Foreign Investment (2)
Last blog on foreign investment we spoke on areas in Croatia and the Phillipines. This time, I am going to draw your attention to Central America – specifically Nicaragua.
I recently spent a few weeks with realtors on the pacific coast of Nicaragua. I had done alot of research previously into real estate in Central America before my trip, and IMO Nicaragua has the most growth potential for foreign investment.
First a brief history – after years of war with the US in the 70s Nicaragua has still not fully recovered. However that being said, their president Daniel Ortega has just been reelected to a second consecutive 5 year term and is big on developing and making Nicaragua a country that can compete with the rest of central america. Literacy rates have skyrocketed, new roads are being constructed, and tourist taxes have been implemented. (Although a pain for tourists, the costs are relatively insignificant (ie.10% on a meal – and go along ways towards building infrastructure in their country.)
This new found stability, combined with beautiful beaches, friendly pe0ple, and cheap prices provide a welcoming enviroment for foreign investors. There are a few areas of interest right now: area around San Juan Del Sur, Cities (Granada, Leon, Chinendega), the corn islands, and the north pacific coast.
San Juan Del Sur is a beautiful area and by far the most touristy area in the country. Although prices have come down significantly over the last 5 years, they are still slightly overinflated compared to the rest of the country. If you are looking for a holiday home, this is the spot as there is not many places you can find 1500 square foot houses overlooking beautiful bays and beaches for under 200,000.
However, if you are looking strictly for investment purposes, the north is where it is at. Most of the roads have recently been redone, it has the best surf in the country, stretches of miles of miles of uninterrupted, uninhabited beaches and prices couldnt be cheaper. Beach front lots between 40-80,000 dollars, or ten acre sections by the beach for under 200,000. Cant beat that. With labour costs averaging about $5/day per worker, a beautiful home can be built for anywhere between $50000-100000.
I plan to head back in the next few months to gather more information and possibly buy myself a few lots….stay tuned! Or feel free to email if youd like anymore information about investing in Central America.
