Lief Simon Speaks Out On The Nicaragua Real Estate Market

Editor's Note: International Living Real Estate Guru Lief Simon sent us this note recently about his perception of the Nicaragua real estate market. And it makes so much sense that we must pass it on…

The anticipated fire sale on Nicaragua real estate hasn't arrived yet…and it may not arrive at all. Developers are mostly holding steady, while individuals aren't looking desperate to sell. Most people are waiting to see how President Daniel Ortega maneuvers his first year.

The locals do seem to be getting a little restless, though. Many don't think Ortega is moving quickly enough to help the poor, which was a key campaign promise. They don't understand that real reforms take time. Some of them (as well as some foreigners) apparently expected Ortega to reprise his 1980s presidency and start doling out land and cash once he took office. He hasn't done that-though he has done a few things, like visit Iran and Cuba, that don't look good in many U.S. and European eyes. There is talk right now that the Sandinista party may not win many of the municipal elections-though Ortega has time to woo voters back, as those elections are scheduled for November 2008….

Meanwhile, the country continues forward, and although real estate prices aren't rocketing skywards as they have for the last five years or so, the market hasn't completely burst.

So what should a would-be buyer do in Nicaragua?

First, if your main objective is investment, buy something you'll enjoy using in case it's a while before prices head north again. If you are looking for your dream retirement spot, then don't settle for anything you aren't 100% happy with.

Second, do some serious negotiating once you find the property you want. Developers haven't lowered their sticker prices-but they are likely to be willing to negotiate on price. For their non-premium properties, they may be willing to negotiate quite a bit just to keep momentum going during this slowdown. Don't expect to talk them down 50% from their list prices. But for non-beach lots you may be able to get them down 20% or more off list. If you're looking at construction, then 10% is a more likely discount.

Individual sellers will be harder to read. But you may be able to find an individual seller who has held a property long enough for it to appreciate significantly already. That appreciation will make him more flexible about taking less than his asking price if he really wants to sell.

The key right now is to take your time to find what you want and to work on the price.

Regards,

Lief Simon
for International Living

P.S. A friend in Nicaragua concurs with Lief's assessment. "There are hundreds of opportunities," he says. "This is a wonderful time to invest in real estate here." If you're thinking about playing the cards and you'd like to learn more about what's on the table in Nicaragua right now, check this out.