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US$1 equals 19 Honduran lempiras 

“Suban las manos, por favor.”  Obediently, we raise our hands as the guard at the door frisks us.  Once again, we stand out as visitors, as we have no pistol to hand over. “Pasen,” he says, and we proceed to our table, admiring the pleasant ambiance of this open-air, seaside restaurant.  As we place our orders, we watch while many of the customers turn in their sidearms, which are neatly stored in a set of lockers by the door, to be returned upon leaving. (I think I ruined our image by not having a .44 magnum, like a “real” American would.) 

Was this unsettling?  Frankly, no.  To the locals, it was no more remarkable than having to turn off your cell phone at a concert.  The people in the restaurant were courteous and friendly, and everyone was having a good time on this Friday night. 

This is La Ceiba, a Caribbean port city on the northern coast of Honduras. Home to more than 100,000 people, it’s a town that has everything: a pleasant central square, a large, modern mall, new supermarkets, food markets, a cinema, fast food restaurants, and waterside dining.  They even have a North American-run real estate office right on the town square.  The lush cloud forest is just a few miles to the south, with an awesome peak known as Pico Bonito overlooking the region. The Caribbean beaches stretch from La Ceiba for more than 100 miles to the west and almost 300 miles to the east. 

This is why so many expats come to the Honduran mainland: for the beach properties that you can still find for less than in the rest of the Caribbean, including nearby Roatan. 

In the coastal region, the real estate market is a mixed bag. Buyers here are Hondurans, North Americans, and Europeans.  There is a variety of properties on offer—here are a few examples: 

• A little more than a mile east of the harbor in La Ceiba, there’s a three-bedroom, two-bathroom, octagonal concrete house for sale.  It has great sea and mountains views, and comes with deeded access to the beach out front. Price: $149,000. 

• A three-bedroom, 1,000-square-foot house on the beach, situated on a double lot with a pool is selling for $189,000. 

• For a potential investor or developer, there’s a 13-acre beach parcel for sale just out of town with 806 feet of beach frontage.  This sandy beach is sheltered by a cove and the land off the beach is wooded and flat. Price: $499,000. 

• At Coco Pando, there are four beachfront lots for sale (100 feet wide) at $45,000 each, and in La Ceiba proper, we saw a three-bedroom house in a pleasant neighborhood selling for $50,000. 

• A little inland at Pico Bonito, outside La Ceiba, I learned of a remote 30-acre forest preserve on sale for $16,000. 

• On the road between El Progresso and Tela, there’s a 90-acre mountain property with a solar-energy system, valley view, African palms, and coffee. Price: $150,000. 

A pirates’ hideout
One of the finest attractions for those buying on the north shore are the cays (pronounced “keys”) and islands within easy boating distance of the coast.  Nine miles offshore from Nueva Armenia, the two islands of Cayos Cochinos sit like jewels in the turquoise waters, surrounded by a small group of cays. Here you’ll find some of the world’s best fishing, snorkeling, and diving—so good, in fact, that dive trips even come here from Roatan.  Cochinos means “hogs” and the islands got their name from the days when traders left hogs here to graze.  They would then collect them on the way home to Europe, ensuring a fattened supply of fresh meat.  Between the two islands is a small passage where pirates used to hide while awaiting merchant ships to pass by. 

Just a few miles away from Cayos Cochinos, we explored a cay called Chachauati, with its small Garífuna village, where people live off the sea as they have for centuries.  Well, almost. As we beached the boat on their island, several folks emerged from thatched huts to offer us trinkets, necklaces, and coral jewelry made by village artisans—something they weren’t doing in the days of pirates. 

Not far from Chachauati sits Upper Long Cay, an island of about 4 acres ringed with sparkling narrow white-sand beaches and clear turquoise waters.  There are five, ¼-acre lots available here (of an original 10 lots) for an asking price of $94,000 each.  Except for working cell phones—this island is “off the grid,”  as evidenced by the solar panels and water collection systems on the two homes already built here. 

The other face of Honduras
There’s more to mainland Honduras than the Caribbean coast, and this country of almost seven million people is one of the most diverse you’ll find anywhere. Honduras—not Costa Rica—is the most forested country in the region, with 47% of its land still a wooded area. Its rushing rivers draw whitewater rafters from around the world, and the cloud forests host a staggering array of flora and fauna.  The climate is temperate in the mountains, and subtropical in the coastal areas. 

A well-maintained highway takes you from the lowlands into the sierra.  On the way, you’ll go through the attractive colonial city of Comayagua, a former Honduran capital situated here to take advantage of the silver mines in the area. According to local knowledge, this clean, orderly city was founded in 1537, and was the site of the country’s first bank in 1741. We were surprised to learn that there are about 200 or so North American expats living nearby, many of whom came to do missionary work and decided to stay.

Arriving in Tegucigalpa (the capital), you’ll find a study in chaos when it comes to city planning.  The central square and cathedral look well organized, but the former silver mining settlement seems to have just spread out at random from there. It has some exclusive and stately neighborhoods—comparable with any you’d see in the world—as well as areas of poverty, crime, and ramshackle buildings. But the city has everything you could want, from exciting nightlife to fine restaurants, culture, malls, and an international airport. 

The food in Tegucigalpa—and, in fact, throughout mainland Honduras—is great.  The strong Mexican influence has had a delightful effect on the already-unique blend of Caribbean and Central American cuisine. It’s not unusual to see a fondue of Mexican cheese or chorizo served with tortillas, along with a blackened grouper or jerk chicken, with gallo pinto (beans and rice) on the side. Of course, international cuisine is here, too, but I found the local fare more interesting. 

Would I live in Tegucigalpa?  Honestly, no. There are other Third World cities that would be higher on my list. But there were some surrounding areas where I’d be glad to settle. 

The Valley of Angels
Twenty minutes from Tegucigalpa is the village of Santa Lucia, located at about 5,000 feet in the mountains surrounding Tegucigalpa, near an area known as Valle de Angeles (Valley of Angels). The town looks almost medieval, with its narrow, winding cobblestoned streets, stone walls, and old Spanish architecture. A sparkling white church lies at one end, and at the other there’s a wooded town park with a small lake at its center. Lush, green mountains rise majestically around the town. While Santa Lucia enjoys a fair stream of visitors, it maintains a residential feel. 

Just a bit farther along the road in the Valle de Angeles is the small town that bears the valley’s name. This artisan village—with its souvenir shops, coffee houses, and stately colonial church overlooking the town square—is surrounded by 100-mile views of the most dramatic mountain scenery. Like much of the mountainous areas around Tegucigalpa, the tall pines and hills are reminiscent of the Rockies or the Sierra Nevadas around Lake Tahoe. As in Santa Lucia, the altitude of about 5,000 feet provides for moderate weather year-round. 

At first, I assumed that property prices would be high, given the beauty of the valley and its proximity to the nation’s capital. But, I found them to be reasonable. For example, a large, 2,400-square-foot home in El Chimbo, with three bedrooms and two bathrooms, a high front porch, as well as mango, banana, coffee and lemon trees, was listed for $70,000. 

Whether you’re looking for a property or not, Santa Lucia and Valle de Angeles are worth a visit if you’re in Tegucigalpa. Set aside enough time to do a bit of craft shopping while you’re there. 
.

SIDEBARS (5 to follow)
1. Building versus buying 
I was quoted a range of numbers for building on the mainland, including $25 per square foot out near Trujillo; $45 per square foot in Tela (on the coast) and Tegucigalpa; and $65 per square foot in La Ceiba. However, I don’t think these prices—all quite reasonable—were entirely reflective of their markets, but rather of the contractor and type of house being built. You could probably find the whole range in any of these cities.

If you speak Spanish and want to build a home yourself, a construction worker will cost you around $4.50 per day (at the current exchange rate) and a journeyman-level craftsman will cost $15.75 a day. 

2. Property purchase process
Once you’ve selected the property, you need to contact a notary who will complete the title search and execute the process. Only a notary—not a lawyer—can close a property transaction. 
There are two purchase documents in Honduras, an escritura publica and a dominio pleno.  The former is a record of property ownership for properties that already exist in the public record, while the latter is a document that attempts to bring land into the public record that’s not already there.  Don’t buy a property using a dominio pleno.  If your heart’s set on a property not in the public record, have the current owner get it registered, and then buy it with an escritura publica.  Title insurance is available, and will take much of the risk out of buying property in Honduras. 

The transaction costs for property purchase include a registration fee, transfer tax, and a notary fee, as well as a few other odds and ends. Ron and Janine Goben—who run the Honduran IL office on Roatan ( e-mail: Honduras@InternationalLiving.com ) —tell me that they advise buyers to count on spending 4% of the purchase price. Pending changes affecting legal fees (introduced in early 2006) may cause a rise in transaction costs, but at press time the effect, if any, is still unknown.

If you buy your property via a Honduran corporation, many lawyers will give you a package deal, which includes the corporation and the transaction. This could save on your overall expense. 

Foreigners in Honduras are restricted to buying no more than ¾ acres of land—or 1½ acres for a couple buying the land together.  If you’re buying more than this, you’ll need to buy through a Honduran corporation.
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3. Basket of goods I didn’t make any attempt here to find the lowest prices or the most upscale stores. The following prices were taken at a local supermarket. You’ll notice that electricity is expensive, as are imported items. Rice per pound $.27   Corn Flakes, 18 oz $1.49   Milk per gallon $2.47   Hot dogs, package of 10 $1.43   Butter per pound $2.32    Pork chops per pound $1.58 Fillet mignon per pound $4.21    Chicken, whole, per pound $.88   Corn oil per liter $1.54   Mayonnaise, 14.1 oz (400g) $1   Apples, large imported each $.46 Carrots per pound $.58   Onionsper pound $.58   Coca Cola, 2 liter $.98   Wine, Concha y Toro Zuñirse $6.11  Beer, 6-pack, local $4.42    Baccardi superior dark rum $5.37   Cigarettes, Marlboro carton (200) $10.53  Paper towels $1.06   Motor Oil, Quart $2.11   Gas, regular per gallon $3.32   Diesel per gallon $2.81 Electricity per kw/h $.24   Internet café per hour $.80   Construction worker per day $4.50   Skilled journeyman per day $15.75 4. Honduras quick facts Language: Spanish Time to Miami: less than two hours Time zone: Central Standard, no DST Electricity: 110 volts, with a US-style plug Telephone country code: 504 Monetary Unit: Lempira