Tag: buy Nicaragua real estate
Anyone looking for real estate in Nicaragua who actually visits the country discovers there’s a glaring difference between online shopping and being here looking for a buying opportunity. It’s an understatement to say that it is confusing compared to the nice, tidy websites with posted prices.
The first shock most people have to deal with is that there’s no “listing agent”. Every property in Nicaragua is offered for sale by the owner… no matter what prospective buyers may believe or have been told. True, some sellers don’t want to bother with the selling process so may use the services of a go between. However, that go between can be anyone… a property manager, a lawyer, a relative or friend, or a “merchant” specializing in real estate. I say “merchant” because there is no such thing as a “real estate brokerage” in Nicaragua. At least not as a North American or European would understand the term to represent. Anyone can sell real estate, no matter if they have any prior experience or training of any kind.
Nica Investments only deals with the owners of property seeking to sell or lease. The mandate the company operates under is to advise clients seeking to purchase real estate as to the true value of a property, the potential for equity gain and/or income from a property, what renovations may be required and the cost, and if there are any grounds for concern surrounding a specific property. We’ll then walk clients through the purchase process and assure the property is transferred without incident.
Nica Investments does not add on an amount over and above what the seller wishes to receive as a commission. This is the norm in Nicaragua. A seller will offer a property to “selling agents” at what the seller wants, net. The agent must then add on an amount over and above that sum. Nica Investment clients retain our services on a per diem basis, and task Nica Investments with negotiating the best terms and purchase price possible directly from the seller.
Nica Investments also negotiates leases, which in Nicaragua is often a more advantageous approach to securing a property for business use. See Which Is Better – To Rent Or Buy for more information about leasing over purchasing property in Nicaragua.
Nica Investments does not maintain a list of properties for sale or rent, “listings” as a prospective renter or purchaser from North America or Europe would expect to see. There is no point. We do inform clients of outstanding properties through our newsletter or on our website, under Investment Opportunities. However, these properties are being offer for sale by owners. Nica Investments deems these properties we highlight to be exceptional because of price, location, size, view or a combination of these reasons.
If a property is priced well it sells quickly. Too quickly to make advertising it practical. Such properties Nica Investments will inform clients of directly via email and open negotiations on behalf of a client who retains us to do so.
If a property is overpriced or has issues prohibiting its being sold, it will last long enough to make advertising it worthwhile. However, it’s unlikely to sell quickly so it’s a waste of time and energy in most cases. Besides, in Nicaragua virtually every property in private hands is for sale. There are rare exceptions, but well over 90% of homes, raw land and commercial properties throughout Nicaragua can be purchased from the owner whether or not it is being overtly offered for sale.
What Nica Investments does is source properties that meet the client’s parameters. These parameters are type of property, price range, location, land use, size, and so on. We then approach the owners of properties that meet our clients’ criteria directly and attempt to negotiate an equitable agreement to purchase or lease.
Regardless of what your opinion is of global agencies, such as the United Nations, International Monetary Fund or the World Bank, you have to agree they provide checks and balances in matters of international politics, financing, trade and commerce. Of the 196 countries in the world, 193 of which are members of the United Nations, many need the services and stewardship of these international agencies. Unfortunately, few of those in need actually heed the advice and guidance provided… and usually suffer for not doing so. Nicaragua is not one of those nations. What the World Bank has to say about Nicaragua speaks volumes…
Despite global economic turbulence, Nicaragua has stood out for maintaining growth levels above the average for Latin America and the Caribbean. Disciplined macroeconomic policies, combined with a steady expansion of exports and foreign direct investment, helped Nicaragua to weather the global economic crisis of 2008-09 and rising food and oil prices. By 2011, growth had accelerated to reach a record 6.2 percent, later declining to 3.9 percent in 2015, the lowest rate in the last five years. GDP growth for 2016 is expected to reach 4.4 percent, among the highest rates in Central America. Foreign direct investment and trade also shows an improved outlook.
I’m on the ground in Nicaragua. I’ve been here permanently since July 26, 2014 and visited a great many times before I made the final move. I have seen with my own eyes benefits from foreign investment and the overall improvement of the standard of living it provides the Nicaraguan people. And I have been amazed at the pace of change. There is room for more improvement of course, more investment that is likely to generate impressive returns. But the steady, upward march is comforting, as well as awe inspiring considering Nicaragua is still one of the poorest nations in the Americas.
In a world plagued by political and civil unrest, financial chaos, and religious persecution, it baffles me why the steady trickle of foreign investment in Nicaragua has not already turned into a flood. Maybe it is because I’m here and can see with my own eyes that the objections people come up with for not investing in Nicaragua are misguided, based on misinformation, or, more likely, fear based.
By fear based, I’m not talking about fear for personal safety. Nicaragua is the safest country in Central America, and one of the safest in all of the Americas… far safer than the USA. What I refer to is a fear of stepping outside the box.
So many people I talk to who want to retire somewhere affordable, somewhere where they can live well on their pension income, never make the move.
It’s much the same with investors and entrepreneurs. I present opportunities that promise excellent returns. What I say fails to reach deep enough to alleviate their fears. Investors and entrepreneurs are no different than retiring pensioners. They too fear the unknown. More comfortable in a market that has a 9 to 1 failure rate in virtually ever economic sector, they’d sooner slug it out for single digit returns where they feel comfortable than pursue greater returns in another market.
Retiring To Nicaragua
The real reason people dream of retirement in a tropical paradise never act is because they’re afraid of the unknown. Unhappiness with one’s life often isn’t enough to motivate someone to step through a door they’ve never been through before. The known may be a life that sucks the very soul from a person, but it’s familiar. The unfamiliar is scary.
All I can do for folks wanting to have a comfortable retirement on the same fixed income they’d struggle with back home is present the facts, make suggestions, give advice, and provide assistance if needed. I can not force someone to move outside their comfort zone, no matter how much I think they’ll benefit from doing so.
Investing In Nicaragua
Passive investments in Nicaragua generate a higher ROI then anywhere else I’ve been in the world, and I’ve lived and worked in a great many countries. The returns possible in Nicaragua are good and the investments safe, but they’re investments in an unfamiliar market. There are slightly different laws, rules, and regulations. The language is different and the culture unfamiliar. It’s new, it’s scary. I understand.
As with retirees looking for somewhere to relocate to, I can only advise investors and entrepreneurs. Lead them by the hand if that’s what they wish. But I can not force opportunities on anyone that is tied down and unwilling to have the ropes cut.
Nicaragua is a safe place to live and invest in. I know this because I am here. I can source opportunities, advise on how to capitalize on those opportunities, and even help with hands on support. But as saying goes, “You can lead a horse to water, but you can’t make it drink.”
If you’re someone looking to retire or invest in Nicaragua, contact me. Let’s discuss your specific wants, needs and desires and see if you’ll not agree with me that Nicaragua is where you should be.
This clear title, encumbrance free property atop the Laguna de Apoyo crater rim is approximately 35 acres, and straddles the Granada and Diriomo district borders. Situated at 1700 feet above sea level, this parcel of land has a cool climate and an almost constant, refreshing breeze. Electricity and water are at hand, and there is an official road through the property.
As a private residence building site the existing road is navigable with a four wheel drive. To develop the land for multi-residential use, the road will need to be upgraded.
I have personally walked this property and every potential building site has spectacular views of either the laguna itself, Mombacho volcano, Lake Nicaragua or mountain vistas. This property, being only a few minutes outside of Granada, would make an ideal housing development site.
The owner is open minded and would consider any “reasonable offer”, and may entertain financing a portion of the purchase. Also, the owner may be open to a joint venture proposal. Contact Nica Investments to learn more.