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2008 Recession and CR

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Casbah209
  7/9/2019 23:14 EST

Hello again! Thank you all for your continued and helpful responses.

A new subject: How were you, as residents of Costa Rica, impacted by the 2008 Recession (if you were there then)? How did CR fare? As such things happen in cycles, I'm curious...

Gracias!

mate31658649
  7/10/2019 10:00 EST

I didn't feel that I was impacted by the recession. In Costa Rica, homes are not mortgaged to the extent they are in the US. Everyone I know here, paid cash for his (or her) house. Tourism in 2008 was down, but as you said, these things run in cycles.

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Kohl
  7/10/2019 10:32 EST

A result was seen in the many developments that were closed down....and the amount of homes that were advertised for sale for a very long time.

beano102
  7/10/2019 10:36 EST

Kohl is absolutely right on. Sales were slow and everyone was nervous about the future... almost no one was purchasing. Smart money waited.

Casbah209
  7/10/2019 15:31 EST

Good to know, thanks all for responding.

Kohl
  7/11/2019 16:18 EST

It should be mentioned that many expats and Ticos lost billions of dollars on July 4th 2002, and many were still reeling from this, before this 'recession.'

You may want to read up on it, if you don't the history of this, and it takes too long to write it out.

And, yes, we were one of them that lost funds that we had 'invested' with one of the similar groups that were around at the time and the Costa Rica government had known all about them for many years.


https://ticotimes.net/2007/05/18/the-long-muddled-history-of-the-brothers

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beach1girl
  7/11/2019 20:38 EST

This is a very sad story but sadly so true and so common about life in Pura Vida Costa Rica. https://ticotimes.net/2007/05/18/the-long-muddled-history-of-the-brothers
How many have lost their life savings and some their lives in paradise? Too many.

beach1girl
  7/11/2019 20:47 EST

Do yourself a great favor. Read THE COSTA RICA NO ONE TALKS ABOUT by Francois Sylvain before investing in, retiring, moving to and even visiting Costa Rica.

ILuvCR
  7/11/2019 20:57 EST

beechgirl, so typical! negative ninny

Kohl
  7/11/2019 21:50 EST

I agree with her, in this instance, so since she agreed with what I posted, I guess you would consider me to be a 'negative ninny' too?

I met many, many people who lost everything due to the government change of attitude regarding these investor groups.

Hundreds of Canadians, US citizens plus Europeans could no longer afford their residences and had to leave the country, and the American owner of the one we were involved with, committed suicide.

We were lucky in that we were only in one for a short time, but the investor groups had been operating for many years, so we didn't lose as much as many others but enough that it hurt.

Not many on this forum would have been living here at that time, so may not have been aware of it.

Very, very few were lucky enough to get ANY of their funds back.

lindyluvsCR
  7/11/2019 21:56 EST

Kohl - Are those investor groups still operating?

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beano102
  7/11/2019 22:04 EST

Kohl... yes, strange that the pollyannas are not coming down on you and arguing that it never REALLY happened... oh, and "things are different now."
There may not be that many stories of fiascos like this one but there are stories galore involving developers with only minor millions of dollars. Stories like PD who owned one of the best pieces of real estate in Jaco and suddenly was imprisoned with no charges... ever. Cost him 7 figures to get released. Stories like this and Esterillos are far too common. thanks for the reminder.

ILuvCR
  7/11/2019 22:33 EST

Hi Kohl, the difference is that not every single blessed that that you contribute is negative.

This women has a bone to pick with my home and I just get sick of it.

She's a legend in her own mind and self proclaimed "expert" on a country??

ILuvCR
  7/11/2019 22:43 EST

beechy, I love the one star review of the book your going on about,

"This book contains almost zero factual information. It contains many assertions of fact, but virtually no references or sources. The book (pamphlet, really) is almost entirely opinion of the author who comes across as arrogant and self important and the majority of whose complaints about Costa Rica seem to originate in the clash of the author's personality and Tico culture. If you are not a jerk this book will likely be of little use. "

It's been referred to here before by other nattering nabobs of negativism

Pura Vida!

Casbah209
  7/11/2019 22:46 EST

I do appreciate theses forums and the opportunities to provide unique perspectives to posted subject matters. Civil discourse is healthy and provides readers and participants new and different ideas that can be further explored by the reader.

Personal jabs and name calling detract from this and typically result ionly in discrediting those offenders who might choose to resort to such dialog due to heightenened passion regarding the topic or are simply not up to countering with an intelligently vetted alternative perspective.

Those interested in CR whom might one day be your neighbors will be better served if all respond respectfully... From what I have read in the Expat forum, you all have something valuable to contribute...

Casbah209
  7/11/2019 22:52 EST

Ah, and BTW, in 1980 my father invested $30,000 in CR and regretfully, along with many others, was swindled in what was an investment scam. It happens. Don't invest more than you can afford to lose esp. if the company does not have a loooong, proven track record, is transparent, etc. it still can happen....

Kohl
  7/11/2019 23:12 EST

I think that many forum members know that I 'tell it like it is' and have never promoted one area rather than another. I have told of being robbed multiple times, and have never been rude to anyone.

No, these investor groups are no longer operating, as far as I know, however Luis Enrique Villalobos was never caught but his brother was charged, found guilty and imprisoned.

As a couple of us often say, 'Costa Rica can be a great place to live...if you can afford it.'

I was never sorry that we lived there.

Casbah209
  7/11/2019 23:20 EST

Your posts are always appreciated, informative, and a pleasure to read, Kohl.

beach1girl
  7/12/2019 07:22 EST

Not true, ILuvCR, on pages 97 and 98, there is a list of 22 references and sources.
It is normal that those who do not like what the author wrote will give it a 1 star review. Others gave it a 5 star review.

Justagirl8815
  7/12/2019 07:55 EST

The development scams are still going on, the recession gave an excuse to the “scam” developments to not fulfill their promises, and the strike, and other things that investors and dreamers would accept as a reason for their investment not doing what it was meant to do. I believe we are about to see another noteworthy story that provides another lesson to the very good advice above of “dont invest what you can’t afford to lose”. Thanks for the book suggestion! I am going to get and read straightaway! It’s best to learn as much as you can before moving, because as soon as you move the lessons come hard and fast!

beach1girl
  7/12/2019 09:28 EST

...It’s best to learn as much as you can before moving, because as soon as you move the lessons come hard and fast!

Even if the book spares the investor or person moving to CR just one of those hard lessons, it will have been a good investment.

peter2017
  7/12/2019 10:47 EST

You should not be investing in anything in CR or Central America. There are plenty of safer opportunities to invest in the world stock markets.

As for real estate, buy safe, well established property in good location that will be easy to sell.

Better yet, just rent the place for a year before you buy it.

lindyluvsCR
  7/12/2019 10:57 EST

ILuvCR - I for one loved your response to Beechy. I believe that anyone can get scammed anywhere including US. No different here. I have not read the book, but I have heard and read enough to know that if you have tons of money and flaunt your spending on huge houses on mountain tops, hang out in bars especially at night, invest thousands of dollars in the hopes of making a lot of money, you are opening a door to being a target and victim of loss or danger.

I know several here who have made stupid investments, some who made a bunch and then squandered it and end up with nothing left but the whining.

Also many who insist on having the expensive house with the view, and the vehicles and expensive eating out and complain they can barely make it. With an economy that could crash any minute and affect all of us, no matter where we live, people need to put on their thinking caps, use their heads, live under the means, and be safety conscious wherever they live.

And I can live a lot cheaper here than I ever did living frugally in the US.

cinparadise
  7/12/2019 12:43 EST

Beach1girl

You wrote:

"Do yourself a great favor. Read THE COSTA RICA NO ONE TALKS ABOUT by Francois Sylvain before investing in, retiring, moving to and even visiting Costa Rica."

The Amazon Kindle price for this book is $3.99 and I was just offered a $5 coupon so I got it for free.

I look forward to reading it.

beach1girl
  7/12/2019 16:11 EST

Good for you. Not a bad investment already

lindyluvsCR
  7/12/2019 18:45 EST

Beachgirl - I don't know if you would be willing to share, but curious as to what lessons you learned hard and fast when moving here, how long you lived in CR, what year you moved back, and what state you live in now.

1952cajun
  7/14/2019 12:04 EST

After reading all these responses about the recession and bad experiences, I felt better about my personal experience living in Costa Rica. I am surviving comfortably in Atenas on only my small SS check of $1,100. I am speaking to those that may want to come to this exhilarating country to escape the US or any other place that hussle and bussle is the norm and live life! Costa Rica has so much to offer and it can be affordable. My studio is only $240/month. So for those who want to come to Costa Rica to retire, you can. The Costa Rican people are a beautiful people. Blend in and be happy.

lindyluvsCR
  7/14/2019 13:42 EST

I can not imagine why anyone gave 1952Cajun a thumbs down.

You have the right thinking Cajun.

It's a pura vida. Expensive vehicles, huge houses, pricey restaurants do not equal happiness and peace.

Hogwild1356
  7/14/2019 15:13 EST

We love it there we will have been married for 36 years soon am are excited about coming and meeting others our age! Susy and mike

PombinhaCoco7
  7/15/2019 13:31 EST

lindyluvsCR
Hi Linda,
You wrote:
"It's a pura vida. Expensive vehicles, huge houses, pricey restaurants do not equal happiness and peace".
Well, there are people I know with expensive cars, beautiful and huge houses in the mountain, who eat in good restaurants and who travel a lot and who are happy.
Do you know what I envy about them?
The fact that they can have as many dogs as they want without having HOA or property managers telling them that they have to move.
Right now I have a cat sleeping on my bed who was born here in our complex 9 years ago (before we came here).
My husband had to fight in his behalf in a AGM reunion for him to be able to stay in the property.
I have a friend that always says: Money doesn't give happiness but it helps a lot.
Actually it is now that I understand how important money is. In our case, we have Caja but in case we needed an important operation I'm not sure if we could afford it.
In September we made an appointment for an ultra sound ordered by my doctor.
Yes, they made an appointment for Nov. 2021.
So even thought money is not everything it really helps a lot.
I'm not talking about the spirit of mammon (Bible).

PombinhaCoco7
  7/15/2019 13:32 EST

lindyluvsCR
I think that BeachGirl1 lives in Canada not in the United States.

Kohl
  7/15/2019 18:03 EST

Last month a fellow Canadian was admitted to a CAJA hospital in the Central Valley, where he died while waiting for an operation for 31 days.

If you feel that that the wait time is too long...do not wait. You can't afford to waste time when your health could be in jeopardy.

You have too much to lose.

Justagirl8815
  7/15/2019 19:50 EST

I agree. The longer you live here the less it can costs just because you start to learn the ropes and build a network, at first, I suggest a good nest because not having money can make you very vulnerable.

PombinhaCoco7
  7/15/2019 22:03 EST

In our case is not that we don't have money but when I hear people say that they paid US$80.000.00 for a staying of 4 days at the hospital is really scary.

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