Calling All Contrarians—Nicaragua Value Play
Date: 07/29/2008 Author: Suzan Haskins
Wednesday, July 30, 2008
Read more about Nicaragua in International Living Postcards —your daily escape
Dear International Living Reader,
“You have to be somewhat of a contrarian to buy real estate in Nicaragua right now,” says our friend Jeff Cassel.
We know what he means. Two years ago this country was right up there in the property-buying popularity polls. Hordes of buyers—especially soon-to-be American and Canadian retirees—couldn’t get enough of it. Pristine properties in Nicaragua were plentiful…beachfront, mountaintop, lakeside, and everything in between…and best of all, they were very inexpensive. This was the fabulous frontier, waiting to be explored and settled.
None of that has changed. Nicaragua is still a fabulous frontier. The prices are still well below reasonable. But the hordes of American buyers have called a time out, thanks to the gasping U.S. economy and the election of Daniel Ortega as president of Nicaragua.
According to Jeff Cassel, though, there are still quite a few people out there who are willing to take a chance on Nicaragua. Understandably, it’s not for everyone. It’s not for the timid or for those who are worried about the country’s political uncertainties. But contrarians may win big here, as the potential for gain is great if nearby Costa Rica and Panama are any example.
Jeff is one of the partners in Club Vistalagos, a community overlooking shiny Lake Apoyo between Managua and Granada. A pristine warm-water crater lake, Apoyo is rimmed by beautiful green jungle where monkeys swing, birds sing, and flowers bloom year-round. (By way of full disclosure, my husband and I own a lot at Vistalagos, and on our recent trip to Nicaragua we stopped in to check on the progress of the project.)
Jeff is an Australian and he says it’s mainly just the more conservative Americans who are reluctant to buy in Nicaragua now. “Not Canadians—they’re buying,” he says. “As are Europeans and others from countries outside the U.S. Most of them are used to political uncertainties and don’t see Ortega as making much difference. Even so, we’re still seeing American buyers coming here. We’ve recently sold to people from Washington, California, Arkansas…and we’ve been getting lots of inquiries from Americans posted in Afghanistan.”
Jeff and his partners are so bullish on Nicaragua that they’ve plowed their profits into improving Vistalagos’ infrastructure. The clubhouse is well under construction as are several homes on the rim overlooking the lake and with a view of Granada to the southeast. Jeff is now working on his second residential project overlooking Lake Apoyo, called Twinwaters for its equally magnificent views of both Apoyo and Lake Nicaragua. He has invested heavily in this country and says he will continue to do so, as he thinks Nicaragua is still a bargain.
“The low prices here overstate the political risk, and contrarians and other far-sighted people can look beyond the temporary political situation and see an opportunity.”
Regards,
Suzan Haskins
Your Latin America Insider, International Living
Editor’s Note: Suzan Haskins will speak about life in Latin America at International Living's Live and Invest Overseas Conference Oct. 3–5 in Long Beach, Calif. Register now to take advantage of our Early Bird Discount.
Read related IL Postcards:
- Nothing but Fun at Rancho Santana
- Discovering Nicaragua’s New Value Play
- Thanks to Daniel Ortega, Beach Prices Are a Steal
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RE: risk is real but probably minimum
Paladino
Friday August 01 2008 04:19:14 am