Nicaragua real estate is slowly coming of age. The country still suffers from a patchy reputation, but as more tourists arrive and like what they see, a growing number are deciding to purchase a corner of it for themselves. The government is also doing its part by offering an attractive residency program for retirees with a host of tax benefits as well as ensuring that foreigners can own property with equal rights as Nicaraguan citizens. If you are tempted to find out what all the fuss is about, here are four tips to get you started, many of which will also apply for other international markets in Central America such as the Belize real estate market, Costa Rica or Panama property.
#1) You must have a good attitude.
In other words, perseverance and determination are important. While there is a lot of opportunity in Nicaragua, you will not get rich overnight, as some people claim. Be patient. Also recognize that things do not work exactly as they do back home. For example there is no Multiple Listing Service so it takes time to get to know all properties for sale. Make sure you go on property viewings with every agent active in your market as they maintain separate property listings databases.
#2) Have a plan
Make sure you are clear on your investment goals and then map out a strategy to get you there. If you do not have clear goals, you will not achieve them. For example, are you interested solely in investment (speculative goal) or do you want to enjoy your real estate purchase immediately to fulfill a lifestyle goal? If the latter is the case you will only want to focus on properties located in areas that are already well serviced with amenities and infrastructure.
#3) Take a long term approach
The best way to profit from Nicaragua real estate opportunities is to invest over the long term. This is true of anywhere in Latin America. While flipping is often done, a less risky option is to find a piece of property for an affordable price, and then rent it out. But don’t only focus on what is possible in the long term: when an agent talks about (say) a future paved road, airport or hotel, don’t factor this into the price that you are paying as long delays in the role out of infrastructure and services are almost inevitable.
#4) Do your due diligence
It is vital that you hire a competent attorney to represent you in your real estate transaction. If you wish to purchase title insurance, ensure that the attorney has been approved by your title insurance company. Never buy sight unseen. Look for any defects in the property that would drive the price down. Remember that your title deed and all related documents will be written in Spanish so unless you are competent in Spanish (including legal terminology) make sure your attorney is bi-lingual.
Overall, Nicaragua real estate offers a huge income opportunity to the savvy investor. As long as you take your time and investigate the property fully before buying, you should be positioning yourself well for future gains.