How to Profit From the Path of Progress

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Verdant green tropical forest sweeps down to golden-sand beaches washed by the rich blue Pacific. It’s some of the most outstanding coast I’ve ever seen. This stretch of northwest Costa Rica—Peninsula Papagayo—is a chic, up-market destination where the jet-set goes to stay in world-famous resorts and multi-million-dollar houses.

It wasn’t always so. Forty years ago, this was a hard-to-reach farming region. But Peninsula Papagayo was in the path of progress. Costa Rica’s government had a vision: To make this little country a major force in resort and residential tourism. It planned a new international airport in Liberia and road infrastructure to make the coast accessible. Further road improvements and more local flights saw tourist numbers rise steadily. Then something big happened…

The developers of Peninsula Papagayo clubbed together with two other residential developers in the area and put up a $3 million fund to persuade Delta to start a regular service from the U.S. to Liberia Airport in 2002. They figured that without direct flights, they wouldn’t get the number and caliber of guests to justify luxury resort hotels, luxury residences and luxury price tags. Direct flights came. The rest is history. Today, it’s more Four Seasons than back-packer and with a price tag to match. A one-twelfth share of a three-bed villa in Peninsula Papagayo will set you back $225,000. Half-acre ocean-view lots can fetch $600,000.

The lesson is clear. Anything that improves the accessibility of a piece of real estate increases its value. Infrastructure like roads, bridges, airports, air and rail routes, and anything that improves amenities in an area will have the same affect, too.

This is the path of progress. Get ahead of it and you stand to make a lot of money. To profit from the path of progress you need:

Vision: You need to be able to detach yourself from what the area currently looks like and visualize what it could be with the delivery of new infrastructure and amenities. Picture what a swampy spit of land could look like if the plan to improve it comes off.

Credible research: To profit from the path of progress, you need to make sure the funds are in place to pay for the new infrastructure and that the country or region has the capacity to deliver it.

And you need to be able to stay the trade. By that I mean you need to be willing to sit on your investment for the medium term. Infrastructure projects take time…particularly if you are looking at a less-developed country. Take a conservative time line for exit…double it…and if you’re not happy, walk away.

You’ve heard of Cancún, Mexico? Once it was a small, swampy piece of land in an isolated part of the Mexican Caribbean. Folks thought it was good for nothing. But that was before the path of progress turned Cancún into one of the world’s largest resorts. Today Cancún Airport welcomes hundreds of international flights each week. Visitors and workers need somewhere to stay and eat. That demand has sent real estate values soaring.

Cancún became maxed out. But the development plan extended down the coast to Playa del Carmen. The government built new roads in that direction. Developers planned major projects. Today a modern highway brings you right to Playa. Back before the road was in, $10,000 bought you a building plot in the unpaved village center. Today, a 1,000-square-foot oceanfront condo in Playa del Carmen can set you back $600,000.

Mexico’s Caribbean coast had the basics going for it, including the intrinsic value of being a Caribbean coastline with a huge potential market on its doorstep in the U.S.— only two hours away. The government’s tourism-development agency, FONATUR, had the capacity to make good on its promises to deliver infrastructure and accessibility. And it offered effective tax incentives to attract major international hotel groups.

Bottom line: These guys had not just vision, but also the ability to actually make that vision a reality. In other words, their promises were credible for investors.

Today, we see development moving even farther down the coast to Tulúm. The best beaches in Mexico are here and the “machine” of Mexico’s tourism development has targeted this little town as its next success story. Tulúm is slated to get a new international airport and development here will be even more upmarket than in Cancún or Playa.

There is a good chance that history will repeat itself here. One way to get ahead of this path of progress is to consider the five-star Gran Bahia Príncipe Resort close to Tulúm. Condos start at $154,000 today.

Regards,

Ronan McMahon
For Daily Reckoning Australia

Editor’s Notes:
Ronan McMahon of Pathfinder, International Living’s preferred real estate advertising partner, reveals his top international real estate plays in the Real Estate Trend Alert—opportunities most people will never hear about. Instinct, experience and an unrivaled black book of contacts gives Ronan direct access and the inside track to profit-making opportunities overseas.

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Richo (the Second)
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Condos at $154k? If the global depression that is talked about in this forum eventuates this year you could probably buy them for $50k in 1-2 years.

I think I’ll just have a Corona and a tortilla to satisfy my dreams of being in the exotic.

nv
Guest
bottle o’ red and peproni pizza for me while i digest my ‘missed’fortune on the ‘chance of a lifetime’ to invest or live in the latest sand_swept beachfont gated community ‘villas’ with 24/7 armed guards to keep the northeast brazilians locals out_of_sight and out_of_pocket togeter with another ‘missed’ fortune by the same developers in the eucuadorian mountains for same priced ‘villas’ again a ‘gated community’ with, yes, same 24/7 armed guards for protection. British couple attacked with machete for being arrogantly wealthy in a poor country: http://www.dailymail.co.uk/news/worldnews/article-1211317/Couple-tell-horror-attacked-machete-Caribbean-home.html In coastal northeast be prepared to be sandblasted for 9 months of the… Read more »
Biker
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nv
Guest
“Kevin was involved in illegally preparing false certificates of qualification for the Chinese community and assisted in a fraudulent internet betting operation. Mr Smith said the illegal operations being a motive for the killings was a ‘realistic possibility’ but not the only explanation” very different situation than the following, you should read again: Read this again; http://www.dailymail.co.uk/news/worldnews/article-1211317/Couple-tell-horror-attacked-machete-Caribbean-home.html The locals of many nations, communities, have had enough of being ‘ripped’ by pbritish ‘pigs’ (their description not mine)buying up their lands for nothing, then developing it, which then inflates the price of everything including a decaf_skim_latte (or is it still tea the… Read more »
nv
Guest
“Kevin was involved in illegally preparing false certificates of qualification for the Chinese community and assisted in a fraudulent internet betting operation. Mr Smith said the illegal operations being a motive for the killings was a ‘realistic possibility’ but not the only explanation” very different situation than the following, you should read again: Read this again; http://www.dailymail.co.uk/news/worldnews/article-1211317/Couple-tell-horror-attacked-machete-Caribbean-home.html The locals of many nations, communities, have had enough of being ‘ripped’ by pbritish ‘pigs’ (their description not mine)buying up their lands for nothing, then developing it, which then inflates the price of everything including a decaf_skim_latte (or is it still tea the… Read more »
nv
Guest

The spaniards have had it too with the pbritish; http://www.telegraph.co.uk/news/worldnews/europe/spain/5525466/Family-traumatised-as-British-man-thrown-off-balcony-fights-for-his-life-in-coma.html

Pigs will always be just that, pigs.

Rumblings in eucuador and the sandblasted northeast coast of brazil.

Biker
Guest

Middle-Eastern family moves to the safety of Folkestone, Kent:

http://nigershowbiz.com/?p=3540

A rumble in Kent!

Ned S
Guest

Could be wrong, but I’ve got a niggling suspicion we just could have a ‘LaRouchian’ amongst us??? :

http://en.wikipedia.org/wiki/Lyndon_LaRouche

Biker
Guest

Used to have trouble with them, until we discovered Mortein’s ‘Lure’n’Kill’ baits, with Special Honey, Malt and Soya Attractant. Sounds tasty!~

LaRouche a ‘nasty duckling’? Prefer my ducklings tasty… . ;)

Ned S
Guest

Must admit I’m very iffy about every mob that reckons they have the answers providing everyone else can be made to do as they bloody well tell them.

Greg
Guest

NV seems like one sick puppy, with an anglophobic chip on his shoulder.

What sort of sick mind will twist an anti-white hate crime around and blame the victims, while just inventing motives like being “arrogantly wealthy”?

It sounds like he has some major inadequacy issues.

Biker Pete
Guest

We had hoped to include eastern Mexico on our next itinerary, Ned.
Riding Alaska may mean it doesn’t happen this trip.

Certainly considered western Mexico for a holiday home, but the tax incentives just weren’t there at all. As the missus notes, a three-bedroom beach villa with sea views is cheap enough to rent… .

‘Arrogantly’ wealthy? Half expected my mate to suggest I ingest roach poison and die very slowly, my antennae waving feebly as I pass hemolymph and clutch my broken thorax, spoon-fed blendered duckling a l’orange… !~ ;)

Ned S
Guest
Mexico – A work mate was very taken with that bit of the world Biker. It never held any attractions for me though. I can buy tacos and beans at my local Coles. Tequila at my local BWS. Scoot up to the Sunshine Coast if I want to see a beach. Or to the Daintree if for some strange reason I ever fancy getting lost in an equatorial jungle. And watch a documentary if I want to know the details on where and how and why the Aztec priests removed human hearts. Guess I’m just not a travel enthusiast at… Read more »
Biker Pete
Guest

Well, a trip down to Tijuana back in the mid-eighties left me feeling the same, Ned. Good for our kids to see real poverty first-hand, but a complete downer. Simply not worth the effort… .

The coastal stretch Sayulita down well south of Peurto Vallarta is a totally different story: http://www.sayulitalife.com/motels.htm You can actually see one of several hotels we stayed in… . “Aii, Senor Pedrrro…!”

I figure there’s a big world out there. None of us lives forever… .
God forbid we should leave it all to los chicos… . ;)

Ned S
Guest
“poverty first hand” – Yeah, I nearly mentioned that if I wanted to see what Mexico City looked like I’d just visit my local tip. But it’s pretty well organised these days! “I figure there’s a big world out there. None of us lives forever” True enough Biker. I knocked back an invite to visit India once. A mate’s family owns a hotel in one of the resort areas. But if memory serves me right I was working through a divorce at the time??? And Iran. I was keen enough. But figured it just mightn’t have been the safest of… Read more »
Not Fooled By property Spruikers Hype
Guest
Not Fooled By property Spruikers Hype

You boys bend over & blow smoke every night?

Oh please!!! … the sooner you two get a room & get this out in the open the better!!

Ned S
Guest

You’re back??? – Now let’s see … Oh yes, you’re the one who went off to figure out your thoughts/opinion on your investment mix/strategy and retirement plan aren’t you?

Well, pray tell … What are they? :D :D :D

Biker Pete
Guest
Well, currently the N Fool Punter appears to be bad-mouthing Perth suburbs, one-by-one. His usual stuff, of course: prostitution, burglaries, unemployment, youth centres, drugs, drunks, etc. Standard pattern, spread fear and anxiety. His ‘plan’? As far as we* can see, it’s fairly modest: Crash the Perth property market, then attempt to use his seriously-depleted funds to get back into a house. Talk of rental increases always upsets him, but he appears to have dropped his habit of launching multiple consecutive rants these days. The whimpering (“Go away… stop pickin’ on me!”) appears to have ceased, anyway, leaving the more general… Read more »
Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype

Most just ignore him?… Except you Coward Pete …. My little Puppet jumps when I pull the strings ?

Biker Pete
Guest
HaHa… . I see _you’ve_ ignored: * Ned’s request for a link demonstrating I’m a Builder or Developer; * Ned’s request for an outline of your _own_ financial plan; * My request for proof that I’ve “…had a house repossessed” as you’ve stated twice; * My question related to that house you ‘live in’ which appreciated $500K between 2002 – 2010. Do you rent or own it? 26th time I’ve asked you… and you’ve ducked for cover 25 times so far. Based on just those four reasonable requests, it’s clear you’re not just a coward, but a conman. It’s amusing… Read more »
Not Fooled By property Spruikers Hype
Guest
Not Fooled By property Spruikers Hype

Oh Coward Pete … Is Biting His Own Neck Yet Again …..

MR Big Time Investor thinking money he has in a offset account earns him 7% after tax .. Not astute enough to understand that all he has done is is retire Debt & his money is now actual locked up in the property returning around 3% after tax if he is lucky.

This lack of understanding says you are a retail property investor with ZERO understanding of how it works ….

You & Ned pick a room yet?

Biker Pete
Guest
“…actual locked up in the property…”? IF you _had_ any cash and you put it in a (taxed) term deposit, your money would be locked up for the term, Liar N Fool. We can use our cash in offsets 24/7. You’ve very little idea _what_ percentage we make on any property and your knowledge of tax claims has been proven to be minimal. Happy for you to broadcast the ‘losses’ we investors make far and wide. The perception that property investors make very little _helps_ us in three ways: 1.) It supports continuation of our generous tax benefits; 2.) It… Read more »
Ned S
Guest

“You & Ned pick a room yet?”

We’ve both got houses Not Fooled – A room is more for the likes of you! :D

Not Fooled By property Spruikers Hype
Guest
Not Fooled By property Spruikers Hype

Keep going Coward Pete .. showing your lack of understanding on the topic with every keystroke …. nobody is talking about putting funds in a term deposit dipstick.

I am saying your funds in a offset account is not earning 7% tax free

it has reduced the principle outstanding.

The money is now in the house , yes you can draw down on it but it is not earning interest dimwit.

It is now invested in the property & as such you would be lucky to get a yield of 3% tax free.

Dumb a a Box of Hammers honestly

Biker Pete
Guest
“…you can draw down on it…”(?) Shows how little you know, dimwit. An offset is simply a holding account. The money is not ‘in the house’. It’s in a holding account, getting 7.1% – 7.25%. Earning, getting, saving, accumulating… all semantics*. As I’ve said previously, your knowledge of rental yields is minimal. You always base your calculations on a. very expensive rentals; and, b. the very highest interest rate. You don’t factor in tax benefits. Your game is to promote fear and anxiety. You will say anything to achieve that aim. You’ve been caught out lying frequently. When you don’t… Read more »
Not Fooled By property Spruikers Hype
Guest
Not Fooled By property Spruikers Hype
Pinhead … trying to backtrack by now saying it is a holding account? … you said you had funds in 10 offset accounts earning 7%+ tax free … that statement is a lie … you dont E*A*R*N* interest in a offset account you S*A*V*E interest by reducing the principle outstanding. Simple back of napkin example below for established house not new {Biggest investment sector}: (BTW: its not meant to be Comprehensive Dipstick just typical back of napkin) $1 mill house with $1 million loan @ 10% interest = $100K holding costs PA, house is rented out @ 4% yield. or… Read more »
Biker Pete
Guest
Chris Mayer (RD U.S.) on housing, today: “Even a 1% annual increase over a 10-year period gives you 2.7 times your money. Anything better and your upside soars!” So housing nearly trebles your money in a decade?!~ “Depends on the interest rate!” yells the missus downstairs… . But let’s take N Fool Punter’s own experience, cited _by him_ first _here_ on DRA. He’s an anti-property spruiker like no other, outyapping Keen, Karan, Brett, HaHa et al; telling us his OWN experience: * House he ‘lives in’ valued at $250K in 2002 * House unimproved 2002 – 2010, says N Fool… Read more »
Biker
Guest

I said: “You always base your calculations on a. very expensive rentals; and,
b. the very highest interest rate.”

You replied: “$1 mill house with $1 million loan @ 10% interest = $100K holding costs PA”

Thank you for proving my point so quickly and so well. :D

Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype

Back to Topic …. are you earning 7%+ Tax free in a offset account??

NO YOU ARE NOT!!

Biker Pete
Guest
No need to SHOUT, N Fool Punter. You do that a lot when you’ve no reply worth posting. I’m always amused to read your ludicrous examples to demonstrate that property investors, however experienced, however ‘comfortable’, know less than you do. You’re not even a beginner in this field. Your own $250K – $750K story demonstrates this well. Ever heard of ‘logic’? (Google it.) We’ve asked you _four_ questions, repeatedly. You have ducked, weaved, dodged and hidden. And you’ve had the gall to call me a coward while hiding. :D Yes, I’ll answer your question, again: An offset account IS a… Read more »
Not Fooled By property Spruikers Hype
Guest
Not Fooled By property Spruikers Hype

Old Timer perhaps you should read up on the topic ?

http://www.homeloanfinder.com.au/offset-account/redraw-vs-offset/

You said you earn tax free 7%+ in offset … You do not!

Biker Pete
Guest

Up to our old tricks, DRA? Three attempts to respond.

Biker
Guest

Six attempts.

OK, let’s try another tack: “Who is your corporate landlord, Dodgy?”

Biker Pete
Guest

Seven attempts to respond to N Fool Punter of ‘Mindarie’.

For anyone interested enough, I’ll post my blocked response on PerthNow, across a half-dozen threads, with an explanation… .

Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype

Oh Diddums … Is the whole world against you again Coward Pete?

Dont forget not to leave the bit where you have 50 screen grabs of the Melbourne money man who gets all his post up each & every time?

BTW I here Perth Now is working on a follow up story on property crashing in Perth this time Land??

Ned S
Guest

Wonder at what points during any ‘crash’ (as in percent drops etc), the following might choose to buy in? :

* Neg geared investors
* Investors using cash
* First home buyers

PS: I’d ask Not Fooled, but he doesn’t answer my questions … ;)

Ned S
Guest

And Oh, I forgot:

* Steve Keen ? :D

Ned S
Guest

Do you get rental assistance Not Fooled? – Damn! Smitten by ‘Old Timer’s’ disease yet again – Momentarily forgot that you don’t answer my questions … :)

Not Fooled By property Spruikers Hype
Guest
Not Fooled By property Spruikers Hype

Keep trying travs … you have to attack the messenger because you cant fault his message ???…. You just look desperate …. Have a go at my messages pick holes in them if you can … It is not about me it is about the Property Market … so funny watching you try & fail over & over …. Try Biting your Elbows you might get some traction there?

Not Fooled By property Spruikers Hype
Guest
Not Fooled By property Spruikers Hype

Coward Pete…

Providing the balance exceeds $5K, it gets 7.1% – 7.25%.
If we paid 7.8% in interest, it would attract 7.8%.

You get 0.0000% old timer … all you do is reduce the principle you pay interest on!!

How hard is this to understand …

You earn nothing … you are just not paying interest on the amount you offset….

Somewhere a Village is missing their Idiot & here I am having a argument with him!!

Get back to Biting Your Neck Old Timer …. Dance Little Puppet Dance … Tee Hee Hee
VA:F [1.9.5_1105]

Ned S
Guest
Wonder if Steve Keen gets rental assistance nowadays? LOTS do. About 43% I gather. Maybe not for him just yet though? Give that particular ‘homeless’ old timer a few more years and he just could qualify??? Funny bloke – Reckons he doesn’t know much about tax. (Glad he’s not MY financial bloody advisor!) And he was advising youngies to not bother saving and just wait for the ‘crash’ last I heard? (Which seems a bit of a strange attitude for a deflationist to take???) But then he’s a bit conflicted as he ALSO reckons inflation is the duck’s nuts! As… Read more »
Ned S
Guest

You’re talking to yourself Not Fooled – Biker reckons he can’t get his posts through. And seems to have buzzed off? And I reckon asking you to come up with any answers to my questions is like asking a lump of ‘brain’ coral to discuss the meaning of life.

Ned S
Guest

I’ve got an EASY one for you Not Fooled … How many years old are you? (An answer in human years would be convenient. But if that complicates things for you TOO greatly, a number and a species will suffice??? … :D )

Biker
Guest

Same over on PerthNow, Ned. If he can’t answer a question, he simply pretends he never saw it. Not even an acknowledgement.

Meanwhile, the system blocks my legitimate response to HIS question.
Tenth try failed. Have checked it. Nothing sus at all.
Perhaps programmed to block my tag and offset and redraw. Let’s see…

You’ll recall this isn’t the first time… and a whole raft of posts disappeared one evening. Makes one wonder, mate.

I’ll give it one more shot after this. Cheers!~

Biker
Guest

Nope. Blocked again.

Perhaps this again precedes a period of total censorship, where I’m ‘offline’ for having baffled Poster Boy!~ ;)

Ned S
Guest
The issue (to me) is that he’s just a spruiker Biker. On an investor’s site. Now while I don’t deny that confidence does affect markets, imagine if someone turned up here and announced that his sole reason for being here was to talk down bullion prices? Or stock prices? Or the prices of bonds or whatever – Because (as best anyone can make out?) he doesn’t own any bullion or stocks or bonds and figures that if he can talk them down he can buy them cheap??? The likes of Not Fooled (both the bull and bear incarnations of same!)… Read more »
Not Fooled By property Spruikers Hype
Guest
Not Fooled By property Spruikers Hype
Poor Coward Pete the whole world is against him? Keep saving those screen shots there is bound to be some conspiracy here it couldnt be something as simply YOU!! Lets see I am Punter / Dullsville / Aaron / Poster Boy & everyone else who has a opinion that differs from yours? You do know there a Meds for this type of condition? I keep trying to point out for your own good & the sake of a engaging debate to attack my message & not the messenger if you want to get traction. But you are not able to… Read more »
Not Fooled By property Spruikers Hype
Guest
Not Fooled By property Spruikers Hype
Hey Coward Pete I had a thought? Interest rates on home loans have been 10.11% PA historically for the past 30 years. Right? SO if they go up to historic levels you will be ? a) Earning 10.11% Interest on money in your offset account or B) Saving 10.11% Interest on interest charged on your Investment loans Keep Denying gravity old timer … You made a simple mistake saying you earned money in a offset account instead of saved interest. Bite Bite Bite? … No luck Try smaller bites ? … Still nothing … Try Licking your own Neck?.. No… Read more »
Biker Pete
Guest
“…he’s just a spruiker…” May be more to it than that, Ned. Here’s a totally fictional scenario to consider. Imagine you’ve witnessed crashing house prices abroad and figure there’s about to be a helluva lot of investment money exiting property. You move a team to Oz, to a.) spur it on: “Australian house prices are seriously unaffordable”; b.) persuade punters to shift it all to other asset classes _you_ plug: PMs, shares, etc. You give one fella the west coast to saturate with pessimism, anxiety and fear. Can’t have one state where values boom. Problem is, your ‘WA fella’ is… Read more »
Biker
Guest

“…if they go up to historic levels…” (?)

Doubt they’ll even go close to the 9.5% you’ve predicted for mid-2011, spruik!~

Amp the fear, create anxiety, blacken the name of the suburb. You’re always asking contributors their locations, I notice. The innocent few silly enough to tell you then endure multiple attacks on their suburbs, not just from you, but your host of aliases. Haven’t missed your requests to women to email you, either. You’re a pretty sad case, Punter Dull Fool of ‘Mindarie’.

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