Why Do People Buy Real Estate In Central America?

Property investors have different motivations when they choose to purchase international real estate.  In this article we explore why Central America stands out for North American investors.  But before we get started, let’s knock one of the main reasons off the list: The close proximity that countries like Costa Rica, Panama, Nicaragua and Belize have to key US hubs.   So what are the other reasons?  Read on to find out.

In a recent retirement guide issued by Forbes Magazine, the writer estimates that Nicaragua offers a cost of living 60% lower than the equivalent lifestyle in the US.  Granted Nicaragua could have the lowest cost of living regionally (according to IMF Purchasing Power Parity data) but Costa Rica, Panama and Belize also offer the possibility of living well, for less.  Property taxes are far lower than in the US, Canada or Europe and so are expenses such as food, transport and entertainment.  A full time maid has a salary of around $150 in Nicaragua!

A key attraction is the sheer beauty of the region.  From picture postcard Caribbean settings and dramatic Pacific coastlines, to green highland areas and charming colonial towns, there is much to choose from.  Top highlights include real estate in San Juan del Sur on Nicaragua’s pacific coast for surf real estate, Panama City for a cosmopolitan urban lifestyle, Real estate for sale in Ambergris Caye on the Caribbean for great diving and the Central Valley in Costa Rica for highland living and spring-like temperatures.  There’s no shortage of ‘purchasing destinations’ to suit all lifestyles.

Costa Rica has been on the real estate and overseas retirement map for decades.  It was the first country to develop a retirement program to woo retirees to its borders.  Panama, Nicaragua and Belize have all followed this lead and are also rolling out the welcome mat.  The programs offered by the different countries follow a similar pattern and all offer tax benefits and exemptions for retirees.

Whether you’re looking for a speculative play in an emerging location, or are interested in a risk/reward balance that will please your accountant, you’ll find what you are looking for in Central America.  But don’t let your emotions run away with you.  Your emotional mind may want to impress your friends with a beachfront villa in from of a killer surf break, but your rational mind will want a great investment return.  The best real estate deals are found when you manage to unite both.

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