From the ancient Incan cities to the depths of the Amazon rainforest, from the miles of sandy coastline to the jagged peaks of the Andes—Peru is a diverse, exciting, and historic country.

Here you’ll also enjoy one of the lowest costs of living in Latin America—with property prices to match.

Peru sits on the western edge of South America, with Ecuador and Colombia to the north and Chile to the south. Brazil and Bolivia are its neighbors to the east, and it has more than 1,500 miles of Pacific shoreline, a couple of hundred miles more than the western U.S. Peru is the third largest country in South America, after Brazil and Argentina.

The country has three major regions.

The “white city” in the Andes
Founded by Pizarro in 1540, Arequipa maintains its original colonial charm, even though much of it was rebuilt following an 1868 earthquake. The central plaza is clean, vibrant, and busy. Its lush lawns, neatly trimmed shrubs, and tall trees are complemented by a sparkling fountain and the plaza maintains a festive atmosphere. Most of the surrounding buildings are constructed with portales (arches), which is a rare treat in these colonial plazas. The cathedral on the square is the widest in South America, taking up an entire city block.

Arequipa is known as the Ciudad Blanca (white city) because many of the buildings are built using sillar, a white stone block made from volcanic rock found in the area. The architecture has a strong Moorish influence. The construction quality is good here compared to what I’ve seen in other colonial cities. In the old buildings, this is due to the use of sillar instead of adobe (which is made from earth), while in the newer buildings, it’s because they’re built to withstand earthquakes.

If shopping for property, you should concentrate on the areas in the historic center that are outside of the blocks that form the square’s perimeter—or on one of the nice residential areas outside the historic center, but within walking distance.

Arequipa—with properties from $45,000
I looked at a new development on the edge of town, with a handful of new, two-story homes overlooking a few acres planted in lettuce on the edge of Barrio Cayma. These two-bedroom, two-bathroom models are just under 1,300 square feet and have a laundry area and maid’s suite. It’s a 20-minute walk from the square and they run from $60,000 to $64,000. On the same property, there are apartments of about the same square footage and with similar features. These start at $45,000. For more information contact Maria, e-mail: credicasas@hotmail.com or stop by the site at Calle Cusco #300.

On Avenida Bolognesi, we saw a magnificently built home of 3,225 square feet with rich, dark cedar trim and floors throughout. It had four bedrooms and a maid’s apartment on the third floor. The house is within easy walking distance to the square. The asking price was $145,000. Contact Willy Rodriguez (details below) for more information.

In Barrio Selva Alegre, we toured a four-bedroom home of 4,500 square feet. It included two servant’s suites. It could use some cosmetic upgrades. The asking price was $110,000.

My favorite house in the city was a huge white mansion just a few blocks from the square on Avenida Parra that had been owned by the same family for more than 50 years. Built in 1917, it had high ceilings, a huge salon, and fine wood trim, including handrails that were eight inches thick.

The entry point of the decent houses in town was a home in Barrio María Cabaña—2,000 square feet for $45,000. Not a bad price, but the high-end homes are not much more—a better buy for my money.

My preferred realtor in Arequipa is Willy Rodriguez of Metropolis Inmobiliaria. I cross-checked some of his prices with the sellers and found them to be the same—a minor miracle in Latin America—so he gets my vote for honesty. And he and his brother Milton were a pleasure to work with. Contact: Metropolis Inmobiliaria (Willy Rodriguez), Oficina #107, Calle Moral 115, Arequipa; tel. (51)542-02-534; e-mail: WillyMetropolis@hotmail.com.

If you’re into Spanish colonial cities with a beautiful year-round climate, you’ll find Arequipa to be one of the nicest in South America. It’s easy to get to by car or by air, close to Cusco and Maccu Pichu, yet far enough off the beaten trail so that it will likely never be a gringo expat haunt.

Known as “Ciudad de la eterna primavera” (the city of eternal spring), this city of 800,000 people is the capital of the department of La Libertad in northwestern Peru. Located three-and-a-half miles inland, it’s a good place for those interested in archaeology and history—the nearby pre-Incan ruins of Chan Chan as well as Huacas del Sol y de la Luna will provide a great opportunity to learn about Peru’s ancient inhabitants.

But the main draw for me in Trujillo (tru HEEL yo) was not the ruins; it was the low-priced properties.

The best residential zones are Primavera, El Golf, and California, according to the people who live here.

The original colonial buildings can be expensive and I didn’t feel they were a good value.

I looked at a nice apartment in the sought-after El Golf sector. It was a penthouse of 1,500 square feet, which had an asking rental price of $250 per month. This was at the high-end—the rents went lower from there.

The apartments for sale in Residencial Peruano-Americano in Barrio Médico were small, but had three bedrooms and two bathrooms, starting at $26,000.

In a building called Las Flores de Golf, the apartments ran from $43,000 to $45,000.

If it’s a single home you’re after, I saw a house in Santa María Quinta Etapa selling for $45,000. It had three bedrooms, two bathrooms, a maid’s suite, and 1,720 square feet of living space. The neighborhood was so-so, but this home was a good example of where the market starts for a house of this size.

For more information on these properties and other listings available in Trujillo, contact Inmobiliaria Naldos Villanueva (Lucero Ruíz), D. Almagro 545, oficina 007, Trujillo; tel. (51)44-291-987; e-mail: Naldosvillanueva@hotmail.com. I enjoyed working with this professional, family-run operation. They also handle property management if you choose to buy for the purpose of renting the property out. Lucero doesn’t get much chance to practice English, so an e-mail will be easier for her than a phone call.

A beachside compliment
Walking along the beach in Huanchaco (wahn CHAH koh), we enjoyed the salsa music coming from the waterfront restaurants as we browsed the handicraft shops and open-air markets. On the other side of the road, a modest crowd of beachgoers enjoyed the afternoon, surfing, sunning, and swimming in the Pacific waters. I had the feeling that Huanchaco couldn’t make up its mind whether it was a beach resort or a fishing village, but I enjoyed the fusion. The small one-man reed boats that were standing up on their ends along the beach walk are probably the same craft that have been used here for a thousand years.

Back from the beach, we enjoyed small quiet town squares and admired the clean, neat rows of colorful homes. Property a few blocks from the beach is inexpensive. For example, a building called Las Olas de Huanchaco was offering two-bedroom, one-bathroom apartments starting at $17,500; three-bedroom, two-bathroom models were $23,000.

On the beachfront road, we saw a three-story house that was brightly painted and newly fixed up. The asking price was $75,000.