Why Nicaragua?

One of the compelling reasons for investing in Nicaragua is its potential for appreciation as the country develops. Because of its tumultuous recent history the country is playing developmental catch-up with its neighbors such as Costa Rica and Mexico. Yet geographically, Nicaragua boasts the same coastline, rainforests, and volcanoes as its neighbors, and lots more of them, including the largest fresh water lake in Central America.

In a recent correspondence with an investment adviser from Mexico, all of the conventional reasons why not to invest in Nicaragua were pointed out. All of which, are exactly why investing in Nicaragua holds so much promise, not only for the eventual return but also the current venture possibilities.

The negative reasons were; lack of infrastructure, limited flights into the country, Ortega’s political associations, a still growing economy and Nicaragua’s lack of exposure on the world market. On the surface these reasons seem valid and could be of concern if you’re looking to buy a vacation condo to use for a couple of weeks a year and need to have access to first world amenities.

Nicaragua is a long term investment, so as long as you are focused on long term appreciation potential and demand you will do ok. On the other hand if you are planning on buying into a brand new development on the coast where there is little to no infrastructure, and hoping to rent it out at near occupancy for premium rent you will be disappointed. Tourism is growing by leaps and bounds in Nicaragua; however, it still is way behind many of its neighbors and will be for some time yet. If you are the type of investor ready to pay top dollar so you can go on vacation and shop at arena sized super markets and shopping malls, indeed Nicaragua may not be right for you.

However, if you are an investor that is looking down the road, Nicaragua is an exciting opportunity. What I’m getting, at is there is at least one other reason that is possibly even more satisfying than Nicaraguan real estate’s potential appreciation. And that is the satisfaction of being on the vanguard of creating something new and watching the possibilities (negatives to some) develop.

It goes back to the investment adage, don’t buy the best house on the block.

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