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Nicaragua’s Ocean Front Property
Whether you are thinking about a long term investment in speculative land or a turn-key resort community, Nicaragua’s ocean front property is low hanging fruit. Here are the top 5 reasons why ocean front property investments on Nicaragua’s Pacific coast are so sweet.
1. Tourism: Nicaragua knows its economic future is in tourism. Whether it’s under Daniel Ortega’s administration or his successor, look for continued investment incentives from this burgeoning market.
2. Safety: Nicaragua is rated the second safest country on the continent after Canada. The U.S. ranks 97th out of 140.
3. Bang for Your Buck: Investment cost compared to U.S. ocean front property. Also to be considered, is the price of home services such as house cleaning among others.
4. U.S. growth potential. Projected to be slowed by debt and the credit crisis for the next 10 years. This U.S. down turn could translates into appreciation potential in Nicaragua from international investment.
5. Destination: Nicaragua is one of the most beautiful destinations in the world. Great Climate, Relaxed Lifestyle
Nicaragua’s Pacific Coast
San Juan Del Sur is host to several dynamic developments and dozens of individual possibilities.
Land information on the southern Pacific coast
Moving up the coast there a few stand out developments, some of which are only a 30 minute drive from Managua and the international airport.
Final Wash
Although recent headlines from Nicaragua reflect the countries fragile political and economic condition, recent headlines from the U.S. aren’t any better. The bottom line that makes investing in Nicaragua (especially its ocean front property) have huge potential, is that international tourism coupled with the aging U.S. population is sure make Nicaragua a “go to” destination in the near future.
Thinking about Investing in a luxury waterfront condo in Nicaragua? Plan on visiting a few months or less each year? Here is a question you should ask; what about the rest of the time, can I trust a property management company to maintain the property and keep it occupied with reliable renters? This question is a non issue if you consider investing in a Condo Hotel, or Condotel.
Condotels have been around few years and are an excellent option for some. They also have their limitations. Miami was one of the first destinations to develop the idea that has taken off in popularity as a vacation investment option. Basically, as the owner of the unit, you can stay for a designated amount of time each year. During the remaining time, your investment becomes hotel inventory. As the owner of a product that’s sold, you receive a percentage of the money brought in by the hotel. This return, if steady, can help offset the costs of the investment. Mean while your investment is professionally maintained, which you pay for in a monthly service charge.
One of the main advantages of the Condotel market in Nicaragua, specifically San Juan Del Sur is it’s a comparatively burgeoning investment arena. What that means is you will pay less and get way more for your money. Here’s a general idea. What you will pay for, literally a hotel room in Miami, will buy you a luxury waterfront condo in a resort community in San Juan Del Sur.
Cala Azul is a prime example of a luxury Condo Hotel resort development currently under way in San Juan Del Sur. According to their web site, pre-construction investments starting around $200,000 are still available.
Here’s a short list of some of the advantages and disadvantages for the Condotel investment in Nicaragua.
So Cool:
- Tourism Law 306
- What you get for your money
- No maintenance worries
That Sucks:
- No full time retirement
- May not generate income for awhile
- Personal Limitations i.e. it’s a hotel
In Related News
For the investor who wants a really short vacation stay with a minimal investment, I am developing the idea of the motel/apartment, which I refer to as the Moment. Angel investors, I’m still waiting.
Hey I know!
Got the urge to do something good? Check out Peacepassers.org. They collect and distribute soccer gear to kids in Nicaragua and elsewhere. It could be the best investment you make in Nicaragua this week.
Choosing to invest in vacation ocean front property in Nicaragua, Costa Rica, or Mexico presents a staggering variety of opportunities. Vacations are usually synonymous with getting away for a couple of weeks, lounging by a pool or sunbathing on the beach. Investing in a beach front property allows you to enjoy a getaway and still be in your own home. If you invest carefully you benefit when you use your home, and for the rest of the year your getaway property should appreciate in value, and generate rental income. So with this in mind, I’ve created a list of criteria for the Best Vacation Investment Opportunities in Central America and Mexico. These beach front real estate investments are:
- Well established
- Offer Bank Financing
- Rental management
- Walking distance to the beach
- Two bedroom and two bathroom condo or similar
Starting off the list is the Bahia Del Sol located in San Juan Del Sur, Nicaragua. Bahia Del Sol asserts they “take care of everything from construction to furnishings to rental.” With units starting at $176K for a 2bd/2b this development is worth taking a second at.
Seaside Mariana has all the criteria covered and then some. Seaside Mariana is located about an hour from Managua, and the international airport which gives this development easy access once you arrive in Nicaragua.
Gran Pacifica is also located less than an hour away from Managua and the international airport. Gran Pacificas’ web site offers ocean front condos starting at, $134,990 with 50 percent financing available.
So you’re saying, what about investments in Costa Rica, Panama, or Mexico? Well, I submit the best overall long-term investments on ocean front properties considering get-in costs and the potential for appreciation are in Nicaragua. If you know of other developments inside or outside of Nicaragua that can compete with these investment opportunities, I invite you to write a comment and tell us why.
Next Post: Granada vs. Antigua. Perhaps you’re ready to make a bigger commitment and live for an extended period in your new getaway home. If you are considering living away from your primary residence for a few months at a time you might be interested in a location with more culture than waves lapping on the beach.
Surf Turf
If you’re a pro surfer raking in mad prize money or an old school big kahuna, a Nicaraguan ocean front getaway home should be the newest addition to your quiver. Or better yet, how about starting a surf business where you can live on beach front property all year-round. For the price you’ll pay for a two bedroom condo, a mile from your favorite break anywhere in Southern California, you can probably start your own surf-business on the sandy beaches near San Juan Del Sur in Nicaragua. Is that a surfers dream gig – or what?
Growing up in San Diego, California I know how dedicated surfers are to riding waves, and when not riding waves, they’re thinking about riding waves. If you’re a surfer living in the megalopolis from San Diego to Santa Barbara, life has always posed the challenging question – how can I surf as much as I want and still pay the bills? Surfers with some capital might seriously (can one be a surfer and serious?) consider investing in Nicaraguan real estate – ocean front property of course. Just buy a piece of land, build some buildings, rent out rooms, start a blog, and sell burritos and beer. Totally!
Investing San Juan Del Sur
One thing to know is that purchasing property in Nicaragua usually means that you pay cash. So if you have the capital, and think the expat lifestyle is one you could commit to, now is the time to invest. San Juan Del Sur has become more costly in the last few years, but many believe that it’s no where near its investment potential. All around San Juan Del Sur on Nicaragua’s southern pacific coast, small communities are being developed. Lots are available starting around 25K. Check out some properties at Nicaragua Surf Report, a web site that has clearly made a successful business out of surfing in Nicaragua. Beside giving daily reports on the local swells, their web site features local real estate for sale along with lots of other information.
If your thinking about investing in ocean front property, think San Juan Del Sur in Nicaragua. Whether the investment is for a getaway or starting a busines, there is still plenty of opportunity. What are ya waiting for?
U.S. Real Estate Bubble
As headlines across the U.S. continue to predict an economic slow down, beach front properties in Nicaragua prompt a second look. Some economists predict the U.S. real estate markets is in a bubble that is doomed to pop, and that the current slow down is the precursor to a major real estate correction. Others say that real estate corrections are regional, and that the U.S. economy as a whole will recover quickly.
Nicaragua Investment Incentives
Either way, the economics of investing in Nicaraguan real estate seems to be a viable choice with some huge potential. If you are considering real estate as an investment option, Nicaraguan beach front property is still available at reasonable prices that are heading one direction. Up. One reason Nicaragua is peaking investor interest can be found on the front page of the ReMax Nicaragua web page where they point out that, “Tourist based businesses, now classified under the tax incentive Law 306, can operate tax-free, exempt form income taxes, property taxes, and importation taxes, for up to 10 years. Ex-Patriot retirees are also invited to enjoy similar tax incentives when they make the decision to move to their dream home in the tropics! …It is no wonder that the World Bank recently named Nicaragua as ‘the most pro-business atmosphere in Central America.’”
International Tourism
Tourist based businesses especially those located on beach front property are and will be increasingly in demand in the future according to a recent article in the Harvard Business Journal titled The Tourism Time Bomb. Here is an excerpt from that article,
“International tourism is ready to explode with investment opportunities, according to an article published in the Harvard Business Review titled “The Tourism Time Bomb.” The writers–Paul F. Nunes, a research fellow at the Accenture Institute, and Mark Spelman, global managing director of Accenture’s strategy practice–state that international tourism is growing exponentially, and that this growth will soon lead to dramatic changes in major tourism destinations as well other locations which are likely to benefit from the resulting overflow
As the U.S. real estate market flounders in shallow waters, investors are looking for fresh ideas, and they don’t get much brighter than beach front property in Nicaragua.
Central American investors have been calling Nicaragua the next Costa Rica for the past decade, citing the similar climate and implementation of tax incentives for foreign investors. In a recent report the U.S. News and World Report rated Nicaragua one of the 10 best places to retire. Despite complications from political instability and Daniel Ortega’s reelection, Nicaragua has managed to leverage its natural assets and become a reliable emerging investment for many real estate investors. Nicaragua’s beachfront property is its most heavily coveted real estate, not only for its beauty but also its limited supply.
Accessibility and quality are both factors to consider. The low cost of living has led to many would-be developers on the beachfront scene will little actual development experience. As with beachfront property in many countries, access to water and other infrastructure (i.e. roads, electricity and internet) is still questionable in most oceanfront regions. There are also requirements for timely building in some areas.
The Pacific coast has been the most widely developed up to this point. The Atlantic coast offers a much longer term investment, but is also relatively untapped due to infrastructure and climate concerns (think humidity and mosquitos). Much of the boom has already hit the Pacific coast, snatching up much of the extremely low cost beachfront opportunity that existed a few short years ago.
One development prospect for the Atlantic coast revolves around ecotourism. Because much of the area is untouched rainforest, many regions offer tropical jungles, private white beaches and Amazonian-like river scenes.
One of the biggest hurdles for the development of Nicaragua’s oceanfront property is a lack of reliable and well-maintained transportation. There are no formal highways on the Pacific coast and literally no viable overland transportation from the populated areas of Nicaragua (on the Pacific coast) to the jungles of the Atlantic coast. The government has made the Puerto Cabezas airport, on the Atlantic, an international airport and is working on improving the runway. This is desperately needed as air travel is the only way to quickly access the east coast of Nicaragua.
The Pacific Coast is clearly the oceanfront property that will provide the most opportunity in the next five years. There are already plans for a new Pacific coast highway to reach from the coast nearest Managua south to Costa Rica. Once this highway is in place you can expect a significant increase in property values, as infrastructure access will become more affordable for oceanfront property near the highway.
The most developed oceanfront property resides in San Juan del Sur. It’s proximity to Costa Rica and it’s updated port have made it the center of oceanfront development in Nicaragua. It is still in the early stages of development, but already has multiple large developments underway.
If you are considering purchasing Nicaraguan beachfront property, it would be wise to make a visit to the country. Nicaragua’s title issues are not as wide spread as advertised, but there are real issues with water access and building feasibility. Areas like San Juan del Sur have already been discovered and thus carry a much larger price tag than other ermerging areas. However, these emerging areas also carry risks. It is always a good idea to work with a local attorney. This is not only to protect you legally, but to give you someone on the ground in Nicaragua to navigate local relationships and ensure your property is protected.
