Finding Our Place In Peru
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Finding Our Place In Peru
Peru And Bolivia 2004
by Mark McInerney
My wife, Karen, and I decided that it had been a couple of years since we traveled in South America and a vacation down there was just the thing we needed.  Clearly, it’s no secret to our friends that we love South America.  We find the pace of the people in their every day lives to be enjoyable.  The focus on friends and family is to be admired. Sure, not every thing works the way it does in the USA, but all you need is a little more patience.  So, it was with very little hesitation that we booked our flights to Peru and Bolivia.

My goal was not just to have fun looking at the ancient civilizations, but also do some comparative “shopping”, concerning either of these countries as being a future home.

We have been a huge fans of South America ever since visiting Chile, Argentina, and Uruguay, and we have often dreamed of living there somewhere.  We loved Santiago, and Buenos Aires, as well as the beautiful town of Colonia, in Uruguay.  Buenos Aries is a wonderful city and we can attest that the Recoleta neighborhood is the finest for in-city living perhaps in all of South America.  It really is a steal right now with the peso dangling at three to one versus the dollar and the government moving forward on stabilizing it.

We wondered, however, what Peru and Bolivia might offer in the way of bargains in real estate.  We would need to find business opportunities in the service sector, like a hotel with a restaurant that we could own, operate, and live in.  In doing our research before we left we found that Peru and Bolivia both have very young populations.  There is an explosion of demand for goods and services (American and European), along with growing incomes, and a desire to do more business.  These factors makes these two countries strong candidates for getting in early, which is always desirable, and then riding the wave of an increased economy for many years which might set us up for retirement there as well.

Lima is a large, modern South American city that takes a realistic look back at the Conquistadors and the ancient pre-Columbian civilizations.  Even within this city are ancient pyramids made of adobe bricks sitting within the confines of subdivisions made up of beautiful homes.  This city could use a few more mid-priced, American style hotels to choose from. There are some very good high-end hotels here, mostly European or American chains, so that market seems to be sufficiently served. 

At first there seems to be many Peruvian hotels that are ranked three or four stars, for the more budget minded traveler, but it’s a Peruvian ranking style and the comparison to an American or European style ranking leaves a little to be desired.  If you have significant funds to start a hotel here, versus smaller less costly towns, you would be full in no time.

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I saw many places for sale, but I was unable to gather any information from the phone numbers that were called, and just ended up leaving messages. There were no real estate brochures to find anywhere, and our guides were of no help. In fact, we got the feeling that sales of real estate are difficult, even between Peruvians.  In talking with an “abogado”, or lawyer, about purchasing real estate, the answers to my questions were vague at best.The lawyer talked about, “the difficulty of the people”, and other comments that began to make me feel that buying real estate in Peru could be problematic.Nobody ever made me feel uncomfortable, but I couldn’t help feel that although a Peruvian would gladly take my money when he sold his house to me, the act of selling to a non-Peruvian person would not be the most wanted of events. We never met a Peruvian who was actually anti-American, they were all very pro-American, it is just that there is a new found sense of national pride that makes Peruvians want to work and do business with Peruvians. I couldn’t fault them for that.

From Lima we flew to the North of Peru, and visited the cities of Trujillo, Chiclayo, and Lambayeque.We found Trujillo to be a beautiful city, with the nicest Spanish colonial plaza.

The nearby seaside town of Huanchuco reminded us of Baja California from thirty years ago. The largest adobe city ever built, Chan Chan, lies on the edge of Trujillo.  The eight hundred year old ruined city holds magnificent plazas and enigmatic walls full of fascinating designs, and stylized animal figures. The Temple of the Dragon contains a continuously repeating design on its walls of mythical figures, and the Temple of the Moon contains the remains of the blood-thirsty Moche sacrificial rituals.  Its counterpart, The Temple of the Sun, is a huge temple the size of a football stadium.  Tucume, near Lambayeque, is a site containing twenty-six pyramids arranged around a central holy mountain.  The pyramids of the Lord of Sipan, with the famous golden ornaments (which are on display at the Museum in Lambayeque) are near the city of Chiclayo.  The northern desert coast of Peru is very relaxed and extremely interesting.
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We will definitely return here to view some more pyramids that are still being excavated and studied by archaeologists and will be opening within the next year.

Okay, so what about real estate?  Well, I saw very little for sale, and inquiries resulted in no returned calls and very little information.  I found it odd, but I didn’t put much stock in it at the time.  After all, we were going to have a whole month in Peru to find out if we liked it, or not.  Later on I found this to be the normal outcome to my questions.

From the North our trip took us down the coast to Paracas where we stayed at the Hotel Paracas resort on the Pacific Ocean.  A beautiful place, with a day trip out to the Ballestas Islands to view marine animal life.  The resort was very nice, reminding us of the hey-day of jet-set travel in the 60’s.  Outside of the resort, though, the area offered little that interested us, so we didn’t look for real estate information here. 

The next stop was Nazca with it’s enigmatic Lines.  Nazca is a very nice small town.  The Nazca Lines didn’t fail to impress when we flew over them.  They are really only visible from the air.  This is a very dry place.  Marks in the desert floor last for centuries and so do the mummified people!  A nearby cemetery lends a certain eeriness to the trip as we visit the remains of the people who first built a civilization here over a thousand years ago!  Nazca was very interesting, but too small and remote for our tastes as a place to live, even though another hotel could fit in here easily.

Next up was Bolivia, which was originally part of Peru before establishing itself as a separate country.  There are similiarities between the two countries, but we were to find out that there are vast differences as well.  There had been problems reported with the “campesinos”, or village folk as far as blocking the highway between Peru and Bolivia.  We encountered some of that as we left Lake Titicaca.  The roads were blocked with scattered huge stones like a mine field, totally impassable except for where the military had cleared a path.  La Paz is an interesting modern city that is built in a large deep bowl in the ground which is actually lower than the surrounding “altiplano” or high plain.  Here we found another type of problem that completely scratched Bolivia off our list of places to ultimately live in South America.

Over the past few years, there has been a movement among the village people to become more outspoken, and more physical about asserting their rights. That came to a head for us as we attempted to go to Tiwanaku, the ancient civilization of Lake Titicaca, and the altiplano. We were blocked from advancing, and our driver was taken out of our car, and given a whipping by one of the local village chiefs. This is a customary form of punishment, but it was misplaced, as we were not attempting to do anything other than drive down the road and there was no “crime” committed. It was very unsettling for us to sit by and be unable to do nothing as we were outnumbered 100 to 1. We watched as our driver, who was just doing his job driving “turistas” around, was hoisted up and held in the air by ten men and then spanked three times of the rear end with a belt.

There are two sets of laws in Bolivia, one for the Indians, and the other for non-Indians.  Although, this is the way it has always been, if Bolivia is going to move forward, and become a more modern country, this form of segregation does more to harm the people than it does to empower them.  Bolivia has some deep seated problems that aren’t going to be solved soon. Many of these problems revolve around the development of their natural gas reserves. A recent vote was affirmative for development, but Bolivia has fiddled around so long that their market, Chile and Argentina, have for the most part moved on without Bolivia.  Although our money went very far here, eight bolivianos to the dollar, and they have a young and growing work force, the political climate is going to hamper real advances in business.  Needless to say, we didn’t look for real estate in Bolivia, and breathed a sigh of relief when we left, and returned to Peru.

The ancient capital of the Incas, Cuzco, was our next stop and it is a vibrant city. We could easily picture ourselves living in this clean city, with its great Inca heritage and wonderful mix of Spanish colonial and Inca architecture.  The people here are friendly, very intelligent (many speak three languages—English, German, or Italian were the popular languages other than their native Quechua language and, of course, Spanish), and are very willing to do business. I inquired about business laws, such as-- do you need a Peruvian partner in order to do business in Peru?  The answers were the characteristically vague ones that I had become used to in Peru.  I basically came away with the answer that, yes, you do need a partner from Peru, but that could be a silent partner, or even just a corporation set-up with Peruvian nationals who do not actually work in the business.

Answers to questions about real estate met with the same success as they had in Lima.

Cuzco’s built in tourist trade to Machu Picchu, makes it a slam dunk for a business location.  People from all over the world come here, and the need for services like an American style hotel with a restaurant would fit in here.  A small boutique hotel, with a nice lounge and restaurant seemed just the ticket in this city.  Many of the hotels here are very nice, but since the tourists coming here are going to be short-timers in Peru as hiking the Inca Trail is at most a five day trek, then the comforts and style of an American bed and breakfast or boutique hotel would be greatly appreciated.  Anyway, it could work in Cuzco, we would just have to crack the “foreigner factor” a little better.

No trip would be complete without a trek up the Inca Trail.  We had an outstanding local guide, who informed us ancient history that doesn’t appear in the textbooks concerning the Spanish, and the Conquest of the Incas.  Machu Picchu is astonishing, and just like everything else that we saw in Peru, it is bigger than we thought it was going to be. 

It is the jewel in the crown of a magnificent trek through other Incan ruins such as;  Winay Wanay, Intipati, and Sayacmarca, to name some of the more significant and beautiful ruins that adorn the ancient stone stairs of the Incas. 

Peru offers opportunities at any of these areas we visited.  We ranked Cuzco as the best place to have a good chance of success, with Trujillo/Huanchuco being a neat place to live and work although it has fewer tourists.  Lima really needs some lodging in the middle range, and the large population and international airport could insure success.

Peru doesn’t quite have the same business orientation as Argentina or Chile, but it does have strong tourism draws that could compensate for some of the short comings of doing business in Peru.  I know that I would have to do some more significant, serious work on getting answers before proceeding with any venture.  This is especially true since many people were rather curious as to why an American would want to own a business in Peru when it is the USA that they want to do business in themselves.  All in all, though, Peru has many great attributes and although we didn’t find our place this time our trip was a complete success.  We will certainly return!

Ciao,

Mark and Karen McInerney

To contact Mark Click Here

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