue per passenger mile and available capacity, is optimistic for 2009. NatureAir’s 2008 third quarter accumulated gross revenue at a strong 42% growth. That is why despite the current financial crisis NatureAir is breaking the mold by revising its 2009 earning and projecting 11% growth in passenger traffic, and a 22% increase in earnings. “Studies show that during economic hardship people take shorter vacations, and tend to stay closer to home. But with Costa Rica only a five hour or less flight, from most major US cities, international travelers are still coming, “said Alexi Huntley Khajavi, Chief Commercial Officer for NatureAir. “It’s Costa Rica’s sustainable efforts, NatureAir’s safety record and nature based destinations that keeps us as a top destination for new and returning tourists ” Costa Rica’s domestic traffic growth is a global exception in a down market according to the Airports Council International. Although, the economic crisis has affected all countries worldwide, Costa Rica’s passenger growth continues to show promise. Since its inception in 2000, NatureAir has grown from flying 18,000 passengers annually to more than 150,000 in 2008. The company got its start with one plane and 17 employees. Now it has a fleet of eight planes and more than 150 employees. It’s the only twin-engine airline in Costa Rica with both scheduled and chartered flights, and offers 74 daily flights to 17 destinations in Costa Rica, and Panama.

With the passage of the Intellectual Propety law yesterday, Costa Rica is now ready to ratify the Tratado de Libre Comercio (TLC) and join the Central America Free Trade Agreement (CAFTA)

After fours years of debates and stalling, resulting in the first ever public referendum vote, the TLC is more a reality today than it has ever been in the past.

Missing two deadlines, March 31 and September 30, Costa Rican now has up to December 31 to prepare all the required documentation and executive orders to be able to deposit with the Organization of American States (OAS) the document that goes into effect on January 1, 2009.

The TLC has meant, among other things, an opening of the telecommunications and insurance market to competition - ending a decades long monopoly in both sectors, something opposing legislators didn’t want.

Costa Rica is the only signatory country to the trad deal that has yet to ratify the agreement, while Nicaragua, El Salvador, Guatemala, Honduras and the Dominican Republic have all ratified and implemented their respective trade agreements with the United States.

Although all the hurdles have been cleared, the last being the passing of the intellectual properties law, used by the opposition to stall the process in the hopes of not meeting the last of deadline, the actual ratification is not assured, as the government still has a lot of work to do before it can give the OAS the thumbs up.

Costa Rican president, Oscar Arias, said that his government will quickly finalize the paperwork needed for the TLC (CAFTA) to take effect.

“After more than four and a half years of debate, two extensions and one historic referendum in which the majority said they agreed with the free trade accord, we are finally closing this chapter,” said the president’s spokesman and brother, Rodrigo Arias.

Costa Rica’s agriculture sector stands to benefit the most from the new agreement, particularly specialized fruits and vegetables such as pineapple and yucca. Costa Ricans are also hoping competition in the cellular phone industry will lower costs and offer more services.

Under the state-run monopoly, it was difficult to even get a new cellular telephone line as the state owned agency, the Instituto Costarricense de Electricidad (ICE), battles with the bureaucracy that has dogged the institution for decades. The same with insurance, although the Instituto Nacional de Seguros (INS) has been more proactive in the face of a competitive market.

While several telecommunications companies have expressed interest in starting up businesses in Costa Rica after January 1, there hasn’t been the same level of interest in the insurance industry, mostly because of the global financial crisis.

Chamber of Commerce President Manuel Rodriguez said the accord “opens a window of opportunities for small businesses.”

The pending deal has mobilized large protests in Costa Rica in the past, but Tuesday’s news came with no public opposition.

U.S. President-elect Barack Obama has opposed CAFTA, arguing it “did not contain the sorts of labor provisions and environmental provisions that should have been embedded and should have been enforceable in those agreements.”

The final vote on the intellectual property law came at 12:11pm, 38 voted in favour and 13 against, closing the final chapter to a long, long soap opera.

Article reprinted from insidecostarica.com

San Jose, Costa Rica. The Costa Rica Power Team, a unit of San Jose based Crystal Clear Properties (www.deededparadise.com), announced today its “Certified Green Worldwide” Environmental Standards Program.

In keeping with its corporate commitment to maintain high levels of environmental awareness, the real estate sales company instituted its twelve point “Certified Green Worldwide” program. According to Jason LaFlesch, the President of the Costa Rica Power Team, before the company becomes associated with any new community development, it makes sure that the community’s development plan adheres to the protocols set forth in the “Certified Green Worldwide” program.

“As a company, we are involved in Costa Rica because we love the country. Like our buyers and certainly like the citizens of our host country, we enjoy all Costa Rica has to offer – its natural beauty, its wildlife, its fantastic way of life. Through our “Certified Green Wordlwide” program we are doing our part to ensure that Costa Rica remains the attractive, natural place that it is”, Mr. LaFlesch said.

Mr. LaFlesch went on to detail many of the key components of the “Certified Green Worldwide” program. These include the setting aside of ample open space for recreation and the maintenance of natural wildlife habitats, soil erosion safeguards, preservation of wetlands and aquifer regeneration watersheds, self-contained or municipal utilities, and other natural features of the land including steep slope guidelines and the maintenance of natural geologic contours. The program also will impose strict air quality initiatives in order to limit the carbon footprint resulting from human activity.

“The Costa Rica Power Team is taking the lead in setting the standard for responsible development in Costa Rica. We encourage other developers and sales companies to adopt our standards and earn “Certified Green Worldwide” designation”, Mr. LaFlesch noted. “Our Certified Green Worldwide program can be adopted and applied by developers globally,” Mr. LaFlesch added.

Heather Dopson, the Costa Rica Power Team’s Vice President of Business Development, said that the Power Team created the standards after many years experience working with environmental professionals in the United States and Costa Rica. “We recognize the importance of ‘green’ development and honor Costa Rica’s commitment to becoming carbon-neutral in the next few years,” stated Ms. Dopson.

The Costa Rica Power Team recently sold out its single family home community near Playa Bejuco in the Central Pacific region of Costa Rica. Tim Kopatich, the company’s Vice President of Operations said that two new communities adhering to the company’s “Certified Green Worldwide” standards have recently been launched. Las Colinas de Miramar is a master planned subdivision near Puntarenas and Quintanar de Los Reyes is an exclusive community of lake front homes perched overlooking Lake Arenal and the Arenal Volcano.

Costa Rica Real Estate Investors Market Update - Finance Minister says Costa Rica is in a “very strong and very favorable” financial position.

Scott Oliver - 12th October 2008

I have received numerous emails from people this week along the lines of:

“With the incredible financial meltdown in many countries and with real estate drastically losing its value all over the world, why not address this issue in one of your next newsletters. We, up here, need some “objective” and “real” analysis of what’s happening in Costa Rica. It would be hard to believe that all this is not affecting Costa Rica.”

Since discussing the state of the real estate market a few weeks ago in my article entitled ‘Prices For Quality Costa Rica Real Estate Remain Stable - In contrast to sensational and unsubstantiated claims made by some’ with feedback from numerous real estate experts in various parts of the country, little has changed here.

The number of actual real estate sales have certainly dropped in the past year - especially with regards to buyers from the USA - but for the most part, prices in Costa Rica remain stable, we have not seen any significant ‘across-the-board’ declines.

They say that misery loves company and I’m sorry we are not going to share any miserable stories with you about Costa Rica because the more you look, the better you are going to feel about investing in Costa Rica:

1. In looking at Costa Rica’s balance sheet, you will quickly see that according to the country’s Finance Minister Guillermo Zuniga, Costa Rica is in a “very strong and very favorable” financial position.

2. Costa Rica is enjoying a budget surplus.

3. Imports and exports are only declining slightly.

4. Costa Rica is less reliant on the USA than we have ever been.

5. Not only is Costa Rica in the best financial condition its been for over a decade…

6. Costa Rica’s banks are also in very good shape.

7. On the 8th October 2008 the President of the Banco Central de Costa Rica Francisco de Paula Gutiérrez stated that he: “does not see any economical indications of the world financing crisis affecting Costa Rica.”

8. As an example to confirm that, you’ll see that as of 10th October 2008 while the Dow Jones Industrial Average is down about 40% over the last year, the Costa Rica Stock Exchange is up 11.06%

Looking at how mortgage interest rates have risen in Costa Rica it would appear that - unlike many countries - the Costa Rica market has been uncannily accurate in predicting a period of much higher risk.

According to the Banco Central de Costa Rica (BCCR) the weighted average of all Costa Rica mortgage interest rates for the state banks in colones was at its lowest at 9.64% in April 2008. On the 7th October 2008 it was 14.65%. For the private banks, it was at its lowest in April at 8.09% and on the 7th October 2008, was at 13.22%. Mortgages in US dollars at the present time range from about 8.57% with ScotiaBank offering 11% mortgages (for the first three years).

As anyone will tell you who has applied for a mortgage in Costa Rica - myself included - the banks in Costa Rica are very much more conservative than the banks have been in the USA and they were never in the business of giving out ridiculous mortgages to low income people who could not afford the payments.

This is reflected in a recent statement (11 October 2008) from Maria Isabel Cortes, the President of the Costa Rica Banking Association (La Asociación Bancaria Costarricense) when she said that: “The increase in interest rates is still is not affecting the punctuality of mortgage payments from the Ticos.”

(CR Stock Market players chart)

Banco de Costa Rica and Bancrédito both confirmed the healthiness of their mortgage portfolios at the present time.

According to the US Mortgage Bankers Association “Among mortgages on one- to four-family homes, 9.16% were a month or more overdue or were in foreclosure in the second quarter.”

Meanwhile in Costa Rica Arnoldo Trejos Dobles, the Assistant Director of Bancrédito, stated that from September 2007 - September 2008 the number of people 90 days late on their mortgages has improved from 0.97% to a mere 0.74%. So compared to Costa Rica, on a percentage basis the US has over twelve times more people late with their mortgages!

Costa Rica banks were also not in the business of investing in their monies in the various meltdown mortgage funds and SIV’s that did invest in these sub-prime mortgage products and other toxic derivatives or as Warren Buffet called them: “… financial weapons of mass destruction“.

Having worked as a professional investment advisor in Costa Rica since 1999 I can also confirm that individual investors in Costa Rica are not particularly sophisticated, and they too are very conservative with their investments.

One reason the US trade deficit is so large is the practice of US corporations offshoring their production of goods and services for US markets to countries like Costa Rica. When these products are brought into the US to be sold, they count as imports. Thanks to Intel and a few other high-tech companies Costa Rica is among the world’s top 4 high-tech exporters and is one of the most competitive destinations in Latin America for service operations.

This is not good news for American jobs but this is good news for Costa Rica. It gives investors confidence when they consider investing in Costa Rica and it’s even more apparent when you examine the kinds of companies that continue to move to, and expand in Costa Rica.

The most recent news being Amazon.com’s new operations in Heredia where they will be hiring 700 people, Citi Business Services hiring an additional 200 people for their Global Operations Centre in Santa Ana and Western Union hiring another 550 people (also in Santa Ana).

If you want to take a look at the financial markets in Costa Rica, the Costa Rica Stock Exchange is the largest in Central American and is comprised of 30 different company’s shares, equivalent to the Dow Jones Industrial Average except that just this last week the Dow Jones Industrial Average declined by 18%, capping the worst week in its 112-year history with Friday being its most volatile day ever and for the most recent year - 10th October 2007 - 10th October 2008, the Dow Jones Industrial Average is down about 40% and the the Costa Rica Stock Market index is up 11.06% during that same period.

Seeing this it is crystal clear that there is zero correlation - so far - between Costa Rica’s stock market and other stock markets. The UK, European, Russian and Asian markets are also dying on the vine and unfortunately this is just the beginning folks…

“California may need a $7 billion emergency loan from the federal government to pay for “teachers’ salaries, nursing homes, law enforcement and every other state-funded service” this month, Gov. Arnold Schwarzenegger warns.”

Unless the national economic crisis subsides and California can secure private short-term loans “the state’s cash reserves would be exhausted near the end of October.” And “Payments for teachers’ salaries, nursing homes, law enforcement and every other state-funded service would stop or be significantly delayed…” “And California’s 5,000 cities, counties, school districts and special districts would face the same fate.”

This is happening at an inconvenient time when infrastructure is crumbling and more investment is urgently required. “In 2005 the American Society of Civil Engineers estimated that $1.6 trillion was needed over five years to bring just the existing infrastructure into good repair. This does not account for future needs.”

“If America does not act, says Robert Yaro of the Regional Plan Association (RPA), a body that plans for the New York-New Jersey-Connecticut region, it will have the infrastructure of a third-world country within a few decades.”

Some experts believe that the true unemployment number in the USA is 14%+

How many other states in the USA are in similar, very dire straits? “One prime example of this problem is Jefferson County, Ala., where the state’s largest city, Birmingham, is located. The county is now saddled with $3.2 billion in debt from sewer upgrades and finds itself on the brink of a $3.2 billion bankruptcy, the largest municipal bankruptcy in U.S. history.”

The States of New Mexico, Maine, and Massachusetts also have serious liquidity problems.

How will rapidly declining real estate values in the USA affect property tax collections? If the municipalities are collecting far less money, how will that affect them?

Many people feel that times are tough now in the USA, unfortunately the tough times in the USA are just beginning…

What about the decline in the amount of construction in the USA? “For every area job lost in construction, real estate or banking, three other positions will disappear, according to the U.S. Department of Commerce.”

“September’s job report was the worst in five years, and over the last year, 1.1 million jobs have been eliminated. Since September 2007, construction in particular has lost 760,000 jobs, dropping from 9.5 million to 8.74 million employed workers.”

As consumers spend less, how will declining sales tax revenues in the US affect the bottom line?

How will this financial crisis affect employment? Are companies hiring or firing people? Some economic experts believe the true unemployment numbers in the US is already over 14%.

How is this catastrophic decline in the global financial markets affecting already underfunded pension programs? Maybe your pension program? Why is nobody talking about that?

According to Rosa Brooks: “It’s been a quick slide from economic superpower to economic basket case.”

During my decade working on Wall Street as a registered investment advisor in the 80s we used to talk about a “flight to quality” when investors were moving their capital away from riskier investments to the safest possible investment vehicles, and with the stability being shown by Costa Rica’s financial and real estate markets in comparison to what has been going on elsewhere (and didn’t that bailout work well?), it’s a “no-brainer” to conclude that Costa Rica remains a great place to invest.

This article was reproduced with permission of Scott Oliver of www.WeLoveCostaRica.com.

Build wealth and secure your future with a self-directed retirement plan.  The Costa Rica Power Team has teamed up with Entrust Arizona to offer self-directed retirement plans.  A self-directed IRA is a retirement account that allows you to choose where to invest your IRA money, as permitted under IRA rules.  These rules allow for real estate investments in IRA accounts.  For more than 25 years, Entrust has been showing individuals and small businesses how to achieve their retirement goals through self-directed IRAs.  Entrust is the only self-directed account plan administrator that serves customers through a nationwide network of dedicated offices.  For more information please call Timarie McClendon of Entrust at 866-459-4580.

Are you planning on buying a vacation or retirement home in Costa Rica?  Then you owe it to yourself to check out our beach front single family homes in our Costa Real master planned community.  Starting at only $285,000, our homes in Costa Real are just a short four minute walk to the beach in Playa Bejuco.   Costa Real is only 20 minutes south of the popular resort town of Jaco.

All homes in Costa Real are sold fully furnished down to the knives and forks.  What’s more they are sold “deeded, fee simple” meaning you own it just like in the United States!  Title insurance is available through Stewart Title.  The homes range in size from 1,800 to 2,000 SF.  They all have three bedrooms, three baths, garage, clay tile roofs and are loaded with amenities.

Check out the “Beach Front” section of this website for more information and call Jason LaFlesch at 602-369-4663 to begin to realize your homeownership dreams.

Soon tourists will be able to relax on one of Costa Rica’s most traditional beaches; the Playa Doña Ana, in Puntarenas, is getting a face lift. Reconstruction work and maintenance, under the surveillance of the Costa Rica Institute of Tourism (ICT), began some weeks ago.

This is one of the many projects taken on by the ICT in an effort to recondition some abandoned tourist destinations, as well as some old beach spots that used to be Costa Rican favorites. The Minister of Tourism Carlos Ricardo Benavides said that he is happy with the way things are moving. The repairs to the infrastructure of the site mean that another weekend destination has been saved, not only for foreign tourists but for Costa Rican families as well.

Puntarenas is one of the closest and most convenient beaches to travel to if coming from San Jose. Once a busy port, it has now an air of abandon but its beaches have started to undergo rigorous clean-up programs, and it is not a bit too soon that the Playas Doña Ana get a helping hand. Playa Doña Ana represents the traditional family Sunday at the beach, and its clean up will allow the tradition to carry on.

The project was put on hold for a couple of months, and it was then decided to give it the go ahead. The Consultation and Construction P&S is in charge of supervising the project, which is expected to come to an end around the end of September of this year, in time for Doña Ana to receive warrented attention during dry season and Christmas break. Over 40 million colones (about $80,000) have been invested in the project. Work has already begun on the reconditioning of the picnic areas, beach access, administrative quarters, parking areas and the exterior lightning. According to the law, special facilities will be installed as well as access ramps for use by handicapped persons.

Next will come the installation of new bathrooms and showers complete with locker rooms, BBQ areas with wooden tables for picnics, and drinking water tanks. A new sewage system is also planned. The goal of the project is to offer a destination where tourists do not have to necessarily spend the night. Indeed, camping will not be allowed so as to preserve the cleanliness and beauty of this small beach.

We look forward to seeing you at our Costa Rica Informational Presentation on Saturday, July 12 in Scottsdale, Arizona. The seminar will be held at the office of State Mortgage located at the SW corner of the Loop 101 and Via de Ventura. Registration is at 9AM and we will start promptly at 9:30AM.

At this seminar you will learn all about the beautiful country of Costa Rica as well as our Colinas de Miramar master planned community.

Please call the Costa Rica Power Team at 480-246-3699 to reserve your seat at the seminar or if you have any questions.