The word is getting out about Nicaragua and the opportunities on offer. In this article we provide a summary of the key reasons why people are investing in Nicaragua real estate. This includes investors looking both for short-term capital growth as well as lifestyle investments and vacation homes.
- Property in Nicaragua is significantly cheaper than elsewhere in Central America. Analysis by RevealRealEstate covered by the International Property Journal indicates that asking prices are lower than in Costa Rica, Panama and Belize.
- Nicaragua is only a short direct flight away from major US airport hubs such as Miami, Houston and Atlanta.
- The majority of the property on offer is a available under fee-simple freehold title.
- Title insurance is available from major US companies such as Stewart Title and First American.
- There are no restrictions on foreigners purchasing real estate in the country (with the exception of property close to international borders). Foreigners can also own businesses with equal rights as Nicaraguan citizens.
- The country has a very attractive retiree residency program. The recent revision, made in 2009, made it one of the most benefit-laden in the region. And “retirement age” in Nicaragua is considered to be just 45 years of age.
- As a foreigner you are not taxed on any income that you earn outside the country.
- Nicaragua has a very low cost of living. Talk to any expatriate and they’ll boast about having a full-time maid or gardener, an enormous house with a fantastic view and a lifestyle full of eating out, visiting tourism attractions and nightlife – often for under $1000 a month. Try and do that in the US!
- Lonely Planet recently issued its top 10 best value destinations for 2011 and Nicaragua was one of the countries on the list.
- AARP, the US Association for retirees has rated Nicaragua is one of the “best places to retire abroad”. They talk about the easy-going lifestyle as well as the affordability and breathtaking beauty of the country.
- Nicaragua’s economy is doing well and beating many of its regional competitors. Exports are on the rise breaking the 1.9 billion barrier in 2010.
- Another record-breaking number concerns tourism visitors to the country. In 2010 Nicaragua passed the 1 million mark. The growth trend seems set to continue.
- Visit the country and you’ll notice a number of large-scale infrastructure projects underway. They are road upgrades going on across the country including in the paving of the coastal road between San Juan del Sur and the border with Costa Rica.
- Nicaragua is one of the most beautiful countries in Central America. Period. Its beaches easily rival those of Costa Rica, it’s got world-class surf breaks, towering volcanoes (one of which you can surf down), the 10th largest freshwater lake in the world and the oldest continually inhabited colonial town in the Americas. See this article from the New York Times on Granada for example.
- There’s world-class health-care available in the capital Managua. And prices for treatment are far less than in the US or Canada.
- A piece of Nicaraguan property can be a great financial asset to leave behind for your loved ones in your will (check out these online wills if you don’t have one already) – as long as you choose wisely and strike a solid investment deal.
In your financial planning & goal setting for international real estate investing – whether for retirement planning or a lifestyle vacation approach – you always want to think about the bottom line and your ROI.