Nicaragua Investing: Know Where You are in the Property Cycle
Jan 4th, 2008 by Kevin
Property will change hands approximately 4-5 times before it reaches its final end user. Along the way supply goes down, demand and interest grow, prices rise, and lot sizes shrink. Property will change hands from the original land owner, through speculators and investors to developers and or retirement investments, and then to second homes for rental and personal use or primary home buyers.
Nicaragua has seen significant price rises in the past few years. Between the period of 2002 - 2005 real estate developments on the pacific coast have risen by an average of 87%. Unimproved colonial homes in the Granada area have been rising by around 25% per year. Nicaragua is definitely now on the map as an investment destination, but this is really just the beginning of a much larger cycle, and the exact point in the cycle will vary even depending on what part of the country you are in.
The graph below considers the relative proportions of 5 basic buyer profiles at different stages of a typical property investment cycle. There are two arrows on the graph which indicate where things are at in two different areas of Nicaragua both along the pacific coast. In the south speculators still make up a considerable proportion of investors but there is an increasing number of pre-retirement/retirement and second home buyers now emerging.
In the north western part of the country, where the pacific coast is not much different that its southern counter parts, it is still in the very early stages of its cycle. Until recently access has been limited however now it is quickly beginning to open up.
Looking at either of these regions there is still tremendous potential to get a great piece of property for whatever interest’s you. Whether you are looking for a wealth building investment, future retirement property or second home, the options are extensive now, but demand in increasing and coastal areas are not limitless.
Coastal dreams seeks to offer the right property to meet your needs. Our inventory includes all types and varieties from private 1 acre home sites, multi acre ranches, to large parcels (20-200 acres) for investment or development. Think about your buyer profile. What are your wealth building or retirement goals? Think about the opportunities that Nicaragua can offer you now.
