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.

In the 1980s most of Central American including Nicaragua was ground zero in the cold war, with the Soviets, Cubans and U.S. orchestrating events behind the scenes. 

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. 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.

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.

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.

The Nicaragua Report written by Christopher Howard is a seventy-five page report on everything you'll need to know about moving to Nicaragua. Nicaragua currently has an excellent real estate market and has much lower prices than Panama.  In addition to low prices, it also has excellent real estate, pristine beaches and islands that are for sale at bargain basement prices. The report covers everything; investing, residency, entertainment, real estate, travel, medicine, meeting people in Nicaragua, history, future prospects, tour information and much more.  We have a Table of Contents for the Nicaragua Report in PDF which we'll list at the end of this article.  It is an excellent report and is priced at $20.

Nicaragua is a country unlike any other. Its simplicity of character, yesteryear charm and colonial cities are strong and persistent invitations to linger.  The urge to remain in Nicaragua can become obsessive. I am constantly renovating 200 year old buildings in my head every time I walk the streets of Granada.  Granada has cafes where expatriates gather and sidewalks filled with European backpackers. It is a remembrance of finer things, a slower more protein world and no one can look at it without a sense of physical connection.

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 has tobacco.  The best cigar I ever smoked I smoked in Nicaragua.  Nicaragua has land, the nicest colonial buildings I've ever seen I saw in Nicaragua. Nicaragua has opportunity. As my friend Doug Casey always says, ‘wait until they run the tires off the car before you buy into a nation, that's when it’s time to buy.’  It’s time to buy. (Doug owns real estate in Nicaragua.)

Nicaragua has had its share of misfortune.  The US backed dictator Anastasio Somoza Debayle, son of Anastasio Somoza Garcia, (who was placed in power in 1933 by U.S. Marines) milked the nation of its resources as if it was his personal property.  Somoza was replaced by well meaning,  politically inept Daniel Ortega who along with his cronies created a communist state that couldn't supply the basic necessities to anyone other than each other. 

Nicaragua returned to democracy on 25 February 1990. Things have gradually improved in Nicaragua since then, but not in a straight ascending line and not very rapidly.

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: 
•a small island with a house, fruit and coconut trees, ten minutes from Granada priced at $70,000, 
•a 1,210 acre coffee farm with 120,000 coffee trees, 660 acres of hardwood trees, a hacienda, a lagoon and some waterfalls. The price is $349,690 Negotiable. 
•Compare the above with a 927 sq ft condo in Miami for $257,000. 

"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.

Lief and Kathleen also showed me their project at Rancho Santana on the Pacific coast of Nicaragua. (See the online resource section of this ebook for links.) The project is near the Costa Rican border and is perfect for those seeking a country club setting in a community of like-minded expatriates.  The houses in Rancho Santana are first class, the dining room in the club house serves excellent food and the view of the ocean is panoramic.  If you want a ready made situation, Rancho Santana may be the place to start. 

In addition to the above mention real estate websites I have found other websites on the internet that offer properties in Nicaragua, all of which are listed in the online resource section for this eBook.  We are going to provide an online resource page for each eBook which will provide links to important resources, updates and other information that will be valuable to the reader. 

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.