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

By: Stephen Todd
Submitted: 2007-01-17 16:16:14
Print this article | Tell a friend | For publisher |

Rating:

 

Buying land in Nicaragua has become more popular with Americans, who are looking to get more land for their money. With Nicaraguan land being well over 80% cheaper than land in the USA, lots of people are looking to buy – as it looks like a good investment. Many companies are talking about gains of 100% to 200% in just a few years!

On the surface it looks a great deal, but below the surface, there are problems - and investors need to be wary

Lets look at the plus points of buying Nicaraguan land as an investment:

1. Nicaragua is one of the most Beautiful Countries in all of the Americas

Nicaragua has beautiful and stunning scenery including:

. Pacific coastline

. Long sandy Caribbean beaches

. Volcanoes

. Freshwater lakes

. Hills

. An abundance of wildlife

2. Nicaragua is Democratic and Safe

Nicaragua has a democratically elected government, which is committed to a free-market economy and eager to attract foreign investors.

A recent study by the Inter-American Institute on Human Rights and a survey of police forces in the Americas show that Nicaragua is the safest country in Central America and one of the safest countries in the world.

3. Attracting Foreign Investment

In September 1999, Nicaragua enacted the most attractive tourism incentive law in Latin America - to bring businesses and retirees into the country. This has led to a boost in the price of land for sale - and many investors are looking to get on board.

For example, if you want to set up a business, you pay no income or real estate taxes for up to 10 years.

Nicaragua’s retiree incentive program is similar to Costa Rica's in the 1980s – and is attracting thousands of expatriates. To be eligible, you only need to be over 45 and have a monthly income of at least $400.

The benefits include:

. You pay no taxes on any out-of-country earnings.

. You can bring into Nicaragua, up to $10,000 of duty free household goods for your own home.

. You can import one automobile for personal, or general use - duty and tariff-free - and sell it after five years, tax-free.

Plus many more benefits.

It’s Cheap

You’ll pay up to 80% less than you do in the USA, for many goods and services - and property and land is cheap.

Now all this sounds great - more incentives, a peaceful and democratic country that’s beautiful - and if you get in early, you can make a fortune buying Nicaraguan land.

Why the reality doesn’t match the hype

If you’re looking to make money in land that’s currently for sale in Nicaragua, then keep in mind the following risks:

1. Nicaragua is a poor country - and poverty abounds

The Nicaragua's GDP per capita is #163 worldwide at US $2,300, whereas Costa Rica's GDP per capita (#81) is 295% higher at US $9,100. In Nicaragua, kids starve and street children roam. If you think it’s going to be like other nearby countries like Costa Rica - you’re in for a shock!

There’s a myth about its new liberal fa?ade – here’s an example: Nicaragua is one of the few countries where homosexuality is illegal. Prison terms reportedly range from three to 20 years.

2. Is it Really Stable?

The Sandinistas have not gone away - and look set to take advantage of the shortcomings of the right wing ruling party, which is corrupt, and needs to deal with huge social problems. The Sandinistas won 37.8% of the vote in 1996, 40.4% of the vote in 2000 and 43.82% of the vote in 2004.

The Sandinistas are no fans of the US, or other democracies - and may not be so pro foreigner, or pro foreign investment, if they get into power - they hardly have a track record to inspire confidence!

The Sandinistas like to nationalize - so your land might end up with them - with no comeback.

3. Is it Worth the Risk?

Should you invest in a country just because it has cheap real estate?

Land currently for sale in Nicaragua is cheap - but could get cheaper! There is an argument for both sides - but investors should be cautious.

On the surface it looks great but scratch a bit, and it doesn’t look such a sure fire investment.

You can still make Big Gains Close by

If you buy land for sale in Nicaragua you may get wealthy - but the established centres in Central America, such as Costa Rica and Panama, look a far better bet - and land for sale there doesn’t carry the same uncertainty as land in Nicaragua.

FREE Guide! - The Secrets of Building Wealth in Real Estate and Land.
Learn how to invest in land with low risk for long term capital growth.

Visit our website and grab your free report now!
http://www.LandSaleProfits.com

Article source: Expert Articles