December 11, 2009 by sacuanjoche.

San Juan del Sur, Nicaragua — Today, like every day, begins with a smoothie: a blend of pineapple, melon, banana, passion fruit, papaya, yogurt, nuts and pitaya, a Central American delicacy responsible for the bright magenta coloring of the drink in Bob Schmidt’s hand.

“One of these will fill you up and keep you going through lunch,” Mr. Schmidt, 63, said while setting aside a creased paperback and gazing out from his second story to a view of the Pacific Ocean. Surfers flitted along the surface of a neatly groomed groundswell 50 yards below his tiled-floor home, which might pass for a beachfront palace in Malibu but for the wooden plaque on the wall reading “Bienvenidos a mi hogar” (“Welcome to my home”) and the sporadic power outages typical of rural developing countries.

Mr. Schmidt and his wife, Sheri, 62, are among the estimated 3,000 foreign property owners in this country, which, starting in the early part of this decade, followed Costa Rica’s lead as an affordable paradise for second- and retirement-home owners. When the Schmidts bought their property here in 2005, paying $200,000 for an oceanfront lot and spending about $80 per square foot in construction costs, the Sandinista leader Daniel Ortega had not yet reclaimed the presidency, and Nicaraguan real estate was booming; asking prices were selling prices.

Much has changed since then. The global economy has tanked. Mr. Ortega has not only regained power, but also won a disputed ruling by the Nicaraguan Supreme Court in November that could enable him potentially to extend his reign; that and a series of unconvincing municipal elections have catapulted Nicaragua, Latin America’s poorest country (the per capita gross domestic product was $1,123 in 2008, according to the United States State Department), back into the periphery of international concern.

Mr. Schmidt takes another drink of his fruit shake. The tropical flavors, and the atmospheric intangibles of a Sunday morning on the white sands of Hacienda Iguana, one of Nicaragua’s fastest-growing southern beach communities, help to make the world’s worries seem very far away.

“Once I saw this place and this beach, that just was it,” said Mr. Schmidt, who is originally from Southern California but worked as a livestock farmer with his wife outside St. Paul for 36 years. The couple first bought a second home on the beach at Playa Hermosa, Costa Rica, in 2002 for $150,000, calling the impulse buy “a total fluke,” and migrated to Nicaragua after his wife’s retirement in 2006.

“By the time I was ready to retire, it had already gotten so touristic down there that we just wanted to go somewhere else,” Ms. Schmidt said of Costa Rica. “And Bob wanted to be on a surf break. So here we are.”

Some might see an element of financial risk in the Schmidts’ purchase of the sort of property that one segment of buyers view as an investment, but Mr. Schmidt said that he and his wife were not driven by the profit motive. “We came down here really not as an investment per se,” he said. “It was more of a lifestyle change.” Life at Hacienda Iguana, a gated development about 20 miles northwest of San Juan del Sur with 250 home lots and over 70 condos already built, moseys along at a paradisiacal, watch-dissolving pace. Tidal swings and sunsets mark the day’s most important events.

“I think our buyers now are end users,” said Zach Lunin, a co-founder of Aurora Beachfront Realty in San Juan del Sur. “The people who are buying with us and investing here are people who want to spend time here. Bottom line is most of the people that we’re seeing are not the flippers. Nicaragua is a heart buy for most people, not that it doesn’t make sense on paper. But people come here and they fall in love with the country, and that’s why they buy property.”

Considering that Nicaragua scored an underwhelming 2.5 out of a possible 10 for honesty in the Worldwide Corruption Perception Index of 2009 (the United States was at 7.5, Canada at 8.7 and Mexico at 3.3) as tallied by Transparency International, the romance may include a few speed bumps. (“If you drive to Managua, it is very unlikely that you won’t be pulled over,” Mr. Schmidt said of the incessant traffic shakedowns and bribery attempts performed on gringos by police patrolling the roads.) And while Nicaragua’s coming 2011 presidential election is a reminder of the country’s political uncertainty, not all foreigners are so easily deterred.

“Nicaragua kind of acts like a natural filter,” Mr. Lunin said. “It’s not everybody who gets on a plane and says, ‘Let’s go down to Nicaragua,’ whereas it is everybody who gets on a plane and goes to Costa Rica.”

The impression that Nicaragua is inherently unstable has unquestionably slowed development, but it has also made an investment in “the New Costa Rica,” more affordable and appealing to the adventurous segment of aspiring second-home owners. In many cases the numbers support the gamble. In 2008 tourism brought in an estimated $944 million (nearly one-sixth of the G.D.P.), and it has grown by 8.2 percent in the past year, with almost 24 percent of visitors hailing from the United States.

Oceanfront lots in gated, rural communities like Hacienda Iguana are selling for around $250,000, and according to some real estate agents, prices have dropped as much as 40 percent in the last two years.

Unlike in many countries, property laws afford foreigners the same land rights as Nicaraguan citizens, and while the Coastal Law of 2009 prevents the purchase of land within 50 meters of the high tide line and oceanfront lots are eligible for purchase only if registered before a 1917 agrarian reform law, land acquisition in Nicaragua is a relatively straightforward process — albeit with a few notable concerns.

Because the Sandinista regime confiscated nearly 28,000 properties between 1979 and 1990 in the name of land redistribution, acquiring undisputed titles has become a central issue for foreign investors. “Most of my clients want title insurance, and I recommend it to them, because it gives them added peace of mind,” said Byron Mejia, a real estate lawyer in Managua. “Whatever we miss, the title insurance company picks up, so we don’t leave any stone uncovered. Sometimes if there’s a problem with the title, you stop right there.”

Aside from potential title disputes, aspiring second-home owners may have to consider the muddled process of constructing their getaways from afar. “We’ve watched some of the people who have had to rely on somebody else to supervise,” Ms. Schmidt said. “It’s a difficult process, and things aren’t done the way you might think they would be done. You can’t take anything for granted.”

The “out of sight …” principle applies not only to construction, but also to protecting and maintaining the asset, so hiring security and caretakers is essential. “It’s common sense,” Mr. Mejia said. “Let’s say you have a home — oceanfront property you visit three or four times a year. If you leave it unattended, it’s like New York City. Someone’s going to break in.”

While there may be fewer potential buyers than at the height of the real estate boom, those still in the hunt say they are realistic about Nicaragua’s political situation. “I don’t think we’ll bury ourselves in research on how stable it is,” said Charles Brooks, an insurance executive from Virginia who is considering the purchase of a lot in a development inland of Hacienda Iguana called Iguana Hills.

“I think we’ll take a leap of faith,” he said. “It’s money that’s at risk, perhaps, but not any more risky than watching your 401k. And it’s a lot more fun. There’s truly an upside to it.”

Source: NYT

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November 27, 2009 by sacuanjoche.

By Silvana Saccomani, Canwest News Service November 21, 2008

Travellers Eva Logan (left) and Craig Baskett recently made their way to Granada, Nicaragua.

Photograph by: Handout photo, Canwest News Service

For If Granada invokes the heady smell of orange blossoms, the lavish Moorish-styled Alhambra or the rhythms of flamenco guitar, you’ve travelled too far.

On this side of the Atlantic Ocean, the Nicaraguan city of Granada is squeezed between the hulking Mombacho volcano and Lago Cocibolca, the 20th largest lake in the world.

Craig Baskett and Eva Logan have just returned.

As Nicaragua celebrates its second decade of peace, tourists are discovering Granada as one of the most attractive historic centres in Central America.

“Over the years, we’ve spent a fair bit of time in Mexico and Guatemala, and have always enjoyed the culture and food of this region,” says Baskett, who adds they became curious about Nicaragua after hearing and reading about the country’s safety record, charming architecture and great value.

According to Logan, when it comes to Nicaraguan culture, new and old, nothing compares to Granada, which is an easy one-hour drive or cab ride from the country’s capital of Managua.

Founded in 1524, Granada is one of the oldest colonial cities in the Americas.

Baskett says despite the frequent attacks from pirates and imperialists over the years, a good portion of the city’s colonial architecture remains intact.

Add the narrow, cobblestone streets and courtyards cafés, and it’s no wonder this Calgary couple enjoyed the city so much.

Life in Granada unfolds in the tree-lined Parque Central.

A vast square flanked by colonial mansions and an imposing bright yellow cathedral, here local artisans sell bracelets, rings and other jewelry, as well as other handmade items.

Baskett says keep your eyes open for the Sultan Cigar shop. The cigars at this shop, like others in the country, are made from 100 per cent Cuban tobacco and sell for as little as $1 each.

After a day in the sweltering sun, Baskett and Logan retreat to their comfortable, air-conditioned room.

Like the other nine rooms in Casa de San Francisco, this one overlooks a traditional colonial garden courtyard. (Casa San Francisco: 207 Calle Corral; 505-552-8235; casasanfrancisco.com; $60 a night for double occupancy with breakfast.)

By mid-afternoon, other hotel guests, also looking to cool down, join them poolside. Happy hour is well under way offering the second best bargain of the day: four bottles of Tona, the local lager, for $3.

It’s from this vantage point that Baskett comes to realize his images of Nicaragua as a land of Contras and Sandinistas were clearly outdated.

“At Cafe Deliet, which is on the spacious front porch of Hotel Alhambra overlooking the parque.

“You can feast on tender beef and tasty chicken dishes,” says Logan.

After dinner she says, “It’s a good idea to pop into the Internet cafe in back of the hotel where they sell Eskimo ice cream treats.” (Cafe Deliet: Costado Oeste, Hotel Alhambra; 505-552-4486; dinner for two $40 with wine.)

Another way to avoid the heat that begins to build toward noon is to head to the surrounding nature park

A number of eco-excursion companies have sprung up, each one prepared to take you to the upper reaches of the Mombacho volcano cloud forest.

Mombacho hasn’t erupted in centuries and has become a nature preserve inhabited by howler monkeys, and some say, small jungle cats.

© Copyright (c) canada.com

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August 20, 2009 by sacuanjoche.

Discovering Nicaragua’s Atlantic Coast

Matt Nager

Published: 20090610

This little-visited region offers untouched beaches and indigenous cultures.

Posted in NYT, photos, Link, on internet, travel, News | Print | No Comments »