Buying Nicaraguan Land - It's Cheap but should You Buy?

Buying land in Nicaragua has become more popularIt's Cheap
with Americans, who are looking to get more land forYou'll pay up to 80% less than you do in the USA, for
their money. With Nicaraguan land being well over 80%many goods and services - and property and land is
cheaper than land in the USA, lots of people arecheap.
looking to buy - as it looks like a good investment.Now all this sounds great - more incentives, a peaceful
Many companies are talking about gains of 100% toand democratic country that's beautiful - and if you get
200% in just a few years!in early, you can make a fortune buying Nicaraguan
On the surface it looks a great deal, but below theland.
surface, there are problems - and investors need toWhy the reality doesn't match the hype
be waryIf you're looking to make money in land that's currently
Lets look at the plus points of buying Nicaraguan landfor sale in Nicaragua, then keep in mind the following
as an investment:risks:
1. Nicaragua is one of the most Beautiful Countries in all1. Nicaragua is a poor country - and poverty abounds
of the AmericasThe Nicaragua's GDP per capita is #163 worldwide at
Nicaragua has beautiful and stunning scenery including:US $2,300, whereas Costa Rica's GDP per capita
. Pacific coastline(#81) is 295% higher at US $9,100. In Nicaragua, kids
. Long sandy Caribbean beachesstarve and street children roam. If you think it's going to
. Volcanoesbe like other nearby countries like Costa Rica - you're
. Freshwater lakesin for a shock!
. HillsThere's a myth about its new liberal façade -
. An abundance of wildlifehere's an example: Nicaragua is one of the few
2. Nicaragua is Democratic and Safecountries where homosexuality is illegal. Prison terms
Nicaragua has a democratically elected government,reportedly range from three to 20 years.
which is committed to a free-market economy and2. Is it Really Stable?
eager to attract foreign investors.The Sandinistas have not gone away - and look set to
A recent study by the Inter-American Institute ontake advantage of the shortcomings of the right wing
Human Rights and a survey of police forces in theruling party, which is corrupt, and needs to deal with
Americas show that Nicaragua is the safest country inhuge social problems. The Sandinistas won 37.8% of
Central America and one of the safest countries in thethe vote in 1996, 40.4% of the vote in 2000 and
world.43.82% of the vote in 2004.
3. Attracting Foreign InvestmentThe Sandinistas are no fans of the US, or other
In September 1999, Nicaragua enacted the mostdemocracies - and may not be so pro foreigner, or pro
attractive tourism incentive law in Latin America - toforeign investment, if they get into power - they hardly
bring businesses and retirees into the country. This hashave a track record to inspire confidence!
led to a boost in the price of land for sale - and manyThe Sandinistas like to nationalize - so your land might
investors are looking to get on board.end up with them - with no comeback.
For example, if you want to set up a business, you3. Is it Worth the Risk?
pay no income or real estate taxes for up to 10 years.Should you invest in a country just because it has
Nicaragua's retiree incentive program is similar tocheap real estate?
Costa Rica's in the 1980s - and is attracting thousandsLand currently for sale in Nicaragua is cheap - but
of expatriates. To be eligible, you only need to be overcould get cheaper! There is an argument for both
45 and have a monthly income of at least $400.sides - but investors should be cautious.
The benefits include:On the surface it looks great but scratch a bit, and it
. You pay no taxes on any out-of-country earnings.doesn't look such a sure fire investment.
. You can bring into Nicaragua, up to $10,000 of dutyYou can still make Big Gains Close by
free household goods for your own home.If you buy land for sale in Nicaragua you may get
. You can import one automobile for personal, orwealthy - but the established centres in Central
general use - duty and tariff-free - and sell it after fiveAmerica, such as Costa Rica and Panama, look a far
years, tax-free.better bet - and land for sale there doesn't carry the
Plus many more benefits.same uncertainty as land in Nicaragua.