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Nothing can beat la vie française Back in Europe, France is another country that boasts great variety within its borders—from the snow-capped Alps…to the lake-like Med…to misty Celtic Brittany…to the great City of Light, Paris. France comes third in this year’s Index but, significantly, scores first in the categories of Health, Infrastructure, and Culture. Little wonder that 76 million tourists visited France in 2001. Despite high taxes, frustrating bureaucracy, real estate prices on the rise due to a strengthening euro and increased interest from European buyers, for many, nothing can beat la vie française. The hexagon, as the French call their homeland, in many ways, reflects all that we at International Living hold dear. No, France is not a convenient place to live—the entire country closes up shop for the holiday month of August, for example, and strikes are commonplace. But, as we like to say, comfort and convenience can be highly over-rated.

We’re so interested in the area that we are taking a group of subscribers there from Oct. 23 to Oct. 26, 2002. If you’d like details, contact Barb Perriello, tel. (800)926-6575.

Closer to home 

Closer to home for Americans, and hence a great option if you want to be within easy travel distance of your family, Canada comes in third in this year’s Index. I won’t go into too much detail, as you are probably familiar with what Canada offers, but I will remind you that your U.S. dollar still goes a long way up north, buying 1.5 Canadian dollars as we go to press.

On the other hand, in Canada, you’ll have to put up with long, cold winters and high taxes. And the convenience factor, for some, can be off-putting. For many, Canada is not exotic enough, not adventurous enough.

If it’s exotic and adventurous you want, keep reading…

What of Europe beyond France? Portugal ranks fourth in our Index, Italy sixth, and Spain 13th. These countries are also, coincidentally, rated the most affordable in the Eurozone according to Eurostat, the European Union’s office of statistics.

Plus, of course, they offer great lifestyles, history and culture, seasonal climates, and charming real estate…at sometimes hard-to-resist prices. Better start practicing your languages, though!

How does our homeland, Ireland, fare? It ranks 27th out of 30 in our Index…and is rated as the second most expensive country in the Eurozone by Eurostat. Still, we keep Ireland in our survey, primarily because of the way of life it affords (this isle is a quiet outpost, an escape from the real world in this year 2002); its dramatically beautiful countryside and coastlines (we’d argue among the most picturesque anywhere in the world); and its special benefits for retirees (including free medical care and free local transportation). No, the Emerald Isle is no longer one of the world’s best cheap retirement havens…but it remains among the world’s best escapes.
 

Antipodean delights We were as surprised as you may be to find the antipodes featuring strongly in our Index. Australia ranks fifth, New Zealand eighth. Australia does not take top honors in any one category, but it scores well in every one. Furthermore, in every category but one (more on this in a moment), Australia scores a minimum of 50 points—something no other country manages, not even our winner, Panama. Both Australia and New Zealand are English-speaking countries. And, right now, both their currencies are very weak. As we go to press, US$1 buys you 1.8 Aussie dollars and 2.1 Kiwi dollars. The result is two very appealing real estate markets for anyone shopping with Greenbacks.

Len Galvin, editor of our Pocket Money Real Estate, sources many of his bargain-basement properties (that is, properties listed for $50,000 or less) in these two countries. We feature two such tempting property buys on page XX of this month’s issue: First, a two-bedroom apartment in Airlie Beach, Australia, with a balcony overlooking the swimming pool, listed for $37,500. Airlie is nearby the Whitsundays, lush, tropical islands on the north Queensland coast, and within sailing distance of the world’s largest barrier reef…

And, second, a three-bedroom New Zealand bungalow, elevated for sun and views, in the charming university town of Dunedin, listed for $44,000. 

Australia and New Zealand could be your ideal retirement haven if you love the outdoors, a relaxed way of life, and are looking for adventure…but are not willing to give up the comforts and infrastructure that you’re used to “back home.”

A country founded by convicts, Australia has a reputation as a rough-and-ready kind of frontierland people with pioneering types. This is true…but just as true is that Aussies have a surprising appetite for culture and luxury. I lived in Australia, and I’m struggling to pick out highlights to share with you—there are so many.

Every year, seaside Sydney, during its annual festival, is given over to free street theatre and outdoor salsa dancing on the harbors. Yes, there’s naked night surfing on the famous Bondi beach and hiking in the Blue Mountains, a World Heritage-listed national park just over an hour’s drive west of Sydney, but this country also offers world-class sailing and yachting round the Whitsundays and some of the world’s finest food and wine, at unbelievably affordable prices.

Yes, there’s a catch—a big one

Increasing numbers of people are retiring to Australia: In 1993/94, the number of self-supporting retirement visas issued was 240; in 2000/01, the figure increased to 2,061.

And, the truth is, it would rank much higher in our Index than it does were it not for one important point: residency. In Australia, foreign residency is not an easy thing to obtain, and it’s certainly not cheap.

To be granted a retirement residency visa (extended temporary residence), you must be 55 or older (your spouse may be younger than 55). Plus (and here’s the kicker), you must have at least $360,000 in capital—that you are willing to transfer to Australia—or $110,000 plus pension rights or investments that would provide you with an income of at least $25,000 per year. The money transferred can be used for personal investment in Australia, including the purchase of property. Finally, you must meet certain health and character requirements, and you must take out comprehensive medical insurance with an Australian insurer. With this visa, employment in Australia is not permitted.

The retirement visa is a temporary visa issued for an initial period of four years. Extensions are possible. The immigration department has now introduced provisions to enable self-supporting retirees to convert to permanent residence after 10 years in Australia. 

When you achieve permanent residence, you are entitled to many seniors’ discounts depending which Australian state you settle in. For example, if you are a resident of Western Australia and are 60 or over, you’re entitled to everything from a 50% discount on recreational fishing license fees to free public transport on Sundays and public holidays.
 

In addition to the steep financial requirements, there’s another obvious drawback to retiring to Australia (or New Zealand): Neither is just around the corner. It’s a 14-hour flight from L.A. to Sydney. You wouldn’t be flying home for family reunions or a grandchild’s first-birthday party.

If you don’t like things that creep, crawl, or slither, you might prefer New Zealand to Australia. The Kiwi Isle has basically none of these kinds of creatures.

The Land of the Long White Cloud, as the Maoris call it, appeals if you have an adventurous spirit and love the great outdoors. New Zealand boasts an incredible landscape, as you know if you’ve seen the movie The Lord of the Rings. Here you can explore rainforests, glaciers, and geysers, swim with dolphins, watch the whales, ski, enjoy great food (especially seafood) and wine, and mingle with the friendly, outgoing locals.

New Zealand’s drawbacks? As I’ve mentioned, the distance…and, again, the requirements for residency. While it is possible to qualify for residency in this country via a points system, the requirements are fairly stringent and biased toward those the New Zealanders see as able to contribute to their economy—that is, generally speaking, younger people. 

That said, if you’re looking for a second home, a place to spend only part of the year, you shouldn’t have any problems. We are currently researching in greater depth other ways to reside in New Zealand. Look for a full report in your January 2003 issue.

Poised to seduce

Nicaragua, which ranks highest in our Index of any Latin American country, is “poised to seduce a new generation of travelers with its vibrancy and variety. It’s still a little rough around the edges, but has a world-class lake, 25 spectacular volcanoes, and miles of empty beaches, and land is still a bargain.”

So says Condé Nast Traveler and so say we. In fact, we’ve been telling you about this stunningly beautiful, extremely affordable, friendly, democratic country for the past 10 years. Nicaragua continues to blossom. As we report to you regularly in our weekly e-letter, recently elected (in November 2001) President Bolaños continues working to push his country toward prosperity, waging an unprecedented war on corruption.

This week, in fact, saw the vote in the Nicaraguan National Assembly go to 48, a majority, for ousting former president Aleman from his seat in the legislative branch. Throughout the country, in every town, signs and meetings express the Nicaraguan people’s approval of this decision, and a parade was held two days in Managua to mark the event. A band and drum corps was followed by at least 23 buses packed with people, shoulder to shoulder, waving flags and signs showing their approval. Fireworks and gunshots could be heard all over the city.

Citizens are passing out flyers, holding rallies, and asking for signatures on petitions of support, requesting that the former president and current leader of the National Assembly leave politely, lest he be thrown out. This is a tremendous stride for the Nicaraguan people and their government. It will mark the first time in Nicaraguan history that a former leader is being called to account for his actions. Traditionally, former presidents, upon retirement from the presidency, are given a seat in the National Assembly for life. And, according to Nicaraguan law, as long as someone is in the National Assembly, he is immune to prosecution for actions during his tenure in government. 

Nevertheless, if former president Aleman is ousted from the assembly, the plan is to prosecute him to the full extent of the law. Already, 13 of his companions in crime have been indicted. Signatures are still required, from the people, to make an exception in the law. This will take time, as all things do in Nicaragua, but it looks as though the indictment of Aleman may be imminent.

What does this mean for you?

As the world discovers what a safe place to live and, critically, invest, Nicaragua really is, and as Nicaragua itself begins to lobby for foreign aid and investment, property here will further increase in value. By demonstrating its serious intent to deal aggressively with this issue, the Nicaraguan government is making it possible for investors, especially U.S. investors, to look in their direction with renewed confidence and interest. If you’ve already invested, you’re sitting pretty. If you haven’t, President Bolaños is giving you one more wake-up call.

Word is getting out

And word is getting out. In recent years, U.S. News and World Report cited Nicaragua as an affordable retirement destination, The New York Times explained that Nicaragua was where the people who tired of Costa Rica’s high prices were heading…and USA Today reported that same trend. 

The Pacific coast is as dramatic as California’s—and selling at a fraction the cost. The foreign-retiree laws grant you attractive benefits including the importation of your household goods duty free and an exemption on taxes from your foreign-source income. You can hire a maid who will cook, clean, and do your laundry for less than $85 a month; spend just $15 on a wonderful meal of local delicacies, complete with wine and dessert; and take advantage of U.S.-trained medical professionals who charge $30 for a visit and will even make house calls. And the tourism-incentive laws, which grant up to 10-year tax holidays for tourism-related businesses, make it one of the smartest places in Central America for an entrepreneur to settle.

Not too late to take advantage

While it’s true that property prices already have risen considerably since we first began recommending this country (100%, 200%, and 300% in different parts of the country)…you’re not too late to take advantage of some spectacular bargains…and some spectacular gains still to come.

Construction costs are not as cheap as they were a few years ago…but they’re still reasonable ($40 to $50 per square foot to build a home of reinforced concrete with a stucco-style look and first-rate finishings). You could buy a lot for $30,000 to 40000, then build a home and furnish it…and have invested, in total, about $100,000.

Or you could save yourself the hassle and buy into a purpose-built development, as friends and staff of IL have done.

Kathleen Peddicord (IL’s publisher) and her husband have invested in a home in Norome, on pristine Lake Apoyo. If you’re up for an adventure and think you might like to become their neighbor, you can check out properties at Norome by visiting www.InternationalLiving.com/Norome.

Ecuador’s priceless charms

What of our other favorites in this part of the world? Dollarization has made Ecuador a more stable country…and also a lot less cheap. We no longer consider Ecuador the cheapest country in the world (that distinction in this year’s Index goes to Guatemala). However, Ecuador has other priceless charms, which remain unchanged. 

The climate is near perfect…spring-like year round…and the people are some of the friendliest in the world. 

Living in Ecuador allows for an especially “local” experience. Eight-percent of this country’s population is indigenous. There is no established expatriate community (although you’ll find Americans and other gringos here and there in Quito, around Otavalo, and in colonial Cuenca). And you’ll have trouble getting around if you don’t speak Spanish.

But there are few other places in the world where you can access such ancient cultures. In Ecuador, shamans, curanderos, tribal chiefs, and citizens live in harmony with nature. These people are descendants of ancient healers who discovered many of the plants and species that are the basis for modern medicine—from codeine for pain to quinine for malaria to podophyllotoxin for cancer.

If you’re looking for a back-to-basics retirement destination and can forgo the luxuries of a developed infrastructure, Ecuador could be the place for you.
 

Two other countries in this part of the world that have recently come onto our radar screen are Chile and Brazil.

Chile will surprise you. As friend of IL, Lee Harrison, writes, “If you’d like a slice of Europe or the United States, with first-rate infrastructure and German-style efficiency, but with Latin American prices, you should be looking to Chile. And the dollar is gaining in strength against the Chilean peso. Today it buys 738 pesos, while one year ago it bought 667 pesos.

“Apartments here start at $12,250 for a two-bedroom place with a good view of the Andean cordillera.

 “Our eyes were wide as we entered beautiful Santiago, with its wide tree-lined boulevards and spotless streets, impeccably maintained colonial buildings, and fine shops and beautiful department stores. Throughout the day we repeated, “If you woke up to find yourself here, where would you think you were?” The answer varied from Midtown Manhattan to Greenwich Village to Puerta del Sol in Madrid to Philadelphia’s historic district or even Madrid’s Plaza Mayor.” 

Chile also offers beautiful lakeside living, Pacific Coast beachfront, and rugged rural charm in Patagonia…all at very affordable prices.

Chile is a First World country—and safe and secure. You won’t see bars on the windows or walls around the houses.

Brazil is a another country where the dollar continues to pack a wallop. The dollar is nearly 3 to 1 against the Brazilian real right now. Contributing editor Ken Rapoza, who moved this month to a small town in the southern part of the country called Londrina, tells us that not since 1994 has there been such a dollar-favorable exchange between the two currencies.

Is it safe?

Unlike Chile, in Brazil, security can be an issue. But the real estate is outrageously cheap, and the country boasts real vibrancy. This is perhaps a market for a more contrarion investor with a stomach for speculation, but it’s definitely one to watch.

Ken reports that the upscale condominium developer AlphaVille is building a closed condominium community in Londrina, where the average price for a three-bedroom condo is about $32,000. That’s roughly the price of an in-ground swimming pool or a new car in the States.

Furthermore, Brazilian cities in the southern part of the country, like Londrina, are especially clean, technologically advanced, and generally safer than the major population centers like Salvador, Bahia; Rio; Sao Paulo; and Recife.