"The South American Dream"

By Estela Lopez of Project Pegasus Inc.

Investors are taking a good look at South America, particularly in view of the current economic situation in many developed nations. Like many other emerging markets, governments in that region of the world see the benefits of foreign investment, and steps are being taken towards creating a more hospitable investment environment. Further evidence of this fact, are the latest developments by foreign financial and commercial organizations, setting up business.

ZURICH, May 20 (Reuters) - Swiss private bank EFG International (EFGN.S) has opened two representative offices in Uruguay, seeking to establish itself in a country regarded as a regional financial hub and upscale tourist haven.

MONTREAL -- Jazz Air Income Fund, Air Canada's regional affiliate, is investing directly in the fast-growing Latin American air travel market. The airline said Monday it will put $15 miilion U.S..into Latin American Regional Aviation Holding Corp.(LARAH), which in turn will control 75 per cent of Uruguay's flagship carrier Pluna Lineas Aereas Uruguayas after a restructuring. In return Jazz will own a one-third equity stake in LARAH.

With 2.75 million acres under cultivation in five countries, Argentina-based farming company El Tejar is only one of dozens of corporations snapping up South American farmland in recent years. What may surprise North American farmers is that El Tejar is hardly alone in its quest for plantation-scale farming in the world's last agricultural frontier. Agribusiness Bunge announced this week that it is gauging investor interest in an investment fund of perhaps $100 million to buy land in Brazil; it already owns a sugarcane farm that will begin operations next month. Brookfield, a firm with $100 billion in real estate assets under management, owns and operates more than 370,000 acres of Brazilian agricultural land and is one of the largest suppliers of sugarcane to the country's ethanol industry. Behind the investment interest is the knowledge that global food demand will double by 2050 and skepticism that seed companies and agribusiness alone can engineer higher yields to solve the problem. In that case, perhaps 125 million to 200 million new acres will need to be brought into cultivation to feed and fuel the world over the next few decades, analysts believe, but little capacity exists inside North America or crowded western Europe to expand their farmland base.

Brazil offers a wide variety of investment opportunities; from cities such as the modern, urban Sao Paulo and the beach resort city of Rio de Janeiro to vast areas of farmland and timberland, there are opportunities for large and small investors alike.

Chile has a dynamic market-oriented economy characterized by a high level of foreign trade. Chile’s economy has seen growth rates of 5-7% over the past several years. In 2006, Chile became the country with the highest nominal GDP per capita in Latin America.

Uruguay offers a broad selection of areas, communities, property types, and price ranges, from the most rural setting to the continent’s most fashionable resort. What sets Uruguay apart from many other offshore locations is that foreigners can buy and sell real estate in Uruguay with the same rights and protections as residents. According to Paradise Uruguay, “Uruguay’s real estate provides one of today’s best second home, retirement, and investment diversification opportunities”. Uruguay has beautiful beaches, a nice climate, and lots of recreational opportunities.

Some affordable and appealing options were named, by Kathleen Peddicord of Panama City, Panama, author of “How to Retire Overseas.” According to her a minimum amount for a comfortable retirement in a number of appealing places — Cuenca, Ecuador, and La Barra, Uruguay, being two examples — would be about $1,200 a month.
With life expectancies growing — and some pension plans diminishing — some baby boomers are doing the numbers and concluding that moving overseas makes more sense than aging in place.