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When I tell people that my favorite country in Central America is Nicaragua, they think I've got a screw loose.

A serious case of bad press
Nicaragua remains one of the most misunderstood nations in the world. This country is not in the midst of a civil war...not a Communist state...and not a "miserable hell hole" as one acquaintance of mine recently suggested. I was just there, for the third time in as many years. 

My impression? This place is more lovely - and, more importantly, shows more promise and offers greater opportunity than ever before.

Now is the time to act. Nicaragua is at peace. Its government is democratically elected, committed to a free market economy, and eager to attract foreign investors. Managua is booming. A new presidential palace is under construction, and a new mall (with a Liz Claiborne shop, no less) is open across from the Intercontinental Hotel. The streets are cleaner than they were when I last visited, in 1997, and they are bustling with activity.

Developers are scurrying to build along the Pacific coast, and the government is improving the local infrastructure there by paving roads and improving tourist areas. The road from Rivas to Tola, near San Juan del Sur, for example, has been black topped in the last year, and nearby routes are slated to be paved in 2000. 

The craft market in Masaya, held for years in a makeshift shed where hammock-makers battled goat merchants for space, moved a few months ago into a newly- refurbished marketplace in the center of town - part of a government funded plan to clean up the tourist amenities. Now the entrepreneurs selling mahogany carvings and bowls, hand-woven hammocks, paintings by local artists, and leather goods each have a proper stall of their own. It's clean, and there are even public washrooms. 

In colonial Granada, I was pleased to find on the square a brand new map of the town, just like the kind you see at the entrance to a Paris Metro, complete with a "you are here" dot and surrounded by advertisements for local restaurants and shops. 

The tourists are coming
Cruise ships began arriving in San Juan del Sur just last month, prompting local tour operators to develop day-long programs to take visitors from there inland to Granada and Lake Nicaragua. And the government has beefed up its tax incentive plan to encourage businesses to invest in tourism related activities that will help the nation meet the needs of an ever-increasing number of visitors. Three years ago, I looked at raw land on the Pacific, where I saw a lot here, a lot there...for sale without amenities. Only one "development project" was under way. Now, you have several to choose from, all with water, electricity, and fabulous views of the surf below.

And, all of a sudden the number of annual visitors to this country has increased by some thousands.
In short, the improvements we predicted nearly five years ago when we began writing about the opportunities we saw in Nicaragua are now coming to pass. Property prices are on the rise, yes, but you're still in time to take advantage of good buys.

Best deals on the Pacific coast
As I said, we've been watching the political and economic turnaround in this long struggling country for several years. Finally, about two years ago, we were so persuaded by the potential we saw that some of our International Living staff joined with a small group of friends and colleagues to take our own advice. Under the auspices of International Living Properties S.A. (ILP), the group bought a ranch, called Rancho Santana, on the country's southern Pacific coast, with a nice long stretch of beach.

It's beautiful, as is all the coastline in this part of the country. Rolling, lush green hills...dramatic coastline... soft sand beaches. Once you see it...once you stand on the rose-colored sand and stare out at the waters of the Pacific...well, you're sold.

Rancho Santana is about an hour from the town of San Juan del Sur, not far from the Costa Rican border, and about two hours from Managua.

It's worth the drive. Furthermore, the dirt road that links Rancho Santana to the town of Tola is scheduled to be paved, which will cut the driving time to the ranch considerably. The government has already slated funds for this project, and the first segment of the route, from Rivas to Tola, was paved last year. (Nicaragua's President Aleman owns the ranch next to Rancho Santana...so this last bit of road is likely to receive attention.)

The Nicaraguan government recognizes too, that to boost tourism here, they need a better coastal road. The main road in this area now is the north/south PanAmerican highway, which is at least 10 miles from the coastline in most areas. The government is planning a true coastal road that would run all the way from Casares, through Rancho Santana, to San Juan del Sur. This will slash travel times. Right now, to go north or south you have to dart out to the major highway, head north or south, and then head back to the coast, which adds 25 to 35 miles on what is a five mile trip as the crow flies.

Beach front lots for $69,900
The ranch's coastal property is being developed in three phases. In Phase I, Playa Rosada, 80 of the 82 quarter-acre lots have been sold. I visited just as the new clubhouse was completed; it's an attractive, open, white-stucco structure with a thatched roof. The pool is in, two houses have been built, and a third is underway.

The second phase of the development, Playa Dorada, is just now ready for sale. The one third acre lots in this phase, a little bigger than those at Rosada, range in price from $29,900 off the water to $69,900 on it. Incidentally, our sister organization, The Oxford Club, has begun construction of a private clubhouse at Dorada that will be available for use by property owners.

For more information on this project, contact our own Robert Fordi; agent for ILP in the States, tel. (410)337-7474, fax 337-7227, E-mail: rfordi@compuserve.com, Web site: http://www.ranchosantana.com/.

Time-share bungalows
Another development project in this same area, Playa Marsella, about 25 minutes from San Juan del Sur, overlooks a beautiful, fine sand beach. Under construction are brick, octagonal hotel room bungalows that you can purchase as part of a time-share program (you can stay in your bungalow for up to three months and must include it in the rental pool the other nine) for $49,000 to $79,000. A reception area and restaurant are planned to accompany the resort property.

I'm not a fan of brick at the beach...but above the re-sort, home lots are available for $12,000 to $23,000, many with nice water views, and on these you can build in any style you want. The development is wooded; we stopped our van to watch howler monkeys frolic in the trees.

For more information, contact Herm Hamhuis, Nicaragua Land Company, tel. (506)458-2563, fax _458-2180, E-mail: nicaland@ibw.com.no, Web site: http://www.nicaragualand.com/.

Colonial grandeur for a song
If you'd rather be in town than on the beach, you should look in Granada. This colonial city, one of the oldest and best preserved in Central America, was founded in 1523 and is less than an hour's drive from Managua. It seems like half the town is under renovation. Small piles of construction debris dot nearly every street, and every few houses you'll see an outside wall propped up by long poles that betray the work going on inside. 
The central square is as pretty and as active as ever, with its large trees, its brightly painted cupola, and its many park benches, occupied in the evenings by young couples and families enjoying the cool air. You can buy ice cream or peanuts from one of the vendors, wander through the church, with its many Spanish icons, or walk half a block to the art center for a concert. In this town, you can enjoy movies in English and find just about anything you need, from dish soap to hardware. 

I stopped by a wonderful new eatery called Restaurante Mediterraneo, owned by a Spanish woman who gutted one of the old colonial places and created a well-lit space with a fountain in the center and warm reds and golds on the walls. Prices are affordable. Dinner for two, including a starter, the main course, wine, and dessert will cost less than $40. 

Four bedroom apartment: $300 a month
While I was here, I met Matthew and Rena Lightowler, IL subscribers who retired to Granada a few months ago. They're renting a four bedroom, four bath apartment with a small garden right in town for $300 a month. Apparently, everyone told them they had been taken and shouldn't be paying more than $250. Try finding something comparable to that back in the States.

Property prices in Granada have gone up in the past few years. In 1997, we wrote in IL about a four bed, two bath home that was selling for $49,500. Today, a comparable place lists for closer to $80,000. But that's not to say all the good deals are gone. Far from it.

Granada sits on the banks of Lake Nicaragua, and on the shore are two lots zoned for commercial or residential use, each is about 800 square meters and selling for $38,500. You could build here and enjoy not only all the conveniences of town but also  a view of the water. 

I toured several colonial homes on the market, one would make a great hotel with its pool, 10 rooms, and six private baths. It's essentially falling down, however, so you'd need to gut it and start over. It's on the market for a negotiable $126,500. 

Right now, there's really not a well appointed hotel in town. The Alhambra, where I've stayed several times, is clean and the staff friendly…but there's luke-warm shower water and the rooms are merely functional. What with the cruise ship passengers taking excursions to Granada, I think there's a real opportunity here.

Other properties range in price from a large fixer-upper listed at $46,200 to a finished, five bedroom, four bath place with three patios, a kitchen, a dining room, and a garage listed for $275,000. For more information about properties in Granada, contact Steve Snider, Snider’s Realty; tel. (505) 278-3230,  fax 552-4702, E-mail: srealty@ibw.com.ni, Web site: www.sniderrealty.com.ni. or Herm Hamhuis (contact information above), both of whom list properties in town.

A lakeside lookout
Another interesting spot you might consider in Nicaragua is at Lake Apoyo, the largest crater lake in the country and surely one of the most beautiful such lakes. The views from up top stretch out over the hillsides to nearby Granada and take in the blue waters down below. Up top, land is for sale for around $2 per square foot, which works out to about $40,000 or $45,000 for half an acre. Rumor has it a large hotel chain just purchased a large tract here on which to build a resort, which would bump up property values, but that's just rumor at present. For more information about properties here, contact Herm Hamhuis (contact information above). 

If you're in the area, about 50 minutes from Managua, don't miss Norome, the little hotel and restaurant tucked in along the shore at the water's edge between the towns of Masaya and Granada. We stopped here for cocktails, and I can't wait to go back to stay. Built up on the hillside that rises from the lake, the little cabins with thatched roofs all have water views. You can wander down to the dock and take a swim, canoe, or kayak. Or, head up the hill with a guide on the trails to watch for monkeys and birds. Cabins with air conditioners are $48 per night, while those with fans are $38 per night. The owner, Eduardo Latorre, will arrange for someone to pick you up from the airport if you need a ride. Contact Norome; tel. (505)882-4816.

First time ever offered: Title insurance now available in Nicaragua
Until this year, you couldn't buy title insurance in Nicaragua. Now you can through First American Title Insurance. It will make your investment here (particularly in the Corn Islands, where the real-estate market is in its infancy) that much more secure. You buy the policy in the States, Canada, or the United Kingdom, and its “coverages” will be interpreted under the laws of the country where you purchase the policy.

According to Turalu Brady Murdock, who manages the Caribbean and Central American operations for First American, the policies are comprehensive and cover ownership issues, liens, mortgages, contracts, options, and other encumbrances on titles, as well as fraud and forgery matters and rights of access to and from the land. These policies on foreign property also provide you a legal defense if your title is challenged in the country in which your property is located. 

For more information, contact Turalu Brady Murdock, First American Title Insurance Company, Caribbean-Central American Operations, 268 Ponce de Leon Ave., Suite 1406, San Juan, PR 00918; tel. (787)641-6767, tel. toll free from the U.S. (877)641-6767, fax (787)641-6768, E-mail:tmurdock@firstam.com

New tax incentives for tourism development
Nicaragua recently beefed up its tourism incentive act & now offers prospective businesses in the tourism sector very attractive tax benefits. If, for example, you open a qualified business in the hotel industry, no minimum investment is required. And you'll pay no taxes on the purchase of construction goods or on such supplies as furniture, land vehicles for transporting guests, boats, and any other operational equipment. And you'll pay no property or income tax for 10 full years. 

If you plan to restore a historic building in a protected area, and make a $100,000 investment in the project, you'll benefit from those same tax incentives. 

If you open a travel agency or tour company, all your vehicles and equipment, as well as your advertising and promotional materials, can be bought or imported tax-free. The same holds true for restaurants, plus you'll gain a 10 year tax holiday on real-estate taxes. 

For more information about this program, contact Martha Luz G. de Barrios, Resp. de Inversiones, Instituto Nicaraguense de Tourismo, Apartado Postal 5088, Managua, Nicaragua; tel. (505)222-2962, fax 222-6610, E-mail: inversion@intur.gob.ni, web site: http://www.intur.gob.ni/. Martha spent many years living and working in the States and speaks perfect English. You'll find her well informed and helpful.

Build for less than $40 per square foot 
Just as land is reasonably priced in Nicaragua, so is the cost to build. You can expect to pay about $38 per square foot to build a home of reinforced concrete construction with a stucco style look and first-rate finishing. To put that in context: If you buy a lot for $30,000 to $40,000, you can then build a home with a pool and furnish it, land & all, for under $100,000. I recommend you contact Silvio Lacayo, an architect and builder who does fine work; tel. (505)268-3568 or 3592, cellular (505)882-6883, E-mail: aicsa@ibw.com.ni. 
If you're looking for a better idea of what you might build, flip through a copy of Mexico: Houses of the Pacific, written by Marie-Pierre Colle and published by Alti Publishing in 1994. The open air homes with grand porches and comfortable layouts will inspire you. You can find a copy of this coffee table book at Amazon.com if not at your local bookstore.

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Article by Jennifer Stevens