On the shores of the largest fresh water lake in Central America, the morning sun splashes light on the flat facades of colonial Granada’s homes—yellow, green, pink, blue. Women emerge to scrub the tiled sidewalks out front and welcome the new day. The majestic Chontales mountains rise up at the far end of the lake, and a few miles to the south, the cloud-covered Mombacho volcano looms like a great guardian of the earth.
Granada sits next to Lake Cocibolca (also called Lake Nicaragua). We’ve been living here for almost four years now, alongside lots of expats. Granada is this country’s number one tourist destination, and it’s filled with fine restaurants, bars and cultural events. We are only 45 minutes from the country’s capital, Managua, with modern malls, movie theaters and nightclubs. But we enjoy living in this smaller (and truly historic) community.
We’ve returned to the States twice since we arrived—it’s only a two-and-a-half hour flight to Miami or Houston. When friends or family ask why we want to live so far away, we have to remind them that Nicaragua is closer to our former home in Charlotte, North Carolina, than if we lived in Arizona or California.
We chose colonial Granada, but retirement in Nicaragua can take lots of forms, depending on what you’re looking for. You can live on the ocean and watch the sunsets from your balcony. You can buy a farm and live close to the earth and off the grid. You can enjoy the urban life in Managua.
We wanted the culture and a much less expensive lifestyle. And if you want a really affordable life in a beautiful, vibrant city…a place brimful of opportunities for starting a business and enjoying social activities…then Granada is for you.
We’re as busy as we were in the States and are continually amazed by what other expats are doing. One friend started a school for the disadvantaged, another started a project to paint murals around the city and yet another started a boutique selling local crafts, clothing and jewelry. My wife Amy has an art studio and gallery and teaches tourists, expats and locals.
We didn’t experience any culture shock here and the locals are gracious and gentle. Small things go a long way. For example, every few weeks I take the local boys fishing. And every Friday night we show a movie outdoors. Over 80 of our neighbors turned up to watch Titanic at our “sidewalk cinema” recently—our biggest hit so far.
We looked around before choosing Nicaragua. We visited Costa Rica, Panama and several South American countries. Uruguay and Argentina were tempting but too far away and certainly more expensive. We found ourselves returning to Nicaragua because we loved the people and the country. Our retirement had to be an active participation in a new world, and there are so many things to do here.
Most retirees in Nicaragua live in Granada or near San Juan del Sur, a small fishing village on the Pacific Coast. There are quite a few expats in Managua but they are often employees of international firms, non-profit organizations or the U.S. embassy. Some of the developments in that area are starting to mature, so more retirees are looking at that option.
Many people refer to Granada as “the city of doors.” (Our colonial home has four massive wooden double doors over nine feet tall.) Of more interest, though, is what you find behind them. They might open onto a 200-year-old home with the original adobe walls, spartan furnishings and a simple tiled floor, or a fully restored colonial mansion fit for a king. So many tourists want to see what’s behind the doors that some of our friends recently started a popular colonial-home tour.
Daily Life Costs Less
Before the sun rises, I’m making fresh Nicaraguan coffee. Our two parrots begin chattering, which brings other parrots to our rooftop. Our dog, Kenya, starts looking for her morning walk.
Vendors come door-to-door every day selling fruits, vegetables, milk, bread and seafood. It’s cheaper in the market, but this is so convenient. And for three or four dollars you can buy a lot of fruit.
Most mornings I check my emails. I installed wireless Internet in the house, and I use Skype for international phone calls. Cable Internet is $42 a month. Cable TV costs $18 a month, with many of the channels in English, including the local Miami channels, ABC, NBC and CBS. Since we moved down here we just watch Jay Leno or David Letterman before falling asleep. We prefer our new reality here to the reality shows that are so popular back in the States.
We live in a large colonial home of around 3,500 square feet with three bedrooms and four bathrooms, a large garage and a swimming pool. We have a maid that works three hours a day, six days a week for $80 a month. For three years I maintained the pool myself but now I have a young man who, for $35 a month, does it three days a week. Electricity is more expensive here but not using A/C keeps it under $100 a month. Water costs around $10 a month and yes, we drink the tap water. We had it tested and it’s as safe as water in the States.
We have a SUV and a motorcycle. The total annual insurance for both vehicles costs less than $100 per year. Gas is more expensive at around $4 a gallon. However, most vehicles here run on diesel, which is about 10% less. Vehicles are somewhat more expensive here, but retirees can buy or import a vehicle every five years without sales tax or import duties, which can save around 30%.
Medical care is very reasonable and Granada is within 40 minutes of one of the finest hospitals in Central America. A visit to a doctor is $15. Our doctor speaks English and we have his personal cell number for emergencies. Hard to imagine that happening in the U.S.
You can get a fantastic steak dinner in the finest restaurant here for around $13. Regular fare at typical restaurants runs about half that and a “local” meal is $2 to $3. The local beers, which are good, run from $0.75 to $1.50. Nicaragua is known for one of the finest rums in the world, Flor de Caña, and a rum and Coke is just $1.25 in our favorite bars.
Whether your interest is education, water projects, teaching English or just helping the people, there are many opportunities. For instance, we work on several projects to bring more books and libraries to Nicaragua. With other expats, the mayor and the local police, we work to make Granada a more desirable place to live.
Despite the global recession, tourism numbers in Nicaragua are up two years running and there’s lots of potential for tourism businesses.
Real estate prices peaked in 2006. At the moment, the best real estate bargains are those offered by owners living in other countries such as the U.S. where the economic crisis has left people cash-poor. As a result, these owners are willing to bargain. You’ll find many beautiful colonial and newer homes for under $150,000, and outside the city there are many homes for under $100,000. Still, lots of newcomers prefer to purchase a fixer-upper and restore a colonial home to their own taste, or purchase a lot and build to their own design.
Either way, we recommend you rent for several months before you buy. In Granada, a room or suite with kitchenette can range from $300 to $500 a month to rent. A small house can be $500 to $1,000 a month, and a nice house with pool, maid service and other amenities will range from $1,000 to $2,000. Of course, the really fine houses and large homes command even more.
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