The seaman Paul Guaguin saw Rio de Janeiro from the deck of a ship and decided to become an artist. We first saw Rio de Janeiro in 1981 and fell it in love with it. Time has passed, but here we are again.

The microphone clicks on, the flight attendant tells us the time, it's 6 AM, June the 7th.  We are to place all carry-on bags under the seat or in the overhead compartment, we are to move our chairs into an upright position and fasten our seat belts.  We are informed that we are about to land at Antonio Carlos Jobim International Airport, where the temperature is 79 degrees, and that we are bid welcome to Rio de Janeiro.

'Thank you,' I say to no one in particular; as I look out the window at the city below  '...I'm happy to be home again.' 

Here I was back in Rio, just about to make the startling discovery that I could finally afford to live here, here in my favorite city, and beyond that, that I could actually live here cheaper than I could live anywhere else I wanted to live, and more than that, the most startling discovery of all....   that I could buy an ocean view apartment for the amazing price of only $25,000. 

After checking into my hotel I had an excellent lunch at the Siqueira Grill in Copacabana. Just before going to lunch I had exchanged some dollars into the Brazilian Real at 2.41 Real's for the dollar. The meal was enormous, steak, sausages, grilled chicken livers, quail eggs, beets, bean salad, three different cheeses, creamed spinach, various vegetables plus other odds and ends, all washed down with a half dozen Brazilian Pilsner's.

If I could have eaten more I would have, as the menu was endless, all cooked in the Churrasco style.  There was a wide assortment of deserts that would have done justice to the finest French restaurant, there was also fresh fruit, espresso, juices, and anything the imagination might consider.  When I went to pay the bill it came to a little more than 10 Real (BRL).  Obviously something was wrong.  I walked outside and sat down at a bench on the beach and pulled out my calculator.  I had paid about $2.50 for a $15 to $20 meal, how could this be? In an instant it struck me what had occurred.  The price in the restaurant were pegged to the Real, and the Real was being treated as if it were still being pegged to the dollar on a one to one exchange ratio. In other words, to the restaurant they had just charged me $10 for a meal, but due to the exchange rate I'd gotten it for only $2.50. In a fit of excitement I rushed over and bought a copy of El Globo, Rio's major newspaper. I turned to the Real Estate section and my excitement was confirmed.  Apartments were for sale in Copacabana for BRL60,000 - or, US$24,896. I could buy an apartment in the world's most exciting city for $25,000 - I knew in an instant that I'd hit the jackpot. For more on buying smart using Currency Exchange differences see ABC's Of Exchange Controls, International Real Estate & Foreign Currencies - Click Here to read ABC's Of Exchange Controls, International Real Estate & Foreign Currencies - In this issue.

Rio is eleven miles long - and in most of the best neighborhoods not much more than a half mile to a mile wide.  To explain this odd anomaly, consider that Rio is a city pressed between a steep mountain and the ocean. The city is long and narrow. The best neighborhoods for anyone wanting go buy real estate are Flamengo, Jardim Botanico, Ipanema, Leblon, Copacabana, Lagoa and Santa Teresa.  My favorites have always been Flamengo and Santa Teresa. Flamengo would appeal to most readers, but Santa Teresa will only appeal to the more adventuresome.

Santa Teresa

Santa Teresa, one of Rio's oldest neighborhoods, was built on the lower and middle slopes of Corcovado mountain to escape the heat and humidity of the low lands. Therefore, it offers majestic views of the harbor, Pão de Açúcar (Sugar Loaf,) and the surrounding hills some of which contain favelas. Santa Teresa is the Bohemian section of Rio de Janeiro, filled with artists, expatriates, writers and some international fugitives. It was the home of the famous British train robber Ronnie Biggs, a long time fugitive from British justice.  It is nestled within a set of hills above the center of the city. Picturesque and village-like, it it is filled with vividly painted turn-of-the-century houses; spectacular views of downtown, Guanabara Bay, Sugar Loaf, and Corcovado; and it hosts several cozy restaurants and bars; plus the famous antique bonde (streetcar) that clatters its way through the winding cobblestoned streets.