How Close is Beach Front Property?
Jun 21st, 2008 by Kevin
A couple weeks back I connected with James Krieger who has started a great blog in Nicaragua Real Estate Investing, which I highly encourage you to check out. It can also be found in the Offshore investment links to the right.
James recently posted about the ongoing saga of the coastal easement/land reform laws that deal with the how close developers can build to the shore of any body of water. The previous restriction was 30 meters or about 96 feet. The new proposal would be 800 meters or 2624 ft. (roughly half mile).
The law is intended to be investor-friendly and aims primarily to provide security for tourism investments and to promote development, protection and ecological balance. The Nicaraguan National Assembly has stated that it wishes to preserve public access to its beaches and protect marine life from the hazards associated with property developments. However as James points out, investors are cautiously optimistic about the outcome and how it would impact existing purchased properties with developments underway and even more so ones where developments have not started but the land has been purchased. If you want to learn more about the Coastal Law see this NuWire article on the topic.
For this reason, Coastal Dreams Worldwide is very cautious about investing in beach front properties right now. As we have talked about before a lot of offshore investing is about managing risk. Beach front can often generate higher returns but with the current situation can also generate higher risk.
Often you can find good deals and great return options with foothill property set slightly back from the ocean still offering great views. For example our Las Laderas property is 200 acres with over 2 miles of foothill property that gives unobstructed ocean views. In our case, not only is there front foothills but they rise back behind offering even more opportunities for great ocean views. Granted it is set back about half mile from the ocean, from an investment perspective this gives a developer much more opportunity to offer buyers ocean views because the lots can be stacked in layers on the foothills instead of flat land where just the front row has a beach view.
For developers reading this blog, our Las Laderas property is available. Please contact us if you are interested in learning more about the property, and its potential.
