, has already created a menu of attractive lifestyle options in several countries to serve the millions now searching for retirement homes in Latin America. This is an already large market and it continues to grow quickly. However, once outside of North America, a new set of considerations becomes critical.<\/span><\/p>\nToday\u2019s consumers largely take for granted the basic comforts of reliable electricity, excellent water pressure, high-speed bandwidth for internet, access to top-notch medical care, and quality construction. In Latin America, many developers fail to provide even these basic services. They are often little more than a collection of barren lots with limited infrastructure. Many projects have few or no homes or residential products in place, because significant resources have not been invested up front. These \u201cghost towns\u201d are likely to remain just that.<\/span><\/p>\n<\/span><\/i><\/p>\nLots on Beach Rarely Produces Community \u2013 Urban Planning Does<\/span><\/i><\/p>\nBoomer retirees want life, activities, neighbors, and community; something that the majority of these projects, sadly, cannot offer. Only a few developers actually deliver the excellent infrastructure and amenities needed for a high quality of life experience that North Americans have come to expect. A \u201cSun City of Latin America\u201d would provide high-quality products in a variety of climates, like a home along the Pacific or Caribbean coasts, in the cool tropical mountains, or in the arid, high deserts of South America. Investors and companies who provide such a product are likely to do very well.<\/span><\/p>\n<\/span><\/i><\/p>\nA Real Variety of Geographies Means Nearly Every Combination is Possible<\/span><\/i><\/p>\n <\/p>\n
The Demographics<\/b><\/h2>\n
The baby boomers represent more than 84,000,000 individuals in the United States and 9,000,000 in Canada. Over the last 60 years, almost everything that was popular with the baby boomers became a huge commercial success. They have produced a huge, disproportionate impact on the economy at each stage of their lives. Companies that placed themselves in the path of this “age wave” did very well. This wave of opportunity continues right now as they enter the age of retirement.<\/span><\/p>\n<\/span><\/i><\/p>\nToday, over 613,000 U.S. retirees receive Social Security checks overseas. Many of these folks are people who were born before 1946 and are not part of the huge demographic bubble about to hit the market. The baby boomers proper, people born between 1946 and 1964, are entering retirement at a rate of 11,500 per day – and that will continue for the next 17 years. Many of these boomer retirees will be relocating and building warm-weather, retirement, and second homes in Latin America.<\/span><\/p>\nWith over half a million already retired outside the U.S., the demographic data projected by surveys and studies is even more powerful. The Zogby Company surveyed 103,000 Americans and discovered that more than 26,000,000 have a desire to move or own property outside the United States. Of those, 4,500,000 listed Latin America as their first choice as a relocation destination.<\/span><\/p>\n<\/span><\/i><\/p>\nTD Waterhouse recently surveyed Canadian baby boomers, and 45% of those respondents plan to spend one month or more outside Canada in retirement. With 9.3 million Canadian baby boomers, this equates to over 4 million retirees who will be renting or owning property outside Canada in their golden years.<\/span><\/p>\n<\/span><\/i><\/p>\nThe bottom line is that baby boomer retirement will largely drive the overseas retirement home market for the next 20 years. The trend is in its infancy. As many new retirees look to the tropics for affordable, yet enhanced retirement lifestyles, phenomenal growth in these already large numbers is likely.<\/span><\/p>\n <\/p>\n
Why Latin America?<\/b><\/h2>\n
The region of Latin America is growing by leaps and bounds. Innovative policies on the part of the countries themselves have become fundamental in attracting foreigners, and hence their capital, to the region. More than 1,000,000 North Americans reside in Mexico part or full time, over 40,000 Americans have homes in Costa Rica, and more than 20,000 call Panama home for part or all of the year. Each country in the region has its own attractions and incentives that draw tourists and permanent residents alike, and they are all competing to provide excellent retirement packages.<\/span><\/p>\nBut perhaps the most important reasons retirees are looking at Latin America are the \u201csoft\u201d factors like proximity to the U.S. and Canada, family, and friends. Flying in a north\/south direction limits the time zones crossed to two or three, making travel and communications back home simple and easy. Safety, stability, and services are important baselines, but convenience is perhaps just as, or more, important in the end for consumer satisfaction.<\/span><\/p>\n <\/p>\n
Financial Factors and Emigration<\/b><\/h2>\n
Ernst &Young produced a study that predicted 60% of U.S. retirees would need to cut back on spending significantly in retirement or face the prospect of outliving their nest eggs. What will folks cut back? Food, medicine, heat? Imagine living your life every day wondering if you were going to outlive your funds. It\u2019s a scary proposition.<\/span><\/p>\nIn addition, the U.S. Commerce Department reports that baby boomers are now saving almost nothing. For most boomers, there is simply not enough time to accumulate what was not saved. Today, almost half of U.S. boomer retirees (48%) expect to count on Social Security during retirement, and 15% expect to rely on it for most or all of their retirement needs.<\/span><\/p>\nThis is a dire situation for many. Where can they have a high quality of life in North America on what they have saved and will get from Social Security? The ability to enjoy the kind that they\u2019ve always dreamed of is simply not feasible in the United States on the limited funds they possess. More retirees will look elsewhere, many to Latin America, for ways to cut costs in retirement. Wonderfully, they will also discover that they can enjoy a higher quality of life on a budget that they can afford.<\/span><\/p>\n <\/p>\n
Capitalizing on a Crisis of Supply<\/b><\/h2>\n
There are plenty of houses in Latin America. So where\u2019s the shortage? It is when one examines the supply of <\/span>high-quality<\/b><\/span> homes in the region, one quickly sees the impending shortage. If one considers the amount of residential product with world-class infrastructure and amenities, the shortage is magnified immensely. Knowing why there is a shortage of supply is critical to understanding why investment in the region makes so much sense.<\/span><\/p>\nMost developers in the region sell a speculative type of product. It has also been called \u201ccut and run.\u201d This literally means that a developer buys a large tract of land, adds the minimum infrastructure like dirt roads and electric poles, then sells the lots to speculation buyers. Many homes in the region are built to a standard we would not accept and enjoy. Cold water service is common in the region. I don\u2019t know about you, but I love a hot shower. \u00a0\u00a0<\/span><\/p>\n<\/span><\/i><\/p>\nNot Up to Our Standards – Cold Water Service to an Otherwise Very Nice Bathroom<\/span><\/i><\/p>\nA 2009 developer survey by Christopher Kelsey & David Norden clearly points to the growing consumer demand for products with high levels of infrastructure, amenities, and \u201creality.\u201d Prior to the real estate and economic crisis in 2008, most consumers were willing to \u201cbet on the come,\u201d and buy pre-construction and speculative product. Today, their attitudes are very different.<\/span><\/p>\nWhen surveyed again in 2011, developers agreed by an overwhelming 94% that consumer\u2019s expectations for clarity and commitment from the developer for the delivery of promised amenities would be greater. 92% agree that consumers will want to see the infrastructure and amenities complete before purchase. 85% see an increased trend by consumers to purchase completed homes and condominiums rather than vacant lots and pre-sales opportunities. Yet, very little of this product exists in Latin America designed to serve North American retirees. Hence the shortage and incredible opportunity to fill a huge and growing need in the marketplace. <\/span><\/i><\/span><\/p>\nHigh-Quality Construction and North American Standards <\/span><\/i><\/p>\nConsumers who are now retiring want and need something different, as the Norden survey and other research data suggests. \u00a0This next wave of property buyers in Latin America want a product that they are familiar with and one that meets their standards and expectations. ECI is one company that delivers what these clients expect. \u00a0\u00a0<\/span><\/p>\nRetirement overseas is already happening with more than 600,000 receiving Social Security checks outside the United States. If the Ernst and Young State of Retirees report is accurate, then we will see this trend grow even faster as more people search for ways to lower their cost of living without giving up important quality of life issues.<\/span><\/p>\n <\/p>\n
The Sun City of Latin America<\/b><\/h2>\n
The baby boomers are entering their next stage of life with more time and many with more money than any other demographic group in history. As a result of longer life expectancies, these consumers know that they will have many more years of life after retiring than the majority of their predecessors ever did or do. With this time, they want to travel, continue working, and even start new careers. They want infrastructure, amenities, activities, neighbors, and community.<\/span><\/p>\n<\/span><\/i><\/p>\nFellowship and Community \u2013 The Hallmarks of a High Quality of Life<\/span><\/i><\/p>\nLatin America offers exceptional and diverse climates with a high quality of life at an affordable price. Our company, ECI Development is already serving this market, and is now positioned to capture an even larger segment as it grows and expands.<\/span><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"
How to Profit as Boomers Buy Property Overseas The Convergence of Demographics and Scarcity Creates Unique Wealth Opportunities in Real Estate Note: If you are an accredited investor and would like to learn how you can participate and capitalize on this major demographic shift, send me a note\u00a0and we\u2019ll email you a short summary of […]<\/p>\n","protected":false},"author":238,"featured_media":24296,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2,9412],"tags":[127,1136,406],"yst_prominent_words":[1890,10076,10085,10096,10081,10077,10082,10079,10083,10088,1895,3299,5122,10086,5107,4818,10087,10084,10078,1804],"acf":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2019\/04\/image1-5.jpg","_links":{"self":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/24282"}],"collection":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/users\/238"}],"replies":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/comments?post=24282"}],"version-history":[{"count":3,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/24282\/revisions"}],"predecessor-version":[{"id":35575,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/24282\/revisions\/35575"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media\/24296"}],"wp:attachment":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media?parent=24282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/categories?post=24282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/tags?post=24282"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=24282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}