Our answer, is “Why Not?”  Located in the heart of Central America, Nicaragua is an exceptional country with its spectacular lakes, towering volcanoes, friendly people and legendary towns filled with cultural richness. The country beckons foreigners to come and see all it has to offer.

Some foreigners have already gotten wind of the country’s potential.  A recent article in USA Today states that over 5,000 Americans currently call Nicaragua their home.

Devastated by the wrath of mother nature, its tumultuous political past, and a streak of misfortune, this often misunderstood country is now poised to emerge as a travel hot-spot, a potential haven for expatriates and a place where unlimited opportunities await the energetic entrepreneur.

Today Central America has become the “in” place for Americans retiring overseas.  The hottest destinations seem to be countries like Nicaragua which were synonymous with strife and civil war. Consequently, they were off the beaten path for the majority of tourists, not to mention retirees and much less investors.  Now all of this has changed.

A 1998 U.S. News and World Report article touted Nicaragua as a hot new retirement destination, with Central America’s lowest crime rate.

At present, Nicaragua can perhaps be most seriously considered the land of opportunity of all the countries in Central America.   The country is ripe for investment because it is so underdeveloped. The government, in particular the Nicaraguan Tourism Institute, is bending over backwards to lure investors with the most aggressive incentive-filled law in Latin America.

People who missed out on the best real estate  buys in Belize and Costa Rica can still take advantage of great  bargains in Nicaragua. In Nicaragua you can purchase your own “piece of paradise” for a fraction of the cost you might pay in the U.S., Canada or even Costa Rica. One gentleman we know of bought a beachfront lot for a mere $20,000 and spent another $30,000 in constructing his dream home. The same home would have cost six to ten times as much in California.  Many countries do not permit non citizens to own property or place restrictions on foreign-owned real estate, but this is not the case in Nicaragua.

At present the two "hot spots" are the city of Granada and the Pacific Coast. Granada is the country's third-largest city.  Located on the shores of Lake Managua, Granada is without a doubt the county's most colorful city and has managed to maintain its historical atmosphere and feel of a small town. The salient feature of this city is its strong colonial character. The churches and homes of the city have conserved their original colonial flavor. Spanish-style homes with beautiful interior courtyards, adobe walls and high ceilings abound.  The city is slowly becoming a haven for expatriates many of whom have started to buy and restore old homes.

We know a couple of Americans who are restoring some of these beautiful colonial homes. One couple converted a large home into a hotel.  Another speculator purchased a huge home in downtown Granada for $40,000.

Other foreigners are purchasing land on the slopes of the nearby Laguna de Apoyo. It is a cup-shaped crater filled with water and looks like a smaller version of Crater Lake in Oregon. The view is incredible and lots are very affordable.

The main push in real estate has been along the Pacific Coast. Prices are still affordable but are rising quickly as more and more people get wind of the low cost of the country's property and everything else Nicaragua has to offer.

Along the Pacific Coast you can find some of the most beautiful oceanfront property in the world for a fraction of what you'd expect to pay. You'd pay many times more for the same properties in neighboring Costa Rica and 10 to 50 times as much in the United States. Some lots may be purchased for as little as $20,000.

Currently there are many developments located in this area.

There is also property for sale around the up-and-coming area of Papoyo. The beach is one of the best surfing spots in Central America.

When purchasing property in Nicaragua, you can either do most of the work yourself or hire local specialists to do much of the legwork. When hiring local specialists, it is important to agree at the outset on a fixed fee for their services.   Identify the property of your choice, usually by the recommendation of a friend or a local real estate agent (who earns a negotiable commission, usually between 5 and 10 percent). Be wary of property whose ownership changed hands during the 1980s.

At this point, you may either hire a local attorney or proceed on your own to ask the seller for a copy of the property’s title (escritura de propiedad), evidence that it has no liens on it (libertad de gravamen), and its "certificado catastral." Often, owners are hesitant to provide copies of titles. In such cases, you may ask the seller for the information shown on the title (propertynumber, volume number, page number, entry number) or for a copy of the property’s registration (certificado registral) showing the last three owners (los últimos tres asientos) and the absence of liens.  Next, have a lawyer review the documentation escritura de propiedad, certificado registral,and libertad de gravamen to verify that the property’s seller has clear title. After you have verified the land has no liens, a notary can prepare a sales agreement.  After the transaction, you or your attorney may then register the property in the Registro Público de la Propiedad Inmueble.

Real estate taxes are 1% of value of the property and are paid to the Municipal Government. Farmland of up to 30 manzanas (42.6 hectares) is exempted from real estate taxes.