In today’s Guatemala, you can have a great time and maybe find a great buy on a piece of beachfront property or an old Spanish-colonial house—if you exercise due caution.  The future looks bright for the country that is home to the Mayas—a people whose civilization has endured far worse than its recent misfortunes. But we won’t mislead you.  The country’s reputation as unsafe is not entirely undeserved.

Nevertheless, there are at least two good reasons to get to know this country: the old capital of Antigua and Lake Atitlán.

Part of Guatemala’s problem is overcoming the dark reputation it earned during the 36-year civil war that saw thousands of violent deaths each year.  The civil war has been over for nearly 10 years, but the violence has been slow to subside.  In fact, the national police acknowledge that 5,330 people were victims of violent crime last year—the biggest number since the end of the civil war.

“I’ve lived here nine-and-a-half years, and I haven’t been robbed,” Bill Shetz told me.  Bill is one of the best-known expats in the city of Antigua, where he’s commander of the American Legion’s Post No. 2. “Antigua has a lower crime rate than many places in the U.S.,” he said, pointing out that he’s a native of Philadelphia.  Bill came to Guatemala just as the civil war was ending. “Since then, it’s become much safer,” he says. “One reason for that is people in Guatemala are more used to tourists.  And since the peace accord in 1996, the government has upgraded the police department and now requires more training than it once did.”

Time travel

Antigua is my favorite city in Guatemala, possibly because it reminds me of Mérida, Mexico.

Visiting Antigua is like time travelling, largely because history all but stopped in the city when earthquakes destroyed much of it in 1773.  At the time, Antigua was the capital of Guatemala, but the ruling Spanish decided to create a new capital, Guatemala City, in a less quake-prone part of the country.  Three years later, the government ordered Antigueños to abandon their city, but not everyone obeyed.  Today, Antigua has about 32,000 residents—half the population of 1773.

Now, almost a decade after the end of the civil war, American and European tourists are starting to return.  Palaces, monasteries, convents, and churches remind visitors of its past, and elegant restaurants, art galleries, and theaters give Antigua a new cosmopolitan air that’s rarely found in a city this small.

Bill Shetz laughs when he thinks about the local American Legion’s ironic choice of a venue for many of its meetings—a German restaurant, the Jardín Bavaria. It’s a moderately priced establishment that’s become popular among expats.  “By the way,” he says, “in Guatemala, never assume that high prices mean better food.”

Though prices in Antigua and elsewhere in the country are slowly rising, almost everything is a bargain by U.S. standards.  At the popular restaurant La Fonda de la Calle Real, a main course of Guatemalan-style bell pepper stuffed with spiced meat costs $5.90.  Menu prices seem to change quickly, but $5 to $8 is average for a main course at most moderate to upscale restaurants in Antigua and other popular destinations.  Gallo, Guatemala’s national beer, sells for about $2.35 a bottle.

How much does it cost for an expat to live in Antigua?  According to Bill, the average is about $1,500 a month, but some do well on much less.  In Guatemala City, the cost of living is generally lower, but the crime rate is higher and the city of about 2 million lacks the sophistication of Antigua.  An exception to the rule is the small towns around Lake Atitlán, a two-and-a-half-hour drive from Antigua.  Like the old capital, these villages have attracted expats for many years. Living here is more expensive and, unlike Antigua, parts of the Atitlán area were severely damaged by Hurricane Stan late last year.  Guatemala counted 654 deaths immediately after the storm, and several weeks later nearly 1,000 people were still missing.

Off the record, American officials say they hope the goodwill initiative will help persuade the new Guatemalan president, Oscar Berger, to take more visible action against crime—not just violence, but also drug smuggling.

New Age Atitlán.

Crime isn’t a problem in Atitlán.  Americans and Europeans continue to vacation here and buy homes.  “It’s a beautiful part of the country, and the people have a welcoming nature,” Steve Hendrix told me.  Steve is a reporter for the Washington Post who recently bought a villa on the lake for himself, his wife, and their three young children.  “Aldous Huxley said that Atitlán was the most beautiful lake in the world. Well, frankly, I think that Huxley understated it,” says Steve.

What impressed Steve, Huxley, and countless others is the glistening, tranquil lake surrounded by green hillsides and framed by majestic volcanoes.  The freshwater lake is about 5,100 feet above sea level.  Geologists say it’s the result of a huge volcanic explosion about 85,000 years ago.  For a place that seems so remote, Atitlán is easy to reach from Antigua or Guatemala City.  Some people drive, and that’s usually safe as long as you don’t have a flashy car or travel at night when highway bandits still occasionally strike.  That’s a good rule throughout the country, and because road safety often changes, it’s wise to ask locals about potential problems on any intercity roads you plan to travel on.

One of the country’s major car-rental firms, National Guatemala (tel. (502)2-362-3000; website: www.nationalguatemala.com ) has a basic weekly rate of $252 for a Toyota Corolla, and that’s typical for other firms too.

While Americans are the dominant expat group around the lake, the area is still sparsely populated.  Steve says that he and his family were attracted by the slow pace, the local music, and the food.

In the dozen villages around the lake, Mayan is still the prevailing language, though many locals now speak some English and Spanish.  You can hike from one village to another, but no highway connects them.  To travel from one side of the lake to the other, residents depend on ferries, which are cheap and frequent.

Hundreds of American hippies descended on the lake in the 1970s, and today some of those who remained are entrepreneurs who run hotels and restaurants. It’s not surprising, therefore, that New Age establishments have also have sprung up, like the vegetarian restaurants and massage parlors in the town of San Marcos on the northwest side of the lake.  All of which inspired some Guatemalans—or possibly a cynical American—to dub the lake “Gringocastenango.”

But that doesn’t mean expats are unwelcome–far from it. For the most part they’ve built elegant lakeside residences that have not spoiled the charm or beauty of Atitlán.   Last year, Steve bought his villa, which is situated on the north shore near the village of Jaibalito and not far from Santa Cruz. The villa is essentially three connected structures with four bedrooms.

The Hendrixes aren’t year-round residents, and like many other expats they rent out their home in Atitlán for the majority of the year.  In that way, it generates income and helps defray the cost of upkeep and travel to and from Maryland, their permanent home.  Steve’s house can sleep up to 13 people and rents for $800 to $1,000 a week.  The rainy season in this part of Guatemala is from May to October, but even during this time there’s some sunshine nearly every day.

Meeting the Mayas

Mayas have a reputation as honest, hardworking people, and that makes it easy for residents around Atitlán to find someone to care for their houses while they’re away.  That’s particularly important since a high percentage of the residents spend only part of the year at the lake.  But while they’re at Atitlán, there’s plenty to do besides socializing with other residents or shopping at the open-air markets.  Many expats enjoy hiking from village to village around the lake or reaching them by boat, affording the opportunity to meet local Mayas.  Lake Atitlán is safe for swimming and boating, and you can rent kayaks, available in several lakeside villages, for $4 to $6 an hour.

Most visitors and residents of Atitlán particularly enjoy Panajachel—home of the 400-acre Atitlán Nature Reserve, where you can see rare plants and animals. These include monkeys and Guatemala’s exotic national bird, the quetzal.  The Atitlán Butterfly Sanctuary is also at Panajachel, and here visitors can see some three dozen species of colorful butterflies.  Special exhibits let children trace the butterfly’s life cycle.  Steve and his family often take a short boat ride to some of the many restaurants around the lake. His favorites are Posada in Santiago, a small inn with excellent food; Casa del Mundo, which can be reached only by boat near Jaibalito; and Deli at Panajachel.

Lakeside Living

Despite the exotic beauty of Atitlán, real estate prices are low. A two-bedroom, two-bath house near Panajachel recently sold for $75,000, and a five-room villa a little farther from the lake in Panajachel was advertised at $40,000. Lakefront properties are understandably more expensive.  The asking price for a lakefront house on 3.45 acres near Cerro De Oro is $238,000.

Lucas Toliman, was hard hit by Hurricane Stan.  Many houses simply collapsed when they were hit by the high winds, and others are still in need of repair.  The situation has led some home buyers to assume the area is ripe for bargain-hunting.  Nothing could be further from the truth, says Roland Erhard of Atitlán Dreams, a major real estate company in the area.  cording to Erhard, buyers might pick up damaged property at a low price, but repairs could push the ultimate cost higher than what they might pay for undamaged property.

For Guatemalans, Stan was only the latest catastrophe to cause homelessness and poverty.  So how do expats feel about living luxuriously in the midst of rampant poverty?  Though they don’t say much about it, many residents around Lake Atitlán, including the Hendrixes, are active in organizations dedicated to relieving poverty in Guatemala.  Steve also believes that the presence of expats has a positive effect on the economy.  “Sure, it’s potentially off-putting to spend your time in a nice place in a poor country.  But I find that our being there is ultimately a benefit to the country and increasingly important.”

Eats and sleeps

In Antigua: 

• Convento de Santa Catalina (hotel and restaurant), 5 Avenida Norte No.28; tel. (502)7832-3080; website: www.convento.com Double rooms from $75 per night. 
• Meson Panza Verde (hotel and restaurant), 5a Avenida Sur No.19; tel. (502)7-832-1745; website: www.panzaverde.com Double rooms are $75 to $130 per night. 
• Jardín Bavaria (restaurant), 7a Avenida Norte No. 49; tel. (502)7-832-5904.
• La Fonda de la Calle Real (restaurant), 5a Avenida Norte No.5; tel. (502)7-832-0507.
• Las Palmas (restaurant), 6a Avenida Norte No. 14; tel. (502)7-832-0376; website: www.laspalmasantigua.com

In Atitlán: 

• La Casa del Mundo (hotel and restaurant), Jaibalito dock, Jaibalito; tel. (502)5-218-5332. Double rooms cost $23 to $52 per night.
• Posada Santiago (hotel and restaurant), Santiago Atitlán, tel. (502)7-721-7366; website: www.posadadesantiago.com Double rooms cost $45 to $65 per night.
• Villa Sumaya (hotel and restaurant), Santa Cruz la Laguna, tel. (502)5-617-1209; website: www.villasumaya.com Double rooms cost $45 to $80 per night.