INFRASTRUCTURE & TRENDS

Why Costa Rica?

Costa Rica is known as the Switzerland of Central America. Besides having incredible beauty, friendly locals, great location, and endless activities, it also has the most stable government and the best infrastructure of any Latin American or Caribbean country. Education has been a priority for the country of 4 million and because of it; they have the highest literacy rate in the western hemisphere. The healthcare system is very modern especially in San Jose and the cost of living is extremely low compared to the US and Europe.

Is Costa Rica’s government stable?

Yes. And they are the strongest ally for the United States in Central America. They are a democracy and have a very stable government. Costa Rica is the only country in the western hemisphere without an army. In fact it abolished its army in 1949 and allocated the defense budget to education.

Are there any restrictions for Foreigners owning land in Costa Rica like Mexico?

There are no restrictions for foreign ownership of land in Costa Rica. Foreigner ownership rights are the same as Costa Rica nationals and are protected by the constitution. There are regulations which apply to everyone if buying beach front property within 200 meters of the high tide mark. This land is called "Concession Property" and is leased from the government for a specific term. All of the property which is the subject of the packet is fee simple titled land and is not Concession.

Is Costa Rica a safe place?

Costa Rica has a very low crime rate. Most of the crime is typically petty theft and violent crime rate is one of the lowest in the Western Hemisphere. Costa Rica is a very safe place and the locals are warm and friendly. In addition, with the escalation of world wide terrorism in the US, Europe and Asia, Costa Rica has been recognized as a paradise removed from any threat.

Who is buying property?

Most of the foreigners that are buying real estate in Costa Rica come mainly from the US and Canada. European ownership has increased dramatically as they are attracted to the mild climate, beauty and location. With a close proximity to the capital of San Jose and offering some of the most dramatic views of beautiful beaches and rainforests, the Central Pacific region is poised for significant growth over the next 3 - 7 years. With the completion of the coastal highway and various improvements to the infrastructure, we are moving forward and taking advantage of this unique opportunity to acquire premium coastal properties at very attractive prices when compared to other resort destinations.

Location

Costa Rica is situated on the Central American isthmus, flanked by the Pacific Ocean and Caribbean Sea with a distance of approximately 248 kilometers (155 miles) between coasts. With a total area of 51,200 square kilometers (20,480 square miles), Costa Rica is no larger than the state of West Virginia, yet it contains 6% of the world’s biodiversity. A map of the country is included with this packet as Item 2.

Economy

The structures of the Costa Rican economy have changed dramatically within just a few decades: Costa Rica has transformed itself from an agrarian to a service and industrialized state. While agriculture accounted for 23.5% of GDP in 1965, it made up only 7.8% in 2001; in contrast, services and industry make up 65% and 20% respectively. Agriculture remains of great significance for the labor market, with a share of 20%. The Costa Rican economy grew at a healthy 5.6% in 2003, with growth estimates exceeding 4% for 2004. Compared with its Central American neighbors, Costa Rica has achieved a high standard of living and an unemployment rate of 6.3%. Costa Rica's industry mainly processes agricultural products. The production of other consumer goods is still just taking off. However, there are many business incentives to bridge these gaps. Many real estate investors fall in love with tourist projects, especially those related to ecotourism. Many hotels are being built, bought and managed by foreigners. Tourism has developed into a very important source of foreign currency. The national economy is made up of services (58%), industry (26%), and agriculture (16%).

Costa Rica has managed to create one of the most attractive investment environments in Latin America for the development of industries. Costa Rica's unique characteristics—its strategic location, political stability, business incentives (including free trade zones), supply of high quality human capital—and its proactive promotion of these assets—have all contributed to an increase of investments by high-tech companies in the fields of power technologies, systems integration technologies and call centers.

Companies that have invested in Costa Rica: Intel, Marriott Hotels, Microsoft, Abbott Laboratories, PricewaterhouseCoopers, Baxter Healthcare, CitiGroup, Siemens, Proctor & Gamble, Dole, Texaco, Wal-Mart Stores, Hilton Hotels and the Four Seasons Hotel.

Infrastructure

Electricity. The country’s mountainous terrain and abundant rainfall have permitted the construction of a dozen hydroelectric power plants, making it largely self-sufficient in most energy needs. Costa Rica exports electricity to Nicaragua and has the potential to become a major electricity exporter when plans for new generating plants and a regional distribution grid are completed.

Roads and Highways

The country has an extensive road system of more than 30,000 kilometers, with many road improvement projects in progress. Getting around in Costa Rica is relatively easy though there are some areas which require a 4wd. The property which is the subject of this financing packet is accessed by the coastal highway and does not require a 4wd.

The main highland cities in the country's Central Valley are connected by paved all-weather roads with the Atlantic and Pacific coasts and by the Pan American Highway with Nicaragua and Panama, the neighboring countries to the North and the South.

Growth Trends

Over the past five years Costa Rica has become one of the fastest growing tourism destinations on the planet boasting over $1.078 billion in foreign currency for 2002.

Spectacular natural beauty and peaceful atmosphere attract over one million visitors to Costa Rica annually. Nine active volcanoes, diverse forest environments, hot springs, wetlands, lakes, island reserves and 966 kilometers (600 miles) of beaches on two coasts account for the dramatic increase in tourism over the last decade. Costa Rica’s varied terrain provides endless possibilities for activities ranging from hiking and white water rafting through national parks to surfing, snorkeling and scuba diving off the Pacific and Caribbean shores. The odds of seeing wildlife are greater in Costa Rica than anywhere else in the world. The country is home to 1,240 species of butterflies, 845 species of birds, 250 mammal classifications, 160 amphibian categories, 218 types of reptiles and 1,013 varieties of fresh and salt water fish, including several endemic species found nowhere else on the planet. Costa Rica is also the world leader in terms of protected areas, with 27% of its land mass designated as national parks or reserves. We are possessed of numerous photo's of wildlife found on this particular property, these photo's are available upon request.

Airlines

The increase of international airlines offering direct services to Costa Rica has dramatically improved the tourism industry over the past couple of years. International flights to Costa Rica have increased by 43% since April of 2002 with over 322 flights weekly. In addition, the number of airlines operating in the country grew by 54% last year from 13 to 20 and that number continues to grow every quarter. All major U.S. carriers offer daily direct flights to Costa Rica from major hubs such as Phoenix, Miami, Los Angeles, Houston, Dallas, Newark, Atlanta, Minneapolis, Washington D.C. and Chicago.

Since the end of 2003, Air Canada, US Airways, American West, Conguer, Avianca and Bridge Caribbean and the Caribbean Biwi West Indians, have all started services to Costa Rica; likewise, new direct services were started from several cities around the world such as Frankfort, Germany, Port Spain, Trinidad and Tobago, Philadelphia and Phoenix, the United States with many more in the process.

With ongoing discussions of a new international airport within the southern region of Costa Rica, we believe the Central and Southern Pacific region will realize explosive growth and increased accessibility from additional foreign markets.

Our Target Market.

Offering all the comforts of home in a relaxing tropical paradise, Costa Rica has become the ultimate relocation and retirement destination. The warmth of its people and its climate have attracted thousands of expatriates, but the advantages of living in Costa Rica extend far beyond its fun-and-sun reputation. Following are just a few of the country's enticements.

• Affordable cost of living - A favorable exchange rate, coupled with substantially lower costs of food, utilities, hired help and entertainment, enable many North Americans to live very comfortably on less than $1500 per month. Therefore, those with Social Security checks or pensions feel that they can get more for their money in Costa Rica.
• Modern communication amenities - From managing a global business to staying in touch with family and friends, Costa Rica offers the latest means of communication. Communication options include high speed Internet access, email, international calling system, cellular phones, fax services, VOIP and an efficient mail system which are constantly being improved.
• Excellent Healthcare - The Costa Rican socialized healthcare system comprises a network of hospitals, clinics, and complete medical services in all major cities. Considered to be among the best low-cost medical systems in the world with preventive and curative care, healthcare in Costa Rica is accessible, affordable and comprehensive.
• Tax advantages - U.S. law permits permanent residents or retiree's to earn up to a certain dollar amount in Costa Rica that is U.S. tax free. In addition, Costa Rica's business taxes and property taxes are comparatively much lower. High interest bank accounts are also tax-free.

We believe the Central Pacific region is experiencing the first of several development booms which will commence over the next 10-15 years as the market for baby boomers, foreign home owners and expatriates continues to grow. At present, demand significantly exceeds the supply of homes and condominiums and we are poised to act to begin satisfying that demand.

Property & Security Rights to the Project

Costa Rica’s laws and constitution, based on a well-developed tradition of Democratic government, include secure property rights for the private ownership of land. These laws are extended equally to foreigners as well as residents. Neither citizenship, nor residency, or even a presence in the country is required for land ownership. There are almost no restrictions to the ownership of land in Costa Rica, with the exception of direct beach front. This exception does not apply to our project and we enjoy fee simple clear title without restriction.

Land Records

Costa Rica boasts a safe form of title registration to protect buyers from hidden claims. In many ways, the Costa Rican system of maintaining property records is far superior to systems in use by more developed countries such as the United States. All documents are centered in the National Registry, where both titles and surveys are recorded.

Records are kept in a central computer system as well as on microfilm, and in original form. Duplicates of all records are updated daily, and sent to two separate fireproof vaults in separate locations from the registry. Any change in the status of a title, or any claim that might affect it, must also be noted on the title registry page, thus making it easy to verify.