Felix Delgado a Costa Rican economist recently stated, “There have always been losses, but not this large. Some get scared while others take advantage and buy cheaply.” Costa Rica has a surplus of money at this time which makes the economy stable.

Furthermore, the country did not have investments in any of the large firms which went down in the United States. Also high risk sub-prime mortgages do not exist here.  So there is no speculation in that risky market. Felix Castro of the Economic and Financial Advisors (Cefsa) says, “People complain that the banks are not lending like before, well this is because they are protecting their liquidity by limiting their loans to only profitable borrowers and projects.”

Oxford Anallytica, an independent strategic-consulting firm drawing on a network of more than 1,000 scholar experts at Oxford and other leading universities and research institutions around the world, said in Forbes.com, “Latin America’s banking systems appear to be on a relatively strong footing to resist the crisis. As far as is known, they have not invested significantly in U.S. mortgage-backed securities, nor do domestic financial markets have the complex instruments that were at the root of crisis. Overseas credit represents a relatively low percentage of bank funding, and the main international banks operating in the region, such as Santander and HSBC, are generally considered sound.”

Finally, it seems as the economy in industrialized countries becomes unbearable, people with money realize that the stock market and
certainly the real estate market in their own countries no longer are safe investments. Smart investors look for new emerging markets to
invest their money.

What does all of this mean? Anyone thinking of living or retirement in Costa Rica can still do so. Also, knowledgeable real estate investors can still find value properties and bargains if they buy in right areas and at the right price.