In a previous post our friend and expert in the Nicaragua Real Estate market Samuel talked about investing opportunities in Nicaragua. In this new post he will explain some factors to consider when you decide to invest in Nicaragua, maybe buying a beatiful beachfront property. He will explain some reasons why it’s a great idea to invest in the Real Estate Nicaragua now: Time factor, selection of properties that meet certain requirements to be rented and also how to invest in properties that do not have legal problems (reforma agraria). Even if the project of Nicaragua’s canal seems not to be flourishing at the moment, still there are some good consideration to be made.
Nicaragua Real Estate – Time Factor
Time is a determining factor of whether and investor makes of breaks on a deal. An early investment will lead to an even higher profit margin. This apply perfectly to the Nicaragua Real Estate market. The most present example is that of our Chinese investor who have signed an agreement with the President of the Republic this year. Their investments have already steadily grown by 20% for the 1st quarter of this year.
History is set to repeat itself as it did 15 years ago in the small costal location of San Juan de Sur. It is located just 30 minutes from Rivas, the only place at sea to be developed in the country. It is considered to be a 5 star tourist resort and has become a destination for foreigners who have made this peaceful location and oasis in their retirement ages. Even with the current rates, the real estate in Nicaragua is greatly increasing bouncing from US$50,000 to US$1,000,000 in just a few years. Those who invested in Nicaragua and took full advantage of this no doubt have made over 300% in profits, all because they bought at the right time.
Before the development of San Juan de Sur you could have made a purchase of 7,000 square meters land at a price of US$12,500, which is the average price in buying a property Nicaragua. This same property is now worth US$200,000. The cost of living and housing maintenance in San Juan de Sur has also increased. It is almost double compared to the nearby area.
This apply to all the Nicaragua Real estate market. The expectation is the same for Rivas on the nearby neighborhood. The local forecast to be even higher than that of San Juan de Sur. So now is the best time to invest in a property in Nicaragua!
Property Selection – Housing
Riva accommodations at the moment is in no way able to handle the influx or potential residence or visitors. Of the very view house, even fewer meets the standard for rental. There are those houses that are not tiled, irregular pipe born water, no electrical generators and because of bad building practices, there are gaps between the roof and walls which allows bats to fly in at nights. The property structure also needs to be built to withstand/ stand up against hurricanes, earthquakes and most natural disasters. The property must be built with certain seismic criteria. For instance, many homes are built with a foundation depth of 40 cm at maximum and iron elements in the columns of the property are often 3 instead of 4, which significantly reduces construction costs but increases the risk of damage in case of earthquakes. Choose the property with the stronger structure will be the best option.
Property Selection – Land
Getting the proper documentations for land purchase when you decide to invest in Nicaragua is easy now. In the early nineties, there were some issues with documentation seeing that the passed government at that time did not make it clear when they illegally distributed land. The proper land owners at that time, when the new government was formed, came together, met with the government and sorted the legal proof for their currently properties. Hence after, land documentation did not become an issue. This eliminate any matters anyone can possibly face when purchasing land in Nicaragua. If you follow the advices of an expert in the Nicaragua real estate market there is zero risk of purchasing property, once the proper documents are received. Neither locals nor the state will be able to touch your property, ever, without your permission.
Any investor that wants to know where to invest in Nicaragua can contact me. I have been living in Nicaragua for over 15 years. I’ll be delighted to explain you where, why and how to invest in Nicaragua.
If you wish to learn more and get a better idea of the Nicaragua real estate reality or get a tailored investment proposals, contact me to my email [email protected] or fill the following form.