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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. They realize the importance of the country’s 300 days of sunshine per year and tourist attractions like the country’s wide, unspoiled Pacific beaches, wildlife, lakes rivers and volcanoes which are virtually untapped. They know what a potential impact tourism can give the country’s economy and have witnessed what the tourism boom has meant for neighboring Costa Rica. 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. So far he has invested about another $40,000 fixing it up. His house is absolutely breathtaking. In a few years he should be able to sell it for several hundred thousand dollars. 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. Near Managua there is Rancho Santa Rosa. This private development is located on 800 acres of beautiful grounds and with a number of beachfront lots for sale. To the south is Rancho Santana with its 2.5 miles of spectacular Pacific coastline. This project has three beach areas from which to choose: Playa Rosada, Playa Dorada and Playa Escondida. 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. To be considered the legal owner of the property,
you should possess the property title properly annotated by the registrar.
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.
Nicaragua doesn't have the triumphant history of a France or an Italy, its history is in the present and we get the sense that it feels forgotten. Off the beaten track, no cruise ships, no bus loads of German and Japanese tourists... nothing seems to move. Nicaragua is asleep. The dusty roads pass farms, small towns with tree lined plazas, school girls waiting for their bus, beaches without footprints, groves of trees, men on horseback, cattle. .
. Nicaragua is the largest country in Central America; contains the largest freshwater body in Central America, (Lago de Nicaragua,) yet suffers from not having a shipping port despite having 910 km (566 miles) of coastline. Nicaragua has no railway with the exception of an ancient narrow gauge line that runs for 6 km (3.7 miles.) The estimated average income in 2001 was $2,500. The telephone system is inadequate, the internet connections impoverished. There is 23% unemployment, and little investment. Nicaragua is one of the hemisphere's poorest countries and it has a huge external debt. Despite the fact that Nicaragua found a peaceful solution to its political turmoil, the distribution of income still remains extremely unequal. I’d say its time to buy. ...and what I’d buy, as you might have already guessed, is real estate. Nicaragua probably cannot fall any further than its already fallen, and it has already experimented with every existing facet of political lunacy, so the only thing remaining is to try a rational approach. Several conversations I had in Nicaragua with those who are attempting to bring economic growth and stability to Nicaragua convinced me that Nicaragua is probably on a long upward ascent. Current global economic conditions as of this writing (May 2003) with the worldwide recession will of course hamper current growth in Nicaragua as they do elsewhere. But these same economic conditions will continue to make real estate in Nicaragua a bargain. Real estate in Nicaragua can be a
bargain. As I write this I see in the EscapeArtist Real Estate Marketplace
listings for:
"Land prices [in Nicaragua] are
ridiculously inexpensive."
The Caribbean Property List website
shows a 274 acre working cattle ranch for $270,000 - and some quarter-acre
building lots on Lake Apoyo for $9,000. I’ve hiked around Lake Apoyo,
and it is lovely wooded country. Lief Simon and Kathleen Petticord of International
Living Magazine led me in pursuit of a pack of howler monkeys in the hills
above Lake Apoyo. We had a difficult time getting close to them as
they move from tree to tree very rapidly and with total impunity, they
are extremely interesting animals whose howl is unique and unforgettable.
More than good real estate prices, Nicaragua has much about it that is appealing as a place to live. I also believe that there is opportunity there. I have long wanted to buy property in Granada with a storefront. There are more tourists in Granada than in Panama City, and the entry price for opening a business in Nicaragua is lower than in Panama. Panama appeals more to those who want to run an international business utilizing Panama’s beneficial legislation for international business. Those seeking a brick and mortar type of business might well consider Nicaragua, because of its low entry cost and because its lack of infrastructure and services could well spell opportunity rather than inconvenience. Christopher Howard has done a through job with The Nicaragua Report. There is more than enough here to get you started, tell you where to look, understand the process of residency and find those services that are crucial to establishing ones self in a new nation. Howard has written several books on relocation, including one on Cuba and one on Costa Rica. I consulted his book ‘The Golden Door to Retirement and Living in Costa Rica’ when I was doing research on the book version of Escape From America. I recommended the book at that time as one of the two best resources on moving to Costa Rica. A recommendation I’ll stand by. There are resources on the author in the online resource section, including how to find his other books, his tour groups to Costa Rica and Nicaragua and related topics. When you get to Granada, and I hope you do, I may be there watching you from some waterfront dive... if we meet, I’ll see you for a beer or two. The Nicaragua Report is $20.
To purchase it click on the link below.
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