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Wealth Preservation in the Face of Hyperinflation Part 3-Holding a Varied Portfolio.

We`ve already covered the intrinsic core value of holding one`s assets in raw land and in real estate rental properties and the reasons why these serve as sound foundations for wealth preservation in the face of high inflation, now we`ll move into various other smaller segments of the market which serve the very same purpose and thus should be part of any investor`s strategy for safeguarding his savings while enjoying life in our little nook in paradise.

Commercial retail holdings offer the investor consistant returns which always adjust upwards as inflation ignites. There are a few commercial centers in the area whose gross rent multipliers and cap rates are in line with prime north american and european retail real properties. There are hordes of others at attractive prices which are either poorly run and or suffer from economic or functional obsolesence issues which need only be fine tuned and brought into their highest and best uses in order to achieve maximum occupancy rates and hense returns.

Searching for optimum equity plays through purchasing under-valued properties is always worth its weight in gold and requires many hours of sifting one`s way around seemingly countless real properties for sale. Indeed there has always been a ``supply-side`` shortage here in that there has never been enough properties with the following characteristics:   1) Acceptable pricing, 2) Proper infrastructure in term`s of utilities and legal transferability and or 3) To be unaffected by incurable economic or functional obsolesence issues. Today`s market holds the key to many more undiscovered gems than usual, particularly in the fee-simple titled beachfront realm where if one does enough knocking he will find a motivated seller and the deal of a lifetime. This is additionally prevalent in all segments of the market as well.

 Many small businesses in Tamarindo are flourishing and many are cash cows in disguise. The best are those that generate small but steady cash flows on a daily basis. Cash is king these days and steady inflows of small denominations of US and Canadian dollars, colones, and euros protect these small businesses from currency fluctuations. There are many a taco stand and souvenir shop that also inadvertantly double as veritable currency hedge funds by virtue of the numerous currencies changing hands on a daily basis. The key here when purchasing any local business here is finding, motivating and retaining key employees as well as having active hands-on management by the new business owner.

Lastly, we recommend finding a reputable Costa Rican brokerage house for the local stock exchange in order to open the doors to many profitable Latin American dividend paying companies reaping good profits in what is definitely one of the world`s most stable and sustainable emerging markets for the long haul. Please enquire as to our recomendations for local industry leaders in the financial services area.

With over 15 years of local, real estate experience, we have the knowledge to help you choose the right property. If you should have questions about buying or selling real estate in Costa Rica, please contact us. Please browse our website listings keeping in mind  our listings only represent a small fraction of available properties and that our specialty is Buyer Representation; Real Estate is our ONLY Business. Until then ``Pura Vida``!

Cordially Yours,