In spite of all the political posturing and bloviating in the media, the country remains one of the most unspoiled vacation destinations in the world, whether visiting the beaches, mountains, Amazon, or plains.  It also remains one of the best countries to get more bang for your dollar, whether buying real estate, or just eating dinner out. 

The most recent background information on the political and econmomic situations in Venezuela will surprise a lot of readers and challenge their perceptions that this is a "communist" country or that the future of this place is bleak...

"A disastrous two-month national oil strike from December 2002 to February 2003, temporarily halted economic activity. The economy remained in depression in 2003, declining by 9.2% after an 8.9% fall in 2002. 

According to a recent issue of "The Economist", "Emerging-market indicators show that Venezuela is the fastest growing country in the world. GDP growth is up 11.2% year-on-year change (as of 2005 figures), and it is the only country in the world which registered double digit growth rate." (China, the second highest, kicked in at 9.5%, imagine that!)

Even more impressive, industrial production is up 23.1%.  That's mostly local money.  As a result, confidence is high locally, hence the political calm.  Instead of taking money out of the country, local business leaders and government are keeping it in and putting it into things like manufacturing, expanding/upgrading infrastructure, and controlling prices (97 octane gasoline is US 11 cents a gallon, for example).  Comparing the second highest country on the list, China, their industrial production is up only 14.4%. Everywhere else in the world has lower growth rates.

As for Chavez and any perceived anti-American attitude, it has been at least partially caused by the US government and it's policies from what I've been able to research on the subject, as well as from speaking with the locals on my four trips through the Caribbean coast of Venezuela since April, 2005. 

The Chavez government was against the wars in Afghanistan and Iraq.  However, we know many other countries were also against these wars, some of them supposed allies of the USA.  Of course, the way this was covered in the US media and responded to by the Bush government shined a dim light on US-Ve. relations.

I have read many articles online (a simple Google search will bring up at least a dozen, there's too many to quote here) that the US was aware of the coup that briefly suspended Chavez' presidency well in advance of its happening and, that at the very least, supported it's happening from a political viewpoint if not actually involved. 

CIA documents have been released to the public that show a US naval vessel was standing by in the Caribbean in case there was a need to evacuate US nationals from the country after the coup or it's attempt.  That shows knowledge of the situation in advance.  Congress and the CIA have also been funding at least one of the opposition parties in Venezuela that were involved in the coup attempt. 

This is also public knowledge and shows more involvement even if only an indirect link can be established.  I'm not passing judgement on US government policy, but I believe it's easy to understand some resentment on the part of Chavez and his regime.

We drove three hours or more from the Maquetia airport, through Caracas and down the coast to San Jose de Rio Chico, where we stayed at the Isla de Oro condominiums for three days.  We traveled two and a half hours more from there to Puerto La Cruz by car for the ferry to Margarita Island, about a two hour boat ride, and then spent three days on the island before flying back to Caracas. 

We were in country a total of eight days and covered hundreds of miles at the very least and met scores of people in both metropolitan and rural areas.  All were warm and helpful.  No problemas. 

Since then, we've spent a total of about two months more on our last three trips there and have only good things to say about the Venezuelan people and their attitude toward foreigners.

I have friends from Arizona and Texas that live in Venezuela full time.  They feel safe enough that they've traveled by car through at least twenty different states in the country and many places they've gone are very remote.  Needless to say, crimes against foreigners are becoming rare.

We must also remember that the United States buys about 50% of what is exported from Venezuela, including 80% of their oil.  Almost 30% of what is imported in Venezuela comes from the US.  This makes the USA by far the largest trade partner Venezuela has. 

Chavez isn't going to screw that up and drive his economy totally into the ground.  Bush isn't going to screw it up and lose a major oil source.  The two countries will continue to do business as usual, despite the political undercurrents and posturing of the day. 

As you could see, the USA being Venezuela's major import and export partner is one of the main factors that will always keep the two countries bound together.  Chavez is trying mightily to reverse the flow of international investment money out of the country that began several years back.   He's begun to stem that flow and bring new investment into Venezuela.  This includes real estate investment.  He knows that is crucial to keeping the economy going in a positive direction. 

From the investors angle, although the "up cycle" seems to have started, property prices are still at a historical low and the currency exchange, which was around 680 Bolivars to the dollar in 2000 after Chavez took office (CIA Factbook), is now 2,150 to one and fixed by the government.

Foreigners can directly own real property in Venezuela the same as a citizen can.  No Venezuelan corporation or fideicomiso (bank trust, as in parts of Mexico) is needed, although you could set up a Venezuelan corporation and buy through it if that's what helps your personal situation.  Another fact makes the coastal area of Miranda state, which includes hundreds of miles of both gorgeous coastline and natural canals, particularly attractive to investors.

We all know the tourist Mecca in Venezuela has been Margarita Island for many years.  Previous governments have pumped much money into developing and marketing the island.  However, due to present day politics, this has been changing.  It turns out that the governor of Nueva Esparta, the state that Margarita is in, is of the opposition party, not Chavez' party.  Their differences run deep enough that Chavez is no longer concerned with further development and promotion of Margarita.  The governor of Miranda state, where Rio Chico and Isla de Oro is located, is a former vice-president of Chavez.  Between them, they want to make the Caribbean coast of Miranda the next tourist capital of Venezuela.  If you've visitied Margarita Island lately, you may have noticed that it doesn't shine like it once did.  Times are changing for Caribbean Venezuela.

OK, some more about the area.  The Caribbean coast of Miranda is the most beautiful stretch of coastline in the country.  It's also perfectly situated as the most convenient to get to from Caracas at an hour to an hour and a half from the city's eastern border, depending on traffic.  The new highway, which is already under construction, will cut the drive time in half.  Location, location, location. 

Maiquetia international airport (CCS/Caracas), now known as Simon Bolivar International, is located about 20-30 minutes from the northern border of Caracas, however, the national airport in Higuerote, Miranda is to be expanded to an international airport according to the national government. Higuerote is presently about twenty minutes from Rio Chico and on the same stretch of coast, but the completion of the new highway will bring the travel time down to around ten minutes. This is a rare, pristine and little developed area at present.  Venezuela is a true unspoiled paradise, with more Caribbean coastline than any other country.  It should remain this way also, with President Chavez restricting development along the shore and creating thousands of acres of new nature preserves.

Venezuela is world famous among big game fisherman.  Rio Chico one of the three top fishing areas in the country, legendary for it's tarpon and snook. There is also brackish water in the canals where certain species native only to the area are found.  Various areas of the coast are also famous for a variety of other big game fish, including white marlin.  The canals and rivers are also a fisherman's dream.  There are many small fishing villages built along them where the people make a living from the waters' bounty, much the same as they did hundreds of years ago.  That tells me something.  Did I mention jumbo shrimp?  For other sportsmen, a five minute ride by car or by boat down the canals brings you to a great golf course.

I own a condo at Isla de Oro, in Rio Chico.  It was one of a kind when built and still is today.  Nothing like it can ever be built again anywhere on the beach in Venezuela due to new building codes on the coast (la ley Costanera).  Nothing new can be built that's higher than several floors on the waterfront.  Isla de Oro has three residence towers that soar to 14 stories, making the views the most incredible that will ever be found in the area.  It's also the only sizable residential development that exists anywhere near the town and that is directly on the Caribbean.   With the sea in front and the marina adjoining over a hundred miles of natural canals to the rear of the property (the area of Los Canales), much of the perimeter is waterfront.  Because there is water front and rear, all apartments are waterview and have at least a partial view of the Caribbean itself.

Isla de Oro was built by a former president of Venezuela in 1980 as a playground for the rich and famous of their country.  After the economy started to tank and the former regime fell out of power, many original owners left and the condo suffered some years of neglect.  A new group of owners, both locals and many foreigners, along with a new condominium board, have been restoring the development and plan to bring it back to the five star resort it once was when originally constructed.  The intent of the new group is obvious when you see how the common areas have been restored. 

The pools, restaurants, reception, and most of the common areas are beautiful again.  What's left to be done is a facelift to the facade and interior hallways, and renovation of some units that were left unoccupied over the years.  Prices are extremely low due to the "pre-renovation" situation.  Because many units are still in good condition, it's possible to buy in for less money than any off-plan deal anywhere in the Caribbean and use or rent your apartment immediately without having to wait for construction, like off-plan.  Studio units in good shape are selling from US$20K. 

One and two bedroom units are also available, as well as the occasional penthouse and villa.  For the more intrepid investor, there are some units available that need a total overhaul and are priced lower.  With labor in Latin America being US$5-7 dollars/day, even these basket cases are being snapped up quickly.  Priced according to size and condition, Isla de Oro offers the lowest prices anywhere on the Caribbean Sea for a resort with it's features.

Prices for real estate in the area outside of Isla de Oro, in Los Canales, are also impressively low.  There are about a half dozen condo developments on the canals, and a variety of homes of all sizes that are for sale.  You can buy a house on the canals within a short walk to the beach from $US mid 20s to 70sK depending on size and condition.  Many of the homes for sale in this area are inside gated communities.  My good friends Lawrie and Rachel from England recently purchased a 4br/4ba home with pool, that needs only little cosmetics, for US$45K. 

For more information on Isla de Oro and properties in Los Canales, please visit our webpage BestBeachEscapes.com.  Many examples are posted with photos and prices and I can be contacted by e-mail directly through the site. I can also be reached directly at this e-dress: DonIron@netscape.net. When e-mailing, please let us know you saw this article online at EscapeArtist.com.  My partners Phil and Cat Winstanley, who live at Isla full time and do the legwork finding new properties for sale, can also be contacted through the website.

Prices for anything in the area are amazing.  A pack of cigarettes costs about a dollar.  A bottle of very good Cacique rum, the most popular national brand, costs about three bucks.  On a more modest budget?  You can buy a liter of the cheap stuff for a dollar.  A can of beer sets you back forty cents.  We hit one of the nicest restaurants in Rio Chico, La Tabernita, and I had the Lomita de Res dinner, the local equivalent of filet mignon, for about five bucks.  It was the most expensive thing on the menu and delicious.  The restaurants on the condo premises can bring you a full meal for two to three dollars.

Between the natural beauty of Venezuela and what can be bought with American dollars in the country, I was sold immediately.  I have been researching emerging markets in Latin America and the Caribbean, as well as traveling to them to search out properties for years.  I've been to Mexico, Panama, Nicaragua, Colombia, and the Bahamas.  Nowhere have I found lower prices, an "earlier-in" time for investing, a better exchange rate or more beautiful beaches.  You owe it to yourself to visit.