Cut Through the Bull About Nicaraguan Property

Dear International Living Reader,

We write to you often of Nicaragua. You're well familiar by now with the attractions of this country, particularly the appeal of the emerging Riviera along its south Pacific coast.

But...what's really going on in Nicaragua? What's the inside, behind-the-scenes story right now?

For example: Does buying in this country today make sense, given the pace of development over the past decade and the accelerated rate of appreciation in property values, particularly along the country's south Pacific coastline, especially in the past four to six years?

Or has the Nicaraguan market, at least in spots, reached bubble status?

Furthermore, if buying today is a reasonable proposition...where, specifically, should you shop? And what should you spend?

More to the point...what rate of appreciation could be reasonably expected from here? That is, assuming you buy well and pay what you should...can you have reason to believe that the value of Nicaraguan property you invest in today might increase further? Those who've bought real estate in this country in the past dozen years have enjoyed tremendous increases in values. Could this continue?

Nicaragua's south Pacific coast, as you know, is discovered...and then some. Where is development headed from there? Considering the market geographically, what's next?

Also, right now the market is redefining itself in terms of product. Historically, land has been the primary product on offer. In the past few years, however, turn-key has become an option, with some developers beginning to build and sell beach houses, casitas, and condos. What's next? More sophisticated resort development? An international chain hotel? Golf course projects?

The rumors are many. The coastal road will be paved all the way to Costa Rica. An international chain has signed a letter of intent to lend its name to a hotel on the country's coast. New development is on the drawing boards for until-now ignored (but beautiful) regions. The first golf course development in the country's south Pacific Riviera region is ready to break ground.

Over the past 15 or so years that we've been reporting on Nicaragua, it has been a market for speculators. This is changing. The market is expanding geographically (to the northern Pacific coast, especially around Leon...to a lake area around Jinotega...in the environs of Granada) and in terms of product, as I've suggested. It's becoming more and more a market not only for profiteers, but also for end-users...people like us who want to enjoy the beauty and appealing lifestyle Nicaragua has to offer.

And the market is testing itself. As we've reported, for example, recent title questions to do with some land in the San Juan del Sur area are forcing the local courts to consider important issues related to property ownership. These current events, as you can imagine, are generating even more rumors.

We have no crystal ball. We can't predict what will happen tomorrow, next month, next year, or beyond in Nicaragua. We can only apply our long experience, both here and in other, similar markets, and make some guesses. We do this continually, filtering out the hearsay and attempting to identify the facts.

We do this figuring and conjecturing with the help of contacts with their own long histories buying, selling, spending time, and doing business in this country. One of our top resource for Nicaragua (indeed, for the entire Central American region) is Tuey Murdock with First American Title Insurance. Tuey has been involved with hundreds of property transactions in this country. She knows this market, both big-picture and on the ground. She knows who owns what, who's buying where, and why. She understands the potential pitfalls of investing here...and she is the best person we know to have as counsel as you consider any property opportunity.

That's why Tuey was the first person I called when an idea struck me this week.

I have questions about the current state of and future prospects for the Nicaraguan property market. I bet you do, too. Let's consider them together.

Tuey's on board. So are two developers we know, one with a lifetime of experience doing business in this country, another an expat with a dozen years experience in this market. In addition, we've invited a contact with a group working with both the public and the private sectors to attract foreign investment to this country to join us, as well.

All four participants are key players in this market, and I appreciate their taking time to participate in this discussion. We'll have it by teleconference. The call has been scheduled for July 6 at 12 p.m. EST. Our events team is coordinating to make it possible for a number of International Living readers to listen in. When you register, you'll be sent full details for how to dial in and participate. And we'll record the conversation so you can listen later if the appointed hour is inconvenient for your schedule (or if you'd like to hear the discussion a second time).

You'd be hard-pressed to arrange private meeting time with these four experts and businesspeople. If you did, the cost could be dear, in terms of time, money, and travel. The cost for this special " State of the Nicaraguan Property Market" Teleconference is but $14.95. Furthermore, Roundtable, Lifetime, and Global Real Estate Investor members are invited to listen in as our guests (that is, free of charge). Subscribers to the print edition of International Living pay but $9.95.

I don't know if or when we'll do this again. If you're considering buying in Nicaragua (or, indeed, if you're already invested in this market), you want to be on the line for this discussion.

You can register online now.

Lief Simon
Real Estate Editor, International Living