Valuable Information on Nicaragua & Real Estate Purchasing

1. How do I know the title is clear for my property? Can I get title insurance?

It is very important to make certain that any property you buy, anywhere in the world, has a clear title. It is also very important to have the ability to purchase title Insurance. Every property we offer has a clean title and title insurance is available for purchase through First American Title. The Los Congos property has a clean title that can be traced all the way back to the original purchase over 100 years ago and we have a Master Policy in place ensuring it is genuine. In addition, homes in Nicaragua can be insured, vehicles, etc. with policies very similar to those you carry elsewhere in the world, generally they are much less expensive as well.

2. Are foreigners allowed to purchase property in Nicaragua? Will my property be titled in my name?

Foreigners are encouraged to invest in Nicaragua and not only in real estate, there are tax incentives and investment incentives in almost every sector of the government for foreign investors. Property can be purchased just like elsewhere in the world and title is taken 100% in the name of the person or entity who is buying the property. There is no "partner" required and we do not deal with "land leases" - the property at Los Congos is owned outright, it is fee simple property. Property can be purchased personally, through or corporation or business entity and even by foreign businesses. Many use IRA accounts to purchase. Discuss your most advantageous tax options with your accountant or legal representative.

3. How does the real estate purchase process work?

Purchasing property in Nicaragua works very much like anywhere else in the world. First of all, you write a Contract to Purchase for the property you wish to purchase. This Contract to Purchase is generally accompanied by a 10% deposit, usually sent via money wire to an escrow account where it is held until closing. Closing takes place in an attorney's office where the Deed is conveyed and the final purchase monies are distributed between the Buyer and Seller and the transaction is completed. Some wish to come back to Nicaragua for the closing but others will assign a Specific Power of Attorney to a person (often a real estate broker) to complete the closing process on their behalf. Closing generally takes place 30 to 60 days from the date the Contract to Purchase is issued. Real estate transactions in Nicaragua are much like elsewhere in Central America, there is often no financing involved so closings are easy. Once closing has taken place, the property is owned by the purchaser and possession is granted.

4. How do you get to Nicaragua? Are there daily flights?

Traveling to Nicaragua has never been easier! Flight times are approximately 3 hours from Miami, 2 hours from Houston, 4.5 hours from Los Angeles and 3 hours from Atlanta which are the major connection cities. Major airline carriers depart from the USA, Canada, Europe and all over the world every day. Most International flights arrive in Managua (MGA), the capitol of Nicaragua. Delta Airlines, American Airlines, TACA and Continental are the major carriers used by those residing in the States. Flights are moderately priced if they are purchased in advance and flight times are very convenient for connections and arrival times. The Managua International airport has undergone over US $50 Million in major renovations and updates and is a beautiful and very accommodating airport with all of the expected amenities and services.

5. Is it expensive to vacation or retire in Nicaragua? What are living costs like in Nicaragua?

Good news! The costs to live very well in Nicaragua are much lower than many places in the world. Many things used in your daily lives are priced much lower. Many people find that they can enjoy a lifestyle better than they ever imagined for much lower than they ever expected. This is especially favorable for retirees or those wishing to live with less debt. People on a fixed income can make their money go much further and have much lower living expenses than in the USA, Europe or Canada. These lower costs are across the board as well, health care is dependable and inexpensive, restaurants are incredibly priced, energy costs are lower and home costs are much lower. Retirees can reside in Nicaragua with special tax incentives to give them even more value for their money. Nicaragua is a great place to live!

6. What is the weather like? What is there to do in Nicaragua?

The weather is one of the most attractive things about Nicaragua. The area around Los Congos and Granada averages mid 80's during the day and mid 70's at night year round. There is a dry "summer" season from December through April where it rarely rains. The months of May and October are considered the "green" months where it rains more often but not everyday and not everywhere. Many consider this time of year the best time to visit due to the lushness of the forest. The other months of the year see some rain but mostly sunshine and clear skies. The climate is much more arid and dry than one would expect, Los Congos is in a "dry" tropical jungle where you have palm trees and cactus in the same setting, it is not humid like "tropical" destinations and bugs like mosquitoes are rare. There is almost always a refreshing breeze at Los Congos.

There is so much to do in Nicaragua. Pretty much whatever you wish to do, you can do. There are museums, classes, gardening, painting & art and volunteer programs for those interested in these types of activities. For the outdoor enthusiasts there is fishing, birding, diving, surfing, hiking, horseback riding, windsurfing, sailing, boating and way too much to list here. Nicaragua has such a vast difference in geography that you could surf in the morning, hike a cloud forest in the afternoon and not drive more than an hour. You will be amazed at the diversity of activities available in Nicaragua.


7. What about property values? Is the real estate market strong in Nicaragua?

Nicaragua may be the best possible place to invest right now because it is just being discovered. Many experts are comparing it to Costa Rica 20 years ago and others estimate additional increases in prices and values of 50% to 200% over the next few years as increased tourism draws thousands more to this untouched area of the world. Many people have seen steady appreciation over the past few years on their properties. Major factors in why Nicaragua is a good bet is the infrastructure and planning is being done properly and major new roads and amenities are going in everywhere. Now is the perfect time to invest in Nicaragua, the boom is just starting, there is plenty of opportunity still available, unlike other areas. A new tourism highway is being constructed right now, due for completion in 2007 or 2008 and when this is completed, it will impact land and home values in a very positive way. Now is the time to get in.

8. What about driving and getting around?

Driving in Nicaragua is an experience! The roads in and out of Los Congos are good now and will be very good, with some sections paved by Phase 3 of the project. Many new roads are going in, a 4 lane road is nearly 100% complete joining Managua and Granada and the Tourism Highway along the coast is under construction as well. Many of the older roads are being resurfaced and driving in most areas is much easier now. Many of the coastal roads are still compacted gravel and dirt roads, many of which are good roads. During rains, the roads in some areas can get muddy but this is expected. You drive on the right side of the road (like the US and Canada) and most car makes and vehicles are available. 4 wheel drive is the norm in most areas outside of Managua and Granada. Driving at night is not recommended because there are few street lights in rural areas, cows like to wander the roads (and sleep!) and some of the vehicles do not have headlights - we recommend trying to get your driving done during daylight hours. Taxis and buses are regularly available everywhere so you do not even have to drive if you choose not to.

9. Is it safe, I have heard there was a civil war? I have heard Nicaragua is a communist country?

YES, NICARAGUA IS VERY SAFE! Nicaragua is one of the safest, if not the safest, country in all of the Americas and NO, it is not a communist country! We are not saying this, world regulatory agencies are. Nicaragua has the lowest violent crime rate in the Americas. Recent reports show a rating of 3.7 per 100,000 for crime rating compared to 8.7 per 100,000 for the United States. We have been in Nicaragua for many years and so have our friends and family and there has never been an issue of violence that we have witnessed or even heard of. Nicaraguans are peaceful people who want to enjoy life just as those elsewhere in the world want to. Nicaragua has gotten bad press in the past but that image is quickly being changed. The civil war ended nearly 20 years ago and Nicaragua has had democratic elections ever since.

10. Will you be building homes at Los Congos? What is the cost?

We will be building high-quality homes and villas at Los Congos. Prices will vary depending on the finishes and sizes of the home you choose to build. Construction costs are far below those in the USA, Europe and Canada - generally, you can count on spending around $75 per square foot (turn key price) for top quality construction and high-end finishes. Some finishes and work will of course raise these prices. We will build all homes and villas to US Standards using top quality materials. We will require that you use a Los Congos Preferred Builder to ensure quality standards throughout the development. To protect the investment of everyone at Los Congos there will be protective covenants in place for minimum home sizes and an informal architectural review will take place with the developers prior to construction. Los Congos is a very special place and we want to protect the integrity of the community and the investment of those enjoying the Los Congos lifestyle. You may hear of lower per foot pricing out there but be wary.

11. Does Nicaragua offer an affordable, “early-in” real estate investment opportunity?

Nicaragua is among one of the most premier “early-in” real estate purchase opportunities in the world. The boom, taking place in Nicaragua today is similar to what took place in Costa Rica in the 1980’s where people who took advantage of that had their real estate appreciate. Today, investors and second home buyers from the United States, Canada, and Europe are purchasing premier beachfront or lake property at astonishingly low, “early-in” prices. However, the window of opportunity is small and you must act now to ensure the best opportunity and bang for your buck.

12. Is Nicaragua politically stable?

Since 1989, Nicaragua has been politically stable—with one democratically elected government after another has succeeded itself in Nicaragua and each has been fully committed the promotion of the same free market principles. Without question, the performance of the economy over the last several years is evidence of this.

13. Does the Nicaraguan government provide any incentives to retirees?

Nicaragua's retirement laws provide some tax incentives for foreigners—copied after the retirees benefits offered to many in Costa Rica in the 1980’s.

Under Decree No. 628, the 'Law of Resident Pensioners and Retirees,' you're eligible for benefits if you are over 45 years old and have a monthly income of at least US$400 or the equivalent in another currency. (Add an additional US$100 for each dependent family member living with you in Nicaragua.)

The benefits come mostly in the form of tax incentives. As a foreign retiree, you're entitled to: (1) pay no taxes on any out-of-country earnings (2) bring into Nicaragua up to US$10,000 worth of household goods for your own home, duty-free (3) import one automobile for personal or general use and pay on it no import tax or protective tariff and sell it after five years, again exempt from consumer sales tax (4) import an additional vehicle every five years under the same duty exemptions.