U.S. Real Estate Bubble

As headlines across the U.S. continue to predict an economic slow down, beach front properties in Nicaragua prompt a second look. Some economists predict the U.S. real estate markets is in a bubble that is doomed to pop, and that the current slow down is the precursor to a major real estate correction. Others say that real estate corrections are regional, and that the U.S. economy as a whole will recover quickly.

Nicaragua Investment Incentives

Either way, the economics of investing in Nicaraguan real estate seems to be a viable choice with some huge potential. If you are considering real estate as an investment option, Nicaraguan beach front property is still available at reasonable prices that are heading one direction. Up. One reason Nicaragua is peaking investor interest can be found on the front page of the ReMax Nicaragua web page where they point out that, “Tourist based businesses, now classified under the tax incentive Law 306, can operate tax-free, exempt form income taxes, property taxes, and importation taxes, for up to 10 years. Ex-Patriot retirees are also invited to enjoy similar tax incentives when they make the decision to move to their dream home in the tropics! …It is no wonder that the World Bank recently named Nicaragua as ‘the most pro-business atmosphere in Central America.’”

International Tourism

Tourist based businesses especially those located on beach front property are and will be increasingly in demand in the future according to a recent article in the Harvard Business Journal titled The Tourism Time Bomb. Here is an excerpt from that article,

“International tourism is ready to explode with investment opportunities, according to an article published in the Harvard Business Review titled “The Tourism Time Bomb.” The writers–Paul F. Nunes, a research fellow at the Accenture Institute, and Mark Spelman, global managing director of Accenture’s strategy practice–state that international tourism is growing exponentially, and that this growth will soon lead to dramatic changes in major tourism destinations as well other locations which are likely to benefit from the resulting overflow

As the U.S. real estate market flounders in shallow waters, investors are looking for fresh ideas, and they don’t get much brighter than beach front property in Nicaragua.