Saying hi . . . from Uruguay! :)

Greetings once again. This time from the beautiful capitol city of Uruguay . . . Montevideo!

I know it´s been a while. One friend thought I had deleted him from my list because I had not updated for so long. The fact is my laptop died on this trip and everything must be done from a public (translated that means s-l-o-w!) computer, which has been a handicap. Particularly trying to work with photos.

But I am back to pass on information to you. Several of you complained about the absence of pictures in my last eletter. I excluded them because others had complained the time before because their computers would not open the file. So I had to do some research. I decided to move my letter to a blogspot site where I could include the pictures that some of you want. If it does not work for you, please let me know. I´ll work at it until I get it right.

You will recall that I started writing this eletter by request from friends who are interested in moving to a place that offers low-cost, high-quality living. And so, although travel is involved, this is not primarily a travel letter. It aims to deal with the nuts and bolts of exploring and living in this part of the world.

The City of Montevideo
Montevideo, with a population of more than 1.7 million, still feels like a small town. People are friendly, caring, sweet people. Not detached and disinterested or too busy to say hello--even to a stranger.

Just for example, recently I was waiting with my son, Matt, in line for a taxi. (That´s how they do it here, you wait in line.) It was raining and the young man ahead of us struck up conversation with us. He asked where we were going. We told him. He said, "I am going right by there. Come and go with me in my cab." And we did. I find this friendliness and caring attitude is typical of Uruguayans.

The architecture here is decidedly European. And so are the people. With my European ancestry, no one on the street can tell I am not a local unless I speak. I don´t stand out. As one travel writer has said of Uruguay, it is more European than Europe!

Part of this city is known as Ciudad Vieja, or Old City. It is the historical area of Montevideo. It is situated right on the Atlantic Ocean, but over the years, the area deteriorated into a slum. The old architecture is grand and beautiful. But the buildings were, and many still are, in serious disrepair. A lot of undesirable folks had taken up residence there. Although I feel safe in the daytime, I would be a bit apprehensive there at night.
Ciudad Vieja where much restoration has taken place.

But the city fathers decided to restore the old area. As part of that program they offer a tax benefit to those who buy and refurbish the old buildings. So if you are into refurbishing real estate, and you like tax breaks, then come on down! It is interesting to wander through the city in the daytime, looking at the old, ornate architecture, and imagine what it was like in years past--the people who laughed and cried and lived and died there. What secrets the old city could tell us!

Here is one of the streets in the restored area.

















It is surprising that that part of the city fell into such disrepair since waterfront areas usually are the most expensive. Interesting though it is, I do not want to live there. Even though the old city is gradually improving, there are still quite a few people living on the street.

Aside from the Ciudad Vieja, the type of petty crime that exists in Argentina is minimal in Uruguay. I have seen an unattended cart in the local grocery store with a purse sitting in it, a car left parked next to a sidewalk, running, with the key in the ignition, and other signs that locals are not worried about crime. Things I doubt if you would see in Argentina--and probably should not do here for that matter! But people are not worried enough to be really cautious. I walk around downtown alone, safely, at any time of night.





















Throughout Montevideo, all day, you will see the recyclers driving their horses and wagons through the traffic-filled streets where they search through the trash for treasure. These are what you might call professional dumpster-divers!

Comparing Uruguay to ArgentinaArgentina is becoming more and more expensive all the time. I am not sure the reason. The last economic crash in Argentina was in 2001. Argentines claim that this happens to them about every ten years. There is now fear among Argentines that another crash may be in the making. Some people think that that fear is what is moving prices skyward—i.e., that it is a matter of perception. The Argentines experienced hyperinflation leading up to the 2001 crash, with prices changing every day. I don´t mean that when they woke up the next morning the prices were higher, I mean they would go up during the day. That is hyperinflation.

As Doug Casey, of The Casey Report, who invests and lives part of the year in Argentina, says, Argentina has the stupidest government in the world. But many Argentines believe that these crises are not the result of stupidity, but that they are engineered by the bankers and super wealthy who then move in and grab up the spoils. They have a Spanish name for it that I never can remember. I don´t know enough about Argentina´s economics or politics to have an opinion. Many savvy Argentines are too smart to get caught in the trap, if it is true. Their money is in Swiss francs or Uruguay banks.
Several Argentines have told me NOT to bank in Argentina but open an account in Uruguay for any “serious money” since Uruguay is considered the Switzerland of South America, with strict bank secrecy. (Addendum comment: The bank secrecy was changed with the 2009 OECD meeting. See Banking in Uruguay for details.) I happened to mention that advice to a lawyer in Buenos Aires. He looked alarmed and said, “Don´t ever say that to ANYONE! That is illegal!” And then he proceeded to tell me how to do it and said he could give me contact information for Uruguay banks!

I used to criticize how things are done in Latin America. I now think that in some circumstances, the savvy people learn how to survive and prosper in the situation they are in—the others get fleeced.

I don´t think this should keep anyone from living in Argentina. It has a lot going for it, and if you protect the buying power of your cash, perhaps you could snatch up bargains yourself if Argentina has another crisis.

Uruguay is not considered as exciting as Argentina. There are no ski slopes. In fact, as far as I know it never snows anywhere in Uruguay. There are no mountains. No real sightseeing attractions that I know of except for the beaches--which are fantastic. As one writer expresses the difference, Argentina vibrates. Uruguay, on the other hand, is laid back--tranquil. However, Uruguay is also more stable in many ways--particularly economically.


Other Cities in Uruguay






Thanks to a friend and reader who
graciously contributed this map.












We explored all the way up the Atlantic coast to Chuy, on the border of Brazil. I sent a list of real estate buys from that area, at the time, to those of you that I thought would be interested. The prices there are incredibly low. On real estate and everything else! I hear that Brazil is a good place to buy real estate. Houses are available there as low as $25,000 in good areas. Since Chuy is smack on the border with Brazil, that might influence the prices.
There are several small beach towns on the eastern seaboard that would be lovely for retirees who do not need to depend on business or work for survival. La Paloma is one. It is a small beach resort with an interesting lighthouse. Also Piriápolis is a beautiful beach town only 20 minutes from Punta del Este, and about one hour´s drive from Montevideo, one and a half hour´s ride by bus.

Punta del Este is the beachgoer´s mecca of Uruguay, frequented by visitors from Europe and some North Americans as well as latinos. At Punta, if you didn´t know you were in Uruguay you might think you were on Miami Beach. There are fancy restaurants, glistening high rise apartments and hotels and, of course, the beaches. I was there in January and everything was exceedingly crowded--and exceedingly expensive. It is beautiful, though, if you like Miami Beach type cities. As with most of the coastal towns, the economy depends on tourism, which lasts from December to March with some tourists coming as late as May or June. After that most of these places turn into ghost towns except for a few year-round residents. In January, Piriápolis was busy, crowded, and we had problems getting a room. When we did, it was expensive. But in February there was no problem getting lodging close to the beach and prices had dropped.

However, the ghost town effect in Piriápolis may not be permanent. There are many North Americans moving into the Piriápolis area in particular, as well as Punta and points further north toward Brazil. For a retiree who wants to be near the beach, and still close enough to Montevideo for doctor visits and other things, Piriápolis would be a quiet but beautiful location.


Climate

Weather in all of Uruguay is mild. It gets very chilly in Montevideo in winter. Seasons are reversed from the northern hemisphere. You could live in South America during the winter months of North America, and return to the north in May or June and have the best of both worlds. It is the middle of summer here right now. We have had some very warm days--but overall it is very comfortable. Beautiful days, in fact.


Real Estate, Medical and Other Costs
Although I am giving an overview here, I will add more details at a later time. But to begin--at the time this is written, you can buy a breachfront house in a small town in the neighborhood of $75,000 if you have time to wait and look around. Utilities are higher in Uruguay because they are not subsidized as they are in Argentina. As in other areas of Latin America, medical care is good and reasonable and I am told that Uruguay is fine for anything short of heart surgery, in which case you would want to go to Buenos Aires.
Also, believe it or not, in Montevideo doctors make house calls.

For my part, I canceled my supplementary Blue Cross Blue Shield insurance after my experience with the plastic surgery in Santiago de Chile after my fall. I now know where to go where I can afford to pay for medical care if I need it. And I seldom need it. I try to maintain a lifestyle that keeps me from having to resort to prescriptions. I don´t suggest this plan for everyone but it was my decision and I have been happy with it for about four years now. The extra money is handy! I do plan to get accident insurance once my physical address is here. Insurance companies will not write it if I have a U.S. address, which I still do. They will cover me in the U.S. if I happen to be there and need emergency care, but will not insure me if I live there.
 Real estate is still reasonable here. Of course the United States is where you find the real steals right now and I understand that in about two years they will be even better. But apartments and even houses are available here in Montevideo from the $30,000s and $50,000 range. I have seen only the ads so don´t know the condition. Probably they need work. Maybe a lot of work! There is no shortage of fixers here for the handyperson. I have seen studio apartments advertised in the $20,000´s.
If you want to check on real estate offered here, two sources that you could try are www.mediano.biz and www.gabinohome.com. You will find pictures, descriptions and prices that will give you an idea what is available. This is not intended as a recommendation. This is only local real estate agents and only to give you an idea what is available. As I have written before, as you read the ads, dormitorios means bedrooms, garaje is a garage, real estate is measured in square meters, not square feet. A parilla is an outside BBQ, usually made of concrete and-or brick. A jardin is a garden. A cocina is a kitchen. Terrazo is a patio. Also, when you look at the ads, if it says alquilar, that means for rent. Vende means sale. And if this is not sufficient, you can always resort to an online Spanish-English dictionary. If there is anything like an MSL listing here I have not found it. In fact, that could be a business idea!

One thing I notice about both Argentina and Uruguay. You do not have the feeling of enforcement. The police have a sweet, servant attitude toward the people on the street. I have never seen one with an authoritarian attitude. They are there to help people. In Viedma, Argentina, I smile when I see the police riding their bicycles through the street. And yet they are there, faithfully doing their job. But their entire attitude is one of oversight and protecting you rather than ordering you around. In fact, the entire feeling of enforcement is absent in both of these countries. And yet, for the most part, you are safe here although subject to petty crime, particularly, in Argentina. Of course one needs to use normal caution in any large city.

There is also apparently no enforcement regarding at least some drugs in Uruguay. I smell marijuana often on the street. Same in Argentina. I also noticed people sitting in doorways openly smoking pot. There is vocal statement of compliance with pressure from the United States, but in practice it apparently is ignored. I think there is a tendency here to "legalize" it whether formally or not. This is not a problem for me but I mention it in case it is for you.


If you decide to refurbish real estate, there are requirements if you change the structure of the building. But according to the lawyer I consulted in Montevideo, you are perfectly welcome to do the work yourself.


Economy
Uruguay is almost all arable farmland. It is gently rolling with little streams that run like veins through the country. Most of the population lives in Montevideo with the balance spread through the farm areas and the beach towns.

Tourism is a major industry. Much of it is Europeans who vacation on the beaches on the Atlantic side. But for the most part it seems to me to be people from Brazil, Uruguay, Argentina and Chile.
I am not sure how Uruguay will fare in the financial meltdown directly ahead. Europe is extremely damaged financially as their governments, retirement funds, etc., are heavily invested in the worthless debt sold off to them by the Henry Paulsons of the world--who was at the helm of Goldman-Sachs, one of the biggest offenders in packaging, mislabeling and selling toxic debt around the world. So I suspect that tourism from Europe and America will be greatly curtailed. Which leaves farming. Countries whose major product is commodities are expected to not fare as badly as the more industrialized countries, like the United States.
Uruguay´s biggest trading partner is Brazil. Brazil is also a farm and natural resource country expected to be less affected by the meltdown for that reason. BUT . . . Uruguay´s second biggest trading partner is the U.S. So it seems to me Uruguay will feel the effects. Maybe seriously. And yet they produce mostly food, and people always have to eat. As far as I can determine, they were not big participants in the toxic debt tranches.

One more bit of information for my friend who always wants to know about firefighting in these countries. I almost never see a fire truck in the streets of Argentina or Uruguay. You see the bombero stations, so they are here. But most of the buildings are concrete. Even the roofs are concrete. A fire could start in a mattress or drapes on the inside but I think it is not likely to get very far. There really is not a whole lot of carpet in the buildings here. Most of the floors I see are tiled. So not much to report on that score. Chile is another matter. Almost everything there is wood and every time I have spent time in Chile, I have seen fire engines racing to a pillar of smoke rising somewhere in the city. But not in Argentina or Uruguay where construction is mostly non flammable.
For those of you seriously considering a move to a less expensive country with great quality of life, Uruguay would be one of the major countries in Latin America that I would recommend considering. In fact, I am considering staying here myself. But if you are going to do it, it might be a good idea not to put it off for too long. If you are from the United States, now is a good time, while the dollar still has purchasing power.

© Arlean Kelley 03/11/2009 All rights reserved.
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