what you have to understand those guarantees are not worth anything.
Venezuela has a currency control, you are not aloud to deal with any other currency then the bolivar. the official rate of the bolivar is 2100blv per 1$us,but the black market rate goes up and down right now the black market rate is about 3400 last year it was about 6500blv per $. you could check out the daily black market rate at controldecambio dot com and click on Dolar Paralelo and click on dolar paralelo.
If you want to invest in magarita you should do it when the exchange is high that happens usualy every year a few months before crismast, due to the fact that there is a high demand for the dollar. In venezuela it's illegal to have any type of transaction or contract in any other currency but the bolivar. So when your guaranteed 7% it's not on the price you paid on the unit in GBP but on the amount in bolivars, which if a 1000 000 blv today it's worth 20 000GBP in six month in myth be worth half.

This is something which worries me too about Rental Guarantees in Venezuela.
There doesnt seem to be a legal way of guaranteeing anything other than by way of a Venezuelan contract to pay out in local currency - which fluctuates by as much as 40% during any 12 months.

I had a developer ask me to market a project with a 7% "guarantee" and I told him that I didnt want to use any type of guarantee as there was no way of legally enforcing it. HE AGREED!!! but said he felt obliged to offer one as all his competition were using them.

The problem is - if a company later reneges on the guarantee for whatever reason - who is the client going to complain to?

Venezuelan government will not recognise any contract alluding to hard currency unless it is subject to the "ley de cambios" which I believe comes under the authority - CADIVI.

The construction company for Caracola is Venezuelan but the promoter is Spanish and based in Spain. So unless the contract was written under Spanish law as opposed to Venezuelan there would be no chance of taking a company to court.

Even if a client did take legal action I dont know what the end result would be, given the guarantee is from a Spanish company in Spain on a Venezuelan property registered in Venezuela - and I wouldnt like to have to find out.

As mentioned previously - Caracolas main problem is exit strategy due to the scale of the project and the number of investors who will be looking to exit at the same time.

Unless someone could clarify the obvious problems with rental guarantees - I wouldnt consider the guarantee a selling point.

Good effort.... another attempt at a negative post which looks to have failed miserably....


LOOK!!!! if you seriously want to diss the place and have a magnificent reason to do so. I am guessing you want people to take your opinion seriously (I really will), please provide facts, figures, names, numbers, - anything that lets us know you´re not just another bitter expat who has lost money in X country.

There are many, many people who have lost, I really have to suspect you are one of them as you do nothing but criticize. Please tell us what went wrong for you and how others can avoid making the same mistakes. If you are too embarrassed to tell everyone then so be it, but you are unlikely to gain much recognition as an authority on your subject unless you do.

For example: It´s not gonna be long before people figure out that your opinions are not objective. So, provide info, testimonial and facts or dont bother.