US Buyers Anticipate Rising Property Prices in Nicaragua

Central America is a traditionally popular destination for second-home buyers from the US. Costa Rica is one of the most popular Central American countries, but in some ways it has suffered as a result of this popularity. Property is less affordable than it once was, crime levels are higher and its natural beauty has been marred by over-development. However, neighbouring Nicaragua is now offering property buyers an alternative. Prices are much lower: a condo in the Nicaraguan coastal village of Managua can be sold for around $129,000, compared to a similar property in Costa Rica’s Guanacaste province which can cost from $500,000 upwards.

Nicaragua offers buyers a number of towns and villages unspoilt by foreign investment, with a ‘small-town’ feel and traditional properties. The disadvantages that come with this include its six-month rainy season and generally undeveloped infrastructure. The electricity supply is unreliable, and there is a lack of medical care available. However, US investors continue to be encouraged by its low crime levels, quality of life, straightforward purchase process and tax incentives. Buyers usually have to pay cash for their property; mortgages are available from Nicaraguan banks but interest rates are high.

For those buyers who regard a property in Nicaragua as their opportunity to access a rising property market in its early stages, the country’s political future looks promising. Last November a former president of the country, Daniel Ortega, was re-elected, with a new framework of policies intended to take Nicaragua’s economy forward through tourism and foreign investment.

If you wish to see the original article please click here