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Investing in Nicaragua Real Estate

American citizens in Nicaragua enjoy a generous 90-day entrance policy, a beautiful tropical climate, and fantastic star-gazing opportunities. In addition, thanks to a favorable exchange rate with the U.S. dollar, Nicaragua is ranked as one of the most affordable places in the world to buy property. With unmatched levels of natural beauty, high quality of life, and a low cost of living, it’s no wonder that many slow travelers, digital nomads, and retirees are taking a closer look at Nicaragua. 

Why Invest in Nicaragua?

Investing and buying property in another country can be unsettling for many people. Each country sets its rules for foreign property owners, and the systems in place for some areas can be challenging to work through. However, Nicaragua does not fall into this category, as the country has no citizenship or residency requirements for owning property, making buying a house for part-time or full-time residence a straightforward process.

While the vast majority of this country is available for foreign buyers, Nicaragua does have some geographic restrictions to keep in mind. For security reasons, non-citizens cannot own property within five kilometers of the international borders with Honduras and Costa Rica. But, this country is so full of jaw-dropping, gorgeous places most buyers will not feel restricted. 

Getting Started

The first step for those interested in a possible relocation to Nicaragua is to check things out for yourself. Planning an unhurried trip to the country gives you time to soak up the area’s surroundings and unique local culture. Spending extended time in the region provides an up-close and personal look at what you will experience when spending at least part of the year in your new home. An extended stay also includes access to Nicaragua’s most treasured resource: its people. 

A Different Approach to Financing

Buying a home in Nicaragua is a different experience than buying real estate in the United States. In the U.S., buyers typically invest 10-20% of the sellers asking price as a down payment with financing terms that include either an adjustable interest rate that adjusts each year or a fixed rate that remains the same for the life of the loan balance, which is normally 15, 30, or 40 years.

However, when buying a home in Nicaragua, the typical down payment amount is 50% of the agreed-upon property price, with the balance due within two to three years with a loan interest rate of 10%. These numbers can seem expensive for those familiar with the U.S. mortgage process. But, property values in Nicaragua are less than in many areas of the United States, with negotiable prices and terms. Still, financing in the U.S. before closing on the property will be a better option for most buyers. 

Get Professional Help

Hiring a professional real estate agent and an attorney to represent your interests is a wise first step for those serious about investing in real estate in Nicaragua. These people are experts in the laws and regulations of their country and can help foreign real estate buyers avoid costly mistakes and steer during all stages of the buying process. Just be sure to do your homework before hiring an attorney since conflict of interest situations are routine. 

Start Planning Your Stay Now

The government of Nicaragua is friendly to foreign investments, making right now a great time to consider a long-term stay.  

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Written by Robert James

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