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Last year saw the completion of my first international real estate investment.  After years of research and studying, I managed to narrow down my search to some land in Nicaragua.  A lot of thought went into this, and I encourage anyone looking to make an international purchase to consider some of the following items:

1) Cost of living- My goal was to find a holiday home which is also to be used as a rental.   If I were to spend significant amounts of time down there, I would prefer it not be to expensive to dine out/do activities/entertainment.   Maintenance costs are another thing to consider as well as costs of hiring a management/cleaning company.  This is one reason why Central America was so appealing.

2) Political Stability-  Of course any investment has risk, but one would like to limit the amount.  Having a stable government with an eye towards the future and promoting tourism is key.  Nicaragua, Costa Rica, and Panama are all appealing when considering this.

3) Accessability- If it is place you want to visit often, you must make sure it easy to get to.  By staying within the western hemisphere, you can avoid significant time changes which helps ease the travel.  As well, you should really track how long it will take you to get to your property from the international airport.  It may only be a 6 hour flight….but if its another 8 hours of bus/taxi/car travel, it really adds to the trip.

4) Growth- Of course this is the most important factor me.  Anywhere you invest you want to make sure there is room for your money to grow.  You never want to be nicest or biggest place on the beach as it is unlikely there is much more room for your investment to grow.  Start small and grow from there.

Right now, the building process has just begun for us in Nicaragua and Ill do a post in the future with an update on how things are going.  Stay tuned!

Welcome to the latest installment of foreign investments!  This time my research takes me to the beautiful land of Belize.  For those who dont know, Belize sits right below the Yucatan Peninsula of Mexico, not far from such beautiful resort cities as Cancun and Playa Del Carmen.  A smaller country, with most of the population residing on the coast, Belize is made up a combination of Spanish, Mexican, Mayan, African and British nationalities.  The national language is English (although most natives speak Creole as well) and the currency is a Belizan dollar which mirrors the American dollar 1:2 at all times.

My general feeling for Belize is that it was a expat hotspot in the late 90’s and early 2000’s and thus started to see alot of real estate growth (under heavy north american influence).  Things were booming and prices for lots and houses were skyrocketing as they were being built.  Then 2007 arrived, money became tight, and alot of houses or developments were left abandoned or unfinished.

That being said, I think it is a great opportunity to enter the market now, as investors slowly start to come back.  Most communities have all the amenemities already and it is only a matter of time until the growth returns.  My professional real estate opinion of buying real estate in Belize – although there isa somewhat high price to get into the market (compared to other central american locations) I think you will still see significant growth in your investment over the next 10-20 years.

The other opportunity that still exists in Belize is buying Islands (or Cayes as they are called there).   There are hundreds of tiny cayes riddled within a short boat ride from locations such as Belize City and Placencia that are somewhat easily accessible.  Prices range anywhere from 100,000 to 1,000,000+ depending on size and location, but for someone looking to get away to there own secluded island in the Caribbean, this would be an ideal place to start your search.

Let me know if you have any more questions, or want me to put you in contact with a Realtor working in Belize.  Thats all for now!

If you have read this blog in the past, you will know that every time I take a trip, I look into the real estate situation while I am there….not only to learn more about how real estate works in other countries, but also to try and find new investment opportunities.  This trip takes us through Guatemala and Mexico.

GUATEMALA:

First off – one of my favorite countries in central america!  Some of the most beautiful secluded beaches in the world, in one of the cheapest countries.  The problem here lies in the fact that it is difficult for a foreigner to actually own land.  Well, its difficult for locals to even own the land.  I didnt get to do a lot of research in the cities, but it seem like the rural and coast areas follow the same principals- in that all the land is technically government owned, but basically lent out to the resident if they have been there for 10 years or more.  They still have “title transfer” and you can technically own the land, but if you aren’t a resident, aren’t consistently at the property, or there is a radical government change, you could run into some difficulties.  That being said, Guatemala is a very stable country right now and the people are incredibly friendly so the likelihood of anything happening is very slim.  That, combined with a low investment amount (ie. beachfront property can be bought for 10k or less) make this a palatable risk.  As always, I would recommend getting well acquainted with the people and the area before making any decisions.

Mexico:

I also had the chance to spend significant time in San Jose and Cabo San Lucas.  This area is growing fast with new resorts, condos and developments being built everyday.  There is a significant amount of American and Canadian investment in this area, and it is very easy to do.  There are many reputable real estate agencies here, and if you get hooked up with the right people, investing here can be very easy and with little risk.  You will find many of the amenities of home here (supermarkets, golf courses, chain restaurants) so it truly is home away from home for many – except nicer weather!!  In terms of investment, Its quite reasonable to think that with all the building and migration here prices will continue to increase.  With these amenities, however, come higher purchase prices.  Condos in gated communities will run in the 150-225k range and houses 300k – infinite with a range of everything inbetween.  Its a beautiful place and great place to look at investing in with a slightly higher investment commitment.

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.