A Bet I Wanted to Lose

Just over a year ago when the US Dollar was trading in the 1760-1800 range against the Colombian Peso (COP) an Australian gentlemen sat in my office and bets me the dollar will hit 2000 before it hits 1500. We made the dinner bet and lo and behold the dollar just traded over 2050, a three year high. That is a huge increase over the past year from its low of 1762 just 13 months ago.

So in one year what does this mean to investors who hold US dollars? Well it means the purchasing power of the dollar today (2030 exchange rate) is about 15% higher than a year ago. Add that to possibly negotiating 5% off list price, then it is like getting a 20% price discount on the least expensive cosmopolitan real estate in the world, Medellin real estate.

Now for the life of me I cannot understand how with the U.S. growing 17.263 trillion national debt we can gain this much on a strong, stable, low inflation, growing economy like Colombia’s. But I am certainly happy for our buyers and investors in the market today both for residential and commercial projects. They are happy campers, we are very busy and I am delighted to have lost that dinner bet to my Australian friend.

And speaking of the strong dollar and a deal getting sweeter all the time! Our Casa Provenza project which was originally priced at $35,000 USD, at today’s exchange rate, is now around the $30,500 USD level. This not only is a $4,500 USD savings but after looking at our January 2014 rental results (and last year’s 2013 returns) we are on track to earn 7.8% at today’s exchange rate levels for 2014.

So for $30,500 USD you can be a shareholder in the Casa Provenza SAS (Corp.), receive a Colombian Visa, earn an estimated 7-8% return and receive discounted owner rental rights.   To see more details visit our Casa Provenza page.


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