To Build In Paradise

Dear International Living Reader,

My husband and I would like to build a house at Rancho Santana in Nicaragua. We've been planning for it for two years.

But, to tell you the truth, we're nervous. We've bought and sold, renovated and flipped, purchased pre-construction, and invested in development projects. But we've never built a house on our own, long-distance, in a foreign country.

We're daunted.

And we have friends and staff living and working in the country. And one or both of us visits Nicaragua at least every other month.

The thinking process we've been going through has helped me to appreciate what others must go through—others who don't have local representatives on their payroll and whose normal business affairs don't give them reason to be in a place a half-dozen times a year.

So many ways things can go awry. Whole houses laid out wrong, with rooms in the front that should be in the back and views of the hillside instead of the beach...retaining walls that crumble...foundations that crack...second-rate fixtures installed when top-of-the-line were stipulated (and paid for)...pools that leak...pipes that burst... (All real-life stories from friends and readers...)

How do you manage the construction process from afar?

The most important thing is to recognize that you're not operating in the States...and to understand what this means. Different building codes. Maybe no building codes. No inspection process.

The second most important thing (given the first) is to engage a reliable general contractor...who you've found with the recommendation of someone you trust. Best case (and what we're trying to arrange) is to be in the country, on site, for the first month of construction. Then your G.C. can take over for you between your follow-up visits. If you can't be on site when ground is broken and the foundation work, etc, is being done, your G.C. plays an even more important role.

Hire an independent agent to follow the progress of construction for you...to be your eyes on site. Someone living in the country for the duration of construction and who, preferably, speaks the language of the workers. We have someone living at Santana who will be able to fill this role for us. When we finally begin building, we'll get weekly updates and photos by e-mail.

Arrange for payments to be made according to construction benchmarks. If the benchmarks aren't met (don't take the word of the general contractor for this...wait for your agent to assure you that work has been done to your specifications), don't make the next progress payment. And don't make the final payment (hold back 10%) until you've been able to visit the site to inspect.

So, yes, we're daunted. But not enough to be put off. Just enough to be careful. We hope to break ground sometime early this year.

Kathleen Peddicord
Publisher, International Living

P.S. We want to build at Santana because we want the experience. We're ignoring (for now) the easy alternative. We could buy a casita.

Santana is building a group of 20 two-bedroom villas across the road from its main Clubhouse. Construction begins this week. These villas, or casitas (little houses), will be about 1,020 square feet, with two bedrooms, kitchen, bathroom, and a large open living area, complete with thatched roof.

They'll be finished with tile floors, cedar kitchen cabinets, and stoves and refrigerators in the kitchens. (In other words, they'd be as nice as the house Lief and I are hoping to build.) And they'll come furnished with beds and dining room and living room suites. All but ready to move into when complete.

It's like a condominium project, but better. Each unit is free-standing, but within a small community located very close to the Oxford Clubhouse. In residence at the casitas, you're just a short walk from Playa Dorada (a beautiful beach, one of three beautiful beaches on the property) and all the Santana amenities (all three beaches, two pools, tennis courts, stables, workout center, two clubhouses, private dining room, etc.). But you can have no management, maintenance, upkeep, landscaping, or security hassle. Management can take care of all those things for you.

Plus, you can put your casita into Santana's Property Management program. They can rent it for you and handle all associated management issues. Again...no hassle...no work.

We expect it'll cost us $60 per square foot to build the house we're contemplating. We already own the land. Then we'll have to furnish.

Do the math.

Then compare to the cost of a casita: $99,000.

A delightfully finished, fully furnished turn-key house...in a private community perched on the Pacific coast...with 24-hour security and full amenities...for $99,000?

Santana is an impressive place. Yes, I'm a partner in the development, but you don't have to spend much time exploring the region to recognize that the level of development at Rancho Santana is special. We're creating a place where we want to spend time ourselves, with our families, our friends.

These casitas may turn out to be one of the most rewarding opportunities at Santana--turn-key, hassle-free, with the potential for return not only in the form of appreciation, but also in the form of rental income, which will grow as the community continues to grow.

Meantime, of course, you have full use of your charming little villa...in the private Pacific coast retreat of your dreams.

These casitas are still early stages, as I've said (and, in fact, one is available for the pre-construction discounted price of $94,000), but you can get a better idea of what they'll be at the Rancho Santana Casitas.

Important Note: In the interest of full disclosure, we want you to know that International Living receives commissions from sales at Rancho Santana.