Here are some strategies for successful real estate investing in Nicaragua. The advice holds true whether you are looking for a quick capital return or a lifestyle purchase and takes into account how the market operates on the ground.
1) In order to get a good handle on market value you’re going to have to see a lot of property. Build a spreadsheet noting down the asking price of everything you see. Yes it’s true that asking prices are just “starting prices” but in a world were reliable data is scares, it’s a good place to start.
2) The only way you will be confident that you are seeing all there is for sale is to book property viewings with every agent who has an active presence in your target market.
3) Triangulate the information you receive from as many sources as you can. There are few truely independent sources of infroamtion in the country, and no official property statistis, so cast your new widely.
4) Only buy what you can actually see and touch. Ignore those glossy renderings of the new clubhouse or the golf course. Assume that the road won’t ever be paved and that new airport the developer keeps mentioning will never be build. Then ask youself whether you still like the property and only close on the deal if the answer is “yes.”
5) Never use the sellers attorney for the closing process. It is vital that you hire an independent attorney to represent your interests. Remember that in Nicaragua the closing docuemtn and title deeds will be in Spanish to unelss you have a perfect grasp of legal Spanish, ensure your attorney is bi-lingual.
6) Some seller expect to receive a deposit to ‘reserve’ the property while you do your due dilligence. This is a bad idea. Escrow the deposti with your reale state agent, an escrow firm or with your lawyer.
7) Always take out title insurance on your property purchase. The process of applying for a policy will ensure that your lawyer follows a rigorous due diligence procedure and digs deeply into the title history.